Bristow Group Reports Financial Results for the Fiscal Year 2009 Fourth Quarter and Year-Ended March 31, 2009
Highlights include:
For the
- Revenue increased 6% versus the
March 2008 quarter to$275.0 million . Revenue improvements occurred across most of our business units, but most significantly in ourEurope ,West Africa andLatin America business units. These were driven in large part by increases in rates, the addition of new aircraft and the consolidation ofBristow Norway (formerly Norsk Helikopters AS), our Norwegian affiliate, effectiveOctober 31, 2008 . - Operating income increased 28% to
$42.9 million from$33.5 million in theMarch 2008 quarter. - Income from continuing operations was unchanged at
$26.3 million for theMarch 2009 and 2008 quarters. - Diluted earnings per share from continuing operations decreased to
$0.74 from$0.86 in theMarch 2008 quarter. Diluted earnings per share for theMarch 2009 and 2008 quarters reflect the assumed conversion of our Mandatory Convertible Preferred Stock, which will convert to our common shares inSeptember 2009 and added approximately 6.5 million shares to our weighted-average share count in both quarters. Primarily as a result of ourJune 2008 offering, the weighted-average share count rose by 17% in theMarch 2009 quarter compared to the same period a year ago. - Our results for the
March 2009 quarter were unfavorably impacted by the strengthening U.S. dollar versus certain foreign currencies. The changes in foreign currency exchange rates resulted in a decrease in our operating income of$6.3 million , income from continuing operations of$4.9 million and diluted earnings per share of$0.14 . Excluding the impact of changes in foreign currency exchange rates, diluted earnings per share from continuing operations would have been$0.88 for theMarch 2009 quarter. - The
March 2009 quarter also included the following significant items:- The net reduction in expense in
Australia , part of ourSoutheast Asia business unit, 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 , income from continuing operations of$0.8 million and diluted earnings per share of$0.02 . - A reduction in maintenance expense in our Eastern Hemisphere ('EH') Centralized Operations business unit associated with a credit resulting from the renegotiation of a 'power by the hour' (PBH) contract for aircraft maintenance with a third party provider, which increased operating income by
$6.8 million , income from continuing operations 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 income from continuing operations by
$4.7 million and diluted earnings per share by$0.13 .
- The net reduction in expense in
- Excluding the impact of these significant items, diluted earnings per share from continuing operations would have been
$0.73 for theMarch 2009 quarter. - Financial results for the
March 2008 quarter included:- Costs in our Other International business unit related to a claim by a former agent, whom we terminated in connection with an internal review, that decreased operating income by
$4.5 million , income from continuing operations by$2.9 million and diluted earnings per share by$0.10 . - A
$4.5 million decrease in equity in earnings ofBristow Norway . The lower level of equity earnings fromBristow Norway decreased income from continuing operations by$2.9 million and diluted earnings per share by$0.10 . - Retirement related expenses for two of our corporate officers that decreased operating income by
$1.9 million , income from continuing operations by$1.2 million and diluted earnings per share by$0.04 . - Tax items that increased operating income by
$2.9 million , income from continuing operations by$7.9 million and diluted earnings per share by$0.26 .
- Costs in our Other International business unit related to a claim by a former agent, whom we terminated in connection with an internal review, that decreased operating income by
- Excluding these items, diluted earnings per share from continuing operations would have been
$0.84 for theMarch 2008 quarter.
For the fiscal year ended
- Revenue increased 12% versus the fiscal year ended
March 31, 2008 to$1.1 billion . Revenue increased for all of our business units, but most significantly in ourEurope ,West Africa ,Southeast Asia andLatin America business units. These revenue increases were driven in large part by increases in rates, the addition of new aircraft and the consolidation ofBristow Norway . - Operating income increased 27% to
$188.6 million from$148.7 million for the prior fiscal year. - Income from continuing operations increased 16% to
$124.6 million from$107.8 million for the prior fiscal year. - Diluted earnings per share from continuing operations increased to
$3.61 from$3.53 a year ago. Diluted earnings per share for the fiscal years endedMarch 31, 2009 and 2008 reflect the assumed conversion of our Mandatory Convertible Preferred Stock, which will convert to our common shares inSeptember 2009 and added approximately 6.5 million shares to our weighted-average share count in both fiscal years. Primarily as a result of ourJune 2008 offering, the weighted-average share count rose by 13% in the fiscal year endedMarch 31, 2009 compared to the prior fiscal year. - As was the case for the
March 2009 quarter, results for the fiscal year endedMarch 31, 2009 were unfavorably impacted by the strengthening U.S. dollar. The changes in foreign currency exchange rates resulted in a decrease in our operating income of$12.0 million , income from continuing operations of$9.2 million and diluted earnings per share of$0.27 . Excluding the impact of changes in foreign currency exchange rates, diluted earnings per share from continuing operations would have been$3.88 for the fiscal year endedMarch 31, 2009 . - The fiscal year ended
March 31, 2009 also included the following significant items:- The gain on the sale of 53 small aircraft, related inventory, spare parts and offshore fuel equipment in the U.S.
Gulf of Mexico (the 'GOM Asset Sale') onOctober 30, 2008 , which increased operating income by$36.2 million , income from continuing operations by$23.4 million and diluted earnings per share by$0.68 . - The impact of hurricanes in the U.S.
Gulf of Mexico during the fiscal year endedMarch 31, 2009 , which resulted in a decrease in flight activity and an increase in costs, which reduced operating income by$2.4 million , income from continuing operations by$2.0 million and diluted earnings per share by$0.06 . - The
April 2008 restructuring of our ownership interests in affiliates inMexico , part of ourLatin America business unit, which resulted in an increase in operating income of$0.8 million , income from continuing operations of$3.7 million and diluted earnings per share of$0.11 . - The recognition of expense in
Australia , part of ourSoutheast Asia business unit, related to local tax matters, increases in compensation costs retroactive to prior fiscal years and one time costs associated with introducing new aircraft into this market and moving aircraft within this market, which resulted in a reduction in operating income of$4.1 million , income from continuing operations of$2.9 million and diluted earnings per share of$0.08 . - A reduction in maintenance expense in our EH Centralized Operations business unit associated with the PBH contract credit mentioned above, which increased operating income by
$6.8 million , income from continuing operations by$4.8 million and diluted earnings per share by$0.14 .
- The gain on the sale of 53 small aircraft, related inventory, spare parts and offshore fuel equipment in the U.S.
- Excluding the impact of these significant items, diluted earnings per share from continuing operations would have been
$2.82 for the fiscal year endedMarch 31, 2009 . - In addition to the costs associated with termination of an agent and retirement of two of our corporate officers discussed above, financial results for the fiscal year ended
March 31, 2008 included 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 . - Excluding these items, diluted earnings per share from continuing operations would have been
$3.31 for the fiscal year endedMarch 31, 2008 .
Capital and Liquidity
- At
March 31, 2009 , key balance sheet items and capital commitments were:$1.2 billion in stockholders' investment and$746 million of indebtedness,$301 million in cash and a$100 million undrawn revolving credit facility, and- Aircraft purchase commitments totaled
$245 million for 24 aircraft.
- During the fiscal year ended
March 31, 2009 , key cash flow items were:$128 million of cash from operating activities,$102 million of proceeds from sales of assets, including the GOM Asset Sale,$336 million in net proceeds from the sale of convertible senior notes and common stock, and$455 million used on capital expenditures - primarily for aircraft - and$17 million for acquisitions.
CEO Remarks
'We are pleased with both our fiscal fourth quarter and year-end results. Despite the challenging economic environment throughout the year, and the significant decline in energy prices during the second half, 2009 was a record year for Bristow in terms of revenue and net income. In the fourth quarter, we continued to experience good activity levels, particularly in
'The demand for our services has been negatively affected by lower E&P spending, but we are less affected than other oil service companies because of our production focus, fleet size and our geographic and customer diversity. To date we've been able to maintain our pricing structure in this challenging environment.
'We believe we have the liquidity and financial flexibility to weather this uncertain operating environment and the ability to take advantage of attractive investment opportunities which may arise,' Chiles concluded.
CONFERENCE CALL
Management will conduct a conference call starting at
Via Webcast:
- Visit Bristow Group's investor relations Web page at http://www.bristowgroup.com
- Live: Click on the link for 'Bristow Group Fiscal 2009 Fourth 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) 941-2332
- Replay: A telephone replay will be available through
June 4, 2009 and may be accessed by calling toll free (800) 406-7325, passcode: 4072528#
Via Telephone outside the U.S.:
- Live: Dial (480) 629-9723
- Replay: A telephone replay will be available through
June 4, 2009 and may be accessed by calling (303) 590-3030, passcode: 4072528#
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 significant operations in most major offshore oil and gas producing regions of the world, including the North Sea, the U.S.
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, customer demand, future operations, future liquidity and growth plans and opportunities. 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
Contact:
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)
Three Months Ended Twelve Months Ended
March 31, March 31,
------------------ --------------------
2008 2009 2008 2009
------- ------- ------- --------
(Unaudited)
Gross revenue:
Operating revenue from
non-affiliates $226,331 $237,909 $868,929 $964,060
Operating revenue from
affiliates 11,218 12,412 49,806 64,904
Reimbursable revenue from
non-affiliates 21,250 23,412 87,325 99,608
Reimbursable revenue from
affiliates 1,486 1,272 6,704 5,231
-------- -------- --------- ---------
260,285 275,005 1,012,764 1,133,803
-------- -------- --------- ---------
Operating expense:
Direct cost 159,911 166,971 635,327 718,375
Reimbursable expense 22,519 23,550 91,106 102,987
Depreciation and amortization 18,013 18,411 54,140 65,514
General and administrative 31,815 24,880 92,833 103,656
Gain on GOM Asset Sale - 1,564 - (36,216)
(Gain) loss on disposal of
other assets (5,469) (3,224) (9,390) (9,089)
-------- -------- --------- ---------
226,789 232,152 864,016 945,227
-------- -------- --------- ---------
Operating income 33,496 42,853 148,748 188,576
Earnings from unconsolidated
affiliates, net of losses 1,745 4,947 12,978 13,224
Interest income 2,944 265 12,725 6,004
Interest expense (7,644) (8,522) (23,779) (33,022)
Other income (expense), net (190) 1,128 1,585 3,368
-------- -------- --------- ---------
Income from continuing
operations before provision
for income taxes and minority
interest 30,351 40,671 152,257 178,150
Provision for income taxes (4,491) (14,249) (44,526) (51,269)
Minority interest 475 (137) 83 (2,327)
-------- -------- --------- ---------
Income from continuing
operations 26,335 26,285 107,814 124,554
Discontinued operations:
Income (loss) from discontinued
operations before provision
for income taxes 1,032 - 1,722 (379)
(Provision) benefit for
income taxes on discontinued
Operations (145) - (5,544) 133
-------- -------- --------- ---------
Earnings (loss) from
discontinued operations 887 - (3,822) (246)
-------- -------- --------- ---------
Net income 27,222 26,285 103,992 124,308
Preferred stock dividends (3,163) (3,163) (12,650) (12,650)
-------- -------- --------- ---------
Net income available to
common stockholders $24,059 $23,122 $91,342 $111,658
======== ======== ========= =========
Basic earnings per common share:
Earnings from continuing
operations $0.97 $0.79 $4.00 $4.01
Earnings (loss) from
discontinued operations 0.04 - (0.16) (0.01)
-------- -------- --------- ---------
Net earnings $1.01 $0.79 $3.84 $4.00
======== ======== ========= =========
Diluted earnings per common share:
Earnings from continuing
operations $0.86 $0.74 $3.53 $3.61
Earnings (loss) from
discontinued operations 0.03 - (0.12) (0.01)
-------- -------- --------- ---------
Net earnings $0.89 $0.74 $3.41 $3.60
======== ======== ========= =========
Weighted average number of
common shares outstanding:
Basic 23,909 29,110 23,772 27,884
Diluted 30,644 35,748 30,514 34,542
BRISTOW GROUP INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, March 31,
2008 2009
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $290,050 $300,969
Accounts receivable from non-affiliates 204,599 194,030
Accounts receivable from affiliates 11,316 22,644
Inventories 176,239 165,438
Prepaid expenses and other 24,177 20,226
---------- ----------
Total current assets 706,381 703,307
Investment in unconsolidated affiliates 52,467 20,265
Property and equipment - at cost:
Land and buildings 60,056 68,961
Aircraft and equipment 1,428,996 1,823,011
---------- ----------
1,489,052 1,891,972
Less - Accumulated depreciation and
Amortization (316,514) (350,515)
---------- ----------
1,172,538 1,541,457
Goodwill 15,676 44,654
Other assets 30,293 25,590
---------- ----------
$1,977,355 $2,335,273
========== ==========
LIABILITIES AND STOCKHOLDERS' INVESTMENT
Current liabilities:
Accounts payable $49,650 $44,892
Accrued wages, benefits and related taxes 35,523 39,939
Income taxes payable 5,862 -
Other accrued taxes 1,589 3,357
Deferred revenues 15,415 17,593
Accrued maintenance and repairs 13,250 10,317
Accrued interest 5,656 6,434
Other accrued liabilities 22,235 20,164
Deferred taxes 9,238 6,195
Short-term borrowings and current maturities
of long-term debt 6,541 5,972
---------- ----------
Total current liabilities 164,959 154,863
Long-term debt, less current maturities 599,677 739,874
Accrued pension liabilities 134,156 81,380
Other liabilities and deferred credits 14,805 16,741
Deferred taxes 91,747 119,589
Minority interest 4,570 11,200
Commitments and contingencies
Stockholders' investment:
5.50% mandatory convertible preferred stock 222,554 222,554
Common stock 239 291
Additional paid-in capital 186,390 421,391
Retained earnings 606,931 719,844
Accumulated other comprehensive loss (48,673) (152,454)
---------- ----------
967,441 1,211,626
---------- ----------
$1,977,355 $2,335,273
========== ==========
BRISTOW GROUP INC. AND SUBSIDIARIES
SELECTED OPERATING DATA
(In thousands, except flight hours and percentages)
Three Months Ended Twelve Months Ended
March 31, March 31,
------------------ -------------------
2008 2009 2008 2009
------- ------- ------ ---------
(Unaudited)
Flight hours (excludes Bristow
Academy and unconsolidated
affiliates):
U.S. Gulf of Mexico 32,018 19,603 139,938 117,686
Arctic 1,232 1,082 7,864 8,493
Latin America 7,845 14,646 40,439 51,404
Europe 10,403 13,681 44,343 47,493
West Africa 9,561 9,898 38,170 39,027
Southeast Asia 4,451 4,280 16,029 18,503
Other International 1,886 1,540 8,730 7,358
-------- -------- ---------- ----------
Consolidated total 67,396 64,730 295,513 289,964
======== ======== ========== ==========
Gross revenue:
U.S. Gulf of Mexico $54,664 $45,006 $219,299 $222,701
Arctic 2,037 2,637 14,254 16,725
Latin America 14,400 20,569 63,863 80,533
WH Centralized Operations 692 (453) 4,105 7,850
Europe 89,828 105,294 361,744 401,504
West Africa 45,401 51,639 170,770 192,427
Southeast Asia 34,849 29,930 111,117 129,073
Other International 12,143 11,139 47,518 51,598
EH Centralized Operations 4,991 7,167 22,366 31,757
Bristow Academy 4,571 7,113 14,787 24,399
Intrasegment eliminations (3,390) (5,092) (17,195) (24,848)
Corporate 99 56 136 84
-------- -------- ---------- ----------
Consolidated total $260,285 $275,005 $1,012,764 $1,133,803
======== ======== ========== ==========
Operating income:
U.S. Gulf of Mexico $7,230 $6,732 $34,131 $31,705
Arctic (281) (5) 1,762 2,598
Latin America 2,205 4,803 13,618 21,972
WH Centralized Operations (2,591) (4,172) (2,100) (6,453)
Europe 20,183 18,988 77,348 74,773
West Africa 6,633 18,603 31,941 46,310
Southeast Asia 8,044 9,545 23,754 19,889
Other International (5,041) 2,008 (283) 7,918
EH Centralized Operations 539 (8,874) (13,391) (27,723)
Bristow Academy (197) 534 (809) 753
Gain on GOM Asset Sale - (1,564) - 36,216
Gain (loss) on disposal of
other assets 5,469 3,224 9,390 9,089
Corporate (8,697) (6,969) (26,613) (28,471)
-------- -------- ---------- ----------
Consolidated total $33,496 $42,853 $148,748 $188,576
======== ======== ========== ==========
Operating margin:
U.S. Gulf of Mexico 13.2 % 15.0 % 15.6 % 14.2 %
Arctic (13.8)% (0.2)% 12.4 % 15.5 %
Latin America 15.3 % 23.4 % 21.3 % 27.3 %
Europe 22.5 % 18.0 % 21.4 % 18.6 %
West Africa 14.6 % 36.0 % 18.7 % 24.1 %
Southeast Asia 23.1 % 31.9 % 21.4 % 15.4 %
Other International (41.5)% 18.0 % (0.6)% 15.3 %
Bristow Academy (4.3)% 7.5 % (5.5)% 3.1 %
Consolidated total 12.9 % 15.6 % 14.7 % 16.6 %
SOURCE Bristow Group Inc.
