HOUSTON, May 21 /PRNewswire-FirstCall/ -- Bristow Group Inc. 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%
