Bristow Group Reports Financial Results for the Fiscal Year and Quarter Ended March 31, 2008
- Record revenue for the fiscal year of over $1 billion
- Record levels of operating income, income from continuing operations, net income and earnings per share
HOUSTON, May 21 /PRNewswire-FirstCall/ -- Bristow Group Inc. (NYSE: BRS) today reported financial results for its fiscal year and quarter ended March 31, 2008.
Highlights include:
For the fiscal year ended March 31, 2008:
-- Bristow's results were the best ever in the Company's history for
revenue, operating income, income from continuing operations, net
income and earnings per share.
-- Revenue increased 20% to $1.0 billion versus the fiscal year ended
March 31, 2007. Revenue gains occurred primarily in our Europe, West
Africa, Southeast Asia and South and Central America business units.
The strong results were primarily driven by increases in rates for
helicopter services, increased demand for helicopter services from our
existing customers and the addition of new aircraft, as well as the
contribution from Bristow Academy.
-- Operating income increased 34% to $148.7 million from $111.1 million
for the fiscal year ended March 31, 2007, and operating margin improved
to 14.7% versus 13.2%. Both operating income and margins benefited
primarily from higher helicopter services rates in addition to the
items discussed below.
-- Net income increased 40% to $104.0 million from $74.2 million for the
fiscal year ended March 31, 2007. Included in net income for the
fiscal year ended March 31, 2008 was the previously announced loss of
$5.3 million ($0.17 per diluted share) on the sale of our Grasso
business in November 2007, which is presented as discontinued
operations.
-- Diluted earnings per share from continuing operations increased 34% to
$3.53 from $2.64, while diluted earnings per share on net earnings
increased to $3.41 from $2.74.
-- Diluted earnings per share for the fiscal years ended March 31, 2008
and 2007 reflected the assumed conversion of the Company's Mandatory
Convertible Preferred Stock, which added approximately 6.5 million and
3.4 million shares, respectively, to our weighted-average diluted
shares.
-- The fiscal year ended March 31, 2008 included the following items:
o Costs in our Other International business unit related to a claim by
a former agent whom we terminated in connection with the Internal
Review, that decreased operating income by $5.0 million, income from
continuing operations by $3.3 million and diluted earnings per share
by $0.11.
o Retirement related expenses for two of our corporate officers that
decreased operating income by $1.9 million ($1.1 million recorded in
our North America business unit, $0.3 million in our South and
Central America business unit and $0.5 million in our corporate
results), income from continuing operations by $1.2 million and
diluted earnings per share by $0.04.
o Tax items that increased operating income by $8.3 million, income
from continuing operations by $11.4 million and diluted earnings per
share by $0.37. These tax items included:
-- A reversal of accruals for sales tax contingency and employee
taxes in West Africa of $5.4 million and $1.3 million,
respectively, and a reversal of accruals for employee taxes in
Europe of $1.6 million, which are included in direct cost in our
consolidated statement of income.
-- A $6.0 million reduction in our provision for income taxes
resulting from a benefit of $2.5 million associated with the
reduction in the corporate income tax rate in the U.K., and a
benefit of $3.5 million associated with an internal
reorganization completed during the fiscal year ended
March 31, 2008.
For the March 2008 quarter:
-- Revenue increased 20% to $260.3 million versus the March 2007 quarter.
Revenue gains occurred primarily in our Europe, West Africa and
Southeast Asia business units, driven in large part by increases in
rates for helicopter services, increased demand for helicopter services
from our existing customers and the addition of new aircraft, as well
as the contribution from Bristow Academy.
-- Operating income increased 5% to $33.5 million from $31.8 million in
the March 2007 quarter, but operating margin decreased to 12.9% versus
14.7%. The decrease in operating margin was primarily the result of
increased costs incurred in the March 2008 quarter associated with the
items discussed below.
-- Net income of $27.2 million was relatively unchanged from net income of
$27.4 million for the March 2007 quarter.
-- Diluted earnings per share from continuing operations decreased to
$0.86 from $0.89, while diluted earnings per share on net earnings
decreased to $0.89 from $0.91 for the March 2007 quarter.
-- The March 2008 quarter included the following items:
o Costs in our Other International business unit related to a claim by
a former agent whom we terminated in connection with the Internal
Review, that decreased operating income by $4.5 million, net income
by $2.9 million and diluted earnings per share by $0.10.
o A $4.5 million decrease in equity in earnings from Norsk, our
unconsolidated affiliate in Norway, resulting from a decrease in
operating results ($1.2 million) and the impact of changes in
estimates in the March 2008 quarter ($3.3 million). The changes in
estimates related to compensation, maintenance, customer billing and
tax items. The lower level of equity earnings from Norsk decreased
income from continuing operations by $2.9 million and diluted
earnings per share by $0.10.
o Retirement related expenses for two of our corporate officers that
decreased operating income by $1.9 million ($1.1 million recorded in
our North America business unit, $0.3 million in our South and
Central America business unit and $0.5 million in our corporate
results), income from continuing operations by $1.2 million and
diluted earnings per share by $0.04.
o Tax items that increased operating income by $2.9 million, net income
by $7.9 million and diluted earnings per share by $0.26. These tax
items included:
-- A reversal of accruals for employee taxes in West Africa of
$1.3 million and Europe of $1.6 million, which are included in
direct cost in our consolidated statement of income.
-- A $6.0 million reduction in our provision for income taxes (see
the discussion of the results for the fiscal year ended
March 31, 2008 above).
Capital and Liquidity:
-- The March 31, 2008 consolidated balance sheet reflected $967.4 million
in stockholders' investment and $606.2 million of indebtedness.
-- At the end of fiscal 2008, we had $290.1 million in cash and an undrawn
$100 million revolving credit facility.
-- During the fiscal year ended March 31, 2008, we generated $87.6 million
of cash from operating activities, $344.7 million in net proceeds from
the issuance of 7 1/2% senior notes, $26.6 million of cash from asset
dispositions and $22.0 million in net cash from the sale of Grasso.
-- We used $338.0 million for capital expenditures -- primarily for
aircraft -- and $14.6 million for the Bristow Academy acquisitions (net
of cash acquired).
-- Aircraft purchase commitments totaled $349.3 million for 35 aircraft,
with options totaling $802.4 million for 50 aircraft as of March 31,
2008.
"Fiscal 2008 was a year of tremendous achievement and progress for our Company," said William E. Chiles, President and Chief Executive Officer of Bristow Group Inc. "We surpassed the $1 billion mark in revenues for the first time in our history -- up 20 percent from fiscal 2007. Our operating income was up by a third, net income increased by 40 percent, and our total-Company operating margin expanded from 13.2% to 14.7% year over year.
"These results reflect continuing strong demand from our customers in the face of a tightening market for helicopter services. They also reflect the healthy rate increases we were able to achieve throughout the year in West Africa, the North Sea and other important markets, which moves us closer to our goal of stronger revenues and margins across all our geographic regions.
"We continued to upgrade and expand our helicopter fleet during fiscal 2008 to meet the increased demand, with the delivery of 22 new medium and large helicopters. We intend to continue growing our business in fiscal 2009, and our strong balance sheet provides us with the financial flexibility to execute our growth plans," Chiles said.
CONFERENCE CALL
Management will conduct a conference call starting at 10:00 a.m. EDT (9:00 a.m. CDT) on Thursday, May 22, 2008, to review financial results for the fiscal year and quarter ended March 31, 2008. The conference call can be accessed as follows:
Via Webcast:
-- Visit Bristow Group's investor relations Web page at
http://www.bristowgroup.com
-- Live: Click on the link for "Q4 2008 Bristow Group Inc. Earnings
Conference Call"
-- Replay: A replay via webcast will be available approximately one hour
after the call's completion
Via Telephone within the U.S.:
-- Live: Dial toll free (800) 240-6709
-- Replay: A telephone replay will be available through Saturday,
June 7, by dialing toll free (800) 405-2236, passcode: 11113906#
Via Telephone outside the U.S.:
-- Live: Dial (303) 262-2130
-- Replay: A telephone replay will be available through Saturday,
June 7, by dialing (303) 590-3000, passcode: 11113906#
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. Through its subsidiaries, affiliates and joint ventures, the Company has major transportation operations in most of the major offshore oil and gas producing regions of the world, including in the North Sea, the U.S. Gulf of Mexico, Nigeria and Australia. For more information, visit the Company's website at http://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 revenue, margins and the addition of new aircraft to our fleet. It is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings, including but not limited to the Company's annual report on Form 10-K for the fiscal year ended March 31, 2008. Bristow Group Inc. disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events or otherwise.
Linda McNeill, Investor Relations
(713) 267-7622
(financial tables follow)
BRISTOW GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
March 31, March 31,
------------------- -------------------
2007 2008 2007 2008
--------- -------- -------- ---------
Gross revenue:
Operating revenue from
non-affiliates $178,931 $226,331 $709,254 $868,929
Operating revenue from
affiliates 13,759 11,218 48,170 49,806
Reimbursable revenue from
non-affiliates 21,450 21,250 80,244 87,325
Reimbursable revenue from
affiliates 2,537 1,486 5,927 6,704
--------- -------- -------- ---------
216,677 260,285 843,595 1,012,764
--------- -------- -------- ---------
Operating expenses:
Direct costs 139,387 159,911 548,364 635,327
Reimbursable expense 23,247 22,519 85,938 91,106
Depreciation and amortization 10,517 18,013 42,459 54,140
General and administrative 16,659 31,815 66,321 92,833
Gain on disposal of assets (4,909) (5,469) (10,615) (9,390)
--------- -------- -------- ---------
184,901 226,789 732,467 864,016
--------- -------- -------- ---------
Operating income 31,776 33,496 111,128 148,748
Earnings from unconsolidated
affiliates, net of losses 6,030 1,745 11,423 12,978
Interest income 2,689 2,944 8,716 12,725
Interest expense (2,294) (7,644) (10,940) (23,779)
Other income (expense), net 2,321 (190) (8,998) 1,585
--------- -------- -------- ---------
Income from continuing
operations before provision
for income taxes and
minority interest 40,522 30,351 111,329 152,257
Provision for income taxes (13,391) (4,491) (38,781) (44,526)
Minority interest (151) 475 (1,200) 83
--------- -------- -------- ---------
Income from continuing
operations 26,980 26,335 71,348 107,814
Discontinued Operations:
Income from discontinued
operations before provision
for income taxes 688 1,032 4,409 1,722
Provision for income taxes on
discontinued operations (251) (145) (1,585) (5,544)
--------- -------- -------- ---------
Income (loss) from
discontinued operations 437 887 2,824 (3,822)
--------- -------- -------- ---------
Net income 27,417 27,222 74,172 103,992
Preferred stock dividends (3,162) (3,163) (6,633) (12,650)
--------- -------- -------- ---------
Net income available to common
stockholders $24,255 $24,059 $67,539 $91,342
========= ======== ======== =========
Basic earnings per common share:
Earnings from continuing
operations $1.01 $0.97 $2.75 $4.00
Earnings (loss) from
discontinued operations 0.02 0.04 0.12 (0.16)
--------- -------- -------- ---------
Net earnings $1.03 $1.01 $2.87 $3.84
========= ======== ======== =========
Diluted earnings per common share:
Earnings from continuing
operations $0.89 $0.86 $2.64 $3.53
Earnings (loss) from
discontinued operations 0.02 0.03 0.10 (0.12)
--------- -------- -------- ---------
Net earnings $0.91 $0.89 $2.74 $3.41
========= ======== ======== =========
BRISTOW GROUP INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, March 31,
2007 2008
---------- ----------
ASSETS
Current assets:
Cash and cash equivalents $184,188 $290,050
Accounts receivable from non-affiliates 147,608 204,599
Accounts receivable from affiliates 17,199 11,316
Inventories 157,563 176,239
Prepaid expenses and other 17,387 24,177
Current assets from discontinued
operations 12,029 --
---------- ----------
Total current assets 535,974 706,381
Investments in unconsolidated affiliates 46,828 52,467
Property and equipment -- at cost:
Land and buildings 51,785 60,056
Aircraft and equipment 1,139,781 1,428,996
---------- ----------
1,191,566 1,489,052
Less: accumulated depreciation and
amortization (300,045) (316,514)
---------- ----------
891,521 1,172,538
Goodwill 6,630 15,676
Other assets 10,725 30,293
Long-term assets from discontinued
operations 14,125 --
---------- ----------
$1,505,803 $1,977,355
========== ==========
LIABILITIES AND STOCKHOLDERS'
INVESTMENT
Current liabilities:
Accounts payable $40,459 $49,650
Accrued wages, benefits and related taxes 36,390 35,523
Income taxes payable 3,412 5,862
Other accrued taxes 9,042 1,589
Deferred revenues 16,283 15,415
Accrued maintenance and repairs 12,309 13,250
Accrued interest 4,511 5,656
Other accrued liabilities 17,151 22,235
Deferred taxes 17,611 9,238
Short-term borrowings and current
maturities of long-term debt 4,852 6,541
Current liabilities from
discontinued operations 5,948 --
---------- ----------
Total current liabilities 167,968 164,959
Long-term debt, less current maturities 254,230 599,677
Accrued pension liabilities 113,069 134,156
Other liabilities and deferred credits 17,345 14,805
Deferred taxes 76,089 91,747
Minority interest 5,445 4,570
Commitments and contingencies
Stockholders' investment:
5.50% mandatory convertible
preferred stock 222,554 222,554
Common stock 236 239
Additional paid-in capital 169,353 186,390
Retained earnings 515,589 606,931
Accumulated other comprehensive loss (36,075) (48,673)
---------- ----------
871,657 967,441
---------- ----------
$1,505,803 $1,977,355
========== ==========
BRISTOW GROUP INC. AND SUBSIDIARIES
SELECTED OPERATING DATA
(In thousands, except flight hours and percentages)
(Unaudited)
Three Months Ended Twelve Months Ended
March 31, March 31,
------------------- -------------------
2007 2008 2007 2008
--------- -------- -------- ---------
Flight hours (excludes Bristow
Academy and unconsolidated
affiliates):
North America 34,304 33,250 152,803 147,802
South and Central America 9,528 7,845 38,417 40,439
Europe 10,605 10,403 42,377 44,343
West Africa 8,329 9,561 36,124 38,170
Southeast Asia 3,340 4,451 12,668 16,029
Other International 2,199 1,886 9,318 8,730
--------- -------- -------- ---------
Consolidated total 68,305 67,396 291,707 295,513
========= ======== ======== =========
Gross revenue:
North America $56,311 $57,393 $239,978 $237,658
South and Central America 13,498 14,400 52,820 63,863
Europe 79,368 89,828 297,934 361,744
West Africa 33,133 45,401 131,141 170,770
Southeast Asia 20,557 34,849 73,404 111,117
Other International 13,404 12,143 46,005 47,518
EH Centralized Operations 3,468 4,991 13,896 22,366
Bristow Academy -- 4,571 -- 14,787
Intrasegment eliminations (3,563) (3,390) (12,058) (17,195)
Corporate 501 99 475 136
--------- -------- -------- ---------
Consolidated total 216,677 260,285 843,595 1,012,764
========= ======== ======== =========
Operating income (loss):
North America $6,964 $4,101 $29,210 $32,559
South and Central America 4,484 2,462 15,825 14,852
Europe 15,642 20,183 52,819 77,348
West Africa 5,779 6,633 18,798 31,941
Southeast Asia 4,695 8,044 13,370 23,754
Other International 2,380 (5,041) 9,309 (283)
EH Centralized Operations (6,964) 539 (13,580) (13,391)
Bristow Academy -- (197) -- (809)
Gain on disposal of assets 4,909 5,469 10,615 9,390
Corporate (6,113) (8,697) (25,238) (26,613)
--------- -------- -------- ---------
Consolidated total $31,776 $33,496 $111,128 $148,748
========= ======== ======== =========
Operating margin:
North America 12.4% 7.1% 12.2% 13.7%
South and Central America 33.2% 17.1% 30.0% 23.3%
Europe 19.7% 22.5% 17.7% 21.4%
West Africa 17.4% 14.6% 14.3% 18.7%
Southeast Asia 22.8% 23.1% 18.2% 21.4%
Other International 17.8% -41.5% 20.2% -0.6%
Bristow Academy N/A -4.3% N/A -5.5%
Consolidated total 14.7% 12.9% 13.2% 14.7%
SOURCE Bristow Group Inc.
Released May 21, 2008