Bristow Group Reports Fiscal 2008 First Quarter Results
HOUSTON, Aug. 2 /PRNewswire-FirstCall/ -- Bristow Group Inc. (NYSE: BRS) today reported financial results for its fiscal 2008 first quarter ended June 30, 2007.
Highlights include:
-- Revenue of $245.0 million increased by 10.8 percent over the first
quarter of fiscal year 2007. Revenue gains occurred in most of our
business units, driven by improved pricing and the addition of new
aircraft;
-- Operating income of $29.9 million decreased by 3.8 percent over the
first quarter of fiscal year 2007, primarily due to higher compensation
and maintenance costs within our West Africa and Eastern Hemisphere
("EH") Centralized Operations business units, partially offset by
increased revenue;
-- Net income of $22.7 million increased 31.6 percent versus net income
for the first quarter of fiscal year 2007. Increases in earnings from
unconsolidated affiliates, interest income and other income contributed
to the improvement in the latest quarter's net income;
-- Diluted earnings per share increased to $0.75 from $0.73 for the first
quarter of fiscal year 2007. Diluted earnings per share for the first
quarter of fiscal year 2008 reflected the assumed conversion of the
Company's Mandatory Convertible Preferred Stock, which added
approximately 6.5 million shares to the weighted average diluted shares
calculation.
Capital and Liquidity:
-- The June 30, 2007 consolidated balance sheet reflected $902.9 million
in stockholders' investment and $561.3 million of indebtedness;
-- We had $339.5 million in cash and an undrawn $100 million revolving
credit facility;
-- We used $2.3 million of cash for operating activities, which included a
$29.9 million increase in receivables, primarily from operations in
Nigeria. We have received payment for a majority of these Nigeria
receivables in July. We also used $121.8 million for capital
expenditures, primarily for aircraft, and $12.9 million for the
acquisition (net of cash acquired) of Bristow Academy during the first
quarter of fiscal year 2008;
-- Aircraft purchase commitments totaled $255.0 million, with options
totaling $732.9 million as of June 30, 2007.
William E. Chiles, President and Chief Executive Officer of Bristow Group Inc., said, "We saw strong financial performance and good execution against our strategic plan during the latest quarter, and we remain on target with our plan to expand our fleet and improve overall margins and operating efficiencies. The industry fundamentals continue to be very strong, and our customers remain committed to field development plans, which is the primary driver of our growth. We continue to believe demand for aircraft will exceed supply over the next several years, which should create good opportunities to enhance revenue and margin growth going forward."
CONFERENCE CALL
Management will conduct a conference call starting at 10:00 a.m. EDT (9:00 a.m. CDT) on Friday, August 3, 2007, to review financial results for the fiscal quarter ended June 30, 2007. 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 "Q1 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) 218-0713
-- Replay: A telephone replay will be available through August 17, 2007,
by dialing toll free (800) 405-2236, passcode: 11093169
Via Telephone outside the U.S.:
-- Live: Dial (303) 262-2142
-- Replay: A telephone replay will be available through August 17, 2007 by
dialing (303) 590-3000, passcode: 11093169
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 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, Mexico, Nigeria, Russia and Trinidad. Additionally, the Company is a leading provider of production management services for oil and gas production facilities in the U.S. Gulf of Mexico. 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 customer demand, future results, the addition of new aircraft to our fleet, future investments and earnings power of aircraft. 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, 2007 and the annual report on Form 10-K for the year ended March 31, 2007. 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.
Contact:
Joe Baj, VP & Treasurer
(713) 267-7605
Linda McNeill, Treasury Manager
(713) 267-7622
BRISTOW GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
Three Months Ended
June 30,
--------------------------
2006 2007
-------- --------
(Unaudited)
Gross revenue:
Operating revenue from non-affiliates $181,786 $212,454
Operating revenue from affiliates 12,079 11,097
Reimbursable revenue from non-affiliates 26,125 20,348
Reimbursable revenue from affiliates 1,072 1,103
-------- --------
221,062 245,002
-------- --------
Operating expenses:
Direct cost 138,470 163,836
Reimbursable expense 26,898 21,241
Depreciation and amortization 10,283 11,373
General and administrative 15,349 19,262
Gain on disposal of assets (998) (584)
-------- --------
190,002 215,128
-------- --------
Operating income 31,060 29,874
Earnings from unconsolidated affiliates,
net of losses 1,559 3,390
Interest income 1,290 2,198
Interest expense (3,236) (2,933)
Other income (expense), net (4,785) 426
-------- --------
Income before provision for income
taxes and minority interest 25,888 32,955
Provision for income taxes (8,543) (9,834)
Minority interest (116) (449)
-------- --------
Net income 17,229 22,672
Preferred stock dividends -- (3,162)
-------- --------
Net income available to common
stockholders $17,229 $19,510
-------- --------
Earnings per common share:
Basic $0.74 $0.83
-------- --------
Diluted $0.73 $0.75
-------- --------
Weighted average common shares outstanding:
Basic 23,393 23,603
-------- --------
Diluted 23,508 30,219
-------- --------
BRISTOW GROUP INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, June 30,
2007 2007
--------- ----------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $184,188 $339,542
Accounts receivable from non-affiliates 158,770 187,836
Accounts receivable from affiliates 17,199 19,694
Inventories 157,870 169,635
Prepaid expenses and other 17,947 17,768
--------- ----------
Total current assets 535,974 734,475
Investments in unconsolidated
affiliates 46,828 47,561
Property and equipment -- at cost:
Land and buildings 51,850 56,339
Aircraft and equipment 1,141,578 1,269,390
--------- ----------
1,193,428 1,325,729
Less: accumulated depreciation and
amortization (301,520) (308,258)
--------- ----------
891,908 1,017,471
Goodwill 20,368 27,119
Other assets 10,725 17,814
--------- ----------
$1,505,803 $1,844,440
--------- ----------
LIABILITIES AND STOCKHOLDERS' INVESTMENT
Current liabilities:
Accounts payable $42,343 $43,556
Accrued wages, benefits and related
taxes 38,281 38,877
Income taxes payable 4,377 2,240
Other accrued taxes 9,084 9,944
Deferred revenues 16,283 17,372
Accrued maintenance and repairs 12,309 13,083
Other accrued liabilities 22,828 22,027
Deferred taxes 17,611 17,962
Short-term borrowings and current
maturities of long-term debt 4,852 7,923
--------- ----------
Total current liabilities 167,968 172,984
Long-term debt, less current maturities 254,230 553,382
Accrued pension liabilities 113,069 112,992
Other liabilities and deferred credits 17,345 15,112
Deferred taxes 76,089 81,795
Minority interest 5,445 5,267
Commitments and contingencies
Stockholders' investment:
5.50% mandatory convertible
preferred stock 222,554 222,554
Common stock 236 237
Additional paid-in capital 169,353 172,373
Retained earnings 515,589 535,099
Accumulated other comprehensive loss (36,075) (27,355)
--------- ----------
871,657 902,908
--------- ----------
$1,505,803 $1,844,440
--------- ----------
BRISTOW GROUP INC. AND SUBSIDIARIES
CORPORATE ITEMS AFFECTING THE COMPARABILITY OF RESULTS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended June 30,
------------------------------------------------
2006 2007
------------------------ ----------------------
Diluted Diluted
Earnings Earnings
Pre-tax Net per Pre-tax Net per
Earnings Income Share Earnings Income Share
-------- ------ ----- -------- ------ ------
Investigations:
SEC (1) $(108) $(70) $-- $-- $-- $--
DOJ (2) (591) (384) (0.02) -- -- --
Tax contingencies related
items (3) -- 800 0.03 -- 918 0.03
7 1/2% Senior Notes
due 2017 (4) -- -- -- (357) (232) (0.01)
Foreign currency
transaction gains
(losses) (5) (4,809) (3,126) (0.13) 401 261 0.01
Preferred Stock (6) -- -- -- 826 537 (0.19)
------- ------- ------ ----- ------ ------
Total $(5,508) $(2,780) $(0.12) $870 $1,484 $(0.16)
------- ------- ------ ---- ------ ------
(1) Represents costs incurred in conjunction with the SEC investigation
regarding findings from the internal review initiated by the Audit
Committee of our board of directors in fiscal year 2005 of certain
payments made by two of our affiliated entities in a foreign country.
These costs are included in general & administrative costs in our
consolidated statements of income.
(2) Represents legal and other professional fees incurred in connection
with a document subpoena received from the Antitrust Division of the
Department of Justice ("DOJ") in June 2005, which related to a grand
jury investigation of potential antitrust violations among providers
of helicopter transportation services in the U.S. Gulf of Mexico
focusing on activities during the period from January 1, 2000 to
June 13, 2005. These costs are included in general & administrative
costs in our consolidated statements of income.
(3) Represents the net reduction in our accruals for tax contingencies
resulting from our evaluation of the need for certain tax reserves.
These amounts represent a direct reduction in our provision for income
taxes in our consolidated statements of income.
(4) Represents the effect on interest expense, net of interest income from
invested proceeds, resulting from the issuance of 7 1/2% Senior Notes
due 2017 in June 2007.
(5) Represents foreign currency transaction gains and losses resulting
from changes in exchange rates during the applicable periods. The
effects of these foreign currency transaction gains and losses were
offset to a large extent by corresponding charges or benefits in the
cumulative translation adjustment in stockholders' investment with no
overall economic effect. These amounts are included in other income
(expense), net in our consolidated statements of income.
(6) Represents the effect of the preferred stock offering completed in
September and October 2006. The net income effect results from
interest income earned on remaining cash proceeds generated from the
offering. Diluted earnings per share for the three months ended
June 30, 2007 was reduced by the effect of the inclusion of weighted
average shares resulting from the assumed conversion of the preferred
stock at the conversion rate that results in the most dilution,
partially offset by the impact of higher interest income.
BRISTOW GROUP INC. AND SUBSIDIARIES
SELECTED OPERATING DATA
(In thousands, except flight hours and percentages)
Three Months Ended
June 30,
--------------------------
2006 2007
-------- ------
(Unaudited)
Flight hours (excludes Bristow
Academy and unconsolidated
affiliates)
Helicopter Services
North America 42,609 40,271
South & Central America 9,285 11,367
Europe 10,170 10,821
West Africa 8,883 8,898
Southeast Asia 3,206 3,344
Other International 2,052 2,547
-------- ------
Consolidated total 76,205 77,248
-------- ------
Gross revenue:
Helicopter Services
North America $63,368 $60,939
South & Central America 13,012 16,036
Europe 71,981 83,357
West Africa 31,736 33,283
Southeast Asia 17,040 22,492
Other International 8,955 11,455
EH Centralized Operations 3,074 6,805
Bristow Academy -- 3,019
Intrasegment eliminations (2,860) (6,235)
-------- ------
Total Helicopter Services 206,306 231,151
Production Management Services 17,684 16,543
Corporate (25) --
Intersegment eliminations (2,903) (2,692)
-------- --------
Consolidated total $221,062 $245,002
-------- --------
Operating income:
Helicopter Services
North America $9,233 $10,714
South & Central America 3,970 3,685
Europe 14,096 14,575
West Africa 4,333 2,797
Southeast Asia 2,435 4,127
Other International 1,516 2,265
EH Centralized Operations (1,767) (4,279)
Bristow Academy -- (91)
-------- -------
Total Helicopter Services 33,816 33,793
Production Management Services 1,413 1,089
Gain on disposal of assets 998 584
Corporate (5,167) (5,592)
-------- -------
Consolidated total $31,060 $29,874
-------- -------
Operating margin:
Helicopter Services
North America 14.6% 17.6%
South & Central America 30.5% 23.0%
Europe 19.6% 17.5%
West Africa 13.7% 8.4%
Southeast Asia 14.3% 18.3%
Other International 16.9% 19.8%
EH Centralized Operations (57.5)% (62.9)%
Bristow Academy N/A (3.0)%
Total Helicopter Services 16.4% 14.6%
Production Management Services 8.0% 6.6%
Consolidated total 14.1% 12.2%
SOURCE Bristow Group Inc.
Released August 2, 2007