Bristow Group Reports Financial Results for Its 2011 Third Fiscal Quarter and Nine-Month Period Ended December 31, 2010

-- $1.13 DILUTED EPS ON NET INCOME OF $41.8 MILLION, UP $0.39, A 53% INCREASE OVER THE PRIOR YEAR QUARTER.

-- $46.6 MILLION IN OPERATING INCOME, A 17% INCREASE OVER THE PRIOR YEAR QUARTER DUE TO OPERATIONAL IMPROVEMENT IN OTHER INTERNATIONAL, EUROPE, WEST AFRICA AND NORTH AMERICA BUSINESS UNITS.

-- REVERSAL OF DEFERRED TAX LIABILITIES AS A RESULT OF THE COMPLETION OF GLOBAL RESTRUCTURING OF BRISTOW'S OPERATIONS AS PART OF THE CONTINUING IMPLEMENTATION OF OUR GLOBAL BUSINESS STRATEGY.

HOUSTON, Feb. 2, 2011 /PRNewswire/ -- Bristow Group Inc. (NYSE: BRS) today reported a 57% increase in net income for the three months ended December 31, 2010 to $41.8 million, or $1.13 per diluted share, compared to $26.7 million, or $0.74 per diluted share, in the December 2009 quarter.  The quarter benefited from year-over-year improvement in the underlying operations and a significant reduction in our effective tax rate primarily resulting from the reversal of deferred tax liabilities recorded in prior fiscal years, which was driven by a global restructuring of Bristow's operations as part of the continuing implementation of our global business strategy.

Revenue for the three months ended December 31, 2010 totaled $317.9 million compared to $303.3 million in the same period a year ago.  Earnings before interest, taxes, depreciation and amortization ("EBITDA") totaled $65.6 million compared to $64.4 million in the December 2009 quarter.  Results benefited from revenue increases in the following business units: Other International (primarily Brazil, Suriname and Russia), Australia and Europe compared to the same quarter a year ago, primarily driven by the addition of new contracts and increases in both price and activity for certain customers.  These increases were partially offset by a lower level of gain (loss) on disposal of assets year-over-year.

Excluding the special items discussed below and the gain (loss) on disposal of assets, our operating income, EBITDA, net income and diluted earnings per share totaled $43.2 million, $64.4 million, $26.3 million and $0.71, respectively, for the three months ended December 31, 2010, and $39.0 million, $60.9 million, $23.8 million and $0.66, respectively, for the three months ended December 31, 2009.  

"As we discussed last quarter, Bristow continued to see improvement in our operational results during our third fiscal quarter," said William E. Chiles, President and Chief Executive Officer of Bristow Group.  "The underlying performance of our business continues to be strong with improving operating margins year-over-year in a majority of our business units.  The amendment to our credit facility completed during the quarter almost doubles our liquidity position while lowering the overall cost of debt.  When combined with the commercial and tax benefits realized as a part of the recent reorganization, our financial results are demonstrating the benefit of the Bristow global team's efforts to deliver on our promises.  

"As we go into the final quarter of this fiscal year, we continue to expect revenue and earnings per share for the current fiscal year to be stronger than fiscal year 2010 as additional newer-technology aircraft go to work for our customers and we focus on improving returns and lowering our after tax cost of capital.  We continue to anticipate a stronger second half compared to the first half of fiscal year 2011," Chiles added.

THIRD QUARTER FY2011 RESULTS

    --  Revenue totaled $317.9 million compared to $303.3 million in same period
        a year ago.
    --  Operating income totaled $46.6 million compared to $39.7 million in the
        December 2009 quarter.
    --  EBITDA totaled $65.6 million compared to $64.4 million in the December
        2009 quarter. EBITDA is a measure that has not been prepared in
        accordance with Accounting Principles Generally Accepted in the United
        States of America ("GAAP"). Please refer to disclosures contained at the
        end of this news release for additional information about EBITDA.
    --  Net income totaled $41.8 million, or $1.13 per diluted share, compared
        to $26.7 million, or $0.74 per diluted share, in the December 2009
        quarter.


Our results for the three months ended December 31, 2010 were significantly affected by the following items:

    --  A reduction in maintenance expense (included in direct cost) associated
        with a credit resulting from the renegotiation of a "power-by-the-hour"
        contract for aircraft maintenance with a third party provider, which
        increased operating income and EBITDA by $3.5 million, net income by
        $2.9 million and diluted earnings per share by $0.08.
    --  The early retirement of the 6 1/8% Senior Notes, which resulted in a
        $2.3 million early redemption premium (included in other income
        (expense), net) and the non-cash write-off of $2.4 million of
        unamortized debt issuance costs (included in interest expense) and
        decreased EBITDA by $2.3 million, net income by $4.0 million and diluted
        earnings per share by $0.11.
    --  A reduction in tax expense primarily related to adjustments to deferred
        tax liabilities that were no longer required as a result of the
        restructuring during the three months ended December 31, 2010, which
        increased net income by $16.6 million and diluted earnings per share by
        $0.45.


Our results for the three months ended December 31, 2009 were significantly affected by the following items:

    --  Compensation expense included in general and administrative expense
        incurred in connection with the departure of two of the Company's
        officers, which decreased operating income and EBITDA by $1.7 million,
        net income by $1.4 million and diluted earnings per share by $0.04.
    --  Hedging gains included in other income (expense), net resulting from the
        termination of forward contracts on euro-denominated aircraft purchase
        commitments which increased EBITDA by $2.8 million, net income by $2.3
        million and diluted earnings per share by $0.06.


During the December 2010 quarter, we experienced a small loss on the sale of aircraft compared to gains during the December 2009 quarter of $2.4 million; however, we continue to see opportunities for sale of our aircraft in the aftermarket.  

Our Europe business unit added three new customers, which along with higher equity earnings from our military training unconsolidated affiliate, FB Heliservices Limited, price escalations under existing contracts and renegotiated rates on contract renewals, increased our operating margin in this market.

Our North America business unit continued to benefit during the quarter from contracts with BP in the U.S. Gulf of Mexico despite a decline in the number of aircraft supporting well control and spill cleanup efforts from five at the end of September to three at the end of December.  This work mostly offset lost business from customers stalled by the deepwater moratorium, which has now been lifted.  A decrease in costs in this market resulted in a slight increase in operating margin.

Our West Africa business was impacted by the loss of a major customer in this market.  However, lower operating expense combined with the addition of new contracts, increased rates on existing contracts and fewer flight delay penalties resulted in improved operating margin.  We are continuing to seek permanent work to replace the earnings associated with the lost work with the major customer.

Our Australia business unit was impacted by higher compensation costs and increased depreciation expense, which despite a favorable impact from exchange rate changes, resulted in decreased operating earnings and margin.

Our Other International business unit's operating margin improved substantially as a result of increased revenue in Brazil, the Baltic Sea, Suriname, Ghana and Russia.  Additionally, our earnings from our affiliates in Brazil and Mexico improved over the prior year quarter.  

YEAR-TO-DATE RESULTS THROUGH DECEMBER 31, 2010

    --  Revenue totaled $922.7 million compared to $885.4 million for the same
        period a year ago.
    --  Operating income was $139.9 million compared to $138.1 million for the
        nine months ended December 31, 2009.
    --  EBITDA totaled $200.0 million compared to $200.2 million for the nine
        months ended December 31, 2009.
    --  Net income totaled $101.4 million, or $2.77 per diluted share, compared
        to $83.6 million, or $2.32 per diluted share, for the nine months ended
        December 31, 2009.


Our year-to-date results through December 31, 2010 benefitted from revenue increases in Australia, Europe, West Africa, North America and Other International compared to the same period a year ago, which was driven by the addition of new contracts and increases in rates on existing contracts in excess of reduced activity for certain customers.  

Our results for the nine months ended December 31, 2010 were significantly affected by the following items:

    --  A reduction in maintenance expense (included in direct cost) associated
        with a credit resulting from the renegotiation of a "power-by-the-hour"
        contract for aircraft maintenance with a third party provider, which
        increased operating income and EBITDA by $3.5 million, net income by
        $2.9 million and diluted earnings per share by $0.08.
    --  The early retirement of the 6 1/8% Senior Notes, which resulted in a
        $2.3 million early redemption premium (included in other income
        (expense) net) and the non-cash write-off of $2.4 million of unamortized
        debt issuance costs (included in interest expense) and decreased EBITDA
        by $2.3 million, net income by $3.9 million and diluted earnings per
        share by $0.11.
    --  A reduction in tax expense primarily related to adjustments to deferred
        tax liabilities that were no longer required as a result of the
        restructuring during the three months ended December 31, 2010, which
        increased net income by $17.3 million and diluted earnings per share by
        $0.47.


Our results for the nine months ended December 31, 2009 were significantly affected by the following items:

    --  Compensation expense included in general and administrative expense
        incurred in connection with the departure of three of the Company's
        officers, which decreased operating income and EBITDA by $4.9 million,
        net income by $3.9 million and diluted earnings per share by $0.11.
    --  Hedging gains included in other income (expense), net resulting from the
        termination of forward contracts on euro-denominated aircraft purchase
        commitments which increased EBITDA by $3.9 million, net income by $3.0
        million and diluted earnings per share by $0.08.
    --  An increase in tax expense resulting from tax contingency items and
        changes in our expected foreign tax credit utilization, which decreased
        net income by $5.2 million and diluted earnings per share by $0.14.


During the December 2010 quarter, we experienced lower gain on aircraft sales, which totaled $3.6 million compared to $13.3 million in the prior year period.  

Excluding these items listed above and gain on disposal of assets in both periods, our operating income, EBITDA, net income and diluted earnings per share totaled $132.8 million, $195.2 million, $82.1 million and $2.24, respectively, for the nine months ended December 31, 2010, and $129.6 million, $187.8 million, $78.9 million and $2.19, respectively, for the nine months ended December 31, 2009.  

CAPITAL AND LIQUIDITY

For the nine months ended December 31, 2010, net cash generated by operating activities was $115.4 million and net cash used in investing activities was $103.3 million.  At December 31, 2010, we had:

    --  $1.5 billion in stockholders' investment and $725.5 million of
        indebtedness,
    --  $232.9 million in total liquidity consisting of $100.9 million in cash
        and a $132 million undrawn under our revolving credit facility, and
    --  $105.3 million in aircraft purchase commitments for nine aircraft.


During the December 2010 quarter, we completed the amendment to our bank credit facility, extending the facility for five years and increasing the amount of the facility to $375 million.  The facility consists of a $200 million term loan and a $175 million revolver.  We used proceeds of the term loan and $43 million drawn on the revolver to primarily redeem our 6 1/8% Senior Notes early in December 2010.

CONFERENCE CALL

Management will conduct a conference call starting at 10:00 a.m. ET (9:00 a.m. CT) on Thursday, February 3, 2011, to review financial results for the fiscal 2011 third quarter.  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 2011 Third 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 1-877-941-2333
    --  Replay: A telephone replay will be available through February 17 and may
        be accessed by calling toll free 1-800-406-7325, passcode: 4401176#


Via Telephone outside the U.S.:

    --  Live: Dial 480-629-9723
    --  Replay: A telephone replay will be available through February 17 and may
        be accessed by calling 303-590-3030, passcode: 4401176#


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, Mexico, 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 the impact of activity levels including, business performance, fiscal 2011 results 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 and nine months ended December 31, 2010 and annual report on Form 10-K for the fiscal year ended March 31, 2010.  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



                              Three Months Ended       Nine Months Ended

                              December 31,             December 31,

                                2010        2009         2010        2009

                              (Unaudited)

                              (In thousands, except per share amounts)

Gross revenue:

 Operating revenue from
 non-affiliates               $ 264,064   $ 260,907    $ 788,711   $ 757,440

 Operating revenue from
 affiliates                     18,543      14,581       52,442      46,643

 Reimbursable revenue from
 non-affiliates                 34,918      27,615       80,914      78,214

 Reimbursable revenue from
 affiliates                     344         203          599         3,076

                                317,869     303,306      922,666     885,373

Operating expense:

 Direct cost                    186,937     189,456      559,211     543,525

 Reimbursable expense           34,548      28,219       79,746      81,180

 Depreciation and
 amortization                   21,338      20,663       61,637      57,319

 General and administrative     33,715      30,758       95,132      89,246

                                276,538     269,096      795,726     771,270



Gain (loss) on disposal of
assets                          (33)        2,448        3,582       13,337

Earnings from unconsolidated
affiliates, net of losses       5,341       3,068        9,355       10,625

 Operating income               46,639      39,726       139,877     138,065



Interest income                 417         365          877         797

Interest expense                (13,773)    (10,979)     (36,263)    (31,631)

Other income (expense), net     (2,792)     3,695        (2,388)     4,023

 Income before provision for
 income taxes                   30,491      32,807       102,103     111,254

(Provision for) benefit from
income taxes                    11,823      (5,681)      (33)        (26,427)

 Net income                     42,314      27,126       102,070     84,827

 Net income attributable to
 noncontrolling interests       (555)       (448)        (623)       (1,256)

 Net income attributable to
 Bristow Group                  41,759      26,678       101,447     83,571

 Preferred stock dividends      —         —          —         (6,325)

 Net income available to
 common stockholders          $ 41,759    $ 26,678     $ 101,447   $ 77,246



Earnings per common share:

 Basic                        $ 1.15      $ 0.74       $ 2.82      $ 2.43

 Diluted                      $ 1.13      $ 0.74       $ 2.77      $ 2.32








BRISTOW GROUP INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS



                                                   December 31,  March 31,

                                                   2010          2010

                                                   (Unaudited)

                                                   (In thousands)

ASSETS

Current assets:

  Cash and cash equivalents                        $ 100,863     $ 77,793

  Accounts receivable from non-affiliates, net of
  allowance for doubtful accounts of $0.7 million
  and $0.2 million, respectively                     233,730       203,312

  Accounts receivable from affiliates, net of
  allowance for doubtful accounts of $5.6 million

  and $4.7 million, respectively                     20,915        16,955

  Inventories                                        195,537       186,863

  Prepaid expenses and other current assets          38,292        31,448

   Total current assets                              589,337       516,371

Investment in unconsolidated affiliates              206,139       204,863

Property and equipment – at cost:

  Land and buildings                                 96,593        86,826

  Aircraft and equipment                             2,141,804     2,036,962

                                                     2,238,397     2,123,788

  Less – Accumulated depreciation and
  amortization                                       (450,897)     (404,443)

                                                     1,787,500     1,719,345

Goodwill                                             31,636        31,755

Other assets                                         24,124        22,286

                                                   $ 2,638,736   $ 2,494,620



LIABILITIES AND STOCKHOLDERS' INVESTMENT

Current liabilities:

  Accounts payable                                 $ 47,068      $ 48,545

  Accrued wages, benefits and related taxes          41,877        35,835

  Income taxes payable                               —           2,009

  Other accrued taxes                                2,851         3,056

  Deferred revenue                                   8,009         19,321

  Accrued maintenance and repairs                    15,035        10,828

  Accrued interest                                   8,143         6,430

  Other accrued liabilities                          19,304        14,508

  Deferred taxes                                     13,268        10,217

  Short-term borrowings and current maturities of
  long-term debt                                     8,039         15,366

   Total current liabilities                         163,594       166,115

Long-term debt, less current maturities              717,469       701,195

Accrued pension liabilities                          112,248       106,573

Other liabilities and deferred credits               32,107        20,842

Deferred taxes                                       137,189       143,324

Commitments and contingencies (Note 5)

Stockholders' investment:

  Common stock, $.01 par value, authorized
  90,000,000; outstanding: 36,289,089 as

  of December 31 and 35,954,040 as of March 31
  (exclusive of 1,291,325 treasury shares)           363           359

  Additional paid-in capital                         686,952       677,397

  Retained earnings                                  920,792       820,145

  Accumulated other comprehensive loss               (138,687)     (148,102)

                                                     1,469,420     1,349,799

  Noncontrolling interests                           6,709         6,772

                                                     1,476,129     1,356,571

                                                   $ 2,638,736   $ 2,494,620








BRISTOW GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS



                                                      Nine Months Ended

                                                      December 31,

                                                      2010         2009

                                                      (Unaudited)

                                                      (In thousands)

Cash flows from operating activities:

 Net income                                           $ 102,070    $ 84,827

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

 Depreciation and amortization                          61,637       57,319

 Deferred income taxes                                  (3,648)      18,892

 Discount amortization on long-term debt                2,360        2,213

 Gain on disposal of assets                             (3,582)      (13,337)

 Gain on sales of joint ventures                        (572)        —

 Stock-based compensation                               10,763       9,914

 Equity in earnings from unconsolidated affiliates
 less than (in excess of) dividends received            (1,447)      (6,853)

 Tax benefit related to stock-based compensation        (230)        (409)

Increase (decrease) in cash resulting from changes
in:

 Accounts receivable                                    (26,514)     794

 Inventories                                            (6,414)      (11,382)

 Prepaid expenses and other assets                      (8,365)      14,555

 Accounts payable                                       (3,546)      4,638

 Accrued liabilities                                    (5,340)      3,216

 Other liabilities and deferred credits                 (1,773)      (1,370)

Net cash provided by operating activities               115,399      163,017

Cash flows from investing activities:

 Capital expenditures                                   (122,748)    (250,272)

 Deposits on assets held for sale                       1,000        —

 Proceeds from sales of joint ventures                  1,291        —

 Proceeds from asset dispositions                       17,175       74,973

 Acquisition, net of cash received                      —          (178,961)

Net cash used in investing activities                   (103,282)    (354,260)

Cash flows from financing activities:

 Proceeds from borrowings                               253,013      —

 Debt issuance costs                                    (3,339)      —

 Repayment of debt                                      (246,553)    (10,068)

 Distribution to noncontrolling interest owners         (637)        —

 Partial prepayment of put/call obligation              (44)         (52)

 Acquisition of noncontrolling interest                 (800)        —

 Preferred stock dividends paid                         —          (6,325)

 Issuance of common stock                               754          1,336

 Tax benefit related to stock-based compensation        230          409

Net cash provided by (used in) financing activities     2,624        (14,700)

Effect of exchange rate changes on cash and cash
equivalents                                             8,329        12,033

Net increase (decrease) in cash and cash equivalents    23,070       (193,910)

Cash and cash equivalents at beginning of period        77,793       300,969

Cash and cash equivalents at end of period            $ 100,863    $ 107,059










BRISTOW GROUP INC. AND SUBSIDIARIES

SELECTED OPERATING DATA

(In thousands, except flight hours and percentages)

(Unaudited)



                          Three Months Ended      Nine Months Ended

                          December 31,            December 31,

                          2010        2009        2010        2009

Gross revenue:

Europe                    $ 129,828   $ 119,290   $ 349,114   $ 348,268

North America               45,629      45,684      153,721     144,277

West Africa                 53,725      58,736      170,931     165,005

Australia                   41,440      38,188      114,095     96,684

Other International         41,865      33,345      110,979     103,346

Corporate and other         6,393       8,464       25,656      31,642

Intrasegment eliminations   (1,011)     (401)       (1,830)     (3,849)

Consolidated total        $ 317,869   $ 303,306   $ 922,666   $ 885,373










Operating income (loss):

Europe                    $ 25,470     $ 19,239     $ 65,381     $ 58,080

North America               1,917        1,511        16,129       10,653

West Africa                 15,995       14,913       48,789       43,640

Australia                   7,139        9,358        21,185       22,025

Other International         11,595       5,181        24,962       25,371

Corporate and other         (15,444)     (12,924)     (40,151)     (35,041)

Gain on disposal of other
assets                      (33)         2,448        3,582        13,337

Consolidated total        $ 46,639     $ 39,726     $ 139,877    $ 138,065










Operating margin:

Europe               19.6 %  16.1 %  18.7 %  16.7 %

North America        4.2  %  3.3  %  10.5 %  7.4  %

West Africa          29.8 %  25.4 %  28.5 %  26.4 %

Australia            17.2 %  24.5 %  18.6 %  22.8 %

Other International  27.7 %  15.5 %  22.5 %  24.5 %

Consolidated total   14.7 %  13.1 %  15.2 %  15.6 %










Flight hours (excludes Bristow Academy
and

unconsolidated affiliates):

Europe                                  13,676    13,597    41,075     42,694

North America                           20,079    17,712    64,762     61,044

West Africa                             9,885     9,175     29,217     26,595

Australia                               3,234     3,304     9,793      8,978

Other International                     11,417    10,734    35,471     33,669

Consolidated total                      58,291    54,522    180,318    172,980









BRISTOW GROUP INC. AND SUBSIDIARIES

AIRCRAFT COUNT

AS OF DECEMBER 31, 2010



               Aircraft in Consolidated Fleet

               Helicopters

                                                          Total  Unconsolidated
               Small  Medium  Large  Training  FixedWing  (1)    Affiliates(2)   Total

Europe         —    16      40     —       —        56     63              119

North America  72     27      5      —       —        104    —             104

West Africa    12     26      5      —       3          46     —             46

Australia      3      14      18     —       —        35     —             35

Other
International  5      43      12     —       —        60     133             193

Corporate and
other          —    —     —    77        —        77     —             77

Total          92     126     80     77        3          378    196             574

Aircraft not
currently in
fleet:(3)

On order       —    3       6      —       —        9

Under option   —    25      9      —       —        34







_________




(1) Includes 14 aircraft held for sale.



    The 196 aircraft operated or managed by our unconsolidated affiliates are
(2) in addition to those aircraft leased from us.



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








BRISTOW GROUP INC. AND SUBSIDIARIES

GAAP RECONCILIATIONS





EBITDA is a measure that has not been prepared in accordance with GAAP and has not been audited or reviewed by our independent auditors.  EBITDA is therefore considered a non-GAAP financial measure.  A description of adjustments and a reconciliation to net income, the most comparable GAAP financial measure to EBITDA, is as follows (in thousands):




                              Three Months Ended      Nine Months Ended

                              December 31,            December 31,

                              2010         2009       2010        2009

                              (Unaudited)

Net income                    $ 42,314     $ 27,126   $ 102,070   $ 84,827

Provision for (benefit from)
income taxes                    (11,823)     5,681      33          26,427

Interest expense                13,773       10,979     36,263      31,631

Depreciation and amortization   21,338       20,663     61,637      57,319

EBITDA                        $ 65,602     $ 64,449   $ 200,003   $ 200,204







A reconciliation of our operating income, EBITDA, net income and diluted earnings per share as reported to the calculations of each of these items excluding certain amounts described earlier in this earnings release is as follows:  





           Three Months Ended                              Nine Months Ended

           December 31, 2010                               December 31, 2010

                                                 Diluted                                         Diluted

                                                 Earnings                                        Earnings

                                                 Per                                             Per
             Operating               Net                     Operating               Net
             Income       EBITDA     Income      Share       Income       EBITDA     Income      Share

           (Unaudited)

           (In thousands, except per share amounts)

As
reported   $ 46,639     $ 65,602   $ 41,759    $ 1.13      $ 139,877    $ 200,003  $ 101,447   $ 2.77

Adjust
for:

Power-by-

the-hour

credit       (3,500)      (3,500)    (2,894)   $ (0.08)      (3,500)      (3,500)    (2,904)   $ (0.08)

Retirement

of 6 1/8%

Senior

Notes        -            2,300      3,966     $ 0.11        -            2,300      3,900     $ 0.11

Tax items    -            -          (16,573)  $ (0.45)      -            -          (17,338)  $ (0.47)

Loss

(gain) on

disposal

of assets    33           33         27        $ -           (3,582)      (3,582)    (2,972)   $ (0.08)

Adjusted   $ 43,172     $ 64,435   $ 26,285    $ 0.71      $ 132,795    $ 195,221  $ 82,133    $ 2.24









          Three Months Ended                             Nine Months Ended

          December 31, 2009                              December 31, 2009

                                               Diluted                                          Diluted

                                               Earnings                                         Earnings

                                               Per                                              Per
            Operating               Net                    Operating                Net
            Income       EBITDA     Income     Share       Income       EBITDA      Income      Share

          (Unaudited)

          (In thousands, except per share amounts)

As
reported  $ 39,726     $ 64,449   $ 26,678   $ 0.74      $ 138,065    $ 200,204   $ 83,571    $ 2.32

Adjust
for:

Officer

severance

costs       1,744        1,744      1,442    $ 0.04        4,874        4,874       3,944     $ 0.11

Hedging

gains       -            (2,804)    (2,318)  $ (0.06)      -            (3,936)     (3,001)   $ (0.08)

Tax items   -            -          -        $ -           -            -           5,200     $ 0.14

Gain on

disposal

of assets   (2,448)      (2,448)    (2,024)  $ (0.06)      (13,337)     (13,337)    (10,792)  $ (0.30)

Adjusted  $ 39,022     $ 60,941   $ 23,778   $ 0.66      $ 129,602    $ 187,805   $ 78,922    $ 2.19







SOURCE Bristow Group Inc.