Printer Friendly

Bristow Group Reports Financial Results For Its 2016 Fiscal First Quarter Ended June 30, 2015.

- FIRST QUARTER OPERATING REVENUE INCREASED YEAR OVER YEAR TO $440.1 MILLION, IN SPITE OF THE INDUSTRY DOWNTURN

- FIRST QUARTER GAAP NET LOSS OF $3.3 MILLION ($0.27 PER DILUTED SHARE)

- FIRST QUARTER ADJUSTED NET INCOME OF $19.8 MILLION ($0.56 PER DILUTED SHARE)

- COMPANY REVISES GUIDANCE FOR FULL FISCAL YEAR 2016 ADJUSTED EPS OF $3.10 - $3.75

HOUSTON, Aug. 6, 2015 /PRNewswire/ -- Bristow Group Inc. (NYSE: BRS) today reported a net loss for the June 2015 quarter of $3.3 million, or $0.27 per diluted share on a GAAP basis, compared to net income of $44.1 million, or $1.23 per diluted share, in the same period in the prior year.

Adjusted net income, which excludes special items and asset disposition effects, decreased 58% to $19.8 million, or $0.56 per diluted share, for the June 2015 quarter, compared to $47.4 million, or $1.32 per diluted share, in the June 2014 quarter.

Adjusted earnings before interest, taxes, depreciation, amortization and rent ("adjusted EBITDAR"), which also excludes special items and asset disposition effects, decreased 5% to $121.0 million for the June 2015 quarter compared to $127.6 million in the same period in the prior year. Net cash provided by operating activities was $15.9 million for the June 2015 quarter compared to $37.3 million for the prior year period.

The year-over-year decline in our financial results were significantly impacted by a decline in oil and gas activity, especially in our North Sea operations within our Europe Caspian region, while our Asia, Africa and Americas regions were impacted to a lesser degree. Also, during the June 2015 quarter, our results were impacted by a $20.8 million increase in rental expense primarily related to the number of aircraft, including those involved U.K. search and rescue ("SAR"), under operating leases compared to the June 2014 quarter, as well as bad debt expense recorded against client receivables totaling $4.1 million in our Africa region. The June 2014 quarter benefited from the recovery of $6.8 million from our original equipment manufacturers provided in the form of maintenance credits and the reversal of $4.4 million in bad debt expense in our Americas region.

The decline in our results was partially offset by the positive impact from the addition of Airnorth in Australia, the startup of new contracts across all regions, including the SAR contract in our Europe Caspian region and cost management efforts in our regions.

We expect results over the remainder of fiscal year 2016 to continue to be impacted by the market conditions affecting our oil and gas clients, partially offset by further SAR bases that come on line over the remainder of the fiscal year and benefits from additional economic restructuring measures. We expect operating results for the second half of the fiscal year to be stronger than the first half as new contracts start up and cost reduction initiatives take full effect resulting in reduced operating expense and margin improvements.

"Our results for the first quarter of fiscal 2016 reflect the reduced demand for our oil and gas services primarily in the North Sea while also successfully starting the SAR contract with the U.K. Maritime and Coastguard Agency," said Jonathan Baliff, President and Chief Executive Officer of Bristow Group. "Despite the significant oil and gas industry headwinds that we have been facing with our clients since the end of 2014, our regional leaders delivered an increase in operating revenue and in two regions managed to generate an increase in adjusted EBITDAR during the June 2015 quarter."

"We initiated a $75-95 million cost efficiency program in February that mitigated the impacts of this downturn for our clients' benefit. However, we will now implement a second phase economic restructuring to deliver an additional $60 million minimum in annualized cost base reductions as we see the velocity and duration of the downturn worsen. We continue to be focused on managing our oil and gas operations with Target Zero Safety while helping our clients execute their long-term growth strategies."

"Our financial strength has been a differentiator in this downturn and has ensured the successful startup of U.K. SAR, which correspondingly will help mitigate future pressure on our oil and gas margins. We are also seeing signs of strength in certain regions like our U.S. Gulf of Mexico operations. We are confident in the economic restructuring of our cost base and remain committed to positioning Bristow to capitalize on opportunities that are emerging during this downturn, while preserving our strong balance sheet," added Mr. Baliff.

FIRST QUARTER FY2016 RESULTS

* Operating revenue increased to $440.1 million compared to $437.3 million in the same period a year ago.

* Operating income decreased 93% to $4.8 million compared to $65.2 million in the June 2014 quarter.

* GAAP net loss was $9.6 million, or $0.27 per diluted share, in the June 2015 quarter, compared to net income of $44.1 million, or $1.23 per diluted share, in the June 2014 quarter.

* GAAP results for the June 2015 quarter were affected by the following items that are excluded from our adjusted non-GAAP financial measures for the quarter:

** $8.0 million ($0.16 per diluted share) due to severance expense resulting from cost reduction efforts and included in direct costs and general and administrative expense,

** Additional depreciation expense related to accelerated fleet retirements of $10.5 million ($0.23 per diluted share),

** Impairment of inventories of $5.4 million ($0.10 per diluted share) primarily related to the accelerated fleet retirements, and

** A net loss on disposal of assets of $7.7 million ($0.17 per diluted share) including impairment charges of $9.9 million on aircraft held for sale, partially offset by gains from sales or disposals of assets of $2.2 million.

* Diluted earnings per share was also negatively impacted by $0.18 related to the accounting for changes in the redeemable value of put arrangements whereby the noncontrolling interest holders in Airnorth and Eastern Airways may require us to redeem the remaining shares in these companies. This change does not impact net earnings (loss), but rather is accounted for as a reduction of earnings (loss) available to common shareholders in the calculation of diluted earnings (loss) per share.

FIRST QUARTER FY2016 BUSINESS UNIT RESULTS

Europe Caspian Region

As a result of the downturn in the oil and gas industry, activity levels declined with the implementation of efficiency initiatives through collaboration with our clients. This activity decline resulted in a decrease in oil and gas revenue in this region. Despite these results, operating revenue was mostly flat for the June 2015 quarter compared to the June 2014 quarter as a result of the April 2015 startup of two U.K. SAR bases which contributed $17.2 million in additional operating revenue and a new oil and gas contract which contributed $11.8 million in operating revenue during the quarter.

Adjusted EBITDAR decreased 8% year-over-year and adjusted EBITDAR margin decreased to 32.0% in the June 2015 quarter compared to 34.1% in the June 2014 quarter primarily due to maintenance expense credits realized in the June 2014 quarter. The contribution from the U.K. SAR contract and the new oil and gas contract were mostly offset by lower oil and gas activity declines. Sequential quarterly adjusted EBITDAR increased to $65.2 million in the June 2015 compared to $55.3 million in the March 2015 quarter while EBITDAR margins remained strong at 32.0% in June 2015 quarter compared to 30.9% in the March 2015 quarter.

Africa Region

Despite a 8.4% decrease in operating revenue for the June 2015 quarter compared to the June 2014 quarter driven by a decline in activity, adjusted EBITDAR increased 4.3% to $22.8 million for the June 2015 quarter compared to $21.9 million for the June 2014 quarter and adjusted EBITDAR margin improved to 29.4% for the June 2015 quarter compared to 25.9% for the June 2014 quarter. The increase in adjusted EBITDAR and adjusted EBITDAR margin are due to recently implemented cost management activities, partially offset by $4.1 million in bad debt expense recorded in the June 2015 quarter. Sequential quarterly adjusted EBITDAR decreased to $22.8 million in the June 2015 quarter compared to $39.1 million in the March 2015 quarter as a result of a decline in activity from the downturn.

Americas Region

A decrease in revenue generated from our small and medium aircraft operating in the U.S. Gulf of Mexico and a decline in revenue in Trinidad due to the end of a contract drove a decrease in operating revenue in our Americas region year over year. This decrease was partially offset by an increase in the number of large aircraft on contract in the U.S. Gulf of Mexico and a new contract in Suriname. Adjusted EBITDAR and adjusted EBITDAR margin decreased to $33.4 million and 41.8%, respectively, in the June 2015 quarter compared to $40.1 million and 44.7%, respectively, in the June 2014 quarter, partially driven by reversal recovery of $4.4 million of bad debt expense in the June 2014 quarter. Sequential, quarterly adjusted EBITDAR decreased slightly to $33.4 million in the June 2015 quarter compared to $34.8 million in the March 2015 quarter while EBITDAR margins remained strong at 41.8% in June 2015 quarter compared to 40.8% in the March 2015 quarter.

Asia Pacific Region

Operating revenue for our Asia Pacific region increased 37.2% to $74.7 million in the June 2015 quarter from $54.5 million in the June 2014 quarter due to the acquisition of Airnorth in January 2015 and startup of new contracts in Australia, including the INPEX contract. These items were partially offset by the end of contracts in Australia and Malaysia and an unfavorable impact from changes in foreign currency exchange rates. Primarily as a result of the Airnorth acquisition, adjusted EBITDAR increased in the June 2015 quarter to $17.1 million from $12.8 million in the June 2014 quarter. During the June 2014 quarter, we recovered $2.0 million in maintenance credits for maintenance from an OEM as settlements for aircraft performance and transportation costs. As a result of these maintenance credits utilized during the June 2014 quarter, adjusted EBITDAR margin declined from 23.5% in the June 2014 quarter to 22.8% in the June 2015 quarter. Sequential quarterly adjusted EBITDAR decreased to $17.1 million in the June 2015 quarter compared to $20.1 million in the March 2015 quarter and EBITDAR margins declined to 22.8% in June 2015 quarter compared to 29.2% in the March 2015 quarter.

GUIDANCE

We are lowering our adjusted diluted earnings per share guidance for the full fiscal year 2016 to $3.10 to $3.75, reflecting the increasing impact to Bristow of the current oil and gas downturn that has resulted in lower activity levels and a deeper downturn with the recent decline in oil prices.

"Due to the current environment and as the downturn has developed more rapidly than originally expected, our recent performance has fallen below our prior expectations and has significantly impacted our fiscal 2016 outlook," said John H. Briscoe, Senior Vice President and Chief Financial Officer of Bristow Group. "The downturn is deeper and our clients' restructuring of their costs has resulted in a more negative impact to Bristow and our previously announced cost cutting measures were not sufficient. Decreases in global activity levels are affecting our fiscal year 2016 performance and future expectations. We will pursue new and more aggressive restructuring measures to help mitigate the severity of the downturn. However, we are realizing the positive contributions from the U.K. SAR contract, which continues to ramp up and offset some of the declines and volatility in the current oil and gas market."

As a reminder, our adjusted diluted earnings per share guidance excludes the effect of special items and asset dispositions because their timing and amounts are more variable and less predictable. Further, this guidance is based on foreign exchange rates as of June 30, 2015 and assumes the rates will remain unchanged from these levels. In providing this guidance, we have not included the impact of any changes in accounting standards or significant acquisitions and divestitures. Events or other circumstances that we do not currently anticipate or cannot predict, including changes in the market and industry, could result in earnings per share for fiscal year 2016 that are significantly above or below this guidance. Factors that could cause such changes are described below under the Forward-Looking Statements Disclosure and the Risk Factors in our quarterly report on Form 10-Q for the quarter ended June 30, 2015 and annual report on Form 10-K for the fiscal year ended March 31, 2015.

LIQUIDITY AND CASH FLOW

Cash as of June 30, 2015 totaled $120.4 million compared to $104.1 million as of March 31, 2015. Our total liquidity, including cash on hand and availability on our revolving credit facility, was $364.9 million as of June 30, 2015 compared to $369.9 million as of March 31, 2015. This strong liquidity position resulted from continued positive operating cash flow generation of $15.9 million in the June 2015 quarter and $57.6 million in cash generated from financing activities, including the up-sizing of our term loan and borrowings under our revolving credit facility. We invested $67.8 million in cash in our business primarily through the addition of new aircraft.

DIVIDEND

On August 5, 2015, our Board of Directors approved our eighteenth consecutive quarterly dividend. This dividend of $0.34 per share will be paid on September 15, 2015 to shareholders of record on September 1, 2015. Based on shares outstanding as of June 30, 2015, the total quarterly dividend payment will be approximately $11.9 million.

CONFERENCE CALL

Management will conduct a conference call starting at 10:00 a.m. EDT (9:00 a.m. CDT) on Friday, August 7, 2015 to review financial results for the fiscal year 2016 first quarter ended June 30, 2015. This release and the most recent investor slide presentation are available in the investor relations area of our web page at www.bristowgroup.com. 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 2016 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 1-877-404-9648

* Replay: A telephone replay will be available through August 14, 2015 and may be accessed by calling toll free 1-877-660-6853, passcode: 13612623#

Via Telephone outside the U.S.:

* Live: Dial 1-412-902-0030

* Replay: A telephone replay will be available through August 14, 2015 and may be accessed by calling 1-201-612-7415, passcode: 13612623#

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 and one of two helicopter service providers to the offshore energy industry with global operations. The Company has major transportation operations in the North Sea, Nigeria and the U.S. Gulf of Mexico, and in most of the other major offshore oil and gas producing regions of the world, including Australia, Brazil, Canada, Russia 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 earnings guidance and earnings growth, expected contract revenue, capital deployment strategy, operational and capital performance, impact of new contracts and cost reduction initiative, shareholder return, liquidity, market and industry conditions. It is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements. Risks and uncertainties include, without limitation: fluctuations in the demand for our services; fluctuations in worldwide prices of and supply and demand for oil and natural gas; fluctuations in levels of oil and natural gas production, exploration and development activities; the impact of competition; actions by clients; the risk of reductions in spending on helicopter services by governmental agencies; changes in tax and other laws and regulations; changes in foreign exchange rates and controls; risks associated with international operations; operating risks inherent in our business, including the possibility of declining safety performance; general economic conditions including the capital and credit markets; our ability to obtain financing; the risk of grounding of segments of our fleet for extended periods of time or indefinitely; our ability to re-deploy our aircraft to regions with greater demand; our ability to acquire additional aircraft and dispose of older aircraft through sales into the aftermarket; the possibility that we do not achieve the anticipated benefit of our fleet investment and Operational Excellence programs; availability of employees with the necessary skills; and political instability, war or acts of terrorism in any of the countries in which we operate. 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, 2015 and annual report on Form 10-K for the fiscal year ended March 31, 2015. 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 OPERATIONS


(In thousands, except per share amounts and percentages)


(Unaudited)


Three Months Ended June 30,


2015


2014


Gross revenue:


Operating revenue from non-affiliates


$


420,013


$


415,905


Operating revenue from affiliates


20,098


21,430


Reimbursable revenue from non-affiliates


26,885


35,203


Reimbursable revenue from affiliates


-


-


466,996


472,538


Operating expense:


Direct cost


336,118


293,863


Reimbursable expense


26,167


32,608


Depreciation and amortization


37,146


25,334


General and administrative


61,332


60,432


460,763


412,237


Gain (loss) on disposal of assets


(7,695)


610


Earnings from unconsolidated affiliates, net of losses


6,296


4,281


Operating income


4,834


65,192


Interest expense, net


(7,669)


(7,127)


Other income (expense), net


3,839


(1,239)


Income before provision for income taxes


1,004


56,826


Provision for income taxes


(2,633)


(11,823)


Net income (loss)


(1,629)


45,003


Net income attributable to noncontrolling interests


(1,628)


(894)


Net income (loss) attributable to Bristow Group


(3,257)


44,109


Accretion of redeemable noncontrolling interest


(6,301)


-


Net income (loss) attributable to common stockholders


$


(9,558)


$


44,109


Earnings (loss) per common share:


Basic


$


(0.27)


$


1.24


Diluted


$


(0.27)


$


1.23


Non-GAAP measures:


Adjusted operating income


$


36,467


$


69,304


Adjusted operating margin


8.3


%


15.8


%


Adjusted EBITDAR


$


121,047


$


127,623


Adjusted EBITDAR margin


27.5


%


29.2


%


Adjusted net income


$


19,752


$


47,369


Adjusted diluted earnings per share


$


0.56


$


1.32


BRISTOW GROUP INC. AND SUBSIDIARIES


CONSOLIDATED BALANCE SHEETS


(In thousands)


(Unaudited)


June 30, 2015


March 31, 2015


ASSETS


Current assets:


Cash and cash equivalents


$


120,394


$


104,146


Accounts receivable from non-affiliates


252,502


250,610


Accounts receivable from affiliates


5,775


8,008


Inventories


151,947


147,169


Assets held for sale


38,636


57,827


Prepaid expenses and other current assets


60,640


70,091


Total current assets


629,894


637,851


Investment in unconsolidated affiliates


223,233


216,376


Property and equipment -- at cost:


Land and buildings


199,082


171,959


Aircraft and equipment


2,453,950


2,493,869


2,653,032


2,665,828


Less -- Accumulated depreciation and amortization


(506,860)


(508,727)


2,146,172


2,157,101


Goodwill


77,998


75,628


Other assets


165,394


143,764


Total assets


$


3,242,691


$


3,230,720


LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS' INVESTMENT


Current liabilities:


Accounts payable


$


98,253


$


84,193


Accrued wages, benefits and related taxes


75,557


81,648


Income taxes payable


6,488


7,926


Other accrued taxes


12,496


13,335


Deferred revenue


33,483


36,784


Accrued maintenance and repairs


30,616


23,316


Accrued interest


5,612


12,831


Other accrued liabilities


79,239


82,605


Deferred taxes


4,133


17,704


Short-term borrowings and current maturities of long-term debt


26,954


18,730


Deferred sale leaseback advance


-


55,934


Total current liabilities


372,831


435,006


Long-term debt, less current maturities


918,247


845,692


Accrued pension liabilities


101,911


99,576


Other liabilities and deferred credits


31,224


39,782


Deferred taxes


169,380


165,655


Redeemable noncontrolling interests


35,342


26,223


Stockholders' investment:


Common stock


376


376


Additional paid-in capital


782,620


781,837


Retained earnings


1,263,013


1,284,442


Accumulated other comprehensive loss


(255,615)


(270,329)


Treasury shares


(184,796)


(184,796)


Total Bristow Group stockholders' investment


1,605,598


1,611,530


Noncontrolling interests


8,158


7,256


Total stockholders' investment


1,613,756


1,618,786


Total liabilities, redeemable noncontrolling interests and stockholders' investment


$


3,242,691


$


3,230,720


BRISTOW GROUP INC. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF CASH FLOWS


(In thousands)


(Unaudited)


Three Months Ended June 30,


2015


2014


Cash flows from operating activities:


Net income (loss)


$


(1,629)


$


45,003


Adjustments to reconcile net income (loss) to net cash provided by operating activities:


Depreciation and amortization


37,146


25,334


Deferred income taxes


(7,293)


8,406


Write-off of deferred financing fees


-


164


Discount amortization on long-term debt


918


1,055


(Gain) loss on disposal of assets


7,695


(610)


Impairment of inventories


5,439


-


Stock-based compensation


3,967


4,187


Equity in earnings from unconsolidated affiliates (in excess of) less than dividends received


(5,530)


(4,281)


Tax benefit related to stock-based compensation


(337)


(166)


Increase (decrease) in cash resulting from changes in:


Accounts receivable


6,329


(972)


Inventories


(4,872)


(11,033)


Prepaid expenses and other assets


(17,582)


(1,850)


Accounts payable


14,830


7,511


Accrued liabilities


(20,243)


(23,027)


Other liabilities and deferred credits


(2,901)


(12,376)


Net cash provided by operating activities


15,937


37,345


Cash flows from investing activities:


Capital expenditures


(67,777)


(200,447)


Proceeds from asset dispositions


9,301


6,643


Net cash used in investing activities


(58,476)


(193,804)


Cash flows from financing activities:


Proceeds from borrowings


364,774


148,044


Repayment of debt


(285,589)


(35,848)


Partial prepayment of put/call obligation


(14)


(15)


Acquisition of noncontrolling interest


(2,000)


-


Payment of contingent consideration


(8,000)


-


Repurchase of common stock


-


(20,157)


Common stock dividends paid


(11,871)


(11,353)


Issuance of common stock


-


975


Tax benefit related to stock-based compensation


337


166


Net cash provided by financing activities


57,637


81,812


Effect of exchange rate changes on cash and cash equivalents


1,150


4,110


Net increase (decrease) in cash and cash equivalents


16,248


(70,537)


Cash and cash equivalents at beginning of period


104,146


204,341


Cash and cash equivalents at end of period


$


120,394


$


133,804


BRISTOW GROUP INC. AND SUBSIDIARIES


SELECTED OPERATING DATA


(In thousands, except flight hours and percentages)


(Unaudited)


Three Months Ended June 30,


2015


2014


Flight hours (excluding Bristow Academy and unconsolidated affiliates):


Europe Caspian


23,416


24,181


Africa


10,180


11,058


Americas


10,692


14,261


Asia Pacific


8,506


3,678


Consolidated


52,794


53,178


Operating revenue:


Europe Caspian


$


203,925


$


206,764


Africa


77,481


84,572


Americas


80,022


89,740


Asia Pacific


74,737


54,469


Corporate and other


8,773


9,342


Intra-region eliminations


(4,827)


(7,552)


Consolidated


$


440,111


$


437,335


Operating income (loss):


Europe Caspian


$


14,197


$


42,195


Africa


12,952


17,626


Americas


16,532


26,658


Asia Pacific


(688)


3,330


Corporate and other


(30,464)


(25,227)


Gain (loss) on disposal of assets


(7,695)


610


Consolidated


$


4,834


$


65,192


Operating margin:


Europe Caspian


7.0


%


20.4


%


Africa


16.7


%


20.8


%


Americas


20.7


%


29.7


%


Asia Pacific


(0.9)%


6.1


%


Consolidated


1.1


%


14.9


%


Adjusted EBITDAR:


Europe Caspian


$


65,186


$


70,543


Africa


22,814


21,872


Americas


33,442


40,081


Asia Pacific


17,072


12,820


Corporate and other


(17,467)


(17,693)


Consolidated


$


121,047


$


127,623


Adjusted EBITDAR margin:


Europe Caspian


32.0


%


34.1


%


Africa


29.4


%


25.9


%


Americas


41.8


%


44.7


%


Asia Pacific


22.8


%


23.5


%


Consolidated


27.5


%


29.2


%


BRISTOW GROUP INC. AND SUBSIDIARIES


AIRCRAFT COUNT


As of June 30, 2015


(Unaudited)


Aircraft in Consolidated Fleet


Percentage

of Current Quarter

Operating

Revenue


Helicopters


Small


Medium


Large


Training


Fixed

Wing


Unconsolidated

Affiliates [sup.(3)]


Total


Total[sup.(1)(2)]


Europe Caspian


46


%


-


12


70


-


28


110


-


110


Africa


18


%


14


33


4


-


5


56


43


99


Americas


18


%


19


45


17


-


-


81


85


166


Asia Pacific


17


%


2


9


24


-


13


48


-


48


Corporate and other


1


%


-


-


-


70


-


70


-


70


Total


100


%


35


99


115


70


46


365


128


493


Aircraft not currently in fleet:[sup.(4)]


On order


-


10


36


-


-


46


Under option


-


9


12


-


-


21


[sup.(1) ]


Includes 15 aircraft held for sale and 120 leased aircraft as follows:


Held for Sale Aircraft in Consolidated Fleet


Helicopters


Small


Medium


Large


Training


Fixed

Wing


Total


Europe Caspian


-


-


2


-


-


2


Africa


-


5


-


-


-


5


Americas


-


6


-


-


-


6


Asia Pacific


-


-


2


-


-


2


Corporate and other


-


-


-


-


-


-


Total


-


11


4


-


-


15


Leased Aircraft in Consolidated Fleet


Helicopters


Small


Medium


Large


Training


Fixed

Wing


Total


Europe Caspian


-


5


38


-


11


54


Africa


-


1


1


-


2


4


Americas


1


13


5


-


-


19


Asia Pacific


2


2


8


-


4


16


Corporate and other


-


-


-


27


-


27


Total


3


21


52


27


17


120


[sup.(2)]


The average age of our fleet, excluding training aircraft, was 9 years as of June 30, 2015.


[sup.(3)]


The 128 aircraft operated by our unconsolidated affiliates do not include those aircraft leased from us. Includes 58 helicopters (primarily medium) and 27 fixed wing aircraft owned and managed by Lider, our unconsolidated affiliate in Brazil, which is included in our Americas region.


[sup.(4)]


This table does not reflect aircraft which our unconsolidated affiliates may have on order or under option.


BRISTOW GROUP INC. AND SUBSIDIARIES


GAAP RECONCILIATIONS


These financial measures have not been prepared in accordance with generally accepted accounting principles ("GAAP") and have not been audited or reviewed by our independent auditor. These financial measures are therefore considered non-GAAP financial measures. A description of the adjustments to and reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measures is as follows:


Three Months Ended June 30,


2015


2014


(In thousands, except

per share amounts)


Adjusted operating income


$


36,467


$


69,304


Gain (loss) on disposal of assets


(7,695)


610


Special items


(23,938)


(4,722)


Operating income


$


4,834


$


65,192


Adjusted EBITDAR


$


121,047


$


127,623


Gain (loss) on disposal of assets


(7,695)


610


Special items


(13,430)


(5,594)


Depreciation and amortization


(37,146)


(25,334)


Rent expense


(53,882)


(33,116)


Interest expense


(7,890)


(7,363)


Provision for income taxes


(2,633)


(11,823)


Net income (loss)


$


(1,629)


$


45,003


Adjusted income tax expense


$


(11,257)


$


(13,711)


Tax (expense) benefit on gain (loss) on disposal of asset


1,770


(127)


Tax benefit (expense) on special items


6,854


2,015


Income tax expense


$


(2,633)


$


(11,823)


Adjusted effective tax rate [sup.(1)]


34.5


%


22.1


%


Effective tax rate [sup.(1)]


262.3


%


20.8


%


Adjusted net income


$


19,752


$


47,369


Gain (loss) on disposal of assets


(5,925)


483


Special items


(17,084)


(3,743)


Net income (loss) attributable to Bristow Group


$


(3,257)


$


44,109


Adjusted diluted earnings per share


$


0.56


$


1.32


Gain (loss) on disposal of assets


(0.17)


0.01


Special items


(0.67)


(0.10)


Diluted earnings per share


(0.27)


1.23


[sup.(1)]


Effective tax rate is calculated by dividing income tax expense by pretax net income. Adjusted effective tax rate is calculated by dividing adjusted income tax expense by adjusted pretax net income.


Three Months Ended June 30, 2015


Adjusted

Operating

Income


Adjusted

EBITDAR


Adjusted

Net Income


Adjusted

Diluted

Earnings

Per

Share


(In thousands, except per share amounts)


Severance costs [sup.(1)]


$


(7,991)


$


(7,991)


$


(5,636)


$


(0.16)


Additional depreciation expense resulting from fleet changes [sup.(2)]


(10,508)


-


(7,913)


(0.23)


Impairment of inventories [sup.(3)]


(5,439)


(5,439)


(3,535)


(0.10)


Accretion of redeemable noncontrolling interests [sup.(4)]


-


-


-


(0.18)


Total special items


$


(23,938)


$


(13,430)


$


(17,084)


(0.67)


Three Months Ended June 30, 2014


Adjusted

Operating

Income


Adjusted

EBITDAR


Adjusted

Net Income


Adjusted

Diluted

Earnings

Per

Share


(In thousands, except per share amounts)


North America restructuring [sup.(5)]


$


(1,033)


$


(1,033)


$


(671)


$


(0.02)


CEO succession [sup.(6)]


(3,689)


(3,689)


(2,398)


(0.07)


Repurchase of 6 1/4% Senior Notes [sup.(7)]


-


(872)


(674)


(0.02)


Total special items


$


(4,722)


$


(5,594)


$


(3,743)


(0.10)


[sup.(1)]


Relates to severance expense included in direct costs and general and administrative expense from our voluntary and involuntary separation programs.


[sup.(2)]


Relates to additional depreciation expense due to fleet changes.


[sup.(3)]


Relates to increase in inventory allowance as a result of our review of excess inventory on aircraft model types we ceased ownership of or classified all or a significant portion of as held for sale.


[sup.(4)]


Relates to the accounting for changes in the redeemable value of put arrangements whereby the noncontrolling interest holders in Airnorth and Eastern Airways may require us to redeem the remaining shares in these companies. This change does not impact net earnings (loss), but rather is accounted for as a reduction of earnings (loss) available to common shareholders in the calculation of diluted earnings (loss) per share.


[sup.(5)]


Relates to a charges associated with the restructuring of our North America operations and planned closure of our Alaska operations which related primarily to employee severance and retention costs.


[sup.(6)]


Relates to CEO succession cost.


[sup.(7)]


Relates to premium and fees associated with the repurchase of some of our 6 1/4% Senior Notes due 2022.


To view the original version on PR Newswire, visit: http://www.prnewswire.com/news-releases/bristow-group-reports-financial-results-for-its-2016-fiscal-first-quarter-ended-june-30-2015-300125278.html

SOURCE Bristow Group Inc.
COPYRIGHT 2015 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2015 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Article Type:Financial report
Date:Aug 6, 2015
Words:23793
Previous Article:Pembina Pipeline Corporation Reports Second Quarter 2015 Results.
Next Article:Clinic Targeted by Bailey & Glasser Also Investigated by TV Station.

Terms of use | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters