Bristow Group Reports Fiscal 2010 First Quarter Financial Results
HOUSTON, Aug. 6 /PRNewswire-FirstCall/ -- Bristow Group Inc. (NYSE: BRS) today reported financial results for its fiscal 2010 first quarter ended June 30, 2009.
Highlights include:
-- Revenue of $290.5 million, an increase of 2% from the June 2008 quarter
and 6% from the March 2009 quarter.
-- Operating income of $44.8 million, an increase of 14% from the June 2008
quarter and a decrease of 6% from the March 2009 quarter.
-- Net income of $23.7 million, a 5% increase from the June 2008 quarter
and an 8% decrease from the March 2009 quarter.
-- Diluted earnings per share of $0.66, a decrease versus the June 2008 and
March 2009 quarters.
-- Net cash generated by operating activities was $35 million in the June
2009 quarter.
-- On May 26, 2009, we acquired a 42.5% interest in Lider Aviacao Holding
S.A. ("Lider"), the largest provider of helicopter services in
Brazil, which contributed $1.3 million to operating income in the June
2009 quarter.
-- Our results for the June 2009 quarter were impacted by following
significant items:
-- An increase in severance costs primarily driven by the departure of
an executive officer that resulted in decreases in operating income
of $4.2 million, net income of $3.0 million and diluted earnings per
share of $0.08.
-- Earnings recognized from our investment in Lider that increased
operating income by $1.3 million, net income by $0.9 million and
diluted earnings per share by $0.03.
-- Changes in foreign currency exchange rates, which when compared to
rates in the June 2008 quarter resulted in decreases in revenue of
$35.0 million, operating income of $3.0 million, net income of $3.5
million and diluted earnings per share of $0.10, and when compared
to rates in the March 2009 quarter resulted in increases in revenue
of $10.8 million and operating income of $2.6 million, but had
little impact on net income and diluted earnings per share.
-- Items that occurred in the June 2008 quarter which affect the
comparability of our financial results include:
-- The reorganization of our operations in Mexico that increased
operating income by $4.4 million, net income by $3.7 million and
diluted earnings per share by $0.12.
-- An increase in Australia's compensation costs due to
adjustments in employee tax and leave accruals relating to prior
periods that resulted in a decrease of operating income of $1.3
million, net income of $0.9 million and diluted earnings per share
of $0.03.
-- Inventory charges in the Eastern Hemisphere ("EH")
Centralized Operations business unit that decreased operating income
by $2.0 million, net income by $1.4 million and diluted earnings per
share by $0.04.
-- Items that occurred in the March 2009 quarter which affect the
comparability of our financial results include:
-- The net reduction in expense in Australia upon resolution of a local
tax matter, which was partially offset by expense recorded for other
local tax matters. These items collectively resulted in an increase
in operating income of $1.3 million, net income of $0.8 million and
diluted earnings per share of $0.02.
-- A reduction in maintenance expense in our EH Centralized Operations
business unit 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 by $6.8 million, net income by $4.4 million and
diluted earnings per share by $0.12.
-- An increase in our overall effective tax rate to 35.0% resulting
from a one time provision for potential foreign taxes and a
settlement of tax contingencies related to certain foreign income
taxes, which decreased net income by $4.7 million and diluted
earnings per share by $0.13.
Capital and Liquidity
-- At June 30, 2009, key balance sheet items, capital commitments and
liquidity sources were:
-- $1.3 billion in stockholders' investment and $724 million of
indebtedness.
-- $138 million in cash and a $100 million undrawn revolving credit
facility.
-- $169 million in aircraft purchase commitments for 17 aircraft.
CEO Remarks
"Despite the current global economic situation and the impact on our industry, we are pleased with our June 2009 quarter results as we continue to experience good activity levels in a number of markets including Nigeria, the North Sea and Brazil. In Nigeria, activity levels continue to be strong despite a challenging political environment. In the North Sea, results were strong due to a temporary increase in ad hoc flying and other short-term contracts, as well as improved margins for Bristow Norway. In Brazil, our fiscal first quarter results included a contribution from our recent investment in Lider. Our results for the U.S. Gulf of Mexico were comparable to the March 2009 quarter, and were not impacted to the degree that other service companies have experienced. This is driven by our efforts to retain stable pricing and upgrade our fleet to larger, more efficient and more profitable aircraft," said William E. Chiles, President and Chief Executive Officer of Bristow Group.
"We continue to operate in a challenging economic and industry environment with significant volatility in energy prices, which has a direct impact on our customers' activity levels and translates into uncertainty in our business. However, we believe we are properly positioned and have the liquidity and financial flexibility to weather this uncertain market," Chiles concluded.
CONFERENCE CALL
Management will conduct a conference call starting at 10:00 a.m. EDT (9:00 a.m. CDT) on Thursday, August 6, 2009, to review financial results for the June 2009 quarter. 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 2010 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 (877) 941-8631
-- Replay: A telephone replay will be available through August 20, 2009 and
may be accessed by calling toll free (800) 406-7325, passcode: 4114028#
Via Telephone outside the U.S.:
-- Live: Dial (480) 629-9819
-- Replay: A telephone replay will be available through August 20, 2009 and
may be accessed by calling (303) 590-3030, passcode: 4114028#
ABOUT BRISTOW GROUP INC.
Bristow Group Inc. is a leading provider of helicopter services to the worldwide offshore energy industry. Through its subsidiaries, affiliates and joint ventures, the Company has major transportation operations in the U.S. Gulf of Mexico and the North Sea, and in most of the other major offshore oil and gas producing regions of the world, including Alaska, Australia, Brazil, Mexico, Nigeria, Norway 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, commodity prices, market conditions, liquidity and financial flexibility. 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, 2009 and annual report on Form 10-K for the fiscal year ended March 31, 2009. 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.
(financial tables follow)
Beginning in the June 2009 quarter, the following changes in presentation have been reflected:
-- Gain on disposal of assets which was previously included within
operating expense has been reclassified to be included as a separate
line below operating expense, but still within operating income. We
believe that this presentation is preferable in order to provide a
clearer presentation of our operating expenses.
-- Earnings from unconsolidated affiliates which were previously excluded
from operating income are now included in this section. We believe that
this presentation is preferable as the operations of our unconsolidated
affiliates are integral to our operations.
-- With respect to our segment information, there is no longer a Southeast
Asia business unit. Australia is now a separate business unit and
Malaysia, China and Vietnam are now included in the Other International
business unit. Additionally, we previously recorded certain cost
reimbursement intercompany transactions between the EH Centralized
Operations business unit and other business units as intrasegment
revenue. We have reclassified these cost reimbursements from revenue to
a reduction in expense.
-- We adopted Financial Accounting Standards Board Staff Position
("FSP") Accounting Principles Board 14-1, "Accounting for
Convertible Debt Instruments That May Be Settled in Cash upon
Conversion." This FSP requires that convertible debt instruments
that may be settled in cash upon conversion (including partial cash
settlement) be accounted for with a liability component based on the
fair value of a similar nonconvertible debt instrument and an equity
component based on the excess of the initial proceeds from the
convertible debt instrument over the liability component. Such excess
represents proceeds related to the conversion option and is recorded as
accumulated paid in capital. The liability is recorded at a discount,
which is then amortized as additional non-cash interest expense over the
convertible debt instrument's remaining life. Additionally, this
FSP requires our bifurcation of the debt issuance costs into a component
of debt and equity. Our adoption of this FSP has been applied
retrospectively to all past periods presented for our 3% Convertible
Senior Notes issued in June 2008 which are subject to this FSP.
-- We adopted Statement of Financial Accounting Standards
("SFAS") No. 160, "Noncontrolling Interests in
Consolidated Financial Statements - An Amendment of ARB No. 51,"
that changed the accounting and reporting for minority interests. Upon
adoption of SFAS No. 160, we have presented noncontrolling interest as
stockholders' investment on our consolidated balance sheet as of
March 31 and June 30, 2009 and presented net income attributable to
noncontrolling interests separately on our consolidated statements of
income for the three months ended June 30, 2008 and 2009. Prior year
amounts were previously included in mezzanine stockholders'
investment and minority interest expense on our consolidated balance
sheets and consolidated statements of income, respectively.
In addition to statement of income and segment information for the three months ended June 30, 2008 and 2009, we have presented in the tables below the revised statements of income and segment information for the quarters ended September 30, 2008, December 31, 2008 and March 31, 2009 based on this new presentation and the retroactive adoption of the accounting standards discussed above.
BRISTOW GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
------------------
June 30, Sept. 30, Dec. 31, March 31, June 30,
2008 2008 2008 2009 2009
---- ---- ---- ---- ----
Gross revenue:
Operating revenue
from non-
affiliates $241,134 $248,526 $236,491 $237,909 $248,891
Operating revenue
from affiliates 17,270 18,430 16,792 12,412 14,602
Reimbursable revenue
from non-
affiliates 24,371 23,208 28,617 23,412 25,853
Reimbursable revenue
from affiliates 1,348 1,524 1,087 1,272 1,106
----- ----- ----- ----- -----
284,123 291,688 282,987 275,005 290,452
------- ------- ------- ------- -------
Operating expense:
Direct cost 186,973 188,393 176,038 166,971 180,677
Reimbursable
expense 26,067 24,681 28,689 23,550 26,657
Depreciation and
amortization 14,955 15,485 16,663 18,411 18,186
General and
administrative 27,206 25,984 25,586 24,880 28,802
------ ------ ------ ------ ------
255,201 254,543 246,976 233,812 254,322
------- ------- ------- ------- -------
Gain on disposal
of assets 2,665 3,302 37,678 1,660 6,009
Earnings from
unconsolidated
affiliates, net of
losses 7,723 1,971 (1,417) 4,947 2,633
----- ----- ----- ----- -----
Operating income 39,310 42,418 72,272 47,800 44,772
Interest income 1,447 3,205 1,087 265 222
Interest expense (8,602) (9,065) (8,276) (9,207) (10,012)
Other income
(expense), net 1,692 2,070 (1,522) 1,128 (1,481)
----- ----- ----- ----- -----
Income before
provision for
income taxes 33,847 38,628 63,561 39,986 33,501
Provision for
income taxes (10,564) (10,069) (15,861) (14,000) (9,510)
------- ------- ------- ------- ------
Income from
continuing
operations 23,283 28,559 47,700 25,986 23,991
Net income
attributable to
noncontrolling
interests (703) (952) (535) (137) (268)
---- ---- ---- ---- ----
Net income
from continuing
operations
attributable to
Bristow 22,580 27,607 47,165 25,849 23,723
Discontinued
operations:
Loss from
discontinued
operations before
provision for
income taxes - (379) - - -
Provision for
income taxes on
discontinued
operations - 133 - - -
--- --- --- --- ---
Loss from
discontinued
operations - (246) - - -
--- --- --- --- ---
Net income
attributable to
Bristow 22,580 27,361 47,165 25,849 23,723
Preferred stock
dividends (3,162) (3,163) (3,162) (3,163) (3,162)
------ ------ ------ ------ ------
Net income
available to
common
stockholders $19,418 $24,198 $44,003 $22,686 $20,561
======= ======= ======= ======= =======
Basic earnings
per common share:
Earnings from
continuing
operations $0.78 $0.84 $1.51 $0.78 $0.71
Loss from
discontinued
operations - (0.01) - - -
--- ----- --- --- ---
Net earnings $0.78 $0.83 $1.51 $0.78 $0.71
===== ===== ===== ===== =====
Diluted earnings
per common share:
Earnings from
continuing
operations $0.72 $0.77 $1.32 $0.72 $0.66
Loss from
discontinued
operations - - - - -
--- --- --- --- ---
Net earnings $0.72 $0.77 $1.32 $0.72 $0.66
===== ===== ===== ===== =====
Weighted average
number of common
shares
outstanding:
Basic 24,848 29,085 29,101 29,110 29,133
Diluted 31,552 35,636 35,628 35,748 35,782
BRISTOW GROUP INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, June 30,
2009 2009
---- ----
ASSETS
Current assets:
Cash and cash equivalents $300,969 $138,295
Accounts receivable from non-affiliates 194,030 208,481
Accounts receivable from affiliates 22,644 23,580
Inventories 165,438 184,190
Prepaid expenses and other assets 20,226 58,856
------ ------
Total current assets 703,307 613,402
Investment in unconsolidated affiliates 20,265 199,734
Property and equipment - at cost:
Land and buildings 68,961 75,277
Aircraft and equipment 1,823,011 1,877,295
--------- ---------
1,891,972 1,952,572
Less - Accumulated depreciation and
amortization (350,515) (378,846)
-------- --------
1,541,457 1,573,726
Goodwill 44,654 46,808
Other assets 24,888 24,409
------ ------
$2,334,571 $2,458,079
========== ==========
LIABILITIES AND STOCKHOLDERS' INVESTMENT
Current liabilities:
Accounts payable $44,892 $61,490
Accrued wages, benefits and related taxes 39,939 28,996
Income taxes payable - 551
Other accrued taxes 3,357 2,654
Deferred revenues 17,593 18,872
Accrued maintenance and repairs 10,317 10,934
Accrued interest 6,434 8,608
Deposits on assets held for sale - 23,764
Other accrued liabilities 20,164 21,545
Deferred taxes 6,195 11,042
Short-term borrowings and
current maturities of long-term debt 8,948 8,953
----- -----
Total current liabilities 157,839 197,409
Long-term debt, less current maturities 714,965 714,553
Accrued pension liabilities 81,380 96,384
Other liabilities and deferred credits 16,741 18,061
Deferred taxes 127,266 133,138
Commitments and contingencies
Stockholders' investment:
5.50% mandatory convertible
preferred stock 222,554 222,554
Common stock 291 293
Additional paid-in capital 436,296 439,712
Retained earnings 718,493 739,054
Noncontrolling interests 11,200 11,811
Accumulated other comprehensive loss (152,454) (114,890)
-------- --------
1,236,380 1,298,534
--------- ---------
$2,334,571 $2,458,079
========== ==========
BRISTOW GROUP INC. AND SUBSIDIARIES
SELECTED OPERATING DATA
(In thousands, except flight hours and percentages)
(Unaudited)
Three Months Ended
------------------
June 30, Sept. 30, Dec. 31, March 31, June 30,
2008 2008 2008 2009 2009
---- ---- ---- ---- ----
Flight hours
(excludes
Bristow
Academy and
unconsolidated
affiliates):
U.S. Gulf of
Mexico 37,639 34,891 25,553 19,603 20,421
Arctic 2,437 3,695 1,279 1,082 2,348
Latin America 8,539 9,595 10,836 9,281 8,586
Europe 10,306 10,265 13,241 13,681 14,855
West Africa 9,598 9,647 9,884 9,898 8,950
Australia 4,040 3,813 3,649 3,585 2,880
Other
International 2,895 2,851 2,793 2,235 2,493
----- ----- ----- ----- -----
Consolidated
total 75,454 74,757 67,235 59,365 60,533
====== ====== ====== ====== ======
Gross Revenue:
U.S. Gulf of
Mexico $61,509 $62,491 $53,695 $45,006 $45,461
Arctic 4,243 6,840 3,005 2,637 4,395
Latin America 20,206 19,051 20,707 20,569 19,559
WH Centralized
Operations 2,260 2,909 3,134 (453) 1,485
Europe 95,430 98,303 102,477 105,294 115,043
West Africa 43,300 47,010 50,478 51,639 54,817
Australia 33,113 29,226 25,029 26,433 28,163
Other
International 16,788 18,370 17,076 14,636 13,435
EH Centralized
Operations 2,315 4,057 2,796 2,966 3,659
Bristow Academy 6,151 5,572 5,563 7,113 7,293
Intrasegment
eliminations (1,224) (2,137) (973) (891) (2,860)
Corporate 32 (4) - 56 2
--- --- --- --- ---
Consolidated
total $284,123 $291,688 $282,987 $275,005 $290,452
======== ======== ======== ======== ========
Operating income (loss):
U.S. Gulf of
Mexico $7,989 $8,263 $8,721 $6,732 $6,240
Arctic 519 1,900 184 (5) 605
Latin America 9,701 3,973 5,501 3,903 4,779
WH Centralized
Operations (676) 904 (2,509) (4,172) (3,209)
Europe 19,466 22,211 13,757 19,811 18,778
West Africa 6,516 8,024 13,167 18,603 14,238
Australia 2,145 (1,218) 2,850 7,068 6,175
Other
International 3,298 3,945 5,429 7,257 3,287
EH Centralized
Operations (5,422) (2,243) (4,705) (6,622) (2,893)
Bristow Academy 546 (159) (168) 534 931
Gain on disposal
of assets 2,665 3,302 37,678 1,660 6,009
Corporate (7,437) (6,484) (7,633) (6,969) (10,168)
------ ------ ------ ------ -------
Consolidated
total $39,310 $42,418 $72,272 $47,800 $44,772
======= ======= ======= ======= =======
Operating margin:
U.S. Gulf of
Mexico 13.0% 13.2% 16.2% 15.0% 13.7%
Arctic 12.2% 27.8% 6.1% -0.2% 13.8%
Latin America 48.0% 20.9% 26.6% 19.0% 24.4%
Europe 20.4% 22.6% 13.4% 18.8% 16.3%
West Africa 15.0% 17.1% 26.1% 36.0% 26.0%
Australia 6.5% -4.2% 11.4% 26.7% 21.9%
Other
International 19.6% 21.5% 31.8% 49.6% 24.5%
Bristow Academy 8.9% -2.9% -3.0% 7.5% 12.8%
Consolidated
total 13.8% 14.5% 25.5% 17.4% 15.4%
Linda McNeill, Investor Relations
(713) 267-7622
SOURCE Bristow Group Inc.
Released August 6, 2009