R
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
For
the quarterly period ended September 30, 2007
|
|
OR
|
|
£
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
For
the transition period
from to
|
Delaware
|
72-0679819
|
(State
or other jurisdiction of
|
(IRS
Employer
|
incorporation
or organization)
|
Identification
Number)
|
2000
W. Sam Houston Pkwy. S.,
|
77042
|
Suite
1700
|
(Zip
Code)
|
Houston,
Texas
|
|
(Address
of principal executive offices)
|
None
|
(Former
name, former address and former fiscal year, if changed since last
report)
|
Page
|
|||
PART
I
|
|||
Item
1.
|
2
|
||
Item
2.
|
29
|
||
Item
3.
|
51
|
||
Item
4.
|
52
|
||
PART
II
|
|||
Item
1.
|
52
|
||
Item
1A.
|
52
|
||
Item
2.
|
53
|
||
Item
6.
|
54
|
||
55
|
Three
Months Ended
September 30,
|
Six
Months Ended
September
30,
|
||||||||||||||
2006
|
2007
|
2006
|
2007
|
||||||||||||
(Unaudited)
|
|||||||||||||||
(In
thousands, except per share amounts)
|
|||||||||||||||
Gross
revenue:
|
|||||||||||||||
Operating
revenue from non-affiliates
|
$
|
191,341
|
$
|
231,475
|
$
|
373,127
|
$
|
443,929
|
|||||||
Operating
revenue from affiliates
|
11,631
|
13,858
|
23,710
|
24,955
|
|||||||||||
Reimbursable
revenue from non-affiliates
|
20,091
|
25,505
|
46,216
|
45,853
|
|||||||||||
Reimbursable
revenue from affiliates
|
1,146
|
2,498
|
2,218
|
3,601
|
|||||||||||
224,209
|
273,336
|
445,271
|
518,338
|
||||||||||||
Operating
expense:
|
|||||||||||||||
Direct
cost
|
148,872
|
162,764
|
287,341
|
326,600
|
|||||||||||
Reimbursable
expense
|
20,879
|
25,793
|
47,778
|
47,034
|
|||||||||||
Depreciation
and amortization
|
10,737
|
12,395
|
21,020
|
23,768
|
|||||||||||
General
and administrative
|
16,527
|
21,039
|
31,876
|
40,301
|
|||||||||||
Loss
(gain) on disposal of assets
|
(3,667
|
)
|
754
|
(4,665
|
)
|
170
|
|||||||||
193,348
|
222,745
|
383,350
|
437,873
|
||||||||||||
Operating
income
|
30,861
|
50,591
|
61,921
|
80,465
|
|||||||||||
Earnings
from unconsolidated affiliates, net of losses
|
1,728
|
4,118
|
3,287
|
7,508
|
|||||||||||
Interest
income
|
1,069
|
4,049
|
2,359
|
6,247
|
|||||||||||
Interest
expense
|
(2,871
|
)
|
(6,523
|
)
|
(6,107
|
)
|
(9,456
|
)
|
|||||||
Other
income (expense), net
|
(1,308
|
)
|
360
|
(6,093
|
)
|
786
|
|||||||||
Income
before provision for income taxes and minority interest
|
29,479
|
52,595
|
55,367
|
85,550
|
|||||||||||
Provision
for income taxes
|
(9,728
|
)
|
(18,641
|
)
|
(18,271
|
)
|
(28,475
|
)
|
|||||||
Minority
interest
|
(676
|
)
|
(4
|
)
|
(792
|
)
|
(453
|
)
|
|||||||
Net
income
|
19,075
|
33,950
|
36,304
|
56,622
|
|||||||||||
Preferred
stock dividends
|
(321
|
)
|
(3,163
|
)
|
(321
|
)
|
(6,325
|
)
|
|||||||
Net
income available to common stockholders
|
$
|
18,754
|
$
|
30,787
|
$
|
35,983
|
$
|
50,297
|
|||||||
Earnings
per common share:
|
|||||||||||||||
Basic
|
$
|
0.80
|
$
|
1.30
|
$
|
1.54
|
$
|
2.13
|
|||||||
Diluted
|
$
|
0.79
|
$
|
1.12
|
$
|
1.52
|
$
|
1.87
|
March
31,
2007
|
September
30,
2007
|
||||||||
(Unaudited)
|
|||||||||
(In
thousands)
|
|||||||||
ASSETS
|
|||||||||
Current
assets:
|
|||||||||
Cash
and cash equivalents
|
$
|
184,188
|
$
|
276,439
|
|||||
Accounts
receivable from non-affiliates, net of allowance for doubtful accounts
of
$2.0
million
and $1.8 million, respectively
|
158,770
|
191,962
|
|||||||
Accounts
receivable from affiliates, net of allowance for doubtful accounts
of
$3.2
million
and $3.0 million, respectively
|
17,199
|
14,862
|
|||||||
Inventories
|
157,870
|
176,459
|
|||||||
Prepaid
expenses and other
|
17,947
|
26,244
|
|||||||
Total
current assets
|
535,974
|
685,966
|
|||||||
Investment
in unconsolidated affiliates
|
46,828
|
54,314
|
|||||||
Property
and equipment – at cost:
|
|||||||||
Land
and buildings
|
51,850
|
55,619
|
|||||||
Aircraft
and equipment
|
1,141,578
|
1,353,975
|
|||||||
1,193,428
|
1,409,594
|
||||||||
Less
– Accumulated depreciation and amortization
|
(301,520
|
)
|
(309,726
|
)
|
|||||
891,908
|
1,099,868
|
||||||||
Goodwill
|
20,368
|
29,302
|
|||||||
Other
assets
|
10,725
|
29,793
|
|||||||
$
|
1,505,803
|
$
|
1,899,243
|
||||||
LIABILITIES
AND STOCKHOLDERS’ INVESTMENT
|
|||||||||
Current
liabilities:
|
|||||||||
Accounts
payable
|
$
|
42,343
|
$
|
49,055
|
|||||
Accrued
wages, benefits and related taxes
|
38,281
|
39,414
|
|||||||
Income
taxes payable
|
4,377
|
9,489
|
|||||||
Other
accrued taxes
|
9,084
|
5,118
|
|||||||
Deferred
revenues
|
16,283
|
14,703
|
|||||||
Accrued
maintenance and repairs
|
12,309
|
13,556
|
|||||||
Other
accrued liabilities
|
22,828
|
27,167
|
|||||||
Deferred
taxes
|
17,611
|
18,479
|
|||||||
Short-term
borrowings and current maturities of long-term debt
|
4,852
|
6,764
|
|||||||
Total
current liabilities
|
167,968
|
183,745
|
|||||||
Long-term
debt, less current maturities
|
254,230
|
550,571
|
|||||||
Accrued
pension liabilities
|
113,069
|
112,121
|
|||||||
Other
liabilities and deferred credits
|
17,345
|
15,312
|
|||||||
Deferred
taxes
|
76,089
|
89,914
|
|||||||
Minority
interest
|
5,445
|
5,258
|
|||||||
Commitments
and contingencies (Note 6)
|
|||||||||
Stockholders’
investment:
|
|||||||||
5.50%
mandatory convertible preferred stock, $.01 par value, authorized
and
outstanding
4,600,000 shares; entitled on liquidation to $230 million; net
of
offering
costs of $7.4 million
|
222,554
|
222,554
|
|||||||
Common
stock, $.01 par value, authorized 35,000,000 shares as of March 31
and
90,000,000
shares as of September 30; outstanding: 23,585,370 as of March
31
and
23,731,638 as of September 30 (exclusive of 1,281,050 treasury
shares)
|
236
|
237
|
|||||||
Additional
paid-in capital
|
169,353
|
174,383
|
|||||||
Retained
earnings
|
515,589
|
565,886
|
|||||||
Accumulated
other comprehensive loss
|
(36,075
|
)
|
(20,738
|
)
|
|||||
871,657
|
942,322
|
||||||||
$
|
1,505,803
|
$
|
1,899,243
|
Six
Months Ended
|
||||||||
September 30,
|
||||||||
2006
|
2007
|
|||||||
(Unaudited)
|
||||||||
(In
thousands)
|
||||||||
Cash
flows from operating activities:
|
||||||||
Net
income
|
$
|
36,304
|
$
|
56,622
|
||||
Adjustments
to reconcile net income to net cash provided by (used in) operating
activities:
|
||||||||
Depreciation
and amortization
|
21,020
|
23,768
|
||||||
Deferred
income taxes
|
8,250
|
12,431
|
||||||
Loss
(gain) on asset dispositions
|
(4,665
|
)
|
170
|
|||||
Stock-based
compensation expense
|
2,138
|
3,689
|
||||||
Equity
in earnings from unconsolidated affiliates in excess of dividends
received
|
(970
|
)
|
(4,229
|
)
|
||||
Minority
interest in earnings
|
792
|
453
|
||||||
Tax
benefit related to exercise of stock options
|
(607
|
)
|
(494
|
)
|
||||
Increase
(decrease) in cash resulting from changes in:
|
||||||||
Accounts
receivable
|
(3,172
|
)
|
(29,400
|
)
|
||||
Inventories
|
(5,241
|
)
|
(13,460
|
)
|
||||
Prepaid
expenses and other
|
(3,798
|
)
|
(5,676
|
)
|
||||
Accounts
payable
|
(7,949
|
)
|
4,635
|
|||||
Accrued
liabilities
|
7,099
|
2,230
|
||||||
Other
liabilities and deferred credits
|
(502
|
)
|
(7,241
|
)
|
||||
Net
cash provided by operating activities
|
48,699
|
43,498
|
||||||
Cash
flows from investing activities:
|
||||||||
Capital
expenditures
|
(108,556
|
)
|
(221,095
|
)
|
||||
Proceeds
from asset dispositions
|
8,590
|
3,144
|
||||||
Acquisition,
net of cash received
|
—
|
(12,926
|
)
|
|||||
Note
issued to unconsolidated affiliate
|
—
|
(4,141
|
)
|
|||||
Investment
in unconsolidated affiliate
|
—
|
(1,960
|
)
|
|||||
Net
cash used in investing activities
|
(99,966
|
)
|
(236,978
|
)
|
||||
Cash
flows from financing activities:
|
||||||||
Proceeds
from borrowings
|
—
|
300,000
|
||||||
Debt
issuance costs
|
—
|
(4,889
|
)
|
|||||
Issuance
of Preferred Stock
|
194,450
|
—
|
||||||
Preferred
Stock issuance costs
|
(346
|
)
|
—
|
|||||
Repayment
of debt and debt redemption premiums
|
(1,541
|
)
|
(7,205
|
)
|
||||
Partial
prepayment of put/call obligation
|
(80
|
)
|
(78
|
)
|
||||
Preferred
Stock dividends paid
|
—
|
(6,325
|
)
|
|||||
Issuance
of common stock
|
2,169
|
1,265
|
||||||
Tax
benefit related to exercise of stock options
|
607
|
494
|
||||||
Net
cash provided by financing activities
|
195,259
|
283,262
|
||||||
Effect
of exchange rate changes on cash and cash equivalents
|
1,801
|
2,469
|
||||||
Net
increase in cash and cash equivalents
|
145,793
|
92,251
|
||||||
Cash
and cash equivalents at beginning of period
|
122,482
|
184,188
|
||||||
Cash
and cash equivalents at end of period
|
$
|
268,275
|
$
|
276,439
|
||||
Supplemental
disclosure of cash flow information:
|
||||||||
Cash
paid during the period for:
|
||||||||
Interest,
net of interest capitalized
|
$
|
5,267
|
$
|
13,639
|
||||
Income
taxes
|
$
|
6,187
|
$
|
11,539
|
||||
Non-cash
investing activities:
|
||||||||
Capital
expenditures funded by accounts payable and short-term notes,
net
|
$
|
12,859
|
$
|
—
|
Three
Months Ended
September
30,
|
Six
Months Ended
September
30,
|
||||||||||||||
2006
|
2007
|
2006
|
2007
|
||||||||||||
High
|
$
|
1.91
|
$
|
2.06
|
$
|
1.91
|
$
|
2.06
|
|||||||
Average
|
1.87
|
2.02
|
1.85
|
2.00
|
|||||||||||
Low
|
1.82
|
1.98
|
1.74
|
1.97
|
April
2, 2007
|
||||
(In
thousands)
|
||||
Current
assets
|
$
|
2,925
|
||
Property
and equipment
|
8,689
|
|||
Other
assets
|
12,011
|
|||
Total
assets acquired
|
23,625
|
|||
Current
liabilities, including debt
|
8,461
|
|||
Total
liabilities assumed
|
8,461
|
|||
Net
assets acquired
|
$
|
15,164
|
March
31,
2007
|
September
30,
2007
|
|||||
7
½% Senior Notes due 2017
|
$
|
—
|
$
|
300,000
|
||
6
⅛% Senior Notes due 2013
|
230,000
|
230,000
|
||||
Term
loans
|
18,848
|
17,833
|
||||
Hemisco
Helicopters International, Inc. note
|
4,380
|
4,380
|
||||
Short-term
advance from customer
|
1,400
|
1,400
|
||||
Note
to Sakhalin Aviation Services Ltd.
|
389
|
296
|
||||
Sakhalin
debt
|
4,065
|
3,417
|
||||
Bristow
Academy debt
|
—
|
9
|
||||
Total
debt
|
259,082
|
557,335
|
||||
Less
short-term borrowings and current maturities of long-term
debt
|
(4,852
|
)
|
(6,764
|
)
|
||
Total
long-term debt
|
$
|
254,230
|
$
|
550,571
|
Six
Months
Ending March 31,
|
Fiscal
Year Ending March 31,
|
|||||||||||||||||||||
2008
|
2009
|
2010
|
2011
|
2012-2013
|
Total
|
|||||||||||||||||
Commitments
as of September 30, 2007:
|
||||||||||||||||||||||
Number
of aircraft:
|
||||||||||||||||||||||
Small
|
1
|
—
|
—
|
—
|
—
|
1
|
||||||||||||||||
Medium
|
4
|
6
|
—
|
—
|
—
|
10
|
||||||||||||||||
Large
|
6
|
10
|
—
|
—
|
—
|
16
|
||||||||||||||||
Training
|
5
|
—
|
—
|
—
|
—
|
5
|
||||||||||||||||
16
|
(1)
|
16
|
(2)
|
—
|
—
|
—
|
32
|
|||||||||||||||
Related
expenditures (in thousands) (3)
|
$
|
113,817
|
$
|
162,661
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
276,478
|
||||||||||
Options
as of September 30, 2007:
|
||||||||||||||||||||||
Number
of aircraft:
|
||||||||||||||||||||||
Medium
|
—
|
—
|
5
|
8
|
11
|
24
|
||||||||||||||||
Large
|
—
|
1
|
11
|
6
|
—
|
18
|
||||||||||||||||
—
|
1
|
16
|
14
|
11
|
42
|
|||||||||||||||||
Related
expenditures (in thousands) (3)
|
$
|
17,714
|
$
|
112,745
|
$
|
264,746
|
$
|
132,174
|
$
|
80,586
|
$
|
607,965
|
(1)
|
Signed
customer contracts are currently in place for 10 of the 11 non-training
aircraft.
|
(2)
|
Signed
customer contracts are currently in place for 4 of these 16 aircraft.
|
(3)
|
Includes
progress payments on aircraft scheduled to be delivered in future
periods.
|
Three
Months Ended
|
|||||||||||||||
June
30, 2007
|
September
30, 2007
|
||||||||||||||
Orders
|
Options
|
Orders
|
Options
|
||||||||||||
Beginning
of quarter
|
31
|
52
|
32
|
52
|
|||||||||||
Aircraft
delivered
|
(7
|
)
|
—
|
(9
|
)
|
—
|
|||||||||
Aircraft
ordered
|
2
|
—
|
5
|
—
|
|||||||||||
Training
aircraft
|
6
|
—
|
—
|
—
|
|||||||||||
Options
converted to orders
|
—
|
—
|
4
|
(4
|
)
|
||||||||||
Options
expired
|
—
|
—
|
—
|
(6
|
)
|
||||||||||
End
of quarter
|
32
|
52
|
32
|
42
|
Amount
of Commitment Expiration Per Period
|
|||||||||||||||||
Total
|
Remainder
of
Fiscal
Year
2008
|
Fiscal
Years 2009-2010
|
Fiscal
Years 2011-2012
|
Fiscal
Year
2013
and Thereafter
|
|||||||||||||
(In
thousands)
|
|||||||||||||||||
$
|
36,112
|
$
|
3,709
|
$
|
12,029
|
$
|
20,374
|
$
|
—
|
Three
Months Ended
September
30,
|
Six
Months Ended
September
30,
|
||||||||||||||
2006
|
2007
|
2006
|
2007
|
||||||||||||
(In
thousands)
|
|||||||||||||||
Service
cost for benefits earned during the period
|
$
|
65
|
$
|
71
|
$
|
128
|
$
|
142
|
|||||||
Interest
cost on pension benefit obligation
|
5,619
|
6,675
|
11,102
|
13,234
|
|||||||||||
Expected
return on assets
|
(5,814
|
)
|
(6,910
|
)
|
(11,487
|
)
|
(13,700
|
)
|
|||||||
Amortization
of unrecognized experience losses
|
901
|
1,042
|
1,780
|
2,066
|
|||||||||||
Net
periodic pension cost
|
$
|
771
|
$
|
878
|
$
|
1,523
|
$
|
1,742
|
Three
Months Ended
September
30,
|
Six
Months Ended
September
30,
|
|||||||||||
2006
|
2007
|
2006
|
2007
|
|||||||||
Earnings
(in thousands):
|
||||||||||||
Income
available to common stockholders – basic
|
$
|
18,754
|
$
|
30,787
|
$
|
35,983
|
$
|
50,297
|
||||
Preferred
Stock dividends
|
321
|
3,163
|
321
|
6,325
|
||||||||
Income
available to common stockholders – diluted
|
$
|
19,075
|
$
|
33,950
|
$
|
36,304
|
$
|
56,622
|
||||
Shares:
|
||||||||||||
Weighted
average number of common shares outstanding – basic
|
23,453,429
|
23,731,265
|
23,423,384
|
23,634,628
|
||||||||
Assumed
conversion of Preferred Stock outstanding during the
period
|
678,192
|
6,522,800
|
(1)
|
340,949
|
6,522,800
|
(1)
|
||||||
Net
effect of dilutive stock options and restricted stock units based
on the
treasury stock method
|
115,963
|
153,577
|
117,484
|
105,313
|
||||||||
Weighted
average number of common shares outstanding – diluted
|
24,247,584
|
30,407,642
|
23,881,817
|
30,262,741
|
||||||||
Basic
earnings per common share
|
$
|
0.80
|
$
|
1.30
|
$
|
1.54
|
$
|
2.13
|
||||
Diluted
earnings per common share
|
$
|
0.79
|
$
|
1.12
|
$
|
1.52
|
$
|
1.87
|
(1)
|
Diluted
earnings per common share included weighted average shares resulting
from
the assumed conversion of our Preferred Stock at the conversion rate
that
results in the most dilution: 1.4180 shares of common stock for
each share of Preferred Stock. If the average of the closing
price per share of our common stock on each of the 20 consecutive
trading
days ending on the third day immediately preceding the mandatory
conversion date of September 15, 2009 is greater than $35.26 per
share,
then the Preferred Stock will convert into fewer shares than assumed
for
diluted earnings per common share. If such average is $43.19
per share of more, then the Preferred Stock will convert into 1,197,840
fewer shares than assumed for diluted earnings per common
share.
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2006
|
2007
|
2006
|
2007
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Segment
gross revenue from external customers:
|
||||||||||||||||
Helicopter
Services:
|
||||||||||||||||
North
America
|
$
|
57,968
|
$
|
59,353
|
$
|
117,041
|
$
|
116,692
|
||||||||
South
and Central America
|
13,137
|
16,951
|
26,149
|
32,987
|
||||||||||||
Europe
|
71,508
|
92,948
|
142,102
|
175,875
|
||||||||||||
West
Africa
|
31,210
|
45,799
|
62,946
|
79,082
|
||||||||||||
Southeast
Asia
|
17,626
|
23,858
|
34,666
|
46,350
|
||||||||||||
Other
International
|
12,165
|
11,971
|
21,120
|
23,247
|
||||||||||||
EH
Centralized Operations
|
2,830
|
3,218
|
5,842
|
5,326
|
||||||||||||
Bristow Academy
|
—
|
3,228
|
—
|
6,247
|
||||||||||||
Total
Helicopter Services
|
206,444
|
257,326
|
409,866
|
485,806
|
||||||||||||
Production
Management Services
|
17,765
|
16,010
|
35,430
|
32,532
|
||||||||||||
Corporate
|
—
|
—
|
(25
|
)
|
—
|
|||||||||||
Total
segment gross revenue
|
$
|
224,209
|
$
|
273,336
|
$
|
445,271
|
$
|
518,338
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2006
|
2007
|
2006
|
2007
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Intersegment
and intrasegment gross revenue:
|
||||||||||||||||
Helicopter
Services:
|
||||||||||||||||
North
America
|
$
|
4,536
|
$
|
2,706
|
$
|
8,831
|
$
|
6,306
|
||||||||
South
and Central America
|
—
|
—
|
—
|
—
|
||||||||||||
Europe
|
1,198
|
511
|
2,585
|
941
|
||||||||||||
West
Africa
|
—
|
—
|
—
|
—
|
||||||||||||
Southeast
Asia
|
—
|
—
|
—
|
—
|
||||||||||||
Other
International
|
19
|
75
|
19
|
254
|
||||||||||||
EH
Centralized Operations
|
708
|
2,113
|
770
|
6,810
|
||||||||||||
Bristow Academy
|
—
|
—
|
—
|
—
|
||||||||||||
Total
Helicopter Services
|
6,461
|
5,405
|
12,205
|
14,311
|
||||||||||||
Production
Management Services
|
19
|
20
|
38
|
41
|
||||||||||||
Total
intersegment and intrasegment gross revenue
|
$
|
6,480
|
$
|
5,425
|
$
|
12,243
|
$
|
14,352
|
Consolidated
gross revenue reconciliation:
|
||||||||||||||||
Helicopter
Services:
|
||||||||||||||||
North
America
|
$
|
62,504
|
$
|
62,059
|
$
|
125,872
|
$
|
122,998
|
||||||||
South
and Central America
|
13,137
|
16,951
|
26,149
|
32,987
|
||||||||||||
Europe
|
72,706
|
93,459
|
144,687
|
176,816
|
||||||||||||
West
Africa
|
31,210
|
45,799
|
62,946
|
79,082
|
||||||||||||
Southeast
Asia
|
17,626
|
23,858
|
34,666
|
46,350
|
||||||||||||
Other
International
|
12,184
|
12,046
|
21,139
|
23,501
|
||||||||||||
EH
Centralized Operations
|
3,538
|
5,331
|
6,612
|
12,136
|
||||||||||||
Bristow Academy
|
—
|
3,228
|
—
|
6,247
|
||||||||||||
Intrasegment
eliminations
|
(3,276
|
)
|
(3,005
|
)
|
(6,136
|
)
|
(9,240
|
)
|
||||||||
Total
Helicopter Services (1)
|
209,629
|
259,726
|
415,935
|
490,877
|
||||||||||||
Production
Management Services (2)
|
17,784
|
16,030
|
35,468
|
32,573
|
||||||||||||
Corporate
|
—
|
—
|
(25
|
)
|
—
|
|||||||||||
Intersegment
eliminations
|
(3,204
|
)
|
(2,420
|
)
|
(6,107
|
)
|
(5,112
|
)
|
||||||||
Total
consolidated gross revenue
|
$
|
224,209
|
$
|
273,336
|
$
|
445,271
|
$
|
518,338
|
Consolidated
operating income (loss) reconciliation:
|
||||||||||||||||
Helicopter
Services:
|
||||||||||||||||
North
America
|
$
|
7,107
|
$
|
10,869
|
$
|
16,340
|
$
|
21,583
|
||||||||
South
and Central America
|
3,624
|
4,573
|
7,594
|
8,258
|
||||||||||||
Europe
|
13,527
|
21,895
|
27,623
|
36,470
|
||||||||||||
West
Africa
|
2,848
|
15,492
|
7,181
|
18,289
|
||||||||||||
Southeast
Asia
|
3,210
|
5,107
|
5,645
|
9,234
|
||||||||||||
Other
International
|
3,771
|
1,781
|
5,287
|
4,046
|
||||||||||||
EH
Centralized Operations
|
(2,584
|
)
|
(3,247
|
)
|
(4,351
|
)
|
(7,526
|
)
|
||||||||
Bristow Academy
|
—
|
(391
|
)
|
—
|
(482
|
)
|
||||||||||
Total
Helicopter Services
|
31,503
|
56,079
|
65,319
|
89,872
|
||||||||||||
Production
Management Services
|
1,394
|
870
|
2,807
|
1,959
|
||||||||||||
Gain
(loss) on disposal of assets
|
3,667
|
(754
|
)
|
4,665
|
(170
|
)
|
||||||||||
Corporate
|
(5,703
|
)
|
(5,604
|
)
|
(10,870
|
)
|
(11,196
|
)
|
||||||||
Total
consolidated operating income
|
$
|
30,861
|
$
|
50,591
|
$
|
61,921
|
$
|
80,465
|
March
31,
2007
|
September
30,
2007
|
||||||||
(In
thousands)
|
|||||||||
Identifiable
assets:
|
|||||||||
Helicopter
Services:
|
|||||||||
North
America
|
$
|
268,984
|
$
|
227,636
|
|||||
South
and Central America
|
158,383
|
175,657
|
|||||||
Europe
|
419,923
|
537,958
|
|||||||
West
Africa
|
159,781
|
218,798
|
|||||||
Southeast
Asia
|
59,400
|
104,990
|
|||||||
Other
International
|
77,357
|
100,198
|
|||||||
EH
Centralized Operations
|
71,918
|
82,157
|
|||||||
Bristow Academy
|
—
|
25,766
|
|||||||
Total
Helicopter Services
|
1,215,746
|
1,473,160
|
|||||||
Production
Management Services
|
32,074
|
34,598
|
|||||||
Corporate (3)
|
257,983
|
391,485
|
|||||||
Total
consolidated identifiable assets
|
$
|
1,505,803
|
$
|
1,899,243
|
(1)
|
Includes
reimbursable revenue of $18.9 million and $26.1 million for the three
months ended September 30, 2006 and 2007, respectively, and $42.2
million
and $46.3 million for the six months ended September 30, 2006 and
2007,
respectively.
|
(2)
|
Includes
reimbursable revenue of $2.3 million and $1.9 million for the three
months
ended September 30, 2006 and 2007, respectively, and $6.2 million
and $3.2
million for the six months ended September 30, 2006 and 2007,
respectively, net of intercompany eliminations.
|
(3)
|
Includes
$165.4 million and $198.9 million, respectively, in progress payments
on
aircraft scheduled to be delivered in future periods, which is included
in
construction in progress within property and equipment on our condensed
consolidated balance sheets as of March 31 and September 30,
2007.
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2006
|
2007
|
2006
|
2007
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Net
income
|
$
|
19,075
|
$
|
33,950
|
$
|
36,304
|
$
|
56,622
|
||||||||
Other
comprehensive income:
|
||||||||||||||||
Currency
translation adjustments
|
2,955
|
6,617
|
21,321
|
15,337
|
||||||||||||
Comprehensive
income
|
$
|
22,030
|
$
|
40,567
|
$
|
57,625
|
$
|
71,959
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Gross
revenue
|
$
|
—
|
$
|
83,867
|
$
|
140,342
|
$
|
—
|
$
|
224,209
|
||||||||||
Intercompany
revenue
|
—
|
3,754
|
3,356
|
(7,110
|
)
|
—
|
||||||||||||||
—
|
87,621
|
143,698
|
(7,110
|
)
|
224,209
|
|||||||||||||||
Operating
expense:
|
||||||||||||||||||||
Direct
cost
|
127
|
64,768
|
104,856
|
—
|
169,751
|
|||||||||||||||
Intercompany
expenses
|
—
|
3,356
|
3,754
|
(7,110
|
)
|
—
|
||||||||||||||
Depreciation
and amortization
|
56
|
4,526
|
6,155
|
—
|
10,737
|
|||||||||||||||
General
and administrative
|
5,517
|
4,112
|
6,898
|
—
|
16,527
|
|||||||||||||||
Gain
on disposal of assets
|
—
|
(58
|
)
|
(3,609
|
)
|
—
|
(3,667
|
)
|
||||||||||||
5,700
|
76,704
|
118,054
|
(7,110
|
)
|
193,348
|
|||||||||||||||
Operating
income (loss)
|
(5,700
|
)
|
10,917
|
25,644
|
—
|
30,861
|
||||||||||||||
Earnings
(losses) from unconsolidated
affiliates,
net
|
12,790
|
(353
|
)
|
2,132
|
(12,841
|
)
|
1,728
|
|||||||||||||
Interest
income
|
15,331
|
73
|
1,186
|
(15,521
|
)
|
1,069
|
||||||||||||||
Interest
expense
|
(3,183
|
)
|
—
|
(15,209
|
)
|
15,521
|
(2,871
|
)
|
||||||||||||
Other
expense, net
|
(5
|
)
|
(17
|
)
|
(1,286
|
)
|
—
|
(1,308
|
)
|
|||||||||||
Income
before provision for income
taxes
and minority interest
|
19,233
|
10,620
|
12,467
|
(12,841
|
)
|
29,479
|
||||||||||||||
Allocation
of consolidated income taxes
|
(116
|
)
|
(1,357
|
)
|
(8,255
|
)
|
—
|
(9,728
|
)
|
|||||||||||
Minority
interest
|
(42
|
)
|
—
|
(634
|
)
|
—
|
(676
|
)
|
||||||||||||
Net
income
|
$
|
19,075
|
$
|
9,263
|
$
|
3,578
|
$
|
(12,841
|
)
|
$
|
19,075
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Gross
revenue
|
$
|
(25
|
)
|
$
|
168,316
|
$
|
276,980
|
$
|
—
|
$
|
445,271
|
|||||||||
Intercompany
revenue
|
—
|
6,680
|
5,721
|
(12,401
|
)
|
—
|
||||||||||||||
(25
|
)
|
174,996
|
282,701
|
(12,401
|
)
|
445,271
|
||||||||||||||
Operating
expense:
|
||||||||||||||||||||
Direct
cost
|
194
|
127,095
|
207,830
|
—
|
335,119
|
|||||||||||||||
Intercompany
expenses
|
—
|
5,721
|
6,630
|
(12,351
|
)
|
—
|
||||||||||||||
Depreciation
and amortization
|
82
|
8,776
|
12,162
|
—
|
21,020
|
|||||||||||||||
General
and administrative
|
10,566
|
8,478
|
12,882
|
(50
|
)
|
31,876
|
||||||||||||||
Gain
on disposal of assets
|
—
|
(194
|
)
|
(4,471
|
)
|
—
|
(4,665
|
)
|
||||||||||||
10,842
|
149,876
|
235,033
|
(12,401
|
)
|
383,350
|
|||||||||||||||
Operating
income (loss)
|
(10,867
|
)
|
25,120
|
47,668
|
—
|
61,921
|
||||||||||||||
Earnings
(losses) from unconsolidated
affiliates,
net
|
24,660
|
(625
|
)
|
4,017
|
(24,765
|
)
|
3,287
|
|||||||||||||
Interest
income
|
29,961
|
133
|
2,063
|
(29,798
|
)
|
2,359
|
||||||||||||||
Interest
expense
|
(6,466
|
)
|
—
|
(29,439
|
)
|
29,798
|
(6,107
|
)
|
||||||||||||
Other
expense, net
|
(94
|
)
|
(94
|
)
|
(5,905
|
)
|
—
|
(6,093
|
)
|
|||||||||||
Income
before provision for income
taxes
and minority interest
|
37,194
|
24,534
|
18,404
|
(24,765
|
)
|
55,367
|
||||||||||||||
Allocation
of consolidated income taxes
|
(809
|
)
|
(2,726
|
)
|
(14,736
|
)
|
—
|
(18,271
|
)
|
|||||||||||
Minority
interest
|
(81
|
)
|
—
|
(711
|
)
|
—
|
(792
|
)
|
||||||||||||
Net
income
|
$
|
36,304
|
$
|
21,808
|
$
|
2,957
|
$
|
(24,765
|
)
|
$
|
36,304
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Gross
revenue
|
$
|
—
|
$
|
92,504
|
$
|
180,832
|
$
|
—
|
$
|
273,336
|
||||||||||
Intercompany
revenue
|
—
|
3,998
|
3,382
|
(7,380
|
)
|
—
|
||||||||||||||
—
|
96,502
|
184,214
|
(7,380
|
)
|
273,336
|
|||||||||||||||
Operating
expense:
|
||||||||||||||||||||
Direct
cost
|
—
|
63,381
|
125,176
|
—
|
188,557
|
|||||||||||||||
Intercompany
expenses
|
—
|
3,405
|
3,975
|
(7,380
|
)
|
—
|
||||||||||||||
Depreciation
and amortization
|
71
|
5,093
|
7,231
|
—
|
12,395
|
|||||||||||||||
General
and administrative
|
5,507
|
4,189
|
11,343
|
—
|
21,039
|
|||||||||||||||
Loss
on disposal of
assets
|
—
|
728
|
26
|
—
|
754
|
|||||||||||||||
5,578
|
76,796
|
147,751
|
(7,380
|
)
|
222,745
|
|||||||||||||||
Operating
income (loss)
|
(5,578
|
)
|
19,706
|
36,463
|
—
|
50,591
|
||||||||||||||
Earnings
from unconsolidated
affiliates,
net
|
28,256
|
138
|
3,980
|
(28,256
|
)
|
4,118
|
||||||||||||||
Interest
income
|
22,732
|
124
|
481
|
(19,288
|
)
|
4,049
|
||||||||||||||
Interest
expense
|
(8,249
|
)
|
—
|
(17,562
|
)
|
19,288
|
(6,523
|
)
|
||||||||||||
Other
income (expense), net
|
(15
|
)
|
(54
|
)
|
429
|
—
|
360
|
|||||||||||||
Income
before provision for income
taxes
and minority interest
|
37,146
|
19,914
|
23,791
|
(28,256
|
)
|
52,595
|
||||||||||||||
Allocation
of consolidated income taxes
|
(3,145
|
)
|
(2,667
|
)
|
(12,829
|
)
|
—
|
(18,641
|
)
|
|||||||||||
Minority
interest
|
(51
|
)
|
—
|
47
|
—
|
(4
|
)
|
|||||||||||||
Net
income
|
$
|
33,950
|
$
|
17,247
|
$
|
11,009
|
$
|
(28,256
|
)
|
$
|
33,950
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Gross
revenue
|
$
|
—
|
$
|
180,663
|
$
|
337,675
|
$
|
—
|
$
|
518,338
|
||||||||||
Intercompany
revenue
|
—
|
9,154
|
9,497
|
(18,651
|
)
|
—
|
||||||||||||||
—
|
189,817
|
347,172
|
(18,651
|
)
|
518,338
|
|||||||||||||||
Operating
expense:
|
||||||||||||||||||||
Direct
cost
|
—
|
123,508
|
250,126
|
—
|
373,634
|
|||||||||||||||
Intercompany
expenses
|
—
|
9,619
|
9,032
|
(18,651
|
)
|
—
|
||||||||||||||
Depreciation
and amortization
|
142
|
10,539
|
13,087
|
—
|
23,768
|
|||||||||||||||
General
and administrative
|
11,000
|
8,133
|
21,168
|
—
|
40,301
|
|||||||||||||||
Loss
on disposal of assets
|
—
|
20
|
150
|
—
|
170
|
|||||||||||||||
11,142
|
151,819
|
293,563
|
(18,651
|
)
|
437,873
|
|||||||||||||||
Operating
income (loss)
|
(11,142
|
)
|
37,998
|
53,609
|
—
|
80,465
|
||||||||||||||
Earnings
from unconsolidated
affiliates,
net
|
43,881
|
313
|
7,195
|
(43,881
|
)
|
7,508
|
||||||||||||||
Interest
income
|
42,379
|
207
|
1,168
|
(37,507
|
)
|
6,247
|
||||||||||||||
Interest
expense
|
(11,061
|
)
|
(5
|
)
|
(35,897
|
)
|
37,507
|
(9,456
|
)
|
|||||||||||
Other
income (expense), net
|
(40
|
)
|
(97
|
)
|
923
|
—
|
786
|
|||||||||||||
Income
before provision for income
taxes
and minority interest
|
64,017
|
38,416
|
26,998
|
(43,881
|
)
|
85,550
|
||||||||||||||
Allocation
of consolidated income taxes
|
(7,297
|
)
|
(3,260
|
)
|
(17,918
|
)
|
—
|
(28,475
|
)
|
|||||||||||
Minority
interest
|
(98
|
)
|
—
|
(355
|
)
|
—
|
(453
|
)
|
||||||||||||
Net
income
|
$
|
56,622
|
$
|
35,156
|
$
|
8,725
|
$
|
(43,881
|
)
|
$
|
56,622
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
ASSETS
|
||||||||||||||||||||
Current
assets:
|
||||||||||||||||||||
Cash
and cash equivalents
|
$
|
133,010
|
$
|
3,434
|
$
|
47,744
|
$
|
—
|
$
|
184,188
|
||||||||||
Accounts
receivable
|
32,103
|
62,493
|
123,453
|
(42,080
|
)
|
175,969
|
||||||||||||||
Inventories
|
—
|
72,834
|
85,036
|
—
|
157,870
|
|||||||||||||||
Prepaid
expenses and other
|
830
|
9,951
|
7,166
|
—
|
17,947
|
|||||||||||||||
Total
current assets
|
165,943
|
148,712
|
263,399
|
(42,080
|
)
|
535,974
|
||||||||||||||
Intercompany
investment
|
297,113
|
1,046
|
—
|
(298,159
|
)
|
—
|
||||||||||||||
Investment
in unconsolidated affiliates
|
4,643
|
1,611
|
40,574
|
—
|
46,828
|
|||||||||||||||
Intercompany
notes receivable
|
825,203
|
—
|
11,980
|
(837,183
|
)
|
—
|
||||||||||||||
Property
and equipment – at cost:
|
||||||||||||||||||||
Land
and buildings
|
263
|
36,689
|
14,898
|
—
|
51,850
|
|||||||||||||||
Aircraft
and equipment
|
2,259
|
550,611
|
588,708
|
—
|
1,141,578
|
|||||||||||||||
2,522
|
587,300
|
603,606
|
—
|
1,193,428
|
||||||||||||||||
Less: Accumulated
depreciation and
amortization
|
(1,471
|
)
|
(123,367
|
)
|
(176,682
|
)
|
—
|
(301,520
|
)
|
|||||||||||
1,051
|
463,933
|
426,924
|
—
|
891,908
|
||||||||||||||||
Goodwill
|
—
|
18,483
|
1,774
|
111
|
20,368
|
|||||||||||||||
Other
assets
|
9,348
|
224
|
1,153
|
—
|
10,725
|
|||||||||||||||
$
|
1,303,301
|
$
|
634,009
|
$
|
745,804
|
$
|
(1,177,311
|
)
|
$
|
1,505,803
|
||||||||||
LIABILITIES
AND STOCKHOLDERS’ INVESTMENT
|
||||||||||||||||||||
Current
liabilities:
|
||||||||||||||||||||
Accounts
payable
|
$
|
1,043
|
$
|
16,628
|
$
|
36,028
|
$
|
(11,356
|
)
|
$
|
42,343
|
|||||||||
Accrued
liabilities
|
10,736
|
20,009
|
103,141
|
(30,724
|
)
|
103,162
|
||||||||||||||
Deferred
taxes
|
217
|
—
|
17,394
|
—
|
17,611
|
|||||||||||||||
Short-term
borrowings and current
maturities
of long-term debt
|
—
|
—
|
4,852
|
—
|
4,852
|
|||||||||||||||
Total
current liabilities
|
11,996
|
36,637
|
161,415
|
(42,080
|
)
|
167,968
|
||||||||||||||
Long-term
debt, less current maturities
|
234,379
|
—
|
19,851
|
—
|
254,230
|
|||||||||||||||
Intercompany
notes payable
|
14,569
|
230,773
|
591,841
|
(837,183
|
)
|
—
|
||||||||||||||
Other
liabilities and deferred credits
|
4,529
|
9,644
|
116,241
|
—
|
130,414
|
|||||||||||||||
Deferred
taxes
|
42,655
|
2,295
|
31,139
|
—
|
76,089
|
|||||||||||||||
Minority
interest
|
2,042
|
—
|
3,403
|
—
|
5,445
|
|||||||||||||||
Stockholders’
investment:
|
||||||||||||||||||||
5.50%
mandatory convertible preferred
stock
|
222,554
|
—
|
—
|
—
|
222,554
|
|||||||||||||||
Common
stock
|
236
|
4,062
|
35,426
|
(39,488
|
)
|
236
|
||||||||||||||
Additional
paid-in-capital
|
169,353
|
51,170
|
8,015
|
(59,185
|
)
|
169,353
|
||||||||||||||
Retained
earnings
|
515,589
|
299,428
|
(82,414
|
)
|
(217,014
|
)
|
515,589
|
|||||||||||||
Accumulated
other comprehensive
income
(loss)
|
85,399
|
—
|
(139,113
|
)
|
17,639
|
(36,075
|
)
|
|||||||||||||
993,131
|
354,660
|
(178,086
|
)
|
(298,048
|
)
|
871,657
|
||||||||||||||
$
|
1,303,301
|
$
|
634,009
|
$
|
745,804
|
$
|
(1,177,311
|
)
|
$
|
1,505,803
|
Parent
|
Non-
|
||||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
|||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||||
(In
thousands)
|
|||||||||||||||||||||
ASSETS
|
|||||||||||||||||||||
Current
assets:
|
|||||||||||||||||||||
Cash
and cash equivalents
|
$
|
224,143
|
$
|
32
|
$
|
52,264
|
$
|
—
|
$
|
276,439
|
|||||||||||
Accounts
receivable
|
39,041
|
101,846
|
136,031
|
(70,094
|
)
|
206,824
|
|||||||||||||||
Inventories
|
—
|
74,671
|
101,788
|
—
|
176,459
|
||||||||||||||||
Prepaid
expenses and other
|
597
|
10,380
|
15,267
|
—
|
26,244
|
||||||||||||||||
Total
current assets
|
263,781
|
186,929
|
305,350
|
(70,094
|
)
|
685,966
|
|||||||||||||||
Intercompany
investment
|
409,123
|
1,046
|
14,831
|
(425,000
|
)
|
—
|
|||||||||||||||
Investment
in unconsolidated affiliates
|
4,538
|
3,883
|
45,893
|
—
|
54,314
|
||||||||||||||||
Intercompany
notes receivable
|
958,345
|
—
|
(8,198
|
)
|
(950,147
|
)
|
—
|
||||||||||||||
Property
and equipment – at cost:
|
|||||||||||||||||||||
Land
and buildings
|
262
|
42,457
|
12,900
|
—
|
55,619
|
||||||||||||||||
Aircraft
and equipment
|
2,366
|
617,008
|
734,601
|
—
|
1,353,975
|
||||||||||||||||
2,628
|
659,465
|
747,501
|
—
|
1,409,594
|
|||||||||||||||||
Less: Accumulated
depreciation and
amortization
|
(1,509
|
)
|
(131,589
|
)
|
(176,628
|
)
|
—
|
(309,726
|
)
|
||||||||||||
1,119
|
527,876
|
570,873
|
—
|
1,099,868
|
|||||||||||||||||
Goodwill
|
—
|
18,594
|
10,597
|
111
|
29,302
|
||||||||||||||||
Other
assets
|
13,722
|
4,286
|
11,785
|
—
|
29,793
|
||||||||||||||||
$
|
1,650,628
|
$
|
742,614
|
$
|
951,131
|
$
|
(1,445,130
|
)
|
$
|
1,899,243
|
|||||||||||
LIABILITIES
AND STOCKHOLDERS’ INVESTMENT
|
|||||||||||||||||||||
Current
liabilities:
|
|||||||||||||||||||||
Accounts
payable
|
$
|
1,609
|
$
|
15,939
|
$
|
65,133
|
$
|
(33,626
|
)
|
$
|
49,055
|
||||||||||
Accrued
liabilities
|
11,976
|
28,181
|
105,758
|
(36,468
|
)
|
109,447
|
|||||||||||||||
Deferred
taxes
|
1,272
|
—
|
17,207
|
—
|
18,479
|
||||||||||||||||
Short-term
borrowings and current
maturities
of long-term debt
|
—
|
—
|
6,764
|
—
|
6,764
|
||||||||||||||||
Total
current liabilities
|
14,857
|
44,120
|
194,862
|
(70,094
|
)
|
183,745
|
|||||||||||||||
Long-term
debt, less current maturities
|
534,380
|
—
|
16,191
|
—
|
550,571
|
||||||||||||||||
Intercompany
notes payable
|
—
|
296,305
|
653,842
|
(950,147
|
)
|
—
|
|||||||||||||||
Other
liabilities and deferred credits
|
4,041
|
9,641
|
113,751
|
—
|
127,433
|
||||||||||||||||
Deferred
taxes
|
47,992
|
2,700
|
39,222
|
—
|
89,914
|
||||||||||||||||
Minority
interest
|
2,126
|
—
|
3,132
|
—
|
5,258
|
||||||||||||||||
Stockholders’
investment:
|
|||||||||||||||||||||
5.50%
mandatory convertible preferred
stock
|
222,554
|
—
|
—
|
—
|
222,554
|
||||||||||||||||
Common
stock
|
237
|
4,063
|
73,237
|
(77,300
|
)
|
237
|
|||||||||||||||
Additional
paid-in-capital
|
174,383
|
51,201
|
82,173
|
(133,374
|
)
|
174,383
|
|||||||||||||||
Retained
earnings
|
565,886
|
334,584
|
(73,689
|
)
|
(260,895
|
)
|
565,886
|
||||||||||||||
Accumulated
other comprehensive
income
(loss)
|
84,172
|
—
|
(151,590
|
)
|
46,680
|
(20,738
|
)
|
||||||||||||||
1,047,232
|
389,848
|
(69,869
|
)
|
(424,889
|
)
|
942,322
|
|||||||||||||||
$
|
1,650,628
|
$
|
742,614
|
$
|
951,131
|
$
|
(1,445,130
|
)
|
$
|
1,899,243
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Net
cash provided by (used in) operating
activities
|
$
|
(10,823
|
)
|
$
|
21,740
|
$
|
20,841
|
$
|
16,941
|
$
|
48,699
|
|||||||||
Cash
flows from investing activities:
|
||||||||||||||||||||
Capital
expenditures
|
(377
|
)
|
(95,036
|
)
|
(13,143
|
)
|
—
|
(108,556
|
)
|
|||||||||||
Proceeds
from asset dispositions
|
—
|
1,725
|
6,865
|
—
|
8,590
|
|||||||||||||||
Net
cash used in investing activities
|
(377
|
)
|
(93,311
|
)
|
(6,278
|
)
|
—
|
(99,966
|
)
|
|||||||||||
Cash
flows from financing activities:
|
||||||||||||||||||||
Issuance
of Preferred Stock
|
194,450
|
—
|
—
|
—
|
194,450
|
|||||||||||||||
Preferred
Stock issuance costs
|
(346
|
)
|
—
|
—
|
—
|
(346
|
)
|
|||||||||||||
Repayment
of debt and debt redemption
premiums
|
—
|
—
|
(1,541
|
)
|
—
|
(1,541
|
)
|
|||||||||||||
Increases
(decreases) in cash related to
intercompany
advances and debt
|
(67,575
|
)
|
77,575
|
6,941
|
(16,941
|
)
|
—
|
|||||||||||||
Partial
prepayment of put/call obligation
|
(80
|
)
|
—
|
—
|
—
|
(80
|
)
|
|||||||||||||
Issuance
of common stock
|
2,169
|
—
|
—
|
—
|
2,169
|
|||||||||||||||
Tax
benefit related to exercise of stock
options
|
607
|
—
|
—
|
—
|
607
|
|||||||||||||||
Net
cash provided by financing
activities
|
129,225
|
77,575
|
5,400
|
(16,941
|
)
|
195,259
|
||||||||||||||
Effect
of exchange rate changes on cash and
cash
equivalents
|
144
|
—
|
1,657
|
—
|
1,801
|
|||||||||||||||
Net
increase in cash and
cash
equivalents
|
118,169
|
6,004
|
21,620
|
—
|
145,793
|
|||||||||||||||
Cash
and cash equivalents at beginning
of
period
|
74,601
|
1,363
|
46,518
|
—
|
122,482
|
|||||||||||||||
Cash
and cash equivalents at end of
period
|
$
|
192,770
|
$
|
7,367
|
$
|
68,138
|
$
|
—
|
$
|
268,275
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Net
cash provided by (used in) operating
activities
|
$
|
(19,573
|
)
|
$
|
28,472
|
$
|
31,681
|
$
|
2,918
|
$
|
43,498
|
|||||||||
Cash
flows from investing activities:
|
||||||||||||||||||||
Capital
expenditures
|
(133
|
)
|
(166,602
|
)
|
(54,360
|
)
|
—
|
(221,095
|
)
|
|||||||||||
Proceeds
from asset dispositions
|
—
|
2,761
|
383
|
—
|
3,144
|
|||||||||||||||
Acquisition,
net of cash received
|
(15,031
|
)
|
—
|
2,105
|
—
|
(12,926
|
)
|
|||||||||||||
Notes
issued to unconsolidated affiliate
|
—
|
(4,141
|
)
|
—
|
—
|
(4,141
|
)
|
|||||||||||||
Investment
in unconsolidated affiliate
|
—
|
(1,960
|
)
|
—
|
—
|
(1,960
|
)
|
|||||||||||||
Net
cash used in investing activities
|
(15,164
|
)
|
(169,942
|
)
|
(51,872
|
)
|
—
|
(236,978
|
)
|
|||||||||||
Cash
flows from financing activities:
|
||||||||||||||||||||
Proceeds
from borrowings
|
300,000
|
—
|
—
|
—
|
300,000
|
|||||||||||||||
Debt
issuance costs
|
(4,889
|
)
|
—
|
—
|
—
|
(4,889
|
)
|
|||||||||||||
Repayment
of debt and debt redemption
premiums
|
—
|
—
|
(7,205
|
)
|
—
|
(7,205
|
)
|
|||||||||||||
Increases
(decreases) in cash related to
intercompany
advances and debt
|
(165,293
|
)
|
138,068
|
30,143
|
(2,918
|
)
|
—
|
|||||||||||||
Partial
prepayment of put/call obligation
|
(78
|
)
|
—
|
—
|
—
|
(78
|
)
|
|||||||||||||
Preferred
Stock dividends paid
|
(6,325
|
)
|
—
|
—
|
—
|
(6,325
|
)
|
|||||||||||||
Issuance
of common stock
|
1,265
|
—
|
—
|
—
|
1,265
|
|||||||||||||||
Tax
benefit related to exercise of stock
options
|
494
|
—
|
—
|
—
|
494
|
|||||||||||||||
Net
cash provided by financing
activities
|
125,174
|
138,068
|
22,938
|
(2,918
|
)
|
283,262
|
||||||||||||||
Effect
of exchange rate changes on cash and
cash
equivalents
|
696
|
—
|
1,773
|
—
|
2,469
|
|||||||||||||||
Net
increase (decrease) in cash and
cash
equivalents
|
91,133
|
(3,402
|
)
|
4,520
|
—
|
92,251
|
||||||||||||||
Cash
and cash equivalents at beginning
of
period
|
133,010
|
3,434
|
47,744
|
—
|
184,188
|
|||||||||||||||
Cash
and cash equivalents at end of
period
|
$
|
224,143
|
$
|
32
|
$
|
52,264
|
$
|
—
|
$
|
276,439
|
·
|
the
risks and uncertainties described under “Part II. Item 1A. Risk Factors”
and under “Item 1A. Risk Factors” in the fiscal year 2007 Annual
Report;
|
·
|
the
level of activity in the oil and natural gas industry is lower than
anticipated;
|
·
|
production-related
activities become more sensitive to variances in commodity
prices;
|
·
|
the
major oil companies do not continue to expand
internationally;
|
·
|
market
conditions are weaker than
anticipated;
|
·
|
we
are not able to re-deploy our aircraft to regions with the greater
demand;
|
·
|
we
do not achieve the anticipated benefit of our fleet renewal program;
and
|
·
|
the
outcome of the United States Department of Justice (“DOJ”) antitrust
investigation, which is ongoing, has a greater than anticipated financial
or business impact.
|
·
|
Western
Hemisphere
|
−
|
North
America
|
−
|
South
and Central America
|
·
|
Eastern
Hemisphere
|
−
|
Europe
|
−
|
West
Africa
|
−
|
Southeast
Asia
|
−
|
Other
International
|
−
|
Eastern
Hemisphere (“EH”) Centralized
Operations
|
·
|
Global
Training
|
−
|
Bristow Academy
|
Percentage
of
|
Aircraft
in Consolidated Fleet
|
|||||||||||||||||
Current
|
Helicopters
|
|||||||||||||||||
Period
Revenue
|
Small
|
Medium
|
Large
|
Fixed
Wing
|
Total
|
Unconsolidated
Affiliates
|
Total
|
|||||||||||
Helicopter
Services
|
||||||||||||||||||
North
America
|
23
|
%
|
134
|
28
|
4
|
1
|
167
|
—
|
167
|
|||||||||
South
and Central America
|
7
|
%
|
2
|
33
|
1
|
—
|
36
|
16
|
52
|
|||||||||
Europe
|
34
|
%
|
1
|
10
|
39
|
—
|
50
|
31
|
81
|
|||||||||
West
Africa
|
15
|
%
|
12
|
27
|
2
|
7
|
48
|
—
|
48
|
|||||||||
Southeast
Asia
|
9
|
%
|
3
|
12
|
9
|
—
|
24
|
—
|
24
|
|||||||||
Other
International
|
4
|
%
|
—
|
13
|
10
|
3
|
26
|
41
|
67
|
|||||||||
EH
Centralized Operations
|
1
|
%
|
—
|
—
|
—
|
—
|
—
|
56
|
56
|
|||||||||
Bristow Academy
|
1
|
%
|
52
|
—
|
—
|
1
|
53
|
—
|
53
|
|||||||||
Production
Management
|
6
|
%
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||
Total
(1)
|
100
|
%
|
204
|
123
|
65
|
12
|
404
|
144
|
548
|
|||||||||
Aircraft
not currently in fleet:
|
||||||||||||||||||
On
order (2)
|
6
|
10
|
16
|
—
|
32
|
|||||||||||||
Under
option
|
—
|
24
|
18
|
—
|
42
|
(1)
|
Includes
12 aircraft held for sale.
|
(2)
|
Small
aircraft on order include orders for 5 training
aircraft.
|
Three
Months Ended
September
30,
|
Six
Months Ended
September
30,
|
|||||||||||
2006
|
2007
|
2006
|
2007
|
|||||||||
(Unaudited)
|
||||||||||||
(In
thousands)
|
||||||||||||
Gross
revenue:
|
||||||||||||
Operating
revenue
|
$
|
202,972
|
$
|
245,333
|
$
|
396,837
|
$
|
468,884
|
||||
Reimbursable
revenue
|
21,237
|
28,003
|
48,434
|
49,454
|
||||||||
Total
gross revenue
|
224,209
|
273,336
|
445,271
|
518,338
|
||||||||
Operating
expense:
|
||||||||||||
Direct
cost
|
148,872
|
162,764
|
287,341
|
326,600
|
||||||||
Reimbursable
expense
|
20,879
|
25,793
|
47,778
|
47,034
|
||||||||
Depreciation
and amortization
|
10,737
|
12,395
|
21,020
|
23,768
|
||||||||
General
and administrative
|
16,527
|
21,039
|
31,876
|
40,301
|
||||||||
Loss
(gain) on disposal of assets
|
(3,667
|
)
|
754
|
(4,665
|
)
|
170
|
||||||
Total
operating expense
|
193,348
|
222,745
|
383,350
|
437,873
|
||||||||
Operating
income
|
30,861
|
50,591
|
61,921
|
80,465
|
||||||||
Earnings
from unconsolidated affiliates, net of losses
|
1,728
|
4,118
|
3,287
|
7,508
|
||||||||
Interest
expense, net
|
(1,802
|
)
|
(2,474
|
)
|
(3,748
|
)
|
(3,209
|
)
|
||||
Other
income (expense), net
|
(1,308
|
)
|
360
|
(6,093
|
)
|
786
|
||||||
Income
before provision for income taxes and minority interest
|
29,479
|
52,595
|
55,367
|
85,550
|
||||||||
Provision
for income taxes
|
(9,728
|
)
|
(18,641
|
)
|
(18,271
|
)
|
(28,475
|
)
|
||||
Minority
interest
|
(676
|
)
|
(4
|
)
|
(792
|
)
|
(453
|
)
|
||||
Net
income
|
$
|
19,075
|
$
|
33,950
|
$
|
36,304
|
$
|
56,622
|
Three
Months Ended September 30,
|
||||||||||||||||||
2006
|
2007
|
|||||||||||||||||
Pre-tax
Earnings
|
Net
Income
|
Diluted
Earnings
Per
Share
|
Pre-tax
Earnings
|
Net
Income
|
Diluted
Earnings
Per
Share
|
|||||||||||||
(In
thousands, except per share amounts)
|
||||||||||||||||||
Investigations:
|
||||||||||||||||||
SEC
(1)
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
1,000
|
$
|
650
|
$
|
0.02
|
||||||
DOJ
(1)
|
(282
|
)
|
(183
|
)
|
(0.01
|
)
|
(488
|
)
|
(317
|
)
|
(0.01
|
)
|
||||||
Tax
contingency related items
(2)
|
—
|
700
|
0.03
|
5,396
|
3,407
|
0.11
|
||||||||||||
7
½% Senior Notes due 2017 (3)
|
—
|
—
|
—
|
(2,248
|
)
|
(1,461
|
)
|
(0.05
|
)
|
|||||||||
Foreign
currency transaction gains (losses) (4)
|
(1,333
|
)
|
(867
|
)
|
(0.04
|
)
|
334
|
217
|
0.01
|
|||||||||
Preferred
Stock
(5)
|
291
|
189
|
(0.01
|
)
|
—
|
—
|
(0.30
|
)
|
||||||||||
Total
|
$
|
(1,324
|
)
|
$
|
(161
|
)
|
$
|
(0.03
|
)
|
$
|
3,994
|
$
|
2,496
|
$
|
(0.22
|
)
|
Six
Months Ended September 30,
|
||||||||||||||||||
2006
|
2007
|
|||||||||||||||||
Pre-tax
Earnings
|
Net
Income
|
Diluted
Earnings
Per
Share
|
Pre-tax
Earnings
|
Net
Income
|
Diluted
Earnings
Per
Share
|
|||||||||||||
(In
thousands, except per share amounts)
|
||||||||||||||||||
Investigations:
|
||||||||||||||||||
SEC
(1)
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
1,000
|
$
|
650
|
$
|
0.02
|
||||||
DOJ
(1)
|
(873
|
)
|
(567
|
)
|
(0.02
|
)
|
(488
|
)
|
(317
|
)
|
(0.01
|
)
|
||||||
Tax
contingency related items
(2)
|
—
|
1,500
|
0.06
|
5,396
|
4,407
|
0.15
|
||||||||||||
7
½% Senior Notes due 2017 (3)
|
—
|
—
|
—
|
(2,605
|
)
|
(1,693
|
)
|
(0.06
|
)
|
|||||||||
Foreign
currency transaction gains (losses) (4)
|
(6,142
|
)
|
(3,993
|
)
|
(0.17
|
)
|
735
|
478
|
0.02
|
|||||||||
Preferred
Stock
(5)
|
291
|
189
|
(0.01
|
)
|
826
|
537
|
(0.50
|
)
|
||||||||||
Total
|
$
|
(6,724
|
)
|
$
|
(2,871
|
)
|
$
|
(0.14
|
)
|
$
|
4,864
|
$
|
4,062
|
$
|
(0.38
|
)
|
(1)
|
Included
in general & administrative costs in our condensed consolidated
statements of income.
|
(2)
|
Represents
$5.4 million in reversal of accrual for sales tax contingency during
the
Current Quarter and Current Period in West Africa (see discussion
included
under “Business Unit Operating Results ― Current
Quarter Compared to Comparable Quarter ―
West Africa” included elsewhere in this Quarterly Report) included in
direct costs in our condensed consolidated statements of income and
a
direct reduction in our provision for income taxes in our condensed
consolidated statements of income for income tax contingency items,
which
represents the remainder of the impact on net income and diluted
earnings
per share.
|
(3)
|
Represents
the impact on interest expense, net of interest income earned on
additional cash, resulting from the issuance of the 7 ½% Senior Notes in
June 2007 (see discussion in Note 5 in the “Notes to Condensed
Consolidated Financial Statements” included elsewhere in this Quarterly
Report).
|
(4)
|
Included
in other income (expense), net in our condensed consolidated statements
of
income.
|
(5)
|
Represents
the impact on diluted earnings per share of the inclusion of weighted
average shares resulting from the assumed conversion of Preferred
Stock,
partially offset by interest income earned on cash balances generated
through the Preferred Stock offering in September and October
2006. See Note 9 in the “Notes to Consolidated Financial
Statements” in the fiscal year 2007 Annual Report for a further discussion
of the Preferred Stock offering.
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2006
|
2007
|
2006
|
2007
|
|||||||||||||
Flight
hours (excludes unconsolidated affiliates):
|
||||||||||||||||
Helicopter
Services:
|
||||||||||||||||
North
America (1)
|
41,148
|
39,623
|
83,757
|
79,894
|
||||||||||||
South
and Central America
|
9,631
|
10,810
|
18,916
|
22,177
|
||||||||||||
Europe
|
10,685
|
11,494
|
20,855
|
22,315
|
||||||||||||
West
Africa
|
9,179
|
9,887
|
18,062
|
18,785
|
||||||||||||
Southeast
Asia
|
3,063
|
3,644
|
6,269
|
6,988
|
||||||||||||
Other
International
|
2,426
|
2,177
|
4,478
|
4,724
|
||||||||||||
Consolidated
total
|
76,132
|
77,635
|
152,337
|
154,883
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2006
|
2007
|
2006
|
2007
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Gross
revenue:
|
||||||||||||||||
Helicopter
Services:
|
||||||||||||||||
North
America
|
$
|
62,504
|
$
|
62,059
|
$
|
125,872
|
$
|
122,998
|
||||||||
South
and Central America
|
13,137
|
16,951
|
26,149
|
32,987
|
||||||||||||
Europe
|
72,706
|
93,459
|
144,687
|
176,816
|
||||||||||||
West
Africa
|
31,210
|
45,799
|
62,946
|
79,082
|
||||||||||||
Southeast
Asia
|
17,626
|
23,858
|
34,666
|
46,350
|
||||||||||||
Other
International
|
12,184
|
12,046
|
21,139
|
23,501
|
||||||||||||
EH
Centralized Operations
|
3,538
|
5,331
|
6,612
|
12,136
|
||||||||||||
Bristow Academy
|
—
|
3,228
|
—
|
6,247
|
||||||||||||
Intrasegment
eliminations
|
(3,276
|
)
|
(3,005
|
)
|
(6,136
|
)
|
(9,240
|
)
|
||||||||
Total
Helicopter Services (2)
|
209,629
|
259,726
|
415,935
|
490,877
|
||||||||||||
Production
Management Services (3)
|
17,784
|
16,030
|
35,468
|
32,573
|
||||||||||||
Corporate
|
—
|
—
|
(25
|
)
|
—
|
|||||||||||
Intersegment
eliminations
|
(3,204
|
)
|
(2,420
|
)
|
(6,107
|
)
|
(5,112
|
)
|
||||||||
Consolidated
total
|
$
|
224,209
|
$
|
273,336
|
$
|
445,271
|
$
|
518,338
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2006
|
2007
|
2006
|
2007
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Operating
expense: (4)
|
||||||||||||||||
Helicopter
Services:
|
||||||||||||||||
North
America
|
$
|
55,397
|
$
|
51,190
|
$
|
109,532
|
$
|
101,415
|
||||||||
South
and Central America
|
9,513
|
12,378
|
18,555
|
24,729
|
||||||||||||
Europe
|
59,179
|
71,564
|
117,064
|
140,346
|
||||||||||||
West
Africa
|
28,362
|
30,307
|
55,765
|
60,793
|
||||||||||||
Southeast
Asia
|
14,416
|
18,751
|
29,021
|
37,116
|
||||||||||||
Other
International
|
8,413
|
10,265
|
15,852
|
19,455
|
||||||||||||
EH
Centralized Operations
|
6,122
|
8,578
|
10,963
|
19,662
|
||||||||||||
Bristow Academy
|
—
|
3,619
|
—
|
6,729
|
||||||||||||
Intrasegment
eliminations
|
(3,276
|
)
|
(3,005
|
)
|
(6,136
|
)
|
(9,240
|
)
|
||||||||
Total
Helicopter Services
|
178,126
|
203,647
|
350,616
|
401,005
|
||||||||||||
Production
Management Services
|
16,390
|
15,160
|
32,661
|
30,614
|
||||||||||||
Loss
(gain) on disposal of assets
|
(3,667
|
)
|
754
|
(4,665
|
)
|
170
|
||||||||||
Corporate
|
5,703
|
5,604
|
10,845
|
11,196
|
||||||||||||
Intersegment
eliminations
|
(3,204
|
)
|
(2,420
|
)
|
(6,107
|
)
|
(5,112
|
)
|
||||||||
Consolidated
total
|
$
|
193,348
|
$
|
222,745
|
$
|
383,350
|
$
|
437,873
|
Operating
income:
|
||||||||||||||||
Helicopter
Services:
|
||||||||||||||||
North
America
|
$
|
7,107
|
$
|
10,869
|
$
|
16,340
|
$
|
21,583
|
||||||||
South
and Central America
|
3,624
|
4,573
|
7,594
|
8,258
|
||||||||||||
Europe
|
13,527
|
21,895
|
27,623
|
36,470
|
||||||||||||
West
Africa
|
2,848
|
15,492
|
7,181
|
18,289
|
||||||||||||
Southeast
Asia
|
3,210
|
5,107
|
5,645
|
9,234
|
||||||||||||
Other
International (5)
|
3,771
|
1,781
|
5,287
|
4,046
|
||||||||||||
EH
Centralized Operations
|
(2,584
|
)
|
(3,247
|
)
|
(4,351
|
)
|
(7,526
|
)
|
||||||||
Bristow Academy
|
—
|
(391
|
)
|
—
|
(482
|
)
|
||||||||||
Total
Helicopter Services
|
31,503
|
56,079
|
65,319
|
89,872
|
||||||||||||
Production
Management Services
|
1,394
|
870
|
2,807
|
1,959
|
||||||||||||
Gain
(loss) on disposal of assets
|
3,667
|
(754
|
)
|
4,665
|
(170
|
)
|
||||||||||
Corporate
|
(5,703
|
)
|
(5,604
|
)
|
(10,870
|
)
|
(11,196
|
)
|
||||||||
Consolidated
operating income
|
30,861
|
50,591
|
61,921
|
80,465
|
||||||||||||
Earnings
from unconsolidated affiliates
|
1,728
|
4,118
|
3,287
|
7,508
|
||||||||||||
Interest
income
|
1,069
|
4,049
|
2,359
|
6,247
|
||||||||||||
Interest
expense
|
(2,871
|
)
|
(6,523
|
)
|
(6,107
|
)
|
(9,456
|
)
|
||||||||
Other
income (expense), net
|
(1,308
|
)
|
360
|
(6,093
|
)
|
786
|
||||||||||
Income
before provision for income
taxes
and minority interest
|
29,479
|
52,595
|
55,367
|
85,550
|
||||||||||||
Provision
for income taxes
|
(9,728
|
)
|
(18,641
|
)
|
(18,271
|
)
|
(28,475
|
)
|
||||||||
Minority
interest
|
(676
|
)
|
(4
|
)
|
(792
|
)
|
(453
|
)
|
||||||||
Net
income
|
$
|
19,075
|
$
|
33,950
|
$
|
36,304
|
$
|
56,622
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||
September
30,
|
September
30,
|
|||||||||||
2006
|
2007
|
2006
|
2007
|
|||||||||
Operating
margin: (6)
|
||||||||||||
Helicopter
Services:
|
||||||||||||
North
America
|
11.4
|
%
|
17.5
|
%
|
13.0
|
%
|
17.5
|
%
|
||||
South
and Central America
|
27.6
|
%
|
27.0
|
%
|
29.0
|
%
|
25.0
|
%
|
||||
Europe
|
18.6
|
%
|
23.4
|
%
|
19.1
|
%
|
20.6
|
%
|
||||
West
Africa
|
9.1
|
%
|
33.8
|
%
|
11.4
|
%
|
23.1
|
%
|
||||
Southeast
Asia
|
18.2
|
%
|
21.4
|
%
|
16.3
|
%
|
19.9
|
%
|
||||
Other
International
|
31.0
|
%
|
14.8
|
%
|
25.0
|
%
|
17.2
|
%
|
||||
EH
Centralized Operations
|
(73.0
|
)%
|
(60.9
|
)%
|
(65.8
|
)%
|
(62.0
|
)%
|
||||
Bristow Academy
|
N/A
|
(12.1
|
)%
|
N/A
|
(7.7
|
)%
|
||||||
Total
Helicopter Services
|
15.0
|
%
|
21.6
|
%
|
15.7
|
%
|
18.3
|
%
|
||||
Production
Management Services
|
7.8
|
%
|
5.4
|
%
|
7.9
|
%
|
6.0
|
%
|
||||
Consolidated
total
|
13.8
|
%
|
18.5
|
%
|
13.9
|
%
|
15.5
|
%
|
(1)
|
Our
presentation of flight hours for North America has been changed from
our
Quarterly Report for the Comparable Quarter to reflect total flight
hours,
which is consistent with the presentation of flight hours for our
other
business units. North America flight hours in the prior report
reflected only billed hours.
|
(2)
|
Includes
reimbursable revenue of $18.9 million and $26.1 million for the three
months ended September 30, 2006 and 2007, respectively, and $42.2
million
and $46.3 million for the six months ended September 30, 2006 and
2007,
respectively.
|
(3)
|
Includes
reimbursable revenue of $2.3 million and $1.9 million for the three
months
ended September 30, 2006 and 2007, respectively, net of intercompany
eliminations, and $6.2 million and $3.2 million for the six months
ended
September 30, 2006 and 2007, respectively, net of intercompany
eliminations.
|
(4)
|
Operating
expenses include depreciation and amortization in the following amounts
for the periods presented:
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2006
|
2007
|
2006
|
2007
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Helicopter
Services:
|
||||||||||||||||
North
America
|
$
|
2,871
|
$
|
2,952
|
$
|
5,636
|
$
|
6,008
|
||||||||
South
and Central America
|
961
|
965
|
1,923
|
1,914
|
||||||||||||
Europe
|
2,831
|
4,201
|
5,484
|
7,617
|
||||||||||||
West
Africa
|
1,692
|
1,988
|
3,268
|
3,588
|
||||||||||||
Southeast
Asia
|
1,018
|
866
|
2,035
|
1,671
|
||||||||||||
Other
International
|
863
|
767
|
1,689
|
1,496
|
||||||||||||
EH
Centralized Operations
|
399
|
279
|
810
|
608
|
||||||||||||
Bristow Academy
|
—
|
264
|
—
|
640
|
||||||||||||
Total
Helicopter Services
|
10,635
|
12,282
|
20,845
|
23,542
|
||||||||||||
Production
Management Services
|
46
|
42
|
93
|
84
|
||||||||||||
Corporate
|
56
|
71
|
82
|
142
|
||||||||||||
Consolidated
total
|
$
|
10,737
|
$
|
12,395
|
$
|
21,020
|
$
|
23,768
|
(5)
|
Includes
a gain on the sale of an aircraft used in our Italy operations of
$2.1
million for the three and six months ended September 30,
2006.
|
(6)
|
Operating
margin is calculated as gross revenue less operating expense divided
by
gross revenue.
|
Six
Months
Ended
September 30,
|
||||||
2006
|
2007
|
|||||
Number
of aircraft delivered:
|
||||||
Small
|
—
|
2
|
||||
Medium
|
4
|
10
|
||||
Large
|
2
|
2
|
||||
Fixed
wing
|
—
|
1
|
||||
Training
|
—
|
2
|
||||
Total
aircraft
|
6
|
17
|
||||
Capital
expenditures (in thousands):
|
||||||
Aircraft
and related equipment
|
$
|
115,458
|
$
|
213,552
|
||
Other
|
5,957
|
7,543
|
||||
Total
capital expenditures
|
$
|
121,415
|
$
|
221,095
|
Payments
Due by Period
|
|||||||||||||||||||
Six
Months
|
|||||||||||||||||||
Ending
|
Fiscal
Year Ending March 31,
|
||||||||||||||||||
Total
|
March
31,
2008
|
2009
- 2010
|
2011
- 2012
|
2013
and
beyond
|
|||||||||||||||
(In
thousands)
|
|||||||||||||||||||
Contractual
obligations:
|
|||||||||||||||||||
Long-term
debt and short-term borrowings:
|
|||||||||||||||||||
Principal
|
$
|
557,335
|
$
|
3,132
|
$
|
7,708
|
$
|
4,637
|
$
|
541,858
|
|||||||||
Interest
|
310,423
|
19,112
|
75,515
|
74,764
|
141,032
|
||||||||||||||
Aircraft
operating leases (1)
|
59,000
|
3,150
|
12,830
|
14,471
|
28,549
|
||||||||||||||
Other
operating leases (2)
|
19,490
|
1,896
|
6,106
|
5,322
|
6,166
|
||||||||||||||
Pension
obligations
(3)
|
175,959
|
7,457
|
29,830
|
29,830
|
108,842
|
||||||||||||||
Aircraft
purchase obligations
|
276,478
|
113,817
|
162,661
|
—
|
—
|
||||||||||||||
Other
purchase obligations
(4)
|
41,909
|
35,585
|
6,324
|
—
|
—
|
||||||||||||||
Total
contractual cash obligations
|
$
|
1,440,594
|
$
|
184,149
|
$
|
300,974
|
$
|
129,024
|
$
|
826,447
|
|||||||||
Other
commercial commitments:
|
|||||||||||||||||||
Debt
guarantees
(5)
|
$
|
30,664
|
$
|
—
|
$
|
10,290
|
$
|
20,374
|
$
|
—
|
|||||||||
Other
guarantees
(5)
|
5,448
|
3,709
|
1,739
|
—
|
—
|
||||||||||||||
Letters
of credit (6)
|
4,012
|
4,012
|
—
|
—
|
—
|
||||||||||||||
Total
commercial commitments
|
$
|
40,124
|
$
|
7,721
|
$
|
12,029
|
$
|
20,374
|
$
|
—
|
(1)
|
Represents
nine aircraft that we sold on December 30, 2005 for $68.6 million
in
aggregate to a subsidiary of General Electric Capital Corporation
and then
leased back under separate operating leases with terms of ten years
expiring in January 2016. A deferred gain on the sale of the
aircraft was recorded in the amount of approximately $10.8 million
in
aggregate, which is being amortized over the lease
term.
|
(2)
|
Represents
minimum rental payments required under operating leases that have
initial
or remaining non-cancelable lease terms in excess of one
year.
|
(3)
|
Represents
expected funding for pension benefits in future periods. These
amounts are undiscounted and are based on the expectation that the
pension
will be fully funded in approximately 10 years. As of September
30, 2007, we had recorded on our balance sheet a $112.1 million pension
liability associated with this obligation. Also, the timing of
the funding is dependent on actuarial valuations and resulting
negotiations with the plan trustees.
|
(4)
|
Other
purchase obligations primarily represent unfilled purchase orders
for
aircraft parts, commitments associated with upgrading facilities
at our
bases and amounts committed under a supply agreement (See Note 6
in the
“Notes to Condensed Consolidated Financial Statements” included elsewhere
in this Quarterly Report).
|
(5)
|
See
Note 6 in the “Notes to Condensed Consolidated Financial Statements”
included elsewhere in this Quarterly Report for further
details. Additionally, the bank has an option to put to us the
remaining amount of the RLR debt of $10.3 million, which we have
guaranteed in the event of default of our partner in RLR. This
amount is not included in the table above.
|
(6)
|
In
January 2006, a letter of credit was issued for $2.5 million in
conjunction with the additional collateral for the sale and leaseback
financing discussed in Note 6 in the “Notes to Consolidated Financial
Statements” included in the fiscal year 2007 Annual Report. The
letter of credit expires January 27,
2008.
|
Period
(1)
|
Total
Number of
Shares
Purchased (2)
|
Average
Price Paid Per Share
|
Total
Number of Shares Purchased as Part of Publicly Announced
Program
|
Approximate
Dollar Value of Shares That May Yet Be Purchased Under the
Program
|
|||||||||
July
1, 2007 − July 31, 2007
|
107
|
$
|
50.90
|
—
|
$
|
—
|
(1)
|
No
shares were purchased during
the periods of August 1, 2007 — August 31,
2007 and September 1,
2007 — September
30,
2007.
|
(2)
|
The
total number of shares purchased in the period consists of shares
withheld
by us in satisfaction of withholding taxes due upon the vesting of
restricted stock units granted to an employee under our 2004 Stock
Incentive Plan.
|
Exhibit
Number
|
Description
of Exhibit
|
4.1*
|
Supplemental
Indenture dated as of November 2, 2007 among the Company, as issuer,
the
Guarantors named therein, as guarantors, and U.S. Bank National
Association as Trustee relating to the Company’s 7 ½% Senior Notes due
2017.
|
4.2* |
Supplemental
Indenture dated as of November 2, 2007 among the Company, as issuer,
the
Guarantors named therein, as guarantors, and U.S. Bank National
Association as Trustee relating to the Company’s 6 ⅛% Senior Notes due
2013.
|
10.1† |
Bristow
Group Inc. 2007 Long Term Incentive Plan (incorporated by reference
to
Appendix A of the Company’s Proxy Statement on Form DEF14A filed with the
SEC on June 25, 2007)
|
Letter
from KPMG LLP dated November 5, 2007, regarding unaudited interim
information.
|
|
Rule
13a-14(a) Certification by President and Chief Executive Officer
of
Registrant.
|
|
Rule
13a-14(a) Certification by Executive Vice President and Chief Financial
Officer of Registrant.
|
|
Certification
of Chief Executive Officer of registrant pursuant to 18 U.S.C. Section
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of
2002.
|
|
Certification
of Chief Financial Officer of Registrant pursuant to 18 U.S.C. Section
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of
2002.
|
*
|
Filed
herewith.
|
**
|
Furnished
herewith.
|
†
|
Compensatory
Plan or Arrangement.
|
Exhibit
Number
|
Description
of Exhibit
|
4.1*
|
Supplemental
Indenture dated as of November 2, 2007 among the Company, as issuer,
the
Guarantors named therein, as guarantors, and U.S. Bank National
Association as Trustee relating to the Company’s 7 ½% Senior Notes due
2017.
|
4.2*
|
Supplemental
Indenture dated as of November 2, 2007 among the Company, as issuer,
the
Guarantors named therein, as guarantors, and U.S. Bank National
Association as Trustee relating to the Company’s 6 ⅛% Senior Notes due
2013.
|
10.1†
|
Bristow
Group Inc. 2007 Long Term Incentive Plan (incorporated by reference
to
Appendix A of the Company’s Proxy Statement on Form DEF14A filed with the
SEC on June 25, 2007)
|
15.1*
|
Letter
from KPMG LLP dated November 5, 2007, regarding unaudited interim
information.
|
31.1**
|
Rule
13a-14(a) Certification by President and Chief Executive Officer
of
Registrant.
|
31.2**
|
Rule
13a-14(a) Certification by Executive Vice President and Chief Financial
Officer of Registrant.
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32.1**
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Certification
of Chief Executive Officer of registrant pursuant to 18 U.S.C.
Section
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of
2002.
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32.2**
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Certification
of Chief Financial Officer of Registrant pursuant to 18 U.S.C.
Section
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of
2002.
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*
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Filed
herewith.
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**
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Furnished
herewith.
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†
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Compensatory
Plan or Arrangement.
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