R
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For
the quarterly period ended December 31, 2009
|
|
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)
|
Large
accelerated filer R
|
Accelerated
filer £
|
Non-accelerated
filer £
|
Smaller
reporting company £
|
(Do
not check if a smaller
reporting
company)
|
|
Page
|
||
PART
I – FINANCIAL INFORMATION
|
|||
Item
1.
|
Financial
Statements
|
2
|
|
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
35
|
|
Item
3.
|
Quantitative
and Qualitative Disclosures about Market Risk
|
60
|
|
Item
4.
|
Controls
and Procedures
|
60
|
|
PART
II – OTHER INFORMATION
|
|||
Item
1.
|
Legal
Proceedings
|
60
|
|
Item
1A.
|
Risk
Factors
|
60
|
|
Item
6.
|
Exhibits
|
61
|
|
Signatures
|
62
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(Unaudited)
(In
thousands, except per share amounts)
|
||||||||||||||||
Gross
revenue:
|
||||||||||||||||
Operating
revenue from non-affiliates
|
$
|
260,907
|
$
|
236,491
|
$
|
757,440
|
$
|
726,151
|
||||||||
Operating
revenue from affiliates
|
14,581
|
16,792
|
46,643
|
52,492
|
||||||||||||
Reimbursable
revenue from non-affiliates
|
27,615
|
28,617
|
78,214
|
76,196
|
||||||||||||
Reimbursable
revenue from affiliates
|
203
|
1,087
|
3,076
|
3,959
|
||||||||||||
303,306
|
282,987
|
885,373
|
858,798
|
|||||||||||||
Operating
expense:
|
||||||||||||||||
Direct
cost
|
189,456
|
176,038
|
543,525
|
551,404
|
||||||||||||
Reimbursable
expense
|
28,219
|
28,689
|
81,180
|
79,437
|
||||||||||||
Depreciation
and amortization
|
20,663
|
16,663
|
57,319
|
47,103
|
||||||||||||
General
and administrative
|
30,758
|
25,586
|
89,246
|
78,776
|
||||||||||||
269,096
|
246,976
|
771,270
|
756,720
|
|||||||||||||
Gain
on GOM Asset Sale
|
—
|
37,780
|
—
|
37,780
|
||||||||||||
Gain
(loss) on disposal of assets
|
2,448
|
(102
|
)
|
13,337
|
5,865
|
|||||||||||
Earnings
(losses) from unconsolidated affiliates, net
|
3,068
|
(1,417
|
)
|
10,625
|
8,277
|
|||||||||||
Operating
income
|
39,726
|
72,272
|
138,065
|
154,000
|
||||||||||||
Interest
income
|
365
|
1,087
|
797
|
5,739
|
||||||||||||
Interest
expense
|
(10,979
|
)
|
(8,276
|
)
|
(31,631
|
)
|
(25,943
|
)
|
||||||||
Other
income (expense), net
|
3,695
|
(1,522
|
)
|
4,023
|
2,240
|
|||||||||||
Income
from continuing operations before provision
for
income taxes
|
32,807
|
63,561
|
111,254
|
136,036
|
||||||||||||
Provision
for income taxes
|
(5,681
|
)
|
(15,861
|
)
|
(26,427
|
)
|
(36,494
|
)
|
||||||||
Net
income from continuing operations
|
27,126
|
47,700
|
84,827
|
99,542
|
||||||||||||
Loss
from discontinued operations, net of tax
|
—
|
—
|
—
|
(246
|
)
|
|||||||||||
Net
income
|
27,126
|
47,700
|
84,827
|
99,296
|
||||||||||||
Net
income attributable to noncontrolling interests
|
(448
|
)
|
(535
|
)
|
(1,256
|
)
|
(2,190
|
)
|
||||||||
Net
income attributable to Bristow Group
|
26,678
|
47,165
|
83,571
|
97,106
|
||||||||||||
Preferred
stock dividends
|
—
|
(3,162
|
)
|
(6,325
|
)
|
(9,487
|
)
|
|||||||||
Net
income available to common stockholders
|
$
|
26,678
|
$
|
44,003
|
$
|
77,246
|
$
|
87,619
|
||||||||
Basic
earnings per common share:
|
||||||||||||||||
Earnings
from continuing operations
|
$
|
0.74
|
$
|
1.51
|
$
|
2.43
|
$
|
3.18
|
||||||||
Loss
from discontinued operations
|
—
|
—
|
—
|
(0.01
|
)
|
|||||||||||
Net
earnings
|
$
|
0.74
|
$
|
1.51
|
$
|
2.43
|
$
|
3.17
|
||||||||
Diluted
earnings per common share:
|
||||||||||||||||
Earnings
from continuing operations
|
$
|
0.74
|
$
|
1.32
|
$
|
2.32
|
$
|
2.85
|
||||||||
Loss
from discontinued operations
|
—
|
—
|
—
|
(0.01
|
)
|
|||||||||||
Net
earnings
|
$
|
0.74
|
$
|
1.32
|
$
|
2.32
|
$
|
2.84
|
December
31,
|
March
31,
|
||||||||||
2009
|
2009
|
||||||||||
(Unaudited)
|
|||||||||||
(In
thousands)
|
|||||||||||
ASSETS
|
|||||||||||
Current
assets:
|
|||||||||||
Cash
and cash equivalents
|
$
|
107,059
|
$
|
300,969
|
|||||||
Accounts
receivable from non-affiliates, net of allowance for doubtful accounts of
$2.1 million
and
$0.6 million, respectively
|
196,927
|
194,030
|
|||||||||
Accounts
receivable from affiliates, net of allowance for doubtful accounts of $1.9
million
and
$3.4 million, respectively
|
34,710
|
22,644
|
|||||||||
Inventories
|
187,220
|
165,438
|
|||||||||
Prepaid
expenses and other current assets
|
26,582
|
20,226
|
|||||||||
Total
current assets
|
552,498
|
703,307
|
|||||||||
Investment
in unconsolidated affiliates
|
203,916
|
20,265
|
|||||||||
Property
and equipment – at cost:
|
|||||||||||
Land
and buildings
|
93,241
|
68,961
|
|||||||||
Aircraft
and equipment
|
2,014,147
|
1,823,011
|
|||||||||
2,107,388
|
1,891,972
|
||||||||||
Less
– Accumulated depreciation and amortization
|
(400,475
|
)
|
(350,515
|
)
|
|||||||
1,706,913
|
1,541,457
|
||||||||||
Goodwill
|
46,971
|
44,654
|
|||||||||
Other
assets
|
23,261
|
24,888
|
|||||||||
$
|
2,533,559
|
$
|
2,334,571
|
||||||||
LIABILITIES
AND STOCKHOLDERS’ INVESTMENT
|
|||||||||||
Current
liabilities:
|
|||||||||||
Accounts
payable
|
$
|
50,434
|
$
|
44,892
|
|||||||
Accrued
wages, benefits and related taxes
|
39,486
|
39,939
|
|||||||||
Income
taxes payable
|
3,429
|
—
|
|||||||||
Other
accrued taxes
|
2,528
|
3,357
|
|||||||||
Deferred
revenues
|
22,697
|
17,593
|
|||||||||
Accrued
maintenance and repairs
|
13,352
|
10,317
|
|||||||||
Accrued
interest
|
8,609
|
6,434
|
|||||||||
Other
accrued liabilities
|
18,406
|
20,164
|
|||||||||
Deferred
taxes
|
9,348
|
6,195
|
|||||||||
Short-term
borrowings and current maturities of long-term debt
|
19,211
|
8,948
|
|||||||||
Total
current liabilities
|
187,500
|
157,839
|
|||||||||
Long-term
debt, less current maturities
|
698,144
|
714,965
|
|||||||||
Accrued
pension liabilities
|
99,276
|
81,380
|
|||||||||
Other
liabilities and deferred credits
|
27,151
|
16,741
|
|||||||||
Deferred
taxes
|
149,389
|
127,266
|
|||||||||
Commitments
and contingencies (Note 7)
|
|||||||||||
Stockholders’
investment:
|
|||||||||||
5.50%
mandatory convertible preferred stock, $.01 par value, authorized and
outstanding
0
shares as of December 31 and 4,600,000 shares as of March 31; entitled in
liquidation
to
$230 million; net of offering costs of $7.4 million
|
—
|
222,554
|
|||||||||
Common
stock, $.01 par value, authorized 90,000,000 shares; outstanding:
35,904,636 as
of
December 31 (exclusive of 1,291,325 treasury shares) and
29,111,436 as of March 31
(exclusive
of 1,281,050 treasury shares)
|
359
|
291
|
|||||||||
Additional
paid-in capital
|
669,174
|
436,296
|
|||||||||
Retained
earnings
|
795,739
|
718,493
|
|||||||||
Noncontrolling
interests
|
10,261
|
11,200
|
|||||||||
Accumulated
other comprehensive loss
|
(103,434
|
)
|
(152,454
|
)
|
|||||||
1,372,099
|
1,236,380
|
||||||||||
$
|
2,533,559
|
$
|
2,334,571
|
Nine
Months Ended
December
31,
|
||||||||
2009
|
2008
|
|||||||
(Unaudited)
|
||||||||
(In
thousands)
|
||||||||
Cash
flows from operating activities:
|
||||||||
Net income
|
$
|
84,827
|
$
|
99,296
|
||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Depreciation
and amortization
|
57,319
|
47,103
|
||||||
Deferred
income taxes
|
18,892
|
13,802
|
||||||
Loss
on disposal of discontinued operations
|
—
|
379
|
||||||
Discount
amortization on long-term debt
|
2,213
|
1,504
|
||||||
Gain
on disposal of assets
|
(13,337
|
)
|
(5,865
|
)
|
||||
Gain
on GOM Asset Sale
|
—
|
(37,780
|
)
|
|||||
Gain
on Heliservicio investment sale
|
—
|
(1,438
|
)
|
|||||
Stock-based
compensation expense
|
9,914
|
7,697
|
||||||
Earnings
from unconsolidated affiliates (in excess of) below dividends
received
|
(6,853
|
)
|
7,910
|
|||||
Tax
benefit related to stock-based compensation
|
(409
|
)
|
(242
|
)
|
||||
Increase
(decrease) in cash resulting from changes in:
|
||||||||
Accounts
receivable
|
794
|
(9,342
|
)
|
|||||
Inventories
|
(11,382
|
)
|
(16,600
|
)
|
||||
Prepaid
expenses and other assets
|
14,555
|
(22,887
|
)
|
|||||
Accounts
payable
|
4,638
|
5,657
|
||||||
Accrued
liabilities
|
3,216
|
20,855
|
||||||
Other
liabilities and deferred credits
|
(1,370
|
)
|
(6,177
|
)
|
||||
Net
cash provided by operating activities
|
163,017
|
103,872
|
||||||
Cash
flows from investing activities:
|
||||||||
Capital
expenditures
|
(250,272
|
)
|
(388,007
|
)
|
||||
Proceeds
from asset dispositions
|
74,973
|
86,681
|
||||||
Acquisitions,
net of cash received
|
(178,961
|
)
|
(15,590
|
)
|
||||
Net
cash used in investing activities
|
(354,260
|
)
|
(316,916
|
)
|
||||
Cash
flows from financing activities:
|
||||||||
Proceeds
from borrowings
|
—
|
115,000
|
||||||
Debt
issuance costs
|
—
|
(3,768
|
)
|
|||||
Repayment
of debt and debt redemption premiums
|
(10,068
|
)
|
(20,996
|
)
|
||||
Partial
prepayment of put/call obligation
|
(52
|
)
|
(184
|
)
|
||||
Preferred
Stock dividends paid
|
(6,325
|
)
|
(9,487
|
)
|
||||
Issuance
of common stock
|
1,336
|
225,260
|
||||||
Tax
benefit related to stock-based compensation
|
409
|
242
|
||||||
Net
cash (used in) provided by financing activities
|
(14,700
|
)
|
306,067
|
|||||
Effect
of exchange rate changes on cash and cash equivalents
|
12,033
|
(18,420
|
)
|
|||||
Net
(decrease) increase in cash and cash
equivalents
|
(193,910
|
)
|
74,603
|
|||||
Cash
and cash equivalents at beginning of period
|
300,969
|
290,050
|
||||||
Cash
and cash equivalents at end of period
|
$
|
107,059
|
$
|
364,653
|
||||
Supplemental
disclosure of cash flow information:
|
||||||||
Cash
paid during the period for:
|
||||||||
Interest
|
$
|
31,830
|
$
|
30,446
|
||||
Income
taxes
|
$
|
9,904
|
$
|
17,109
|
||||
Non-cash
investing activities:
|
||||||||
Contribution
of note receivable and aircraft to RLR
|
$
|
—
|
$
|
(6,551
|
)
|
|||
Aircraft
received for investment in Heliservicio
|
$
|
—
|
$
|
2,410
|
·
|
Gain
on disposal of assets which was previously included within operating
expense has been reclassified to be included as a separate line below
operating expense, but still within operating income. We
believe this presentation is preferable as our disposals of assets
typically result in gains, which would reduce operating expense and not
provide a clear presentation of our costs incurred to generate our
revenue.
|
·
|
Earnings
(losses) from unconsolidated affiliates, net which were previously
excluded from operating income have been reclassified to be included
within operating income. We believe this presentation is
preferable as the operations of our unconsolidated affiliates are integral
to our operations as these entities are involved in aircraft operations
similar to ours in markets where governmental regulations limit foreign
ownership of aircraft companies or where conditions favor entering into
joint venture arrangement with local
partners.
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
||||||||||
2009
|
2008
|
2009
|
2008
|
||||||||
One
British pound sterling into U.S. dollars
|
|||||||||||
High
|
1.68
|
1.78
|
1.70
|
2.01
|
|||||||
Average
|
1.63
|
1.57
|
1.61
|
1.81
|
|||||||
Low
|
1.58
|
1.44
|
1.44
|
1.44
|
|||||||
At
period-end
|
1.61
|
1.44
|
1.61
|
1.44
|
|||||||
One
euro into U.S. dollars
|
|||||||||||
High
|
1.51
|
1.45
|
1.51
|
1.60
|
|||||||
Average
|
1.48
|
1.32
|
1.42
|
1.46
|
|||||||
Low
|
1.42
|
1.24
|
1.29
|
1.24
|
|||||||
At
period-end
|
1.43
|
1.39
|
1.43
|
1.39
|
|||||||
One
Australian dollar into U.S. dollars
|
|||||||||||
High
|
0.94
|
0.79
|
0.94
|
0.98
|
|||||||
Average
|
0.91
|
0.67
|
0.84
|
0.83
|
|||||||
Low
|
0.87
|
0.61
|
0.69
|
0.61
|
|||||||
At
period-end
|
0.90
|
0.70
|
0.90
|
0.70
|
|||||||
One
Nigerian naira into U.S. dollars
|
|||||||||||
High
|
0.0069
|
0.0087
|
0.0069
|
0.0088
|
|||||||
Average
|
0.0067
|
0.0083
|
0.0067
|
0.0085
|
|||||||
Low
|
0.0066
|
0.0072
|
0.0063
|
0.0072
|
|||||||
At
period-end
|
0.0067
|
0.0072
|
0.0067
|
0.0072
|
Three
Months
Ended
December
31, 2009
|
Nine
Months
Ended
December
31, 2009
|
||||||
Revenue
|
$
|
15,642
|
$
|
(37,916
|
)
|
||
Operating
expense
|
(10,583
|
)
|
39,046
|
||||
Earnings
(losses) from unconsolidated affiliates,
net
|
115
|
(659
|
)
|
||||
Non-operating
expense
|
5,055
|
2,953
|
|||||
Income
before provision for income taxes
|
10,229
|
3,424
|
|||||
Provision
for income taxes
|
(1,735
|
)
|
(811
|
)
|
|||
Net
income
|
$
|
8,494
|
$
|
2,613
|
Sale
price
|
$
|
65,000
|
||
Net
assets sold
|
(23,311
|
)
|
||
Transaction
expenses
|
(3,909
|
)
|
||
Pre-tax
gain on sale
|
37,780
|
|||
Provision
for income taxes
|
(13,363
|
)
|
||
After-tax
gain on GOM Asset Sale
|
$
|
24,417
|
||
Diluted
earnings per share:
|
||||
Three
months ended December 31, 2008
|
$
|
0.69
|
||
Nine
months ended December 31, 2008
|
$
|
0.71
|
December 31,
2009
|
March 31,
2009
|
|||||
7 ½% Senior Notes due 2017, including $0.5 million of
unamortized premium
|
$
|
350,490
|
$
|
350,537
|
||
6 ⅛% Senior
Notes due 2013
|
230,000
|
230,000
|
||||
3%
Convertible Senior Notes due 2038, including $19.7 million and $21.9
million of unamortized discount, respectively
|
95,280
|
93,067
|
||||
Bristow
Norway Debt
|
12,465
|
18,348
|
||||
RLR
Note
|
16,379
|
17,215
|
||||
Term
loans
|
12,656
|
14,382
|
||||
Other
debt
|
85
|
364
|
||||
Total
debt
|
717,355
|
723,913
|
||||
Less
short-term borrowings and current maturities of long-term
debt
|
(19,211
|
)
|
(8,948
|
)
|
||
Total
long-term debt
|
$
|
698,144
|
$
|
714,965
|
Market
Value of Common Stock
|
Number
of Shares of Common
Stock
Issued for Each $1,000 Principal Amount of 3%
Convertible
Senior Notes
|
Total
Number of Shares of
Common
Stock Issued for 3%
Convertible
Senior Notes
|
|||
$46.87
or less
|
21.3356
|
2,453,594
|
|||
Between
$46.87 and $169.99
|
12.9308
to 21.3344
|
1,487,032
to 2,453,593
|
|||
$170.00
and above
|
12.9307
|
1,487,031
|
Date
of issue
|
June
2008
|
||
Expected
maturity date
|
June
2015
|
||
Remaining
life
|
7
years
|
||
Effective
interest rate
|
6.9%
|
||
Tax
rate over term of debt
|
35%
|
As
Previously Reported
|
Effect
of Change
|
As
Currently Reported
|
|||||||
Other
assets
|
$
|
25,590
|
$
|
(702
|
)
|
$
|
24,888
|
||
Total
debt
|
745,846
|
(21,933
|
)
|
723,913
|
|||||
Deferred
income tax liability
|
119,589
|
7,677
|
127,266
|
||||||
Additional
paid-in capital
|
421,391
|
14,905
|
436,296
|
||||||
Retained
earnings
|
719,844
|
(1,351
|
)
|
718,493
|
December
31,
2009
|
March
31,
2009
|
|||||
Equity
component – net carrying value
|
$
|
14,905
|
$
|
14,905
|
||
Debt
component:
|
||||||
Face
amount due at maturity
|
$
|
115,000
|
$
|
115,000
|
||
Unamortized
discount
|
(19,720
|
)
|
(21,933
|
)
|
||
Debt
component – net carrying value
|
$
|
95,280
|
$
|
93,067
|
Three
Months Ended
December
31, 2008
|
Nine
Months Ended
December
31, 2008
|
|||||||||||||||||
As
Previously Reported
|
Effect
of Change
|
As
Currently Reported
|
As
Previously Reported
|
Effect
of Change
|
As
Currently Reported
|
|||||||||||||
Interest
expense
|
$
|
7,603
|
$
|
673
|
$
|
8,276
|
$
|
24,500
|
$
|
1,443
|
$
|
25,943
|
||||||
Income
tax expense
|
16,106
|
(245
|
)
|
15,861
|
37,020
|
(526
|
)
|
36,494
|
||||||||||
Net
income from continuing operations
|
48,128
|
(428
|
)
|
47,700
|
100,459
|
(917
|
)
|
99,542
|
||||||||||
Net
income
|
48,128
|
(428
|
)
|
47,700
|
100,213
|
(917
|
)
|
99,296
|
||||||||||
Diluted
earnings per share
|
1.34
|
(0.02
|
)
|
1.32
|
2.86
|
(0.02
|
)
|
2.84
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
|||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||
Contractual
coupon interest
|
$
|
862
|
$
|
862
|
$
|
2,588
|
$
|
1,859
|
||||
Amortization
of debt discount
|
751
|
701
|
2,213
|
1,504
|
||||||||
Total
interest expense
|
$
|
1,613
|
$
|
1,563
|
$
|
4,801
|
$
|
3,363
|
·
|
Level
1 - inputs to the valuation methodology are quoted prices (unadjusted) for
identical assets or liabilities in active
markets.
|
·
|
Level
2 - inputs to the valuation methodology include quoted prices for similar
assets and liabilities in active markets, and inputs are observable for
the asset or liability, either directly or indirectly, for substantially
the full term of the financial
instrument.
|
·
|
Level
3 - inputs to the valuation methodology are unobservable and significant
to the fair value measurement.
|
Quoted
Prices in Active Markets for Identical Assets
(Level
1)
|
Significant
Other Observable Inputs
(Level
2)
|
Significant
Unobservable Inputs
(Level
3)
|
Balance
as of
December
31, 2009
|
Balance
Sheet
Classification
|
||||||||||||||
Rabbi
trust investments
|
$
|
2,994
|
$
|
—
|
$
|
—
|
$
|
2,994
|
Other
assets
|
|||||||||
Derivative
financial instrument
liability
|
—
|
(75
|
)
|
—
|
(75
|
)
|
Other
accrued liabilities
|
|||||||||||
Net
assets
|
$
|
2,994
|
$
|
(75
|
)
|
$
|
—
|
$
|
2,919
|
Three
Months
Ending March 31,
|
Fiscal
Year Ending March 31,
|
||||||||||||||||||||||
2010
|
2011
|
2012
|
2013
|
2014
|
Total
|
||||||||||||||||||
Commitments
as of December 31, 2009:
|
|||||||||||||||||||||||
Number
of aircraft:
|
|||||||||||||||||||||||
Medium
|
6
|
—
|
—
|
—
|
—
|
6
|
|||||||||||||||||
Large
|
—
|
2
|
(1)
|
3
|
—
|
—
|
5
|
||||||||||||||||
6
|
2
|
3
|
—
|
—
|
11
|
|
|||||||||||||||||
Related
expenditures (in thousands) (2)
|
$
|
24,901
|
$
|
43,344
|
$
|
48,456
|
$
|
—
|
—
|
$
|
116,701
|
||||||||||||
Options
as of December 31, 2009:
|
|||||||||||||||||||||||
Number
of aircraft:
|
|||||||||||||||||||||||
Medium
|
—
|
6
|
11
|
12
|
12
|
41
|
|||||||||||||||||
Large
|
—
|
—
|
9
|
4
|
—
|
13
|
|||||||||||||||||
—
|
6
|
20
|
16
|
12
|
54
|
||||||||||||||||||
Related
expenditures (in thousands) (2)
|
$
|
11,838
|
$
|
122,257
|
$
|
215,975
|
$
|
258,847
|
$
|
232,110
|
$
|
841,027
|
(1)
|
We
have agreements which allow us to cancel two large aircraft with delivery
dates in fiscal year 2011 and commitments totaling $40.9 million
without a termination fee through February 15, 2010 and February 28,
2010.
|
(2)
|
Includes
progress payments on aircraft scheduled to be delivered in future
periods.
|
Three
Months Ended
|
|||||||||||||||||||||||
December
31, 2009
|
September
30, 2009
|
June
30, 2009
|
|||||||||||||||||||||
Orders
|
Options
|
Orders
|
Options
|
Orders
|
Options
|
||||||||||||||||||
Beginning
of quarter
|
12
|
47
|
17
|
47
|
24
|
47
|
|||||||||||||||||
Aircraft
delivered
|
(6
|
)
|
—
|
(4
|
)
|
—
|
(10
|
)
|
—
|
||||||||||||||
Aircraft
ordered
|
5
|
—
|
—
|
—
|
3
|
—
|
|||||||||||||||||
Cancelled
orders
|
(2
|
)
|
—
|
(1
|
)
|
—
|
—
|
—
|
|||||||||||||||
New
options
|
—
|
14
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Exercised
options
|
2
|
(2
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||
Expired
options
|
—
|
(5
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||
End
of quarter
|
11
|
54
|
12
|
47
|
17
|
47
|
Amount
of Commitment Expiration Per Period
|
|||||||||||||||||
Total
|
Remainder
of Fiscal Year 2010
|
Fiscal
Year 2011
|
Fiscal
Years 2012-2013
|
Fiscal
Year 2014 and Thereafter
|
|||||||||||||
$
|
46,909
|
$
|
2,364
|
$
|
1,612
|
$
|
25,132
|
$
|
17,801
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
||||||||||||||
2009
|
2008
|
2009
|
2008
|
||||||||||||
(In
thousands)
|
|||||||||||||||
Service
cost for benefits earned during the period
|
$
|
58
|
$
|
57
|
$
|
170
|
$
|
197
|
|||||||
Interest
cost on pension benefit obligation
|
6,142
|
6,145
|
18,154
|
21,267
|
|||||||||||
Expected
return on assets
|
(4,814
|
)
|
(5,551
|
)
|
(14,227
|
)
|
(19,212
|
)
|
|||||||
Amortization
of unrecognized losses
|
1,143
|
1,022
|
3,377
|
3,537
|
|||||||||||
Net
periodic pension cost
|
$
|
2,529
|
$
|
1,673
|
$
|
7,474
|
$
|
5,789
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
|||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||
Earnings
(in thousands):
|
||||||||||||
Continuing
operations:
|
||||||||||||
Income
available to common stockholders – basic
|
$
|
26,678
|
$
|
44,003
|
$
|
77,246
|
$
|
87,865
|
||||
Preferred
stock dividends
|
—
|
3,162
|
6,325
|
9,487
|
||||||||
Interest
expense on assumed conversion of 3% Convertible Senior Notes, net of tax
benefit (1)
|
—
|
—
|
—
|
—
|
||||||||
Income
available to common stockholders – diluted
|
$
|
26,678
|
$
|
47,165
|
$
|
83,571
|
$
|
97,352
|
||||
Discontinued
operations:
|
||||||||||||
Loss
available to common stockholders – basic and diluted
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
(246
|
)
|
|||
Net
earnings:
|
||||||||||||
Income
available to common stockholders – basic
|
$
|
26,678
|
$
|
44,003
|
$
|
77,246
|
$
|
87,619
|
||||
Preferred
stock dividends
|
—
|
3,162
|
6,325
|
9,487
|
||||||||
Interest
expense on assumed conversion of 3% Convertible Senior Notes, net of tax
benefit
(1)
|
—
|
—
|
—
|
—
|
||||||||
Income
available to common stockholders – diluted
|
$
|
26,678
|
$
|
47,165
|
$
|
83,571
|
$
|
97,106
|
||||
Shares:
|
||||||||||||
Weighted
average number of common shares outstanding – basic
|
35,896,054
|
29,101,198
|
31,732,633
|
27,634,829
|
||||||||
Assumed
conversion of preferred stock outstanding during the period (2)
|
—
|
6,522,800
|
3,961,119
|
6,522,800
|
||||||||
Assumed
conversion of 3% Convertible Senior Notes outstanding during the
period
(1)
|
—
|
—
|
—
|
—
|
||||||||
Net
effect of dilutive stock options, restricted stock units and restricted
stock awards based on the treasury stock method
|
374,697
|
4,237
|
375,939
|
27,604
|
||||||||
Weighted
average number of common shares outstanding – diluted
|
36,270,751
|
35,628,235
|
36,069,691
|
34,185,233
|
||||||||
Basic
earnings per common share:
|
||||||||||||
Earnings
from continuing operations
|
$
|
0.74
|
$
|
1.51
|
$
|
2.43
|
$
|
3.18
|
||||
Loss
from discontinued operations
|
—
|
—
|
—
|
(0.01
|
)
|
|||||||
Net
earnings
|
$
|
0.74
|
$
|
1.51
|
$
|
2.43
|
$
|
3.17
|
||||
Diluted
earnings per common share:
|
||||||||||||
Earnings
from continuing operations
|
$
|
0.74
|
$
|
1.32
|
$
|
2.32
|
$
|
2.85
|
||||
Loss
from discontinued operations
|
—
|
—
|
—
|
(0.01
|
)
|
|||||||
Net
earnings
|
$
|
0.74
|
$
|
1.32
|
$
|
2.32
|
$
|
2.84
|
(1)
|
Diluted
earnings per common share for each of the three and nine months ended
December 31, 2009 and 2008 excludes approximately 1.5 million potentially
dilutive shares initially issuable upon the conversion of our 3%
Convertible Senior Notes. The 3% Convertible Senior Notes will
be convertible, under certain circumstances, using a net share settlement
process, into a combination of cash and our common stock. The
initial base conversion price of the notes is approximately $77.34
(subject to adjustment in certain circumstances), based on the initial
base conversion rate of 12.9307 shares of common stock per $1,000
principal amount of convertible notes. In general, upon
conversion of a note, the holder will receive cash equal to the principal
amount of the note and common stock to the extent of the note's conversion
value in excess of such principal amount. In addition, if at
the time of conversion the applicable price of our common stock exceeds
the base conversion price, holders will receive up to an additional 8.4049
shares of our common stock per $1,000 principal amount of notes, as
determined pursuant to a specified formula. Such shares did not
impact our calculation of diluted earnings per share for the three and
nine months ended December 31, 2009 or 2008 as our stock price did not
meet or exceed $77.34 per share.
|
(2)
|
For
the nine months ended December 31, 2009 and the three and nine months
ended December 31, 2008, 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. On September 15, 2009, we converted our
preferred stock into 6,522,800 shares of common stock at this conversion
rate as previously discussed.
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Segment
gross revenue from external customers:
|
||||||||||||||||
U.S.
Gulf of Mexico
|
$
|
42,352
|
$
|
53,695
|
$
|
130,338
|
$
|
177,695
|
||||||||
Arctic
|
3,228
|
3,005
|
13,746
|
14,088
|
||||||||||||
Latin
America
|
19,076
|
20,707
|
59,421
|
59,964
|
||||||||||||
WH
Centralized Operations
|
542
|
2,584
|
1,538
|
6,317
|
||||||||||||
Europe
|
118,980
|
102,388
|
346,798
|
295,639
|
||||||||||||
West
Africa
|
58,736
|
50,478
|
165,005
|
140,788
|
||||||||||||
Australia
|
38,188
|
24,998
|
96,684
|
87,337
|
||||||||||||
Other
International
|
14,268
|
17,035
|
43,816
|
51,420
|
||||||||||||
EH
Centralized Operations
|
1,910
|
2,598
|
7,557
|
8,300
|
||||||||||||
Bristow
Academy
|
6,026
|
5,499
|
20,470
|
17,222
|
||||||||||||
Corporate
|
—
|
—
|
—
|
28
|
||||||||||||
Total
segment gross revenue
|
$
|
303,306
|
$
|
282,987
|
$
|
885,373
|
$
|
858,798
|
Intrasegment
gross revenue:
|
||||||||||||||||
U.S.
Gulf of Mexico
|
$
|
104
|
$
|
—
|
$
|
193
|
$
|
—
|
||||||||
Arctic
|
—
|
—
|
—
|
—
|
||||||||||||
Latin
America
|
—
|
—
|
—
|
—
|
||||||||||||
WH
Centralized Operations
|
919
|
550
|
2,199
|
1,986
|
||||||||||||
Europe
|
287
|
89
|
1,402
|
571
|
||||||||||||
West
Africa
|
—
|
—
|
—
|
—
|
||||||||||||
Australia
|
—
|
31
|
—
|
31
|
||||||||||||
Other
International
|
1
|
41
|
109
|
814
|
||||||||||||
EH
Centralized Operations
|
743
|
199
|
3,314
|
869
|
||||||||||||
Bristow
Academy
|
—
|
64
|
—
|
64
|
||||||||||||
Total
intrasegment gross revenue
|
$
|
2,054
|
$
|
974
|
$
|
7,217
|
$
|
4,335
|
Consolidated
gross revenue reconciliation:
|
||||||||||||||||
U.S.
Gulf of Mexico
|
$
|
42,456
|
$
|
53,695
|
$
|
130,531
|
$
|
177,695
|
||||||||
Arctic
|
3,228
|
3,005
|
13,746
|
14,088
|
||||||||||||
Latin
America
|
19,076
|
20,707
|
59,421
|
59,964
|
||||||||||||
WH
Centralized Operations
|
1,461
|
3,134
|
3,737
|
8,303
|
||||||||||||
Europe
|
119,267
|
102,477
|
348,200
|
296,210
|
||||||||||||
West
Africa
|
58,736
|
50,478
|
165,005
|
140,788
|
||||||||||||
Australia
|
38,188
|
25,029
|
96,684
|
87,368
|
||||||||||||
Other
International
|
14,269
|
17,076
|
43,925
|
52,234
|
||||||||||||
EH
Centralized Operations
|
2,653
|
2,797
|
10,871
|
9,169
|
||||||||||||
Bristow
Academy
|
6,026
|
5,563
|
20,470
|
17,286
|
||||||||||||
Intrasegment
eliminations
|
(2,054
|
)
|
(974
|
)
|
(7,217
|
)
|
(4,335
|
)
|
||||||||
Corporate
|
—
|
—
|
—
|
28
|
||||||||||||
Total
consolidated gross revenue
|
$
|
303,306
|
$
|
282,987
|
$
|
885,373
|
$
|
858,798
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Consolidated
operating income (loss) reconciliation:
|
||||||||||||||||
U.S.
Gulf of Mexico
|
$
|
4,488
|
$
|
8,721
|
$
|
16,237
|
$
|
24,973
|
||||||||
Arctic
|
22
|
184
|
2,712
|
2,603
|
||||||||||||
Latin
America
|
4,695
|
5,501
|
16,788
|
19,175
|
||||||||||||
WH
Centralized Operations
|
(4,216
|
)
|
(2,509
|
)
|
(11,581
|
)
|
(2,281
|
)
|
||||||||
Europe
|
15,968
|
13,757
|
48,918
|
55,434
|
||||||||||||
West
Africa
|
15,092
|
13,167
|
43,796
|
27,707
|
||||||||||||
Australia
|
9,727
|
2,850
|
22,771
|
3,777
|
||||||||||||
Other
International
|
1,695
|
5,429
|
11,593
|
12,672
|
||||||||||||
EH
Centralized Operations
|
(422
|
)
|
(4,705
|
)
|
(1,068
|
)
|
(12,370
|
)
|
||||||||
Bristow
Academy
|
(385
|
)
|
(168
|
)
|
1,269
|
219
|
||||||||||
Gain
on GOM Asset Sale
|
—
|
37,780
|
—
|
37,780
|
||||||||||||
Gain
(loss) on disposal of assets
|
2,448
|
(102
|
)
|
13,337
|
5,865
|
|||||||||||
Corporate
|
(9,386
|
)
|
(7,633
|
)
|
(26,707
|
)
|
(21,554
|
)
|
||||||||
Total
consolidated operating income (1)
|
$
|
39,726
|
$
|
72,272
|
$
|
138,065
|
$
|
154,000
|
December
31,
|
March
31,
|
|||||||
2009
|
2009
|
|||||||
(In
thousands)
|
||||||||
Identifiable assets:
|
||||||||
U.S.
Gulf of Mexico
|
$
|
386,530
|
$
|
345,522
|
||||
Arctic
|
15,148
|
15,584
|
||||||
Latin
America
|
398,849
|
214,490
|
||||||
WH
Centralized Operations
|
11,685
|
12,480
|
||||||
Europe
|
802,130
|
683,191
|
||||||
West
Africa
|
332,075
|
269,618
|
||||||
Australia
|
298,897
|
175,031
|
||||||
Other
International
|
101,809
|
110,429
|
||||||
EH
Centralized Operations
|
32,579
|
30,241
|
||||||
Bristow
Academy
|
38,075
|
37,961
|
||||||
Corporate
|
115,782
|
440,024
|
||||||
Total
identifiable assets (2)
|
$
|
2,533,559
|
$
|
2,334,571
|
(1)
|
Operating
income includes depreciation and amortization expense in the following
amounts for the periods presented:
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
||||||||||||||
2009
|
2008
|
2009
|
2008
|
||||||||||||
(In
thousands)
|
|||||||||||||||
U.S.
Gulf of Mexico
|
$
|
3,731
|
$
|
3,050
|
$
|
10,389
|
$
|
8,952
|
|||||||
Arctic
|
196
|
190
|
580
|
616
|
|||||||||||
Latin
America
|
2,027
|
2,264
|
6,595
|
6,218
|
|||||||||||
WH
Centralized Operations
|
335
|
169
|
955
|
418
|
|||||||||||
Europe
|
7,391
|
5,899
|
20,500
|
15,799
|
|||||||||||
West
Africa
|
2,626
|
2,056
|
7,064
|
6,112
|
|||||||||||
Australia
|
2,442
|
1,298
|
5,775
|
3,881
|
|||||||||||
Other
International
|
878
|
967
|
2,602
|
2,909
|
|||||||||||
EH
Centralized Operations
|
223
|
133
|
604
|
435
|
|||||||||||
Bristow
Academy
|
725
|
563
|
1,993
|
1,492
|
|||||||||||
Corporate
|
89
|
74
|
262
|
271
|
|||||||||||
Consolidated
total
|
$
|
20,663
|
$
|
16,663
|
$
|
57,319
|
$
|
47,103
|
(2)
|
Includes
$127.0 million and $230.1 million of construction in progress within
property and equipment on our condensed consolidated balance sheets as of
December 31 and March 31, 2009, respectively, which primarily represents
progress payments on aircraft to be delivered in future
periods.
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Net
income
|
$
|
27,126
|
$
|
47,700
|
$
|
84,827
|
$
|
99,296
|
||||||||
Other
comprehensive income (loss):
|
||||||||||||||||
Currency
translation adjustments (1)
|
1,927
|
(47,640
|
)
|
40,926
|
(91,258
|
)
|
||||||||||
Income
tax effect attributable to pension liability adjustment as a result of
internal reorganization (2)
|
—
|
—
|
—
|
(9,371
|
)
|
|||||||||||
Change
of interest gain – Bristow Norway (3)
|
—
|
12,300
|
—
|
12,300
|
||||||||||||
Unrealized
gain (loss) on cash flow hedges (4)
|
(668
|
)
|
283
|
8,094
|
(7,425
|
)
|
||||||||||
Comprehensive
income
|
$
|
28,385
|
$
|
12,643
|
$
|
133,847
|
$
|
3,542
|
(1)
|
During
the nine months ended December 31, 2009, the U.S. dollar weakened against
the British pound sterling and other currencies, resulting in translation
gains recorded as a component of stockholders’ investment as of December
31, 2009. During the three and nine months ended December 31,
2008, the U.S. dollar strengthened against the British pound sterling and
other currencies, resulting in translation losses recorded as a component
of stockholders’ investment as of December 31, 2008.
|
(2)
|
On
April 1, 2008, we completed an internal reorganization that restructured
our holdings in Bristow Aviation in an effort to simplify our legal entity
structure and reduce administrative costs associated with our ownership in
Bristow Aviation. In late March 2008, we completed part of this
overall restructuring that resulted in the release of $3.5 million of
previously provided U.S. deferred tax on the assets subject to the
restructuring. The additional transactions completed on April
1, 2008 resulted in a charge to other comprehensive income as a result of
a reduction of $9.4 million in deferred tax assets associated with our net
pension liability; however, these transactions did not result in a
material impact on net income.
|
(3)
|
On
October 31, 2008, we acquired the remaining interest in Bristow Norway
from the other Bristow Norway shareholders. The Bristow Norway
acquisition resulted in a change of interest gain of $12.3 million in
accumulated other comprehensive income in stockholders’ investment on our
consolidated balance sheet. For further details, see Note 2 to
the fiscal year 2009 Financial Statements.
|
(4)
|
Net
of income tax effect of $(0.4) million and $4.4 million for the three and
nine months ended December 31, 2009, respectively, and $(0.2) million and
$4.0 million for the three and nine months ended December 31, 2008,
respectively.
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Gross
revenue
|
$
|
—
|
$
|
66,407
|
$
|
236,899
|
$
|
—
|
$
|
303,306
|
||||||||||
Intercompany
revenue
|
—
|
9,449
|
2,365
|
(11,814
|
)
|
—
|
||||||||||||||
—
|
75,856
|
239,264
|
(11,814
|
)
|
303,306
|
|||||||||||||||
Operating
expense:
|
||||||||||||||||||||
Direct
cost
|
(385
|
)
|
44,941
|
173,119
|
—
|
217,675
|
||||||||||||||
Intercompany
expenses
|
71
|
2,200
|
9,543
|
(11,814
|
)
|
—
|
||||||||||||||
Depreciation
and amortization
|
484
|
7,215
|
12,964
|
—
|
20,663
|
|||||||||||||||
General
and administrative
|
12,156
|
3,741
|
14,861
|
—
|
30,758
|
|||||||||||||||
12,326
|
58,097
|
210,487
|
(11,814
|
)
|
269,096
|
|||||||||||||||
Gain
on disposal of assets
|
—
|
1,374
|
1,074
|
—
|
2,448
|
|||||||||||||||
Earnings
from unconsolidated affiliates,
net
|
45,718
|
—
|
4,407
|
(47,057
|
)
|
3,068
|
||||||||||||||
Operating
income
|
33,392
|
19,133
|
34,258
|
(47,057
|
)
|
39,726
|
||||||||||||||
Interest
income
|
5,268
|
20
|
348
|
(5,271
|
)
|
365
|
||||||||||||||
Interest
expense
|
(10,842
|
)
|
—
|
(5,408
|
)
|
5,271
|
(10,979
|
)
|
||||||||||||
Other
income (expense), net
|
6
|
(17
|
)
|
3,706
|
—
|
3,695
|
||||||||||||||
Income
before provision for
income
taxes
|
27,824
|
19,136
|
32,904
|
(47,057
|
)
|
32,807
|
||||||||||||||
Allocation
of consolidated income taxes
|
(969
|
)
|
(2,067
|
)
|
(2,645
|
)
|
—
|
(5,681
|
)
|
|||||||||||
Net
income
|
26,855
|
17,069
|
30,259
|
(47,057
|
)
|
27,126
|
||||||||||||||
Net
income attributable to noncontrolling
interests
|
(177
|
)
|
—
|
(271
|
)
|
—
|
(448
|
)
|
||||||||||||
Net
income attributable to Bristow Group
|
$
|
26,678
|
$
|
17,069
|
$
|
29,988
|
$
|
(47,057
|
)
|
$
|
26,678
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Gross
revenue
|
$
|
—
|
$
|
209,856
|
$
|
675,517
|
$
|
—
|
$
|
885,373
|
||||||||||
Intercompany
revenue
|
—
|
25,722
|
8,669
|
(34,391
|
)
|
—
|
||||||||||||||
—
|
235,578
|
684,186
|
(34,391
|
)
|
885,373
|
|||||||||||||||
Operating
expense:
|
||||||||||||||||||||
Direct
cost
|
(649
|
)
|
137,094
|
488,260
|
—
|
624,705
|
||||||||||||||
Intercompany
expenses
|
78
|
8,678
|
25,635
|
(34,391
|
)
|
—
|
||||||||||||||
Depreciation
and amortization
|
943
|
20,852
|
35,524
|
—
|
57,319
|
|||||||||||||||
General
and administrative
|
35,268
|
11,730
|
42,248
|
—
|
89,246
|
|||||||||||||||
35,640
|
178,354
|
591,667
|
(34,391
|
)
|
771,270
|
|||||||||||||||
Gain
on disposal of assets
|
—
|
3,789
|
9,548
|
—
|
13,337
|
|||||||||||||||
Earnings
from unconsolidated affiliates,
net
|
100,390
|
—
|
11,274
|
(101,039
|
)
|
10,625
|
||||||||||||||
Operating
income
|
64,750
|
61,013
|
113,341
|
(101,039
|
)
|
138,065
|
||||||||||||||
Interest
income
|
56,271
|
47
|
656
|
(56,177
|
)
|
797
|
||||||||||||||
Interest
expense
|
(31,885
|
)
|
—
|
(55,923
|
)
|
56,177
|
(31,631
|
)
|
||||||||||||
Other
income (expense), net
|
960
|
(550
|
)
|
3,613
|
—
|
4,023
|
||||||||||||||
Income
before provision for income
taxes
|
90,096
|
60,510
|
61,687
|
(101,039
|
)
|
111,254
|
||||||||||||||
Allocation
of consolidated income taxes
|
(5,994
|
)
|
(8,046
|
)
|
(12,387
|
)
|
—
|
(26,427
|
)
|
|||||||||||
Net
income
|
84,102
|
52,464
|
49,300
|
(101,039
|
)
|
84,827
|
||||||||||||||
Net
income attributable to noncontrolling
interests
|
(531
|
)
|
—
|
(725
|
)
|
—
|
(1,256
|
)
|
||||||||||||
Net
income attributable to Bristow Group
|
$
|
83,571
|
$
|
52,464
|
$
|
48,575
|
$
|
(101,039
|
)
|
$
|
83,571
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Gross
revenue
|
$
|
93
|
$
|
82,609
|
$
|
200,285
|
$
|
—
|
$
|
282,987
|
||||||||||
Intercompany
revenue
|
—
|
7,407
|
5,288
|
(12,695
|
)
|
—
|
||||||||||||||
93
|
90,016
|
205,573
|
(12,695
|
)
|
282,987
|
|||||||||||||||
Operating
expense:
|
||||||||||||||||||||
Direct
cost
|
(105
|
)
|
52,731
|
152,101
|
—
|
204,727
|
||||||||||||||
Intercompany
expenses
|
—
|
5,418
|
7,277
|
(12,695
|
)
|
—
|
||||||||||||||
Depreciation
and amortization
|
179
|
6,058
|
10,426
|
—
|
16,663
|
|||||||||||||||
General
and administrative
|
9,191
|
3,371
|
13,024
|
—
|
25,586
|
|||||||||||||||
9,265
|
67,578
|
182,828
|
(12,695
|
)
|
246,976
|
|||||||||||||||
Gain
(loss) on GOM Asset Sale
|
(3,354
|
)
|
41,134
|
—
|
—
|
37,780
|
||||||||||||||
Gain
(loss) on disposal of assets
|
—
|
126
|
(228
|
)
|
—
|
(102
|
)
|
|||||||||||||
Earnings
(losses) from unconsolidated affiliates,
net
|
59,586
|
—
|
(832
|
)
|
(60,171
|
)
|
(1,417
|
)
|
||||||||||||
Operating
income
|
47,060
|
63,698
|
21,685
|
(60,171
|
)
|
72,272
|
||||||||||||||
Interest
income
|
17,507
|
16
|
917
|
(17,353
|
)
|
1,087
|
||||||||||||||
Interest
expense
|
(8,863
|
)
|
—
|
(16,766
|
)
|
17,353
|
(8,276
|
)
|
||||||||||||
Other
income (expense), net
|
604
|
509
|
(2,635
|
)
|
—
|
(1,522
|
)
|
|||||||||||||
Income
before provision for income
taxes
|
56,308
|
64,223
|
3,201
|
(60,171
|
)
|
63,561
|
||||||||||||||
Allocation
of consolidated income taxes
|
(8,901
|
)
|
(2,551
|
)
|
(4,409
|
)
|
—
|
(15,861
|
)
|
|||||||||||
Net
income (loss) from continuing operations
|
47,407
|
61,672
|
(1,208
|
)
|
(60,171
|
)
|
47,700
|
|||||||||||||
Net
income attributable to noncontrolling
interests
|
(242
|
)
|
—
|
(293
|
)
|
—
|
(535
|
)
|
||||||||||||
Net
income (loss) attributable to Bristow Group
|
$
|
47,165
|
$
|
61,672
|
$
|
(1,501
|
)
|
$
|
(60,171
|
)
|
$
|
47,165
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Gross
revenue
|
$
|
166
|
$
|
263,466
|
$
|
595,166
|
$
|
—
|
$
|
858,798
|
||||||||||
Intercompany
revenue
|
—
|
19,996
|
17,094
|
(37,090
|
)
|
—
|
||||||||||||||
166
|
283,462
|
612,260
|
(37,090
|
)
|
858,798
|
|||||||||||||||
Operating
expense:
|
||||||||||||||||||||
Direct
cost
|
491
|
167,945
|
462,405
|
—
|
630,841
|
|||||||||||||||
Intercompany
expenses
|
—
|
17,361
|
19,729
|
(37,090
|
)
|
—
|
||||||||||||||
Depreciation
and amortization
|
352
|
17,464
|
29,287
|
—
|
47,103
|
|||||||||||||||
General
and administrative
|
21,695
|
12,298
|
44,783
|
—
|
78,776
|
|||||||||||||||
22,538
|
215,068
|
556,204
|
(37,090
|
)
|
756,720
|
|||||||||||||||
Gain
on GOM Asset Sale
|
(3,354
|
)
|
41,134
|
—
|
—
|
37,780
|
||||||||||||||
Gain
on disposal of assets
|
—
|
1,658
|
22,551
|
(18,344
|
)
|
5,865
|
||||||||||||||
Earnings
(losses) from unconsolidated
affiliates,
net
|
155,357
|
3,454
|
6,269
|
(156,803
|
)
|
8,277
|
||||||||||||||
Operating
income
|
129,631
|
114,640
|
84,876
|
(175,147
|
)
|
154,000
|
||||||||||||||
Interest
income
|
60,427
|
106
|
2,079
|
(56,873
|
)
|
5,739
|
||||||||||||||
Interest
expense
|
(27,045
|
)
|
—
|
(55,771
|
)
|
56,873
|
(25,943
|
)
|
||||||||||||
Other
income (expense), net
|
3,860
|
778
|
(2,398
|
)
|
—
|
2,240
|
||||||||||||||
Income
before provision for income
taxes
|
166,873
|
115,524
|
28,786
|
(175,147
|
)
|
136,036
|
||||||||||||||
Allocation
of consolidated income taxes
|
(69,073
|
)
|
(10,091
|
)
|
42,670
|
—
|
(36,494
|
)
|
||||||||||||
Net
income from continuing operations
|
97,800
|
105,433
|
71,456
|
(175,147
|
)
|
99,542
|
||||||||||||||
Net
income attributable to noncontrolling
interests
|
(694
|
)
|
—
|
(1,496
|
)
|
—
|
(2,190
|
)
|
||||||||||||
Net
income attributable to Bristow Group
from
continuing operations
|
97,106
|
105,433
|
69,960
|
(175,147
|
)
|
97,352
|
||||||||||||||
Discontinued
operations:
|
||||||||||||||||||||
Loss
from discontinued operations before
provision
for income taxes
|
—
|
(379
|
)
|
—
|
—
|
(379
|
)
|
|||||||||||||
Benefits
for income taxes on
discontinued
operations
|
—
|
133
|
—
|
—
|
133
|
|||||||||||||||
Loss
from discontinued operations
|
—
|
(246
|
)
|
—
|
—
|
(246
|
)
|
|||||||||||||
Net
income attributable to Bristow Group
|
$
|
97,106
|
$
|
105,187
|
$
|
69,960
|
$
|
(175,147
|
)
|
$
|
97,106
|
Parent
|
Non-
|
|||||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||||
(In
thousands)
|
||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||
Current
assets:
|
||||||||||||||||||||||
Cash
and cash equivalents
|
$
|
18,192
|
$
|
3,786
|
$
|
85,081
|
$
|
—
|
$
|
107,059
|
||||||||||||
Accounts
receivable
|
9,829
|
71,293
|
172,869
|
(22,354
|
)
|
231,637
|
||||||||||||||||
Inventories
|
—
|
86,404
|
100,816
|
—
|
187,220
|
|||||||||||||||||
Prepaid
expenses and other current assets
|
744
|
7,731
|
49,874
|
(31,767
|
)
|
26,582
|
||||||||||||||||
Total
current assets
|
28,765
|
169,214
|
408,640
|
(54,121
|
)
|
552,498
|
||||||||||||||||
Intercompany
investment
|
992,230
|
104,482
|
135,568
|
(1,232,280
|
)
|
—
|
||||||||||||||||
Investment
in unconsolidated affiliates
|
—
|
7,835
|
196,081
|
—
|
203,916
|
|||||||||||||||||
Intercompany
notes receivable
|
1,116,666
|
—
|
(184,534
|
)
|
(932,132
|
)
|
—
|
|||||||||||||||
Property
and equipment – at cost:
|
||||||||||||||||||||||
Land
and buildings
|
211
|
54,232
|
38,798
|
—
|
93,241
|
|||||||||||||||||
Aircraft
and equipment
|
10,734
|
760,713
|
1,242,700
|
—
|
2,014,147
|
|||||||||||||||||
10,945
|
814,945
|
1,281,498
|
—
|
2,107,388
|
||||||||||||||||||
Less: Accumulated
depreciation and amortization
|
(1,796
|
)
|
(139,784
|
)
|
(258,895
|
)
|
—
|
(400,475
|
)
|
|||||||||||||
9,149
|
675,161
|
1,022,603
|
—
|
1,706,913
|
||||||||||||||||||
Goodwill
|
—
|
4,486
|
42,485
|
—
|
46,971
|
|||||||||||||||||
Other
assets
|
112,365
|
1,184
|
184,022
|
(274,310
|
)
|
23,261
|
||||||||||||||||
$
|
2,259,175
|
$
|
962,362
|
$
|
1,804,865
|
$
|
(2,492,843
|
)
|
$
|
2,533,559
|
||||||||||||
LIABILITIES
AND STOCKHOLDERS’ INVESTMENT
|
||||||||||||||||||||||
Current
liabilities:
|
||||||||||||||||||||||
Accounts
payable
|
$
|
1,850
|
$
|
10,561
|
$
|
50,758
|
$
|
(12,735
|
)
|
$
|
50,434
|
|||||||||||
Accrued
liabilities
|
17,218
|
22,655
|
110,020
|
(41,386
|
)
|
108,507
|
||||||||||||||||
Deferred
taxes
|
(1,591
|
)
|
—
|
10,939
|
—
|
9,348
|
||||||||||||||||
Short-term
borrowings and current maturities
of
long-term debt
|
5,487
|
—
|
13,724
|
—
|
19,211
|
|||||||||||||||||
Total
current liabilities
|
22,964
|
33,216
|
185,441
|
(54,121
|
)
|
187,500
|
||||||||||||||||
Long-term
debt, less current maturities
|
670,283
|
—
|
27,861
|
—
|
698,144
|
|||||||||||||||||
Intercompany
notes payable
|
—
|
357,056
|
675,076
|
(1,032,132
|
)
|
—
|
||||||||||||||||
Accrued
pension liabilities
|
—
|
—
|
99,276
|
—
|
99,276
|
|||||||||||||||||
Other
liabilities and deferred credits
|
4,587
|
8,174
|
188,700
|
(174,310
|
)
|
27,151
|
||||||||||||||||
Deferred
taxes
|
114,870
|
7,266
|
27,253
|
—
|
149,389
|
|||||||||||||||||
Stockholders’
investment:
|
||||||||||||||||||||||
Common
stock
|
359
|
4,996
|
34,479
|
(39,475
|
)
|
359
|
||||||||||||||||
Additional
paid-in-capital
|
669,174
|
17,888
|
473,242
|
(491,130
|
)
|
669,174
|
||||||||||||||||
Retained
earnings
|
795,739
|
533,766
|
45,706
|
(579,472
|
)
|
795,739
|
||||||||||||||||
Noncontrolling
interests
|
5,304
|
—
|
4,957
|
—
|
10,261
|
|||||||||||||||||
Accumulated
other comprehensive income
(loss)
|
(24,105
|
)
|
—
|
42,874
|
(122,203
|
)
|
(103,434
|
)
|
||||||||||||||
1,446,471
|
556,650
|
601,258
|
(1,232,280
|
)
|
1,372,099
|
|||||||||||||||||
$
|
2,259,175
|
$
|
962,362
|
$
|
1,804,865
|
$
|
(2,492,843
|
)
|
$
|
2,533,559
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
ASSETS
|
||||||||||||||||||||
Current
assets:
|
||||||||||||||||||||
Cash
and cash equivalents
|
$
|
226,691
|
$
|
5,445
|
$
|
68,833
|
$
|
—
|
$
|
300,969
|
||||||||||
Accounts
receivable
|
11,931
|
67,047
|
172,974
|
(35,278
|
)
|
216,674
|
||||||||||||||
Inventories
|
—
|
82,422
|
83,016
|
—
|
165,438
|
|||||||||||||||
Prepaid
expenses and other current assets
|
1,000
|
6,200
|
30,676
|
(17,650
|
)
|
20,226
|
||||||||||||||
Total
current assets
|
239,622
|
161,114
|
355,499
|
(52,928
|
)
|
703,307
|
||||||||||||||
Intercompany
investment
|
924,815
|
62,990
|
251,960
|
(1,239,765
|
)
|
—
|
||||||||||||||
Investment
in unconsolidated affiliates
|
1,631
|
150
|
18,484
|
—
|
20,265
|
|||||||||||||||
Intercompany
notes receivable
|
835,439
|
—
|
(8,709
|
)
|
(826,730
|
)
|
—
|
|||||||||||||
Property
and equipment – at cost:
|
||||||||||||||||||||
Land
and buildings
|
212
|
48,770
|
19,979
|
—
|
68,961
|
|||||||||||||||
Aircraft
and equipment
|
7,280
|
768,709
|
1,047,022
|
—
|
1,823,011
|
|||||||||||||||
7,492
|
817,479
|
1,067,001
|
—
|
1,891,972
|
||||||||||||||||
Less: Accumulated
depreciation and amortization
|
(1,511
|
)
|
(129,675
|
)
|
(219,329
|
)
|
—
|
(350,515
|
)
|
|||||||||||
5,981
|
687,804
|
847,672
|
—
|
1,541,457
|
||||||||||||||||
Goodwill
|
—
|
4,486
|
40,168
|
—
|
44,654
|
|||||||||||||||
Other
assets
|
113,735
|
1,151
|
186,726
|
(276,724
|
)
|
24,888
|
||||||||||||||
$
|
2,121,223
|
$
|
917,695
|
$
|
1,691,800
|
$
|
(2,396,147
|
)
|
$
|
2,334,571
|
||||||||||
LIABILITIES
AND STOCKHOLDERS’ INVESTMENT
|
||||||||||||||||||||
Current
liabilities:
|
||||||||||||||||||||
Accounts
payable
|
$
|
938
|
$
|
20,772
|
$
|
50,230
|
$
|
(27,048
|
)
|
$
|
44,892
|
|||||||||
Accrued
liabilities
|
11,458
|
22,703
|
90,594
|
(26,951
|
)
|
97,804
|
||||||||||||||
Deferred
taxes
|
(1,575
|
)
|
—
|
7,770
|
—
|
6,195
|
||||||||||||||
Short-term
borrowings and current maturities
of
long-term debt
|
3,040
|
—
|
5,908
|
—
|
8,948
|
|||||||||||||||
Total
current liabilities
|
13,861
|
43,475
|
154,502
|
(53,999
|
)
|
157,839
|
||||||||||||||
Long-term
debt, less current maturities
|
670,565
|
—
|
44,400
|
—
|
714,965
|
|||||||||||||||
Intercompany
notes payable
|
—
|
355,150
|
572,148
|
(927,298
|
)
|
—
|
||||||||||||||
Accrued
pension liabilities
|
—
|
—
|
81,380
|
—
|
81,380
|
|||||||||||||||
Other
liabilities and deferred credits
|
3,340
|
8,567
|
181,964
|
(177,130
|
)
|
16,741
|
||||||||||||||
Deferred
taxes
|
97,503
|
6,299
|
23,464
|
—
|
127,266
|
|||||||||||||||
Stockholders’
investment:
|
||||||||||||||||||||
Preferred
stock
|
222,554
|
—
|
—
|
—
|
222,554
|
|||||||||||||||
Common
stock
|
291
|
4,996
|
9,646
|
(14,642
|
)
|
291
|
||||||||||||||
Additional
paid-in-capital
|
436,296
|
17,906
|
542,992
|
(560,898
|
)
|
436,296
|
||||||||||||||
Retained
earnings
|
718,493
|
481,302
|
12,860
|
(494,162
|
)
|
718,493
|
||||||||||||||
Noncontrolling
interests
|
7,107
|
—
|
4,093
|
—
|
11,200
|
|||||||||||||||
Accumulated
other comprehensive income
(loss)
|
(48,787
|
)
|
—
|
64,351
|
(168,018
|
)
|
(152,454
|
)
|
||||||||||||
1,335,954
|
504,204
|
633,942
|
(1,237,720
|
)
|
1,236,380
|
|||||||||||||||
$
|
2,121,223
|
$
|
917,695
|
$
|
1,691,800
|
$
|
(2,396,147
|
)
|
$
|
2,334,571
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Net
cash provided by (used in) operating activities
|
$
|
(42,032
|
)
|
$
|
38,772
|
$
|
166,277
|
$
|
—
|
$
|
163,017
|
|||||||||
Cash
flows from investing activities:
|
||||||||||||||||||||
Capital
expenditures
|
(4,024
|
)
|
(104,115
|
)
|
(142,133
|
)
|
—
|
(250,272
|
)
|
|||||||||||
Proceeds
from asset dispositions
|
—
|
60,588
|
14,385
|
—
|
74,973
|
|||||||||||||||
Acquisition,
net of cash received
|
—
|
—
|
(178,961
|
)
|
—
|
(178,961
|
)
|
|||||||||||||
Net
cash used in investing activities
|
(4,002
|
)
|
(43,527
|
)
|
(306,709
|
)
|
—
|
(354,260
|
)
|
|||||||||||
Cash
flows from financing activities:
|
||||||||||||||||||||
Repayment
of debt and debt redemption premiums
|
(1,726
|
)
|
—
|
(8,342
|
)
|
—
|
(10,068
|
)
|
||||||||||||
Increases
(decreases) in cash related to intercompany
advances
and debt
|
(170,278
|
)
|
3,096
|
167,182
|
—
|
—
|
||||||||||||||
Dividends
paid
|
15,729
|
—
|
(15,729
|
)
|
—
|
—
|
||||||||||||||
Partial
prepayment of put/call obligation
|
(52
|
)
|
—
|
—
|
—
|
(52
|
)
|
|||||||||||||
Preferred
Stock dividends paid
|
(6,325
|
)
|
—
|
—
|
—
|
(6,325
|
)
|
|||||||||||||
Issuance
of common stock
|
1,336
|
—
|
—
|
—
|
1,336
|
|||||||||||||||
Tax
benefit related to stock-based compensation
|
409
|
—
|
—
|
—
|
409
|
|||||||||||||||
Net
cash provided by (used in) financing activities
|
(160,907
|
)
|
3,096
|
143,111
|
—
|
(14,700
|
)
|
|||||||||||||
Effect
of exchange rate changes on cash and cash
equivalents
|
(1,536
|
)
|
—
|
13,569
|
—
|
12,033
|
||||||||||||||
Net
increase (decrease) in cash and cash
equivalents
|
(208,499)
|
(1,659
|
)
|
16,248
|
—
|
(193,910
|
)
|
|||||||||||||
Cash
and cash equivalents at beginning of
period
|
226,691
|
5,445
|
68,833
|
—
|
300,969
|
|||||||||||||||
Cash
and cash equivalents at end of period
|
$
|
18,192
|
$
|
3,786
|
$
|
85,081
|
$
|
—
|
$
|
107,059
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Net
cash provided by (used in) operating activities
|
$
|
(110,090
|
)
|
$
|
(81,511
|
)
|
$
|
197,310
|
$
|
98,163
|
$
|
103,872
|
||||||||
Cash
flows from investing activities:
|
||||||||||||||||||||
Capital
expenditures
|
(1,241
|
)
|
(135,321
|
)
|
(251,445
|
)
|
—
|
(388,007
|
)
|
|||||||||||
Proceeds
from asset dispositions
|
—
|
72,434
|
14,247
|
—
|
86,681
|
|||||||||||||||
Acquisitions,
net of cash received
|
—
|
356
|
(15,946
|
)
|
—
|
(15,590
|
)
|
|||||||||||||
Net
cash used in investing activities
|
(1,241
|
)
|
(62,531
|
)
|
(253,144
|
)
|
—
|
(316,916
|
)
|
|||||||||||
Cash
flows from financing activities:
|
||||||||||||||||||||
Proceeds
from borrowings
|
115,000
|
—
|
—
|
—
|
115,000
|
|||||||||||||||
Debt
issuance costs
|
(3,768
|
)
|
—
|
—
|
—
|
(3,768
|
)
|
|||||||||||||
Repayment
of debt and debt redemption premiums
|
(1,725
|
)
|
—
|
(19,271
|
)
|
—
|
(20,996
|
)
|
||||||||||||
Increases
(decreases) in cash related to intercompany
advances
and debt
|
(190,325
|
)
|
155,535
|
132,953
|
(98,163
|
)
|
—
|
|||||||||||||
Partial
prepayment of put/call obligation
|
(184
|
)
|
—
|
—
|
—
|
(184
|
)
|
|||||||||||||
Dividends
paid
|
12,900
|
—
|
(12,900
|
)
|
—
|
—
|
||||||||||||||
Preferred
Stock dividends paid
|
(9,487
|
)
|
—
|
—
|
—
|
(9,487
|
)
|
|||||||||||||
Issuance
of common stock
|
225,260
|
—
|
—
|
—
|
225,260
|
|||||||||||||||
Tax
benefit related to stock-based compensation
|
242
|
—
|
—
|
—
|
242
|
|||||||||||||||
Net
cash provided by financing activities
|
147,913
|
155,535
|
100,782
|
(98,163
|
)
|
306,067
|
||||||||||||||
Effect
of exchange rate changes on cash and cash
equivalents
|
3,630
|
—
|
(22,050
|
)
|
—
|
(18,420
|
)
|
|||||||||||||
Net
increase in cash and cash
equivalents
|
40,212
|
11,493
|
22,898
|
—
|
74,603
|
|||||||||||||||
Cash
and cash equivalents at beginning of
period
|
226,494
|
361
|
63,195
|
—
|
290,050
|
|||||||||||||||
Cash
and cash equivalents at end of period
|
$
|
266,706
|
$
|
11,854
|
$
|
86,093
|
$
|
—
|
$
|
364,653
|
·
|
the
risks and uncertainties described under “Item 1A. Risk Factors” in our
fiscal year 2009 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 unable to acquire additional aircraft due to limited availability or
unable to exercise aircraft purchase
options;
|
·
|
we
are unable to obtain financing or we are unable to draw on our credit
facilities;
|
·
|
we
are not able to re-deploy our aircraft to regions with greater
demand;
|
·
|
we
do not achieve the anticipated benefit of our fleet renewal and growth
strategy; and
|
·
|
the
outcome of the U.S. Department of Justice (“DOJ”)
investigations, which are ongoing, have a greater than
anticipated financial or business
impact.
|
·
|
Western
Hemisphere
|
−
|
U.S.
Gulf of Mexico
|
−
|
Arctic
|
−
|
Latin
America
|
−
|
Western
Hemisphere (“WH”) Centralized
Operations
|
·
|
Eastern
Hemisphere
|
−
|
Europe
|
−
|
West
Africa
|
−
|
Australia
|
−
|
Other
International
|
−
|
Eastern
Hemisphere (“EH”) Centralized
Operations
|
·
|
Global
Training
|
−
|
Bristow
Academy
|
Percentage
of Current Period Revenue
|
Aircraft
in Consolidated Fleet
|
||||||||||||||||||
Helicopters
|
|||||||||||||||||||
Small
|
Medium
|
Large
|
Training
|
Fixed Wing
|
Total
(1)
|
Unconsolidated Affiliates
(2)
|
Total
|
||||||||||||
U.S.
Gulf of Mexico
|
15
|
%
|
62
|
26
|
7
|
—
|
—
|
95
|
—
|
95
|
|||||||||
Arctic
|
1
|
%
|
13
|
2
|
—
|
—
|
1
|
16
|
—
|
16
|
|||||||||
Latin
America
|
7
|
%
|
5
|
32
|
2
|
—
|
—
|
39
|
89
|
128
|
|||||||||
WH
Centralized Operations
|
—
|
%
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||
Europe
|
39
|
%
|
—
|
11
|
40
|
—
|
—
|
51
|
—
|
51
|
|||||||||
West
Africa
|
19
|
%
|
12
|
32
|
5
|
—
|
4
|
53
|
—
|
53
|
|||||||||
Australia
|
11
|
%
|
2
|
10
|
18
|
—
|
—
|
30
|
—
|
30
|
|||||||||
Other
International
|
5
|
%
|
—
|
11
|
10
|
—
|
—
|
21
|
44
|
65
|
|||||||||
EH
Centralized Operations
|
1
|
%
|
—
|
—
|
—
|
—
|
—
|
—
|
63
|
63
|
|||||||||
Bristow
Academy
|
2
|
%
|
—
|
—
|
—
|
74
|
—
|
74
|
—
|
74
|
|||||||||
Total
|
100
|
%
|
94
|
124
|
82
|
74
|
5
|
379
|
196
|
575
|
|||||||||
Aircraft
not currently in fleet: (3)
|
|||||||||||||||||||
On
order
|
—
|
6
|
5
|
—
|
—
|
11
|
|||||||||||||
Under
option
|
—
|
41
|
13
|
—
|
—
|
54
|
(1)
|
Includes
11 aircraft held for sale.
|
(2)
|
The
196 aircraft operated or managed by our unconsolidated affiliates are in
addition to those aircraft leased from us.
|
(3)
|
This
table does not reflect aircraft which our unconsolidated affiliates may
have on order or under option.
|
·
|
The
Eastern and Western Hemisphere divisional boundaries will be eliminated,
and Centralized Operations will be managed under a single global
organization.
|
·
|
The
Other International and Latin America business units will be merged into a
single International business unit.
|
·
|
The
U.S. Gulf of Mexico and Arctic business units will be combined into a
single North America business unit.
|
·
|
A
global shared services organization will be created to support finance,
accounting, human resources and information
technology.
|
·
|
Grow our
business. We plan to continue to grow our business
globally and increase our revenue and profitability, subject to managing
through cyclical downturns in the energy industry. We have a
footprint in most major oil and gas producing regions of the world, and we
expect to have the opportunity to expand and deepen our presence in many
of these markets. We anticipate this growth will result
primarily from the deployment of new aircraft into markets where we expect
they will be most profitably employed, as well as by executing
opportunistic acquisitions and investments. Through our
relationships with our existing customers, we are aware of future business
opportunities in the markets we currently serve that would allow us to
grow through fleet additions. Our acquisition-related growth
may include increasing our role and participation with existing
unconsolidated affiliates or investing in new companies, and may include
increasing our position in existing markets or expanding into new
markets.
|
·
|
Be the preferred provider of
helicopter services. We position our business as the
preferred provider of helicopter services by maintaining strong
relationships with our customers and providing safe and high-quality
service. We focus on maintaining relationships with our
customers’ field operations and corporate management. We
believe that this focus helps us better anticipate customer needs and
provide our customers with the right aircraft in the right place at the
right time, which in turn allows us to better manage our existing fleet
and capital investment program. We also leverage our close
relationships with our customers to establish mutually beneficial
operating practices and safety standards worldwide. By applying
standard operating and safety practices across our global operations, we
are able to provide our customers with consistent, high-quality service in
each of their areas of operation. By better understanding our
customers’ needs and by virtue of our global operations and safety
standards, we have effectively competed against other helicopter service
providers based on aircraft availability, customer service, safety and
reliability, and not just price.
|
·
|
Integrate our global
operations. We are an integrated global operator, and we
intend to continue to identify and implement further opportunities to
integrate our global organization. We have integrated our
operations among previously independently managed businesses, created a
global flight and maintenance standards group, improved our global asset
allocation and made other changes in our corporate and field
operations.
|
Three
Months Ended
December 31,
|
Favorable
|
||||||||||||||||
2009
|
2008
|
(Unfavorable)
|
|||||||||||||||
(Unaudited)
(In
thousands, except per share
amounts,
percentages and flight hours)
|
|||||||||||||||||
Gross
revenue:
|
|||||||||||||||||
Operating
revenue
|
$
|
275,488
|
$
|
253,283
|
$
|
22,205
|
8.8
|
%
|
|||||||||
Reimbursable
revenue
|
27,818
|
29,704
|
(1,886
|
)
|
(6.3
|
)%
|
|||||||||||
Total
gross revenue
|
303,306
|
282,987
|
20,319
|
7.2
|
%
|
||||||||||||
Operating
expense:
|
|||||||||||||||||
Direct
cost
|
189,456
|
176,038
|
(13,418
|
)
|
(7.6
|
)%
|
|||||||||||
Reimbursable
expense
|
28,219
|
28,689
|
470
|
1.6
|
%
|
||||||||||||
Depreciation
and amortization
|
20,663
|
16,663
|
(4,000
|
)
|
(24.0
|
)%
|
|||||||||||
General
and administrative
|
30,758
|
25,586
|
(5,172
|
)
|
(20.2
|
)%
|
|||||||||||
269,096
|
246,976
|
(22,120
|
)
|
(9.0
|
)%
|
||||||||||||
Gain
on GOM Asset Sale (1)
|
—
|
37,780
|
(37,780
|
)
|
*
|
||||||||||||
Gain
(loss) on disposal of assets (2)
|
2,448
|
(102
|
)
|
2,550
|
*
|
||||||||||||
Earnings
(losses) from unconsolidated affiliates, net (2)
|
3,068
|
(1,417
|
)
|
4,485
|
316.5
|
% | |||||||||||
Operating
income
|
39,726
|
72,272
|
(32,546
|
)
|
(45.0
|
)%
|
|||||||||||
Interest
income (expense), net
|
(10,614
|
)
|
(7,189
|
)
|
(3,425
|
)
|
(47.6
|
)%
|
|||||||||
Other
income (expense), net
|
3,695
|
(1,522
|
)
|
5,217
|
342.8
|
%
|
|||||||||||
Income
before provision for income taxes
|
32,807
|
63,561
|
(30,754
|
)
|
(48.4
|
)%
|
|||||||||||
Provision
for income taxes
|
(5,681
|
)
|
(15,861
|
)
|
10,180
|
64.2
|
%
|
||||||||||
Net
income
|
27,126
|
47,700
|
(20,574
|
)
|
(43.1
|
)%
|
|||||||||||
Net
income attributable to noncontrolling interests
|
(448
|
)
|
(535
|
)
|
87
|
16.3
|
%
|
||||||||||
Net
income attributable to Bristow Group
|
$
|
26,678
|
$
|
47,165
|
$
|
(20,487
|
)
|
(43.4
|
)%
|
||||||||
Diluted
earnings per common share
|
$
|
0.74
|
$
|
1.32
|
$
|
(0.58
|
)
|
(43.9
|
)%
|
||||||||
Operating
margin (3)
|
13.1
|
%
|
25.5
|
%
|
(12.4
|
)
|
%
|
(48.6
|
)%
|
||||||||
Flight
hours (4)
|
54,522
|
67,127
|
(12,605
|
)
|
(18.8
|
)%
|
Nine
Months Ended
December 31,
|
Favorable
|
|||||||||||||||
2009
|
2008
|
(Unfavorable)
|
||||||||||||||
(Unaudited)
(In
thousands, except per share
amounts,
percentages and flight hours)
|
||||||||||||||||
Gross
revenue:
|
||||||||||||||||
Operating
revenue
|
$
|
804,083
|
$
|
778,643
|
$
|
25,440
|
3.3
|
%
|
||||||||
Reimbursable
revenue
|
81,290
|
80,155
|
1,135
|
1.4
|
%
|
|||||||||||
Total
gross revenue
|
885,373
|
858,798
|
26,575
|
3.1
|
%
|
|||||||||||
Operating
expense:
|
||||||||||||||||
Direct
cost
|
543,525
|
551,404
|
7,879
|
1.4
|
%
|
|||||||||||
Reimbursable
expense
|
81,180
|
79,437
|
(1,743
|
)
|
(2.2
|
)%
|
||||||||||
Depreciation
and amortization
|
57,319
|
47,103
|
(10,216
|
)
|
(21.7
|
)%
|
||||||||||
General
and administrative
|
89,246
|
78,776
|
(10,470
|
)
|
(13.3
|
)%
|
||||||||||
771,270
|
756,720
|
(14,550
|
)
|
(1.9
|
)%
|
|||||||||||
Gain
on GOM Asset Sale (1)
|
—
|
37,780
|
(37,780
|
)
|
*
|
|||||||||||
Gain
on disposal of assets (2)
|
13,337
|
5,865
|
7,472
|
127.4
|
%
|
|||||||||||
Earnings
(losses) from unconsolidated affiliates,
net (2)
|
10,625
|
8,277
|
2,348
|
28.4
|
%
|
|||||||||||
Operating
income
|
138,065
|
154,000
|
(15,935
|
)
|
(10.3
|
)%
|
||||||||||
Interest
income (expense), net
|
(30,834
|
)
|
(20,204
|
)
|
(10,630
|
)
|
(52.6
|
)%
|
||||||||
Other
income (expense), net
|
4,023
|
2,240
|
1,783
|
79.6
|
%
|
|||||||||||
Income
before provision for income taxes
|
111,254
|
136,036
|
(24,782
|
)
|
(18.2
|
)%
|
||||||||||
Provision
for income taxes
|
(26,427)
|
(36,494
|
)
|
10,067
|
27.6
|
%
|
||||||||||
Net
income from continuing operations
|
84,827
|
99,542
|
(14,715
|
)
|
(14.8
|
)%
|
||||||||||
Loss
from discontinued operations
|
—
|
(246
|
)
|
246
|
100.0
|
%
|
||||||||||
Net
income
|
84,827
|
99,296
|
(14,469
|
)
|
(14.6
|
)%
|
||||||||||
Net
income attributable to noncontrolling interests
|
(1,256
|
)
|
(2,190
|
)
|
934
|
42.6
|
%
|
|||||||||
Net
income attributable to Bristow Group
|
$
|
83,571
|
$
|
97,106
|
$
|
(13,535
|
)
|
(13.9
|
)%
|
|||||||
Diluted
earnings per common share
|
$
|
2.32
|
$
|
2.84
|
$
|
(0.52
|
)
|
(18.3
|
)%
|
|||||||
Operating
margin (3)
|
15.6
|
%
|
17.9
|
%
|
(2.3
|
)
|
%
|
(12.8
|
)%
|
|||||||
Flight
hours (4)
|
172,980
|
217,338
|
(44,358
|
)
|
(20.4
|
)%
|
(1)
|
On
October 30, 2008, we sold 53 small aircraft and related assets operating
in the U.S. Gulf of Mexico for $65 million (the “GOM Asset
Sale”). For further details, see Note 2 in “Notes to
Consolidated Financial Statements” included elsewhere in this Quarterly
Report.
|
(2)
|
Gain
on disposal of assets which was previously included within operating
expense has been reclassified in this Quarterly Report to be included as a
separate line below operating expense, but still within operating
income. Earnings (losses) from unconsolidated affiliates, net
which were previously included in non-operating income have been
reclassified in this Quarterly Report to be included within operating
income. Amounts presented for the Comparable Quarter and
Comparable Period have been restated to conform to Current Quarter and
Current Period presentation. See Note 1 in the “Notes to
Condensed Consolidated Financial Statements” included elsewhere in this
Quarterly Report for further discussion of these changes in
presentation.
|
(3)
|
Operating
margin is calculated as operating income divided by gross
revenue.
|
(4)
|
Excludes
flight hours from Bristow Academy and unconsolidated
affiliates.
|
Three
Months Ended
December
31,
|
Favorable
|
|||||||||||||||
2009
|
|
2008
|
(Unfavorable)
|
|||||||||||||
(In
thousands, except percentages and flight hours)
|
||||||||||||||||
Gross
revenue
|
$
|
42,456
|
$
|
53,695
|
$
|
(11,239
|
)
|
(20.9
|
)%
|
|||||||
Operating
expense
|
$
|
37,968
|
$
|
44,974
|
$
|
7,006
|
15.6
|
%
|
||||||||
Operating
margin
|
10.6
|
%
|
16.2
|
%
|
(5.6
|
)%
|
|
(34.6
|
)%
|
|||||||
Flight
hours
|
16,452
|
25,445
|
(8,993
|
)
|
(35.3
|
)%
|
Three
Months Ended
December
31,
|
Favorable
|
|||||||||||||||
2009
|
|
2008
|
(Unfavorable)
|
|||||||||||||
(In
thousands, except percentages and flight hours)
|
||||||||||||||||
Gross
revenue
|
$
|
3,228
|
$
|
3,005
|
$
|
223
|
7.4
|
%
|
||||||||
Operating
expense
|
$
|
3,206
|
$
|
2,821
|
$
|
(385
|
)
|
(13.6
|
)%
|
|||||||
Operating
margin
|
0.7
|
%
|
6.1
|
%
|
(5.4
|
)%
|
|
(88.5
|
)%
|
|||||||
Flight
hours
|
1,260
|
1,279
|
(19
|
)
|
(1.5
|
)%
|
Three
Months Ended
December
31,
|
Favorable
|
|||||||||||||||
2009
|
|
2008
|
(Unfavorable)
|
|||||||||||||
(In
thousands, except percentages and flight hours)
|
||||||||||||||||
Gross
revenue
|
$
|
19,076
|
$
|
20,707
|
$
|
(1,631
|
)
|
(7.9
|
)%
|
|||||||
Operating
expense
|
$
|
14,833
|
$
|
14,566
|
$
|
(267
|
)
|
(1.8
|
)%
|
|||||||
Earnings
(losses) from unconsolidated
affiliates,
net
|
$
|
452
|
|
$
|
(640
|
)
|
$
|
1,092
|
170.6
|
%
|
||||||
Operating
margin
|
24.6
|
%
|
26.6
|
%
|
(2.0
|
)%
|
|
(7.5
|
)%
|
|||||||
Flight
hours
|
7,906
|
10,836
|
(2,930
|
)
|
(27.0
|
)%
|
Three
Months Ended
December
31,
|
Favorable
|
|||||||||||||||
2009
|
|
2008
|
(Unfavorable)
|
|||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Gross
revenue
|
$
|
1,461
|
$
|
3,134
|
$
|
(1,673
|
)
|
(53.4
|
)%
|
|||||||
Operating
expense
|
5,677
|
5,643
|
(34
|
)
|
(0.6
|
)%
|
||||||||||
Operating
loss
|
$
|
(4,216
|
)
|
$
|
(2,509
|
)
|
$
|
(1,707
|
)
|
(68.0
|
)%
|
Three
Months Ended
December
31,
|
Favorable
|
|||||||||||||||
2009
|
|
2008
|
(Unfavorable)
|
|||||||||||||
(In
thousands, except percentages and flight hours)
|
||||||||||||||||
Gross
revenue
|
$
|
119,267
|
$
|
102,477
|
$
|
16,790
|
16.4
|
%
|
||||||||
Operating
expense
|
$
|
103,307
|
$
|
86,137
|
$
|
(17,170
|
)
|
(19.9
|
)%
|
|||||||
Earnings
(losses) from unconsolidated
affiliates,
net
|
$
|
8
|
$
|
(2,583
|
)
|
$
|
2,591
|
100.3
|
%
|
|||||||
Operating
margin
|
13.4
|
%
|
13.4
|
%
|
—
|
% |
|
—
|
%
|
|||||||
Flight
hours
|
13,597
|
13,241
|
356
|
2.7
|
%
|
Three
Months Ended
December
31,
|
Favorable
|
|||||||||||||||
2009
|
|
2008
|
(Unfavorable)
|
|||||||||||||
(In
thousands, except percentages and flight hours)
|
||||||||||||||||
Gross
revenue
|
$
|
58,736
|
$
|
50,478
|
$
|
8,258
|
16.4
|
%
|
||||||||
Operating
expense
|
$
|
43,644
|
$
|
37,311
|
$
|
(6,333
|
)
|
(17.0
|
)%
|
|||||||
Operating
margin
|
25.7
|
%
|
26.1
|
%
|
(0.4
|
)%
|
|
(1.5
|
)%
|
|||||||
Flight
hours
|
9,175
|
9,884
|
(709
|
)
|
(7.2
|
)%
|
Three
Months Ended
December
31,
|
Favorable
|
|||||||||||||||
2009
|
|
2008
|
(Unfavorable)
|
|||||||||||||
(In
thousands, except percentages and flight hours)
|
||||||||||||||||
Gross
revenue
|
$
|
38,188
|
$
|
25,029
|
$
|
13,159
|
52.6
|
%
|
||||||||
Operating
expense
|
$
|
28,461
|
$
|
22,179
|
$
|
(6,282
|
)
|
(28.3
|
)%
|
|||||||
Operating
margin
|
25.5
|
%
|
11.4
|
%
|
14.1
|
% |
|
123.7
|
%
|
|||||||
Flight
hours
|
3,304
|
3,649
|
(345
|
)
|
(9.5
|
)%
|
Three
Months Ended
December
31,
|
Favorable
|
|||||||||||||||
2009
|
|
2008
|
(Unfavorable)
|
|||||||||||||
(In
thousands, except percentages and flight hours)
|
||||||||||||||||
Gross
revenue
|
$
|
14,269
|
$
|
17,076
|
$
|
(2,807
|
)
|
(16.4
|
)%
|
|||||||
Operating
expense
|
$
|
12,647
|
$
|
11,697
|
$
|
(950
|
)
|
(8.1
|
)%
|
|||||||
Earnings
(losses) from unconsolidated
affiliates,
net
|
$
|
73
|
$
|
50
|
$
|
23
|
46.0
|
%
|
||||||||
Operating
margin
|
11.9
|
%
|
31.8
|
%
|
(19.9
|
)%
|
|
(62.6
|
)%
|
|||||||
Flight
hours
|
2,828
|
2,793
|
35
|
1.3
|
%
|
Three
Months Ended
December
31,
|
Favorable
|
|||||||||||||||
2009
|
2008
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Gross
revenue
|
$
|
2,653
|
$
|
2,797
|
$
|
(144
|
)
|
(5.1
|
)%
|
|||||||
Operating
expense
|
5,610
|
9,258
|
3,648
|
39.4
|
%
|
|||||||||||
Earnings
(losses) from unconsolidated
affiliates,
net
|
2,535
|
1,756
|
779
|
44.4
|
%
|
|||||||||||
Operating
income (loss)
|
$
|
(422
|
)
|
$
|
(4,705
|
)
|
$
|
4,283
|
91.0
|
%
|
Three
Months Ended
December
31,
|
Favorable
|
|||||||||||||||
2009
|
|
2008
|
(Unfavorable)
|
|||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Gross
revenue
|
$
|
6,026
|
$
|
5,563
|
$
|
463
|
8.3
|
%
|
||||||||
Operating
expense
|
$
|
6,411
|
$
|
5,731
|
$
|
(680
|
)
|
(11.9
|
)%
|
|||||||
Operating
margin
|
(6.4
|
)%
|
(3.0
|
)%
|
(3.4
|
)
|
%
|
(113.3
|
)%
|
Three
Months Ended
December
31,
|
Favorable
|
|||||||||||||||
2009
|
2008
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Gross
revenue
|
$
|
—
|
$
|
—
|
$
|
—
|
—
|
%
|
||||||||
Operating
expense
|
9,386
|
7,633
|
(1,753
|
)
|
(23.0
|
)%
|
||||||||||
Operating
loss
|
$
|
(9,386
|
)
|
$
|
(7,633
|
)
|
$
|
(1,753
|
)
|
(23.0
|
)%
|
Three
Months Ended
December
31,
|
Favorable
|
|||||||||||||||
2009
|
2008
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Interest
income
|
$
|
365
|
$
|
1,087
|
$
|
(722
|
)
|
(66.4
|
)%
|
|||||||
Interest
expense
|
(11,405
|
)
|
(11,649
|
)
|
244
|
2.1
|
%
|
|||||||||
Amortization
of debt discount
|
(751
|
)
|
(701
|
)
|
(50
|
)
|
(7.1
|
)%
|
||||||||
Amortization
of debt fees
|
(496
|
)
|
(496
|
)
|
—
|
—
|
%
|
|||||||||
Capitalized
interest
|
1,673
|
4,570
|
(2,897
|
) |
(63.4
|
)%
|
||||||||||
Interest
expense, net
|
$
|
(10,614
|
)
|
$
|
(7,189
|
)
|
$
|
(3,425
|
)
|
(47.6
|
)%
|
Three
Months Ended
December
31,
|
Favorable
|
|||||||||||||||
2009
|
2008
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Foreign
currency gains (losses)
|
$
|
731
|
$
|
(1,522
|
)
|
$
|
2,253
|
*
|
||||||||
Other
|
2,964
|
—
|
2,964
|
100.0
|
%
|
|||||||||||
Total
|
$
|
3,695
|
$
|
(1,522
|
)
|
$
|
5,217
|
342.8
|
%
|
Three
Months Ended
December
31,
|
Favorable
|
|||||||||||||||
2009
|
2008
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Effective
tax rate for continuing operations
|
17.3
|
%
|
25.0
|
%
|
7.7
|
%
|
30.8
|
%
|
||||||||
Net
foreign tax on non-U.S. earnings
|
$
|
2,636
|
$
|
4,324
|
$
|
1,688
|
39.0
|
%
|
||||||||
Tax
on foreign earnings indefinitely reinvested
abroad
|
(10,304
|
)
|
(10,484
|
)
|
(180
|
)
|
*
|
|||||||||
Increase
(decrease) in valuation allowance
for foreign
tax
credit
utilization
|
456
|
(25
|
)
|
(481
|
)
|
*
|
|
|||||||||
Expense
(benefit) from change in tax contingency
|
461
|
(587
|
)
|
(1,048
|
)
|
*
|
||||||||||
Tax
expense on GOM Asset Sale
|
—
|
13,363
|
13,363
|
100.0
|
%
|
Nine
Months Ended
December
31,
|
Favorable
|
|||||||||||||||
2009
|
2008
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages and flight hours)
|
||||||||||||||||
Gross
revenue
|
$
|
130,531
|
$
|
177,695
|
$
|
(47,164
|
)
|
(26.5
|
)%
|
|||||||
Operating
expense
|
$
|
114,294
|
$
|
152,722
|
$
|
38,428
|
25.2
|
%
|
||||||||
Operating
margin
|
12.4
|
%
|
14.1
|
%
|
(1.7
|
)%
|
|
(12.1
|
)%
|
|||||||
Flight
hours
|
54,593
|
97,975
|
(43,382
|
)
|
(44.3
|
)%
|
Nine
Months Ended
December
31,
|
Favorable
|
|||||||||||||||
2009
|
2008
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages and flight hours)
|
||||||||||||||||
Gross
revenue
|
$
|
13,746
|
$
|
14,088
|
$
|
(342
|
)
|
(2.4
|
)%
|
|||||||
Operating
expense
|
$
|
11,034
|
$
|
11,485
|
$
|
451
|
3.9
|
%
|
||||||||
Operating
margin
|
19.7
|
%
|
18.5
|
%
|
1.2
|
%
|
6.5
|
%
|
||||||||
Flight
hours
|
6,451
|
7,411
|
(960
|
)
|
(13.0
|
)%
|
Nine
Months Ended
December
31
|
Favorable
|
|||||||||||||||
2009
|
2008
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages and flight hours)
|
||||||||||||||||
Gross
revenue
|
$
|
59,421
|
$
|
59,964
|
$
|
(543
|
)
|
(0.9
|
)%
|
|||||||
Operating
expense
|
$
|
46,776
|
$
|
42,795
|
$
|
(3,981
|
)
|
(9.3
|
)%
|
|||||||
Earnings
(losses) from unconsolidated affiliates,
net
|
$
|
4,143
|
$
|
2,006
|
$
|
2,137
|
106.5
|
%
|
||||||||
Operating
margin
|
28.3
|
%
|
32.0
|
%
|
(3.7
|
)%
|
|
(11.6
|
)%
|
|||||||
Flight
hours
|
25,766
|
28,970
|
(3,204
|
)
|
(11.1
|
)%
|
Nine
Months Ended
December
31,
|
Favorable
|
|||||||||||||||
2009
|
2008
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Gross
revenue
|
$
|
3,737
|
$
|
8,303
|
$
|
(4,566
|
)
|
(55.0
|
)%
|
|||||||
Operating
expense
|
15,318
|
10,584
|
(4,734
|
)
|
(44.7
|
)%
|
||||||||||
Operating
income (loss)
|
$
|
(11,581
|
)
|
$
|
(2,281
|
)
|
$
|
(9,300
|
)
|
*
|
Nine
Months Ended
December
31,
|
Favorable
|
|||||||||||||||
2009
|
2008
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages and flight hours)
|
||||||||||||||||
Gross
revenue
|
$
|
348,200
|
$
|
296,210
|
$
|
51,990
|
17.6
|
%
|
||||||||
Operating
expense
|
$
|
299,351
|
$
|
240,425
|
$
|
(58,926
|
)
|
(24.5
|
)%
|
|||||||
Earnings
(losses) from unconsolidated affiliates,
net
|
$
|
69
|
$
|
(351
|
)
|
$
|
420
|
119.7
|
%
|
|||||||
Operating
margin
|
14.0
|
%
|
18.7
|
%
|
(4.7
|
)%
|
(25.1
|
)%
|
||||||||
Flight
hours
|
42,694
|
33,812
|
8,882
|
26.3
|
%
|
Nine
Months Ended
December
31,
|
Favorable
|
|||||||||||||||
2009
|
2008
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages and flight hours)
|
||||||||||||||||
Gross
revenue
|
$
|
165,005
|
$
|
140,788
|
$
|
24,217
|
17.2
|
%
|
||||||||
Operating
expense
|
$
|
121,209
|
$
|
113,081
|
$
|
(8,128
|
)
|
(7.2
|
)%
|
|||||||
Operating
margin
|
26.5
|
%
|
19.7
|
%
|
6.8
|
%
|
34.5
|
%
|
||||||||
Flight
hours
|
26,595
|
29,129
|
(2,534
|
)
|
(8.7
|
)%
|
Nine
Months Ended
December
31,
|
Favorable
|
|||||||||||||||
2009
|
2008
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages and flight hours)
|
||||||||||||||||
Gross
revenue
|
$
|
96,684
|
$
|
87,368
|
$
|
9,316
|
10.7
|
%
|
||||||||
Operating
expense
|
$
|
73,913
|
$
|
83,591
|
$
|
9,678
|
11.6
|
%
|
||||||||
Operating
margin
|
23.6
|
%
|
4.3
|
%
|
19.3
|
%
|
*
|
|||||||||
Flight
hours
|
8,978
|
11,502
|
(2,524
|
)
|
(21.9
|
)%
|
Nine
Months Ended
December
31,
|
Favorable
|
|||||||||||||||
2009
|
2008
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages and flight hours)
|
||||||||||||||||
Gross
revenue
|
$
|
43,925
|
$
|
52,234
|
$
|
(8,309
|
)
|
(15.9
|
)%
|
|||||||
Operating
expense
|
$
|
32,413
|
$
|
39,757
|
$
|
7,344
|
18.5
|
%
|
||||||||
Earnings
(losses) from unconsolidated affiliates,
net
|
$
|
81
|
$
|
195
|
$
|
(114
|
)
|
(58.5
|
)%
|
|||||||
Operating
margin
|
26.4
|
%
|
24.3
|
%
|
2.1
|
%
|
8.6
|
%
|
||||||||
Flight
hours
|
7,903
|
8,539
|
(636
|
)
|
(7.4
|
)%
|
Nine
Months Ended
December
31,
|
Favorable
|
|||||||||||||||
2009
|
2008
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Gross
revenue
|
$
|
10,871
|
$
|
9,169
|
$
|
1,702
|
18.6
|
%
|
||||||||
Operating
expense
|
18,271
|
28,018
|
9,747
|
34.8
|
%
|
|||||||||||
Earnings
(losses) from unconsolidated affiliates,
net
|
6,332
|
6,479
|
(147
|
)
|
(2.3
|
)%
|
||||||||||
Operating
loss
|
$
|
(1,068
|
)
|
$
|
(12,370
|
)
|
$
|
11,302
|
91.4
|
%
|
Nine
Months Ended
December
31,
|
Favorable
|
|||||||||||||||
2009
|
2008
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Gross
revenue
|
$
|
20,470
|
$
|
17,286
|
$
|
3,184
|
18.4
|
%
|
||||||||
Operating
expense
|
$
|
19,201
|
$
|
17,067
|
$
|
(2,134
|
)
|
(12.5
|
)%
|
|||||||
Operating
margin
|
6.2
|
%
|
1.3
|
%
|
4.9
|
%
|
376.9
|
%
|
Nine
Months Ended
December
31,
|
Favorable
|
|||||||||||||||
2009
|
2008
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Gross
revenue
|
$
|
—
|
$
|
28
|
$
|
(28
|
)
|
(100.0
|
)%
|
|||||||
Operating
expense
|
26,707
|
21,530
|
(5,177
|
)
|
(24.0
|
)%
|
||||||||||
Losses
from unconsolidated affiliates
|
—
|
52
|
52
|
100.0
|
%
|
|||||||||||
Operating
loss
|
$
|
(26,707
|
)
|
$
|
(21,554
|
)
|
$
|
(5,153
|
)
|
(23.9
|
)%
|
Nine
Months Ended
December
31,
|
Favorable
|
|||||||||||||||
2009
|
2008
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Interest
income
|
$
|
797
|
$
|
5,739
|
$
|
(4,942
|
)
|
(86.1
|
)%
|
|||||||
Interest
expense
|
(34,129
|
)
|
(33,872
|
)
|
(257
|
)
|
(0.8
|
)%
|
||||||||
Amortization
of debt discount
|
(2,213
|
)
|
(1,504
|
)
|
(709
|
)
|
(47.1
|
)%
|
||||||||
Amortization
of debt fees
|
(1,489
|
)
|
(1,408
|
)
|
(81
|
)
|
(5.8
|
)%
|
||||||||
Capitalized
interest
|
6,200
|
10,841
|
(4,641
|
)
|
(42.8
|
)%
|
||||||||||
Interest
expense, net
|
$
|
(30,834
|
)
|
$
|
(20,204
|
)
|
$
|
(10,630
|
)
|
(52.6
|
)%
|
Nine
Months Ended
December
31,
|
Favorable
|
|||||||||||||||
2009
|
2008
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Foreign
currency (losses)
|
$
|
(74
|
)
|
$
|
160
|
$
|
(234
|
)
|
(146.3
|
)%
|
||||||
Other
|
4,097
|
2,080
|
2,017
|
97.0
|
%
|
|||||||||||
Total
|
$
|
4,023
|
$
|
2,240
|
$
|
1,783
|
79.6
|
%
|
Nine
Months Ended
December
31,
|
Favorable
|
|||||||||||||||
2009
|
2008
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Effective
tax rate for continuing operations
|
23.8
|
%
|
26.8
|
%
|
3.0
|
%
|
11.2
|
%
|
||||||||
Net
foreign tax on non-U.S. earnings
|
$
|
12,266
|
$
|
17,100
|
$
|
4,834
|
28.3
|
%
|
||||||||
Tax
on foreign earnings indefinitely reinvested
abroad
|
(31,895
|
)
|
(27,637
|
)
|
4,258
|
*
|
||||||||||
Increase
(decrease) in valuation allowance for
foreign
tax credit
utilization
|
1,503
|
(46
|
)
|
(1,549
|
)
|
*
|
||||||||||
Expense
(benefit) from change in tax contingency
|
3,720
|
(1,329
|
)
|
(5,049
|
)
|
*
|
||||||||||
Tax
expense on GOM Asset Sale
|
—
|
13,363
|
13,363
|
100.0
|
%
|
Nine
Months Ended
December
31,
|
||||||
2009
|
2008
|
|||||
Number
of aircraft delivered:
|
||||||
Small
|
4
|
4
|
||||
Medium
|
8
|
11
|
||||
Large
|
7
|
9
|
||||
Fixed
wing
|
1
|
—
|
||||
Training
|
—
|
4
|
||||
Total
aircraft
|
20
|
28
|
||||
Capital
expenditures (in thousands):
|
||||||
Aircraft
and related equipment
|
$
|
236,248
|
$
|
383,351
|
||
Other
|
14,024
|
4,656
|
||||
Total
capital expenditures
|
$
|
250,272
|
$
|
388,007
|
Payments
Due by Period
|
||||||||||||||||||||||||
Three
Months
Ending
|
Fiscal
Year Ending March 31,
|
|||||||||||||||||||||||
Total
|
March
31,
2010
|
2011
|
2012
–
2013
|
2014
and
beyond
|
Other
|
|||||||||||||||||||
(In
thousands)
|
||||||||||||||||||||||||
Contractual
obligations:
|
||||||||||||||||||||||||
Long-term
debt and short-term borrowings:
|
||||||||||||||||||||||||
Principal (1)
|
$
|
736,586
|
$
|
1,214
|
$
|
15,693
|
$
|
7,186
|
$
|
712,493
|
$
|
—
|
||||||||||||
Interest
|
365,278
|
14,385
|
45,179
|
89,652
|
216,062
|
—
|
||||||||||||||||||
Aircraft
operating leases (2)
|
66,259
|
2,330
|
7,586
|
9,559
|
46,784
|
—
|
||||||||||||||||||
Other
operating leases (3)
|
65,306
|
5,799
|
18,233
|
11,105
|
30,169
|
—
|
||||||||||||||||||
Capital
lease obligation
|
12,063
|
142
|
1,025
|
2,356
|
8,540
|
—
|
||||||||||||||||||
Pension
obligations (4)
|
196,234
|
17,031
|
24,000
|
48,946
|
106,257
|
—
|
||||||||||||||||||
Aircraft
purchase obligations (5)
|
116,701
|
24,901
|
43,344
|
48,456
|
—
|
—
|
||||||||||||||||||
Other
purchase obligations (6)
|
21,904
|
21,597
|
102
|
205
|
—
|
—
|
||||||||||||||||||
Tax
reserves (7)
|
8,494
|
—
|
—
|
—
|
—
|
8,494
|
||||||||||||||||||
Total
contractual cash obligations
|
$
|
1,588,825
|
$
|
87,399
|
$
|
155,162
|
$
|
217,465
|
$
|
1,120,305
|
$
|
8,494
|
||||||||||||
Other
commercial commitments:
|
||||||||||||||||||||||||
Debt
guarantees (8)
|
$
|
16,148
|
$
|
—
|
$
|
—
|
$
|
16,148
|
$
|
—
|
$
|
—
|
||||||||||||
Other
guarantees (9)
|
30,761
|
2,364
|
1,612
|
8,984
|
17,801
|
—
|
||||||||||||||||||
Letters
of credit
|
1,657
|
1,392
|
265
|
—
|
—
|
—
|
||||||||||||||||||
Contingent
consideration (10)
|
44,625
|
—
|
8,500
|
36,125
|
—
|
—
|
||||||||||||||||||
Other
commitments
(11)
|
84,107
|
—
|
18,883
|
19,224
|
46,000
|
—
|
||||||||||||||||||
Total
commercial commitments
|
$
|
177,298
|
$
|
3,756
|
$
|
29,260
|
$
|
80,481
|
$
|
63,801
|
$
|
—
|
(1)
|
Excludes
unamortized premium on the 7½% Senior Notes due 2017 of $0.5 million and
unamortized discount on the 3% Senior Convertible Notes of $19.7
million.
|
(2)
|
Primarily
represents separate operating leases for nine aircraft with a subsidiary
of General Electric Capital Corporation with terms of fifteen years
expiring in August 2023.
|
(3)
|
Represents
minimum rental payments required under operating leases that have initial
or remaining non-cancelable lease terms in excess of one
year.
|
(4)
|
Represents
expected funding for pension benefits in future periods. These
amounts are undiscounted and are based on the expectation that the U.K.
and Norway pension plans will be fully funded in approximately ten
years. As of December 31, 2009, we had recorded on our
condensed consolidated balance sheet a $99.3 million pension liability
associated with these obligations. Also, the timing of the
funding is dependent on actuarial valuations and resulting negotiations
with the plan trustees.
|
(5)
|
For
further details on our aircraft purchase obligations, see Note 7 in the
“Notes to Condensed Consolidated Financial Statements” included elsewhere
in this Quarterly Report.
|
(6)
|
Other
purchase obligations primarily represent unfilled purchase orders for
aircraft parts and commitments associated with upgrading facilities at our
bases.
|
(7)
|
Represents
gross unrecognized tax benefits (see discussion in Note 7 in the “Notes to
Consolidated Financial Statements” included in the fiscal year 2009 Annual
Report) that may
result in cash payments being made to certain tax
authorities. We are not able to reasonably estimate in which
future periods this amount will ultimately be settled and
paid.
|
(8)
|
We
have guaranteed the repayment of up to £10 million ($16.1 million) of the
debt of FBS, an unconsolidated affiliate. This amount is not
included in the “Contractual Obligations” section of the table
above.
|
(9)
|
Relates
to an indemnity agreement between us and Afianzadora Sofimex, S.A. to
support issuance of surety bonds on behalf of Heliservicio from time to
time. As of December 31, 2009, surety bonds denominated in
Mexican pesos with an aggregate value of 311 million Mexican pesos ($23.9
million) were outstanding and surety bonds denominated in U.S. dollars
with an aggregate value of $1.2 million were
outstanding. Furthermore, we have received a counter-guarantee
from our partner in Heliservicio, for 76% ($19.1 million) of the surety
bonds outstanding. Bristow Norway is also the guarantor under
two aircraft leases taken out by a previous subsidiary of Bristow Norway
prior to Bristow Norway disposing of that subsidiary and prior to Bristow
Group’s acquisition of the additional 51% of Bristow Norway in October
2008 for the sum of $5.6 million. The purchaser of that
subsidiary is legally subject to an obligation to reimburse Bristow Norway
for these guarantees under the terms of the Sale and Purchase Agreement by
which that subsidiary was sold.
|
(10)
|
The
Líder purchase agreement includes incremental and cumulative earn-out
payments based upon the achievement of growth targets over the three-year
period ending December 31, 2011. Based on Líder’s preliminary
unaudited results for the period ended December 31, 2009, the initial $8.5
million earn-out payment was not earned, leaving a maximum possible total
earn-out payments of $44.6 million.
|
(11)
|
In
connection with the Bristow Norway acquisition (see Note 2 in the “Notes
to Condensed Consolidated Financial Statements” included elsewhere in this
Quarterly Report), we granted the former partner in this joint venture an
option that if exercised would require us to acquire up to five aircraft
from them at fair value upon the expiration of the lease terms for such
aircraft. One of the options was exercised in December
2009. Two of these aircraft are not currently operated by
Bristow Norway, but our former partner has agreed to purchase the aircraft
and lease the aircraft to Bristow Norway for an initial period of five
years, with three one-year options for extension, as soon as
practicable. The remaining two aircraft leases expire in June
2010 and August 2011.
|
Exhibit
Number
|
Description
of Exhibit
|
10.1
|
Indemnity
Agreement (incorporated by reference to Exhibit 10.1 to the Company’s
Current Report on Form 8-K dated November 10, 2009).
|
15.1*
|
Letter
from KPMG LLP dated February 3, 2010 regarding unaudited interim
information.
|
31.1**
|
Rule
13a-14(a) Certification by Chief Executive Officer of
Registrant.
|
31.2**
|
Rule
13a-14(a) Certification by Chief Financial Officer of
Registrant.
|
32.1**
|
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.
|
32.2**
|
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.
|
Exhibit
Number
|
Description
of Exhibit
|
10.1
|
Indemnity
Agreement (incorporated by reference to Exhibit 10.1 to the Company’s
Current Report on Form 8-K dated November 10, 2009).
|
15.1*
|
Letter
from KPMG LLP dated February 3, 2010 regarding unaudited interim
information.
|
31.1**
|
Rule
13a-14(a) Certification by Chief Executive Officer of
Registrant.
|
31.2**
|
Rule
13a-14(a) Certification by Chief Financial Officer of
Registrant.
|
32.1**
|
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.
|
32.2**
|
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.
|