R
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended December 31, 2010
|
|
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
|
|||
Item 1.
|
2
|
||
Item 2.
|
37
|
||
Item 3.
|
62
|
||
Item 4.
|
62
|
||
PART II
|
|||
Item 1.
|
63
|
||
Item 1A.
|
63
|
||
Item 2.
|
63
|
||
Item 6.
|
64
|
||
65
|
Three Months Ended
December 31,
|
Nine Months Ended
December 31,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
(Unaudited)
(In thousands, except per share amounts)
|
||||||||||||||||
Gross revenue:
|
||||||||||||||||
Operating revenue from non-affiliates
|
$
|
264,064
|
$
|
260,907
|
$
|
788,711
|
$
|
757,440
|
||||||||
Operating revenue from affiliates
|
18,543
|
14,581
|
52,442
|
46,643
|
||||||||||||
Reimbursable revenue from non-affiliates
|
34,918
|
27,615
|
80,914
|
78,214
|
||||||||||||
Reimbursable revenue from affiliates
|
344
|
203
|
599
|
3,076
|
||||||||||||
317,869
|
303,306
|
922,666
|
885,373
|
|||||||||||||
Operating expense:
|
||||||||||||||||
Direct cost
|
186,937
|
189,456
|
559,211
|
543,525
|
||||||||||||
Reimbursable expense
|
34,548
|
28,219
|
79,746
|
81,180
|
||||||||||||
Depreciation and amortization
|
21,338
|
20,663
|
61,637
|
57,319
|
||||||||||||
General and administrative
|
33,715
|
30,758
|
95,132
|
89,246
|
||||||||||||
276,538
|
269,096
|
795,726
|
771,270
|
|||||||||||||
Gain (loss) on disposal of assets
|
(33
|
)
|
2,448
|
3,582
|
13,337
|
|||||||||||
Earnings from unconsolidated affiliates, net of losses
|
5,341
|
3,068
|
9,355
|
10,625
|
||||||||||||
Operating income
|
46,639
|
39,726
|
139,877
|
138,065
|
||||||||||||
Interest income
|
417
|
365
|
877
|
797
|
||||||||||||
Interest expense
|
(13,773
|
)
|
(10,979
|
)
|
(36,263
|
)
|
(31,631
|
)
|
||||||||
Other income (expense), net
|
(2,792
|
)
|
3,695
|
(2,388
|
)
|
4,023
|
||||||||||
Income before provision for income taxes
|
30,491
|
32,807
|
102,103
|
111,254
|
||||||||||||
(Provision for) benefit from income taxes
|
11,823
|
(5,681
|
)
|
(33
|
)
|
(26,427
|
)
|
|||||||||
Net income
|
42,314
|
27,126
|
102,070
|
84,827
|
||||||||||||
Net income attributable to noncontrolling interests
|
(555
|
)
|
(448
|
)
|
(623
|
)
|
(1,256
|
)
|
||||||||
Net income attributable to Bristow Group
|
41,759
|
26,678
|
101,447
|
83,571
|
||||||||||||
Preferred stock dividends
|
—
|
—
|
—
|
(6,325
|
)
|
|||||||||||
Net income available to common stockholders
|
$
|
41,759
|
$
|
26,678
|
$
|
101,447
|
$
|
77,246
|
||||||||
Earnings per common share:
|
||||||||||||||||
Basic
|
$
|
1.15
|
$
|
0.74
|
$
|
2.82
|
$
|
2.43
|
||||||||
Diluted
|
$
|
1.13
|
$
|
0.74
|
$
|
2.77
|
$
|
2.32
|
December 31,
|
March 31,
|
||||||||||
2010
|
2010
|
||||||||||
(Unaudited)
|
|||||||||||
(In thousands)
|
|||||||||||
ASSETS
|
|||||||||||
Current assets:
|
|||||||||||
Cash and cash equivalents
|
$
|
100,863
|
$
|
77,793
|
|||||||
Accounts receivable from non-affiliates, net of allowance for doubtful accounts of $0.7 million
and $0.2 million, respectively
|
233,730
|
203,312
|
|||||||||
Accounts receivable from affiliates, net of allowance for doubtful accounts of $5.6 million
and $4.7 million, respectively
|
20,915
|
16,955
|
|||||||||
Inventories
|
195,537
|
186,863
|
|||||||||
Prepaid expenses and other current assets
|
38,292
|
31,448
|
|||||||||
Total current assets
|
589,337
|
516,371
|
|||||||||
Investment in unconsolidated affiliates
|
206,139
|
204,863
|
|||||||||
Property and equipment – at cost:
|
|||||||||||
Land and buildings
|
96,593
|
86,826
|
|||||||||
Aircraft and equipment
|
2,141,804
|
2,036,962
|
|||||||||
2,238,397
|
2,123,788
|
||||||||||
Less – Accumulated depreciation and amortization
|
(450,897
|
)
|
(404,443
|
)
|
|||||||
1,787,500
|
1,719,345
|
||||||||||
Goodwill
|
31,636
|
31,755
|
|||||||||
Other assets
|
24,124
|
22,286
|
|||||||||
$
|
2,638,736
|
$
|
2,494,620
|
||||||||
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
|
|||||||||||
Current liabilities:
|
|||||||||||
Accounts payable
|
$
|
47,068
|
$
|
48,545
|
|||||||
Accrued wages, benefits and related taxes
|
41,877
|
35,835
|
|||||||||
Income taxes payable
|
—
|
2,009
|
|||||||||
Other accrued taxes
|
2,851
|
3,056
|
|||||||||
Deferred revenue
|
8,009
|
19,321
|
|||||||||
Accrued maintenance and repairs
|
15,035
|
10,828
|
|||||||||
Accrued interest
|
8,143
|
6,430
|
|||||||||
Other accrued liabilities
|
19,304
|
14,508
|
|||||||||
Deferred taxes
|
13,268
|
10,217
|
|||||||||
Short-term borrowings and current maturities of long-term debt
|
8,039
|
15,366
|
|||||||||
Total current liabilities
|
163,594
|
166,115
|
|||||||||
Long-term debt, less current maturities
|
717,469
|
701,195
|
|||||||||
Accrued pension liabilities
|
112,248
|
106,573
|
|||||||||
Other liabilities and deferred credits
|
32,107
|
20,842
|
|||||||||
Deferred taxes
|
137,189
|
143,324
|
|||||||||
Commitments and contingencies (Note 5)
|
|||||||||||
Stockholders’ investment:
|
|||||||||||
Common stock, $.01 par value, authorized 90,000,000; outstanding: 36,289,089 as of December
31 and 35,954,040 as of March 31 (exclusive of 1,291,325 treasury shares)
|
363
|
359
|
|||||||||
Additional paid-in capital
|
686,952
|
677,397
|
|||||||||
Retained earnings
|
920,792
|
820,145
|
|||||||||
Accumulated other comprehensive loss
|
(138,687
|
)
|
(148,102
|
)
|
|||||||
1,469,420
|
1,349,799
|
||||||||||
Noncontrolling interests
|
6,709
|
6,772
|
|||||||||
1,476,129
|
1,356,571
|
||||||||||
$
|
2,638,736
|
$
|
2,494,620
|
Nine Months Ended
December 31,
|
||||||||
2010
|
2009
|
|||||||
(Unaudited)
|
||||||||
(In thousands)
|
||||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
102,070
|
$
|
84,827
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
61,637
|
57,319
|
||||||
Deferred income taxes
|
(3,648
|
)
|
18,892
|
|||||
Discount amortization on long-term debt
|
2,360
|
2,213
|
||||||
Gain on disposal of assets
|
(3,582
|
)
|
(13,337
|
)
|
||||
Gain on sales of joint ventures
|
(572
|
)
|
—
|
|||||
Stock-based compensation
|
10,763
|
9,914
|
||||||
Equity in earnings from unconsolidated affiliates less than (in excess of) dividends received
|
(1,447
|
)
|
(6,853
|
)
|
||||
Tax benefit related to stock-based compensation
|
(230
|
)
|
(409
|
)
|
||||
Increase (decrease) in cash resulting from changes in:
|
||||||||
Accounts receivable
|
(26,514
|
)
|
794
|
|||||
Inventories
|
(6,414
|
)
|
(11,382
|
)
|
||||
Prepaid expenses and other assets
|
(8,365
|
)
|
14,555
|
|||||
Accounts payable
|
(3,546
|
)
|
4,638
|
|||||
Accrued liabilities
|
(5,340
|
)
|
3,216
|
|||||
Other liabilities and deferred credits
|
(1,773
|
)
|
(1,370
|
)
|
||||
Net cash provided by operating activities
|
115,399
|
163,017
|
||||||
Cash flows from investing activities:
|
||||||||
Capital expenditures
|
(122,748
|
)
|
(250,272
|
)
|
||||
Deposits on assets held for sale
|
1,000
|
—
|
||||||
Proceeds from sales of joint ventures
|
1,291
|
—
|
||||||
Proceeds from asset dispositions
|
17,175
|
74,973
|
||||||
Acquisition, net of cash received
|
—
|
(178,961
|
)
|
|||||
Net cash used in investing activities
|
(103,282
|
)
|
(354,260
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from borrowings
|
253,013
|
—
|
||||||
Debt issuance costs
|
(3,339
|
)
|
—
|
|||||
Repayment of debt
|
(246,553
|
)
|
(10,068
|
)
|
||||
Distribution to noncontrolling interest owners
|
(637
|
)
|
—
|
|||||
Partial prepayment of put/call obligation
|
(44
|
)
|
(52
|
)
|
||||
Acquisition of noncontrolling interest
|
(800
|
)
|
—
|
|||||
Preferred stock dividends paid
|
—
|
(6,325
|
)
|
|||||
Issuance of common stock
|
754
|
1,336
|
||||||
Tax benefit related to stock-based compensation
|
230
|
409
|
||||||
Net cash provided by (used in) financing activities
|
2,624
|
(14,700
|
)
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
8,329
|
12,033
|
||||||
Net increase (decrease) in cash and cash equivalents
|
23,070
|
(193,910
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
77,793
|
300,969
|
||||||
Cash and cash equivalents at end of period
|
$
|
100,863
|
$
|
107,059
|
||||
Supplemental disclosure of cash flow information:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
|
$
|
32,350
|
$
|
31,830
|
||||
Income taxes
|
$
|
9,072
|
$
|
9,904
|
Three Months Ended
December 31,
|
Nine Months Ended
December 31,
|
|||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||
One British pound sterling into U.S. dollars
|
||||||||||||
High
|
1.63
|
1.68
|
1.63
|
1.70
|
||||||||
Average
|
1.58
|
1.63
|
1.54
|
1.61
|
||||||||
Low
|
1.54
|
1.58
|
1.43
|
1.44
|
||||||||
At period-end
|
1.57
|
1.61
|
1.57
|
1.61
|
||||||||
One euro into U.S. dollars
|
||||||||||||
High
|
1.42
|
1.51
|
1.42
|
1.51
|
||||||||
Average
|
1.36
|
1.48
|
1.31
|
1.42
|
||||||||
Low
|
1.30
|
1.42
|
1.19
|
1.29
|
||||||||
At period-end
|
1.34
|
1.43
|
1.34
|
1.43
|
||||||||
One Australian dollar into U.S. dollars
|
||||||||||||
High
|
1.03
|
0.94
|
1.03
|
0.94
|
||||||||
Average
|
0.99
|
0.91
|
0.93
|
0.84
|
||||||||
Low
|
0.96
|
0.87
|
0.81
|
0.69
|
||||||||
At period-end
|
1.03
|
0.90
|
1.03
|
0.90
|
||||||||
One Nigerian naira into U.S. dollars
|
||||||||||||
High
|
0.0068
|
0.0069
|
0.0070
|
0.0069
|
||||||||
Average
|
0.0067
|
0.0067
|
0.0067
|
0.0067
|
||||||||
Low
|
0.0065
|
0.0066
|
0.0065
|
0.0063
|
||||||||
At period-end
|
0.0066
|
0.0067
|
0.0066
|
0.0067
|
Three Months Ended
December 31,
2010
|
Nine Months
Ended
December 31,
2010
|
||||||
Revenue
|
$
|
(2,278
|
)
|
$
|
(3,393
|
)
|
|
Operating expense
|
3,022
|
6,812
|
|||||
Earnings from unconsolidated affiliates, net of losses
|
(119
|
)
|
(350
|
)
|
|||
Operating income
|
625
|
3,069
|
|||||
Non-operating expense
|
(4,022
|
)
|
(4,533
|
)
|
|||
Income before provision for income taxes
|
(3,397
|
)
|
(1,464
|
) | |||
(Provision for) benefit from income taxes
|
531
|
(394
|
)
|
||||
Net income
|
(2,866
|
)
|
(1,858
|
) | |||
Cumulative translation adjustment
|
(818
|
)
|
9,010
|
||||
Total stockholders’ investment
|
$
|
(3,684
|
)
|
$
|
7,152
|
December 31,
2010
|
March 31, 2010
|
|||||
Assets
|
||||||
Cash and cash equivalents
|
$
|
48,964
|
$
|
54,292
|
||
Accounts receivable
|
170,111
|
149,848
|
||||
Inventories
|
104,632
|
98,993
|
||||
Prepaid expenses and other current assets
|
47,319
|
35,093
|
||||
Total current assets
|
371,026
|
338,226
|
||||
Investment in unconsolidated affiliates
|
12,818
|
12,938
|
||||
Property and equipment, net
|
235,744
|
204,521
|
||||
Goodwill
|
15,456
|
15,569
|
||||
Other assets
|
8,735
|
15,020
|
||||
Total assets
|
$
|
643,779
|
$
|
586,274
|
||
Liabilities
|
||||||
Accounts payable
|
71,194
|
54,592
|
||||
Accrued liabilities
|
879,302
|
793,754
|
||||
Deferred taxes
|
12,219
|
11,633
|
||||
Short-term borrowings and current maturities of long-term debt
|
3,152
|
16,497
|
||||
Total current liabilities
|
965,867
|
876,476
|
||||
Long-term debt, less current maturities
|
152,469
|
138,020
|
||||
Accrued pension liabilities
|
112,248
|
106,573
|
||||
Other liabilities and deferred credits
|
12,865
|
6,211
|
||||
Deferred taxes
|
11,137
|
14,989
|
||||
Total liabilities
|
$
|
1,254,586
|
$
|
1,142,269
|
Three Months Ended
December 31,
|
Nine Months Ended
December 31,
|
||||||||||||||
2010
|
2009
|
2010
|
2009
|
||||||||||||
Revenue
|
$
|
227,599
|
$
|
226,475
|
$
|
655,426
|
$
|
642,495
|
|||||||
Operating income
|
$
|
11,716
|
$
|
7,832
|
$
|
29,849
|
$
|
37,846
|
|||||||
Net loss
|
$
|
18,160
|
$
|
20,776
|
$
|
59,628
|
$
|
49,408
|
December 31, 2010
|
March 31, 2010
|
||||||||||||||
Carrying
Amount
|
Maximum
Exposure
to Loss
|
Carrying
Amount
|
Maximum
Exposure
to Loss
|
||||||||||||
Assets:
|
|||||||||||||||
Accounts receivable (1)
|
$
|
14,283
|
$
|
19,868
|
$
|
11,986
|
$
|
16,571
|
|||||||
Investment in unconsolidated affiliate
|
2,459
|
2,459
|
3,329
|
3,329
|
|||||||||||
Total assets
|
$
|
16,742
|
$
|
22,327
|
$
|
15,315
|
$
|
19,900
|
|||||||
Off-Balance Sheet:
|
|||||||||||||||
Guarantees (2)
|
$
|
—
|
$
|
23,817
|
$
|
—
|
$
|
26,352
|
(1)
|
Amounts presented herein include unbilled accounts receivable of $3.5 million and $3.8 million as of December 31 and March 31, 2010, respectively. The carrying amounts presented are net of allowances for doubtful accounts of $5.6 million and $4.6 million as of December 31 and March 31, 2010, respectively.
|
(2)
|
We have received a counter-guarantee from our partner in Heliservicio for 76% ($18.1 million and $20.0 million as of December 31 and March 31, 2010, respectively) of these amounts, which is not reflected in the table above.
|
December 31,
2010
|
March 31,
2010
|
|||||
7 ½% Senior Notes due 2017, including $0.4 million and $0.5 million of unamortized premium, respectively
|
$
|
350,426
|
$
|
350,473
|
||
$200 Million Term Loan
|
200,000
|
—
|
||||
Revolving Credit Facility
|
43,000
|
—
|
||||
6 ⅛% Senior Notes due 2013
|
—
|
230,000
|
||||
3% Convertible Senior Notes due 2038, including $16.6 million and $19.0 million of unamortized discount, respectively
|
98,403
|
96,043
|
||||
Bristow Norway Debt
|
11,194
|
11,841
|
||||
RLR Note
|
15,206
|
16,089
|
||||
Term loans
|
5,314
|
12,081
|
||||
Other debt
|
1,965
|
34
|
||||
Total debt
|
725,508
|
716,561
|
||||
Less short-term borrowings and current maturities of long-term debt
|
(8,039
|
)
|
(15,366
|
)
|
||
Total long-term debt
|
$
|
717,469
|
$
|
701,195
|
December 31,
2010
|
March 31,
2010
|
|||||
Equity component – net carrying value
|
$
|
14,905
|
$
|
14,905
|
||
Debt component:
|
||||||
Face amount due at maturity
|
$
|
115,000
|
$
|
115,000
|
||
Unamortized discount
|
(16,597
|
)
|
(18,957
|
)
|
||
Debt component – net carrying value
|
$
|
98,403
|
$
|
96,043
|
Three Months Ended
December 31,
|
Nine Months Ended
December 31,
|
|||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||
Contractual coupon interest
|
$
|
862
|
$
|
862
|
$
|
2,588
|
$
|
2,588
|
||||
Amortization of debt discount
|
795
|
751
|
2,360
|
2,213
|
||||||||
Total interest expense
|
$
|
1,657
|
$
|
1,613
|
$
|
4,948
|
$
|
4,801
|
·
|
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,
2010
|
Balance Sheet
Classification
|
||||||||||||||||
Derivative asset
|
$
|
—
|
$
|
623
|
$
|
—
|
$
|
623
|
Prepaid expenses and other current assets
|
|||||||||||
Rabbi Trust investments
|
3,295
|
—
|
—
|
3,295
|
Other assets
|
|||||||||||||||
Total assets
|
$
|
3,295
|
$
|
623
|
$
|
—
|
$
|
3,918
|
December 31, 2010
|
March 31, 2010
|
|||||||||||||||
Carrying
Value
|
Fair
Value
|
Carrying
Value
|
Fair
Value
|
|||||||||||||
7 ½% Senior Notes
|
$
|
350,426
|
$
|
366,625
|
$
|
350,473
|
$
|
352,625
|
||||||||
$200 Million Term Loan
|
200,000
|
200,000
|
—
|
—
|
||||||||||||
Borrowings on Revolving Credit Facility
|
43,000
|
43,000
|
—
|
—
|
||||||||||||
6 ⅛% Senior Notes
|
—
|
—
|
230,000
|
228,850
|
||||||||||||
3% Convertible Senior Notes
|
98,403
|
115,000
|
96,043
|
101,488
|
||||||||||||
Other
|
33,679
|
33,679
|
40,045
|
40,045
|
||||||||||||
$
|
725,508
|
$
|
758,304
|
$
|
716,561
|
$
|
723,008
|
Three
Months
Ending
March 31,
|
Fiscal Year Ending March 31,
|
|||||||||||||||||||||
2011
|
2012
|
2013
|
2014
|
2015
|
Total
|
|||||||||||||||||
Commitments as of December 31, 2010:
|
||||||||||||||||||||||
Number of aircraft:
|
||||||||||||||||||||||
Medium
|
3
|
—
|
—
|
—
|
—
|
3
|
||||||||||||||||
Large
|
—
|
6
|
—
|
—
|
—
|
6
|
||||||||||||||||
3
|
(1)
|
6
|
(2)
|
—
|
—
|
—
|
9
|
|||||||||||||||
Related expenditures (in thousands) (3)
|
$
|
13,333
|
$
|
91,931
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
105,264
|
||||||||||
Options as of December 31, 2010:
|
||||||||||||||||||||||
Number of aircraft:
|
||||||||||||||||||||||
Medium
|
—
|
3
|
11
|
4
|
7
|
25
|
||||||||||||||||
Large
|
—
|
—
|
5
|
4
|
—
|
9
|
||||||||||||||||
—
|
3
|
16
|
8
|
7
|
34
|
|||||||||||||||||
Related expenditures (in thousands) (3)
|
$
|
2,556
|
$
|
90,833
|
$
|
261,572
|
$
|
125,034
|
$
|
81,240
|
$
|
561,235
|
(1)
|
No signed customer contracts are currently in place for these aircraft.
|
(2)
|
Signed customer contracts are currently in place for these six aircraft.
|
(3)
|
Includes progress payments on aircraft scheduled to be delivered in future periods.
|
Three Months Ended
|
|||||||||||||||||||||||
December 31, 2010
|
September 30, 2010
|
June 30, 2010
|
|||||||||||||||||||||
Orders
|
Options
|
Orders
|
Options
|
Orders
|
Options
|
||||||||||||||||||
Beginning of quarter
|
12
|
35
|
7
|
41
|
9
|
39
|
|||||||||||||||||
Aircraft delivered
|
(3
|
)
|
—
|
(1
|
)
|
—
|
(1
|
)
|
—
|
||||||||||||||
Cancelled orders
|
—
|
—
|
—
|
—
|
(1
|
)
|
—
|
||||||||||||||||
Exercised options
|
—
|
—
|
6
|
(6
|
)
|
—
|
—
|
||||||||||||||||
Reinstated options
|
—
|
—
|
—
|
—
|
—
|
2
|
|||||||||||||||||
Transferred options
|
—
|
(1
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||
End of quarter
|
9
|
34
|
12
|
35
|
7
|
41
|
Amount of Commitment Expiration Per Period
|
|||||||||||||||||
Total
|
Remainder
of Fiscal
Year 2011
|
Fiscal Years
2012-2013
|
Fiscal Years
2014-2015
|
Fiscal Year
2016 and Thereafter
|
|||||||||||||
$
|
39,472
|
$
|
1,712
|
$
|
19,023
|
$
|
18,737
|
$
|
—
|
Derivatives in Cash Flow Hedging Relationships
|
Amount of Gain (Loss) Recognized in Other Comprehensive Income (“OCI”) on Derivative (Effective Portion)
|
Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
|
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
|
Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
|
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
|
|||||||||||
Foreign currency
forward contracts
|
$
|
(455
|
)
|
Other income (expense), net
|
$
|
—
|
Other income (expense), net
|
$
|
—
|
|||||||
$
|
(455
|
)
|
$
|
—
|
$
|
—
|
Derivatives in Cash Flow Hedging Relationships
|
Amount of Gain (Loss) Recognized in Other Comprehensive Income (“OCI”) on Derivative (Effective Portion)
|
Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
|
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
|
Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
|
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
|
|||||||||||
Foreign currency
forward contracts
|
$
|
405
|
Other income (expense), net
|
$
|
—
|
Other income (expense), net
|
$
|
—
|
||||||||
$
|
405
|
$
|
—
|
$
|
—
|
Derivatives in Cash Flow Hedging Relationships
|
Amount of Gain (Loss) Recognized in Other Comprehensive Income (“OCI”) on Derivative (Effective Portion)
|
Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
|
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
|
Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
|
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
|
|||||||||||
Foreign currency
forward contracts
|
$
|
(668
|
)
|
Other income (expense), net
|
$
|
—
|
Other income (expense), net
|
$
|
2,804
|
|||||||
$
|
(668
|
)
|
$
|
—
|
$
|
2,804
|
Derivatives in Cash Flow Hedging Relationships
|
Amount of Gain (Loss) Recognized in Other Comprehensive Income (“OCI”) on Derivative (Effective Portion)
|
Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
|
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
|
Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
|
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
|
|||||||||||
Foreign currency
forward contracts
|
$
|
8,094
|
Other income (expense), net
|
$
|
—
|
Other income (expense), net
|
$
|
3,936
|
||||||||
$
|
8,094
|
$
|
—
|
$
|
3,936
|
Three Months Ended
December 31,
|
Nine Months Ended
December 31,
|
||||||||||||||
2010
|
2009
|
2010
|
2009
|
||||||||||||
Service cost for benefits earned during the period
|
$
|
1,354
|
$
|
1,139
|
$
|
3,966
|
$
|
3,365
|
|||||||
Interest cost on pension benefit obligation
|
6,760
|
6,576
|
19,800
|
19,435
|
|||||||||||
Expected return on assets
|
(6,783
|
)
|
(5,213
|
)
|
(19,870
|
)
|
(15,407
|
)
|
|||||||
Amortization of unrecognized losses
|
1,325
|
1,150
|
3,882
|
3,399
|
|||||||||||
Net periodic pension cost
|
$
|
2,656
|
$
|
3,652
|
$
|
7,778
|
$
|
10,792
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Net income
|
$
|
42,314
|
$
|
27,126
|
$
|
102,070
|
$
|
84,827
|
||||||||
Other comprehensive income gain:
|
||||||||||||||||
Currency translation adjustments (1)
|
(818
|
)
|
1,927
|
9,010
|
40,926
|
|||||||||||
Unrealized gain (loss) on cash flow hedges (2)
|
(455
|
)
|
(668
|
)
|
405
|
8,094
|
||||||||||
Comprehensive income
|
$
|
41,041
|
$
|
28,385
|
$
|
111,485
|
$
|
133,847
|
(1)
|
During the three and nine months ended December 31, 2010 and 2009, the U.S. dollar weakened against the British pound sterling, resulting in translation gains recorded as a component of stockholders’ investment as of December 31, 2010 and 2009.
|
(2)
|
Net of income tax effect of $(0.2) million and $0.2 million for the three and nine months ended December 31, 2010, respectively, and $(0.4) million and $4.4 million for the three and nine months ended December 31, 2009, respectively.
|
Three Months Ended
December 31,
|
Nine Months Ended
December 31,
|
|||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||
Net income to common stockholders (in thousands):
|
||||||||||||
Income available to common stockholders – basic
|
$
|
41,759
|
$
|
26,678
|
$
|
101,447
|
$
|
77,246
|
||||
Preferred stock dividends
|
—
|
—
|
—
|
6,325
|
||||||||
Interest expense on assumed conversion of 3% Convertible Senior Notes, net of tax (1)
|
—
|
—
|
—
|
—
|
||||||||
Income available to common stockholders – diluted
|
$
|
41,759
|
$
|
26,678
|
$
|
101,447
|
$
|
83,571
|
||||
Shares:
|
||||||||||||
Weighted-average number of common shares outstanding – basic
|
36,204,121
|
35,896,054
|
35,984,029
|
31,732,633
|
||||||||
Assumed conversion of preferred stock outstanding during the
period (2)
|
—
|
—
|
—
|
3,961,119
|
||||||||
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
|
711,124
|
374,697
|
699,979
|
375,939
|
||||||||
Weighted-average number of common shares outstanding – diluted
|
36,915,245
|
36,270,751
|
36,684,008
|
36,069,691
|
||||||||
Basic earnings per common share
|
$
|
1.15
|
$
|
0.74
|
$
|
2.82
|
$
|
2.43
|
||||
Diluted earnings per common share
|
$
|
1.13
|
$
|
0.74
|
$
|
2.77
|
$
|
2.32
|
(1)
|
Diluted earnings per common share for each of the three and nine months ended December 31, 2010 and 2009 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, 2010 or 2009 as our stock price did not meet or exceed $77.34 per share.
|
(2)
|
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. For further discussion on the preferred stock, see Note 11 in the fiscal year 2010 Financial Statements.
|
Three Months Ended
December 31,
|
Nine Months Ended
December 31,
|
||||||||||||||
2010
|
2009
|
2010
|
2009
|
||||||||||||
Options:
|
|||||||||||||||
Outstanding
|
535,472
|
473,609
|
468,532
|
414,974
|
|||||||||||
Weighted-average exercise price
|
$
|
31.47
|
$
|
39.92
|
$
|
31.68
|
$
|
41.15
|
|||||||
Restricted stock units:
|
|||||||||||||||
Outstanding
|
83,940
|
231,581
|
85,238
|
241,071
|
|||||||||||
Weighted-average price
|
$
|
46.81
|
$
|
40.02
|
$
|
46.80
|
$
|
40.22
|
|||||||
Restricted stock awards:
|
|||||||||||||||
Outstanding
|
—
|
—
|
7,738
|
974
|
|||||||||||
Weighted-average price
|
$
|
—
|
$
|
—
|
$
|
36.21
|
$
|
20.22
|
Three Months Ended
December 31,
|
Nine Months Ended
December 31,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Segment gross revenue from external customers:
|
||||||||||||||||
Europe
|
$
|
129,705
|
$
|
119,003
|
$
|
348,469
|
$
|
346,866
|
||||||||
North America
|
45,589
|
45,580
|
153,598
|
144,084
|
||||||||||||
West Africa
|
53,725
|
58,736
|
170,931
|
165,005
|
||||||||||||
Australia
|
41,440
|
38,188
|
114,095
|
96,684
|
||||||||||||
Other International
|
41,865
|
33,344
|
110,979
|
103,237
|
||||||||||||
Corporate and other
|
5,545
|
8,455
|
24,594
|
29,497
|
||||||||||||
Total segment gross revenue
|
$
|
317,869
|
$
|
303,306
|
$
|
922,666
|
$
|
885,373
|
Intrasegment gross revenue:
|
||||||||||||||||
Europe
|
$
|
123
|
$
|
287
|
$
|
645
|
$
|
1,402
|
||||||||
North America
|
40
|
104
|
123
|
193
|
||||||||||||
West Africa
|
—
|
—
|
—
|
—
|
||||||||||||
Australia
|
—
|
—
|
—
|
—
|
||||||||||||
Other International
|
—
|
1
|
—
|
109
|
||||||||||||
Corporate and other
|
848
|
9
|
1,062
|
2,145
|
||||||||||||
Total intrasegment gross revenue
|
$
|
1,011
|
$
|
401
|
$
|
1,830
|
$
|
3,849
|
Consolidated gross revenue reconciliation:
|
||||||||||||||||
Europe
|
$
|
129,828
|
$
|
119,290
|
$
|
349,114
|
$
|
348,268
|
||||||||
North America
|
45,629
|
45,684
|
153,721
|
144,277
|
||||||||||||
West Africa
|
53,725
|
58,736
|
170,931
|
165,005
|
||||||||||||
Australia
|
41,440
|
38,188
|
114,095
|
96,684
|
||||||||||||
Other International
|
41,865
|
33,345
|
110,979
|
103,346
|
||||||||||||
Corporate and other
|
6,393
|
8,464
|
25,656
|
31,642
|
||||||||||||
Intrasegment eliminations
|
(1,011
|
)
|
(401
|
)
|
(1,830
|
)
|
(3,849
|
)
|
||||||||
Total consolidated gross revenue
|
$
|
317,869
|
$
|
303,306
|
$
|
922,666
|
$
|
885,373
|
Earnings from unconsolidated affiliates, net of losses – equity method investments:
|
||||||||||||||||
Europe
|
$
|
3,490
|
$
|
2,542
|
$
|
8,230
|
$
|
6,392
|
||||||||
Other International
|
1,854
|
526
|
1,184
|
4,225
|
||||||||||||
Corporate and other
|
(3
|
)
|
—
|
(59
|
)
|
8
|
||||||||||
Total earnings from unconsolidated affiliates, net of losses –
equity method investments
|
$
|
5,341
|
$
|
3,068
|
$
|
9,355
|
$
|
10,625
|
Three Months Ended
December 31,
|
Nine Months Ended
December 31,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Consolidated operating income (loss) reconciliation:
|
||||||||||||||||
Europe
|
$
|
25,470
|
$
|
19,239
|
$
|
65,381
|
$
|
58,080
|
||||||||
North America
|
1,917
|
1,511
|
16,129
|
10,653
|
||||||||||||
West Africa
|
15,995
|
14,913
|
48,789
|
43,640
|
||||||||||||
Australia
|
7,139
|
9,358
|
21,185
|
22,025
|
||||||||||||
Other International
|
11,595
|
5,181
|
24,962
|
25,371
|
||||||||||||
Corporate and other
|
(15,444
|
)
|
(12,924
|
)
|
(40,151
|
)
|
(35,041
|
)
|
||||||||
Gain (loss) on disposal of assets
|
(33
|
)
|
2,448
|
3,582
|
13,337
|
|||||||||||
Total consolidated operating income
|
$
|
46,639
|
$
|
39,726
|
$
|
139,877
|
$
|
138,065
|
Depreciation and amortization:
|
||||||||||||||||
Europe
|
$
|
7,182
|
$
|
7,406
|
$
|
19,389
|
$
|
20,563
|
||||||||
North America
|
3,751
|
3,950
|
12,327
|
11,182
|
||||||||||||
West Africa
|
2,615
|
2,638
|
8,060
|
7,094
|
||||||||||||
Australia
|
3,002
|
2,451
|
8,359
|
5,795
|
||||||||||||
Other International
|
3,330
|
2,904
|
9,607
|
9,322
|
||||||||||||
Corporate and other
|
1,458
|
1,314
|
3,895
|
3,363
|
||||||||||||
Total depreciation and amortization
|
$
|
21,338
|
$
|
20,663
|
$
|
61,637
|
$
|
57,319
|
December 31,
|
March 31,
|
|||||||
2010
|
2010
|
|||||||
Identifiable assets:
|
||||||||
Europe
|
$
|
832,531
|
$
|
767,007
|
||||
North America
|
365,835
|
403,549
|
||||||
West Africa
|
337,209
|
323,376
|
||||||
Australia
|
360,093
|
287,660
|
||||||
Other International
|
510,070
|
483,230
|
||||||
Corporate and other
|
232,998
|
229,798
|
||||||
Total identifiable assets (1)
|
$
|
2,638,736
|
$
|
2,494,620
|
Investments in unconsolidated affiliates – equity method investments:
|
||||||||
Europe
|
$
|
12,329
|
$
|
11,775
|
||||
Other International
|
187,158
|
186,082
|
||||||
Total investments in unconsolidated affiliates – equity method investments
|
$
|
199,487
|
$
|
197,857
|
(1)
|
Includes $121.4 million and $152.8 million of construction in progress within property and equipment on our condensed consolidated balance sheets as of December 31 and March 31, 2010, respectively, which primarily represents progress payments on aircraft to be delivered in future periods.
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Gross revenue
|
$
|
—
|
$
|
71,669
|
$
|
246,200
|
$
|
—
|
$
|
317,869
|
||||||||||
Intercompany revenue
|
—
|
12,218
|
—
|
(12,218
|
)
|
—
|
||||||||||||||
—
|
83,887
|
246,200
|
(12,218
|
)
|
317,869
|
|||||||||||||||
Operating expense:
|
||||||||||||||||||||
Direct cost
|
9
|
51,135
|
170,341
|
—
|
221,485
|
|||||||||||||||
Intercompany expenses
|
41
|
—
|
12,177
|
(12,218
|
)
|
—
|
||||||||||||||
Depreciation and amortization
|
561
|
8,004
|
12,773
|
—
|
21,338
|
|||||||||||||||
General and administrative
|
10,378
|
5,810
|
17,527
|
—
|
33,715
|
|||||||||||||||
10,989
|
64,949
|
212,818
|
(12,218
|
)
|
276,538
|
|||||||||||||||
Gain (loss) on disposal of assets
|
—
|
7
|
(40
|
)
|
—
|
(33
|
)
|
|||||||||||||
Earnings from unconsolidated affiliates, net of losses
|
30,115
|
—
|
5,467
|
(30,241
|
)
|
5,341
|
||||||||||||||
Operating income
|
19,126
|
18,945
|
38,809
|
(30,241
|
)
|
46,639
|
||||||||||||||
Interest income
|
21,490
|
256
|
164
|
(21,493
|
)
|
417
|
||||||||||||||
Interest expense
|
(13,574
|
)
|
(68
|
)
|
(21,624
|
)
|
21,493
|
(13,773
|
)
|
|||||||||||
Other income (expense), net
|
(2,339
|
)
|
301
|
(754
|
)
|
—
|
(2,792
|
)
|
||||||||||||
Income before provision for income taxes
|
24,703
|
19,434
|
16,595
|
(30,241
|
)
|
30,491
|
||||||||||||||
Allocation of consolidated income taxes
|
17,069
|
(1,879
|
)
|
(3,367
|
)
|
—
|
11,823
|
|||||||||||||
Net income
|
41,772
|
17,555
|
13,228
|
(30,241
|
)
|
42,314
|
||||||||||||||
Net income attributable to noncontrolling interests
|
(13
|
)
|
—
|
(542
|
)
|
—
|
(555
|
)
|
||||||||||||
Net income attributable to Bristow Group
|
$
|
41,759
|
$
|
17,555
|
$
|
12,686
|
$
|
(30,241
|
)
|
$
|
41,759
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Gross revenue
|
$
|
—
|
$
|
225,679
|
$
|
696,987
|
$
|
—
|
$
|
922,666
|
||||||||||
Intercompany revenue
|
—
|
30,089
|
—
|
(30,089
|
)
|
—
|
||||||||||||||
—
|
255,768
|
696,987
|
(30,089
|
)
|
922,666
|
|||||||||||||||
Operating expense:
|
||||||||||||||||||||
Direct cost
|
(931
|
)
|
150,918
|
488,970
|
—
|
638,957
|
||||||||||||||
Intercompany expenses
|
41
|
—
|
30,048
|
(30,089
|
)
|
(0
|
)
|
|||||||||||||
Depreciation and amortization
|
1,700
|
23,746
|
36,191
|
—
|
61,637
|
|||||||||||||||
General and administrative
|
27,705
|
17,004
|
50,423
|
—
|
95,132
|
|||||||||||||||
28,515
|
191,668
|
605,632
|
(30,089
|
)
|
795,726
|
|||||||||||||||
Gain on disposal of assets
|
—
|
1,859
|
1,723
|
—
|
3,582
|
|||||||||||||||
Earnings from unconsolidated affiliates, net of losses
|
92,824
|
—
|
10,173
|
(93,642
|
)
|
9,355
|
||||||||||||||
Operating income
|
64,309
|
65,959
|
103,251
|
(93,642
|
)
|
139,877
|
||||||||||||||
Interest income
|
61,272
|
289
|
588
|
(61,272
|
)
|
877
|
||||||||||||||
Interest expense
|
(35,631
|
)
|
(136
|
)
|
(61,768
|
)
|
61,272
|
(36,263
|
)
|
|||||||||||
Other income (expense), net
|
(2,355
|
)
|
184
|
(217
|
)
|
—
|
(2,388
|
)
|
||||||||||||
Income before provision for income taxes
|
87,595
|
66,296
|
41,854
|
(93,642
|
)
|
102,103
|
||||||||||||||
Allocation of consolidated income taxes
|
13,896
|
(6,481
|
)
|
(7,448
|
)
|
—
|
(33
|
)
|
||||||||||||
Net income
|
101,491
|
59,815
|
34,406
|
(93,642
|
)
|
102,070
|
||||||||||||||
Net income attributable to noncontrolling interests
|
(44
|
)
|
—
|
(579
|
)
|
—
|
(623
|
)
|
||||||||||||
Net income attributable to Bristow Group
|
$
|
101,447
|
$
|
59,815
|
$
|
33,827
|
$
|
(93,642
|
)
|
$
|
101,447
|
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
|
Elimination
|
Consolidated
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
ASSETS
|
||||||||||||||||||||
Current assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
16,674
|
$
|
—
|
$
|
84,907
|
$
|
(718
|
)
|
$
|
100,863
|
|||||||||
Accounts receivable
|
12,832
|
78,856
|
191,370
|
(28,413
|
)
|
254,645
|
||||||||||||||
Inventories
|
—
|
89,301
|
106,236
|
—
|
195,537
|
|||||||||||||||
Prepaid expenses and other current assets
|
(49
|
)
|
9,443
|
60,776
|
(31,878
|
)
|
38,292
|
|||||||||||||
Total current assets
|
29,457
|
177,600
|
443,289
|
(61,009
|
)
|
589,337
|
||||||||||||||
Intercompany investment
|
1,109,416
|
111,435
|
—
|
(1,220,851
|
)
|
—
|
||||||||||||||
Investment in unconsolidated affiliates
|
2,459
|
150
|
203,530
|
—
|
206,139
|
|||||||||||||||
Intercompany notes receivable
|
1,163,175
|
—
|
(183,747
|
)
|
(979,428
|
)
|
—
|
|||||||||||||
Property and equipment – at cost:
|
||||||||||||||||||||
Land and buildings
|
211
|
54,332
|
42,050
|
—
|
96,593
|
|||||||||||||||
Aircraft and equipment
|
15,710
|
816,931
|
1,309,163
|
—
|
2,141,804
|
|||||||||||||||
15,921
|
871,263
|
1,351,213
|
—
|
2,238,397
|
||||||||||||||||
Less: Accumulated depreciation and
amortization
|
(2,813
|
)
|
(160,931
|
)
|
(287,153
|
)
|
—
|
(450,897
|
)
|
|||||||||||
13,108
|
710,332
|
1,064,060
|
—
|
1,787,500
|
||||||||||||||||
Goodwill
|
—
|
4,755
|
26,881
|
—
|
31,636
|
|||||||||||||||
Other assets
|
111,721
|
4,327
|
179,229
|
(271,153
|
)
|
24,124
|
||||||||||||||
$
|
2,429,336
|
$
|
1,008,599
|
$
|
1,733,242
|
$
|
(2,532,441
|
)
|
$
|
2,638,736
|
||||||||||
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
|
||||||||||||||||||||
Current liabilities:
|
||||||||||||||||||||
Accounts payable
|
$
|
1,448
|
$
|
13,465
|
$
|
53,186
|
$
|
(21,031
|
)
|
$
|
47,068
|
|||||||||
Accrued liabilities
|
3,795
|
21,387
|
103,060
|
(33,023
|
)
|
95,219
|
||||||||||||||
Deferred taxes
|
1,175
|
(301
|
)
|
12,394
|
—
|
13,268
|
||||||||||||||
Short-term borrowings and current maturities of
long-term debt
|
2,500
|
—
|
5,539
|
—
|
8,039
|
|||||||||||||||
Total current liabilities
|
8,918
|
34,551
|
174,179
|
(54,054
|
)
|
163,594
|
||||||||||||||
Long-term debt, less current maturities
|
689,329
|
—
|
28,140
|
—
|
717,469
|
|||||||||||||||
Intercompany notes payable
|
—
|
347,540
|
732,912
|
(1,080,452
|
)
|
—
|
||||||||||||||
Accrued pension liabilities
|
7,464
|
8,710
|
187,086
|
(171,153
|
)
|
32,107
|
||||||||||||||
Other liabilities and deferred credits
|
—
|
—
|
112,248
|
—
|
112,248
|
|||||||||||||||
Deferred taxes
|
112,507
|
7,743
|
16,939
|
—
|
137,189
|
|||||||||||||||
Stockholders’ investment:
|
||||||||||||||||||||
Common stock
|
363
|
4,996
|
22,091
|
(27,087
|
)
|
363
|
||||||||||||||
Additional paid-in-capital
|
686,952
|
9,552
|
470,883
|
(480,435
|
)
|
686,952
|
||||||||||||||
Retained earnings
|
920,792
|
595,507
|
62,460
|
(657,967
|
)
|
920,792
|
||||||||||||||
Accumulated other comprehensive loss
|
1,562
|
—
|
(78,956
|
)
|
(61,293
|
) |
(138,687
|
)
|
||||||||||||
1,609,669
|
610,055
|
476,478
|
(1,226,782
|
)
|
1,469,420
|
|||||||||||||||
Noncontrolling interests
|
1,449
|
—
|
5,260
|
—
|
6,709
|
|||||||||||||||
1,611,118
|
610,055
|
481,738
|
(1,226,782
|
)
|
1,476,129
|
|||||||||||||||
$
|
2,429,336
|
$
|
1,008,599
|
$
|
1,733,242
|
$
|
(2,532,441
|
)
|
$
|
2,638,736
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Elimination
|
Consolidated
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
ASSETS
|
||||||||||||||||||||
Current assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
16,555
|
$
|
1,834
|
$
|
59,404
|
$
|
—
|
$
|
77,793
|
||||||||||
Accounts receivable
|
8,776
|
62,500
|
172,333
|
(23,342
|
)
|
220,267
|
||||||||||||||
Inventories
|
—
|
86,441
|
100,422
|
—
|
186,863
|
|||||||||||||||
Prepaid expenses and other current assets
|
758
|
6,991
|
42,671
|
(18,972
|
)
|
31,448
|
||||||||||||||
Total current assets
|
26,089
|
157,766
|
374,830
|
(42,314
|
)
|
516,371
|
||||||||||||||
Intercompany investment
|
998,138
|
104,482
|
133,609
|
(1,236,229
|
)
|
—
|
||||||||||||||
Investment in unconsolidated affiliates
|
3,329
|
7,835
|
193,699
|
—
|
204,863
|
|||||||||||||||
Intercompany notes receivable
|
1,098,786
|
—
|
(180,782
|
)
|
(918,004
|
)
|
—
|
|||||||||||||
Property and equipment – at cost:
|
||||||||||||||||||||
Land and buildings
|
211
|
54,457
|
32,158
|
—
|
86,826
|
|||||||||||||||
Aircraft and equipment
|
12,115
|
788,579
|
1,236,268
|
—
|
2,036,962
|
|||||||||||||||
12,326
|
843,036
|
1,268,426
|
—
|
2,123,788
|
||||||||||||||||
Less: Accumulated depreciation and amortization
|
(1,322
|
)
|
(143,753
|
)
|
(259,368
|
)
|
—
|
(404,443
|
)
|
|||||||||||
11,004
|
699,283
|
1,009,058
|
—
|
1,719,345
|
||||||||||||||||
Goodwill
|
—
|
4,486
|
27,269
|
—
|
31,755
|
|||||||||||||||
Other assets
|
112,216
|
1,172
|
183,208
|
(274,310
|
)
|
22,286
|
||||||||||||||
$
|
2,249,562
|
$
|
975,024
|
$
|
1,740,891
|
$
|
(2,470,857
|
)
|
$
|
2,494,620
|
||||||||||
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
|
||||||||||||||||||||
Current liabilities:
|
||||||||||||||||||||
Accounts payable
|
$
|
1,955
|
$
|
12,647
|
$
|
48,942
|
$
|
(14,999
|
)
|
$
|
48,545
|
|||||||||
Accrued liabilities
|
7,687
|
23,958
|
88,471
|
(28,129
|
)
|
91,987
|
||||||||||||||
Deferred taxes
|
(1,356
|
)
|
—
|
11,573
|
—
|
10,217
|
||||||||||||||
Short-term borrowings and current maturities of
long-term debt
|
—
|
—
|
15,366
|
—
|
15,366
|
|||||||||||||||
Total current liabilities
|
8,286
|
36,605
|
164,352
|
(43,128)
|
166,115
|
|||||||||||||||
Long-term debt, less current maturities
|
676,518
|
—
|
24,677
|
—
|
701,195
|
|||||||||||||||
Intercompany notes payable
|
—
|
361,082
|
656,922
|
(1,018,004
|
)
|
—
|
||||||||||||||
Accrued pension liabilities
|
—
|
—
|
106,573
|
—
|
106,573
|
|||||||||||||||
Other liabilities and deferred credits
|
5,018
|
8,324
|
181,810
|
(174,310
|
)
|
20,842
|
||||||||||||||
Deferred taxes
|
118,244
|
6,885
|
18,195
|
—
|
143,324
|
|||||||||||||||
Stockholders’ investment:
|
||||||||||||||||||||
Common stock
|
359
|
4,996
|
22,091
|
(27,087
|
)
|
359
|
||||||||||||||
Additional paid-in-capital
|
677,397
|
9,940
|
470,883
|
(480,823
|
)
|
677,397
|
||||||||||||||
Retained earnings
|
820,145
|
547,192
|
39,468
|
(586,660
|
)
|
820,145
|
||||||||||||||
Accumulated other comprehensive loss
|
(57,999
|
)
|
—
|
50,742
|
(140,845
|
)
|
(148,102
|
)
|
||||||||||||
1,439,902
|
562,128
|
583,184
|
(1,235,415
|
)
|
1,349,799
|
|||||||||||||||
Noncontrolling interests
|
1,594
|
—
|
5,178
|
—
|
6,772
|
|||||||||||||||
1,441,496
|
562,128
|
588,362
|
(1,235,415
|
)
|
1,356,571
|
|||||||||||||||
$
|
2,249,562
|
$
|
975,024
|
$
|
1,740,891
|
$
|
(2,470,857
|
)
|
$
|
2,494,620
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Net cash provided by (used in) operating activities
|
$
|
(46,074
|
)
|
$
|
24,656
|
$
|
137,535
|
$
|
(718
|
)
|
$
|
115,399
|
||||||||
Cash flows from investing activities:
|
||||||||||||||||||||
Capital expenditures
|
(2,378
|
)
|
(30,957
|
)
|
(89,413
|
)
|
—
|
(122,748
|
)
|
|||||||||||
Deposit on asset held for sale
|
—
|
1,000
|
—
|
—
|
1,000
|
|||||||||||||||
Proceeds from sale of joint ventures
|
—
|
—
|
1,291
|
—
|
1,291
|
|||||||||||||||
Proceeds from asset dispositions
|
—
|
11,281
|
5,894
|
—
|
17,175
|
|||||||||||||||
Net cash used in investing activities
|
(2,378
|
)
|
(18,676
|
)
|
(82,228
|
)
|
—
|
(103,282
|
)
|
|||||||||||
Cash flows from financing activities:
|
||||||||||||||||||||
Proceeds from borrowings
|
243,000
|
8,050
|
1,963
|
—
|
253,013
|
|||||||||||||||
Debt issuance costs
|
(3,339
|
)
|
—
|
—
|
—
|
(3,339
|
)
|
|||||||||||||
Repayment of debt
|
(230,000
|
)
|
—
|
(16,553
|
)
|
—
|
(246,553
|
)
|
||||||||||||
Dividends paid
|
21,535
|
(11,500
|
)
|
(10,035
|
)
|
—
|
—
|
|||||||||||||
Distribution to noncontrolling interest owner
|
—
|
—
|
(637
|
)
|
—
|
(637
|
)
|
|||||||||||||
Increases (decreases) in cash related to intercompany
advances and debt
|
12,600
|
(4,364
|
)
|
(8,236
|
)
|
—
|
—
|
|||||||||||||
Partial prepayment of put/call obligation
|
(44
|
)
|
—
|
—
|
—
|
(44
|
)
|
|||||||||||||
Acquisition of noncontrolling interest
|
—
|
—
|
(800
|
)
|
—
|
(800
|
)
|
|||||||||||||
Issuance of common stock
|
754
|
—
|
—
|
—
|
754
|
|||||||||||||||
Tax benefit related to stock-based compensation
|
230
|
—
|
—
|
—
|
230
|
|||||||||||||||
Net cash provided by (used in) financing activities
|
44,736
|
(7,814
|
)
|
(34,298
|
)
|
—
|
2,624
|
|||||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
3,835
|
—
|
4,494
|
—
|
8,329
|
|||||||||||||||
Net increase (decrease) in cash and cash equivalents
|
119
|
(1,834
|
)
|
25,503
|
(718
|
)
|
23,070
|
|||||||||||||
Cash and cash equivalents at beginning of period
|
16,555
|
1,834
|
59,404
|
—
|
77,793
|
|||||||||||||||
Cash and cash equivalents at end of period
|
$
|
16,674
|
$
|
—
|
$
|
84,907
|
$
|
(718
|
)
|
$
|
100,863
|
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
|
(4,024
|
)
|
(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
|
·
|
the risks and uncertainties described under “Item 1A. Risk Factors” included elsewhere in this Quarterly Report and the fiscal year 2010 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 capacity expansion program; and
|
·
|
the outcome of the U.S. Department of Justice (“DOJ”) investigation, which is ongoing, has a greater than anticipated financial or business impact.
|
·
|
Europe,
|
·
|
North America,
|
·
|
West Africa,
|
·
|
Australia, and
|
·
|
Other International.
|
Percentage of Current Period Revenue
|
Aircraft in Consolidated Fleet
|
|||||||||||||||||||
Helicopters
|
||||||||||||||||||||
Small
|
Medium
|
Large
|
Training
|
Fixed Wing
|
Total
|
(1)
|
Unconsolidated Affiliates (2)
|
Total
|
||||||||||||
Europe
|
38
|
%
|
—
|
16
|
40
|
—
|
—
|
56
|
63
|
119
|
||||||||||
North America
|
17
|
%
|
72
|
27
|
5
|
—
|
—
|
104
|
—
|
104
|
||||||||||
West Africa
|
18
|
%
|
12
|
26
|
5
|
—
|
3
|
46
|
—
|
46
|
||||||||||
Australia
|
12
|
%
|
3
|
14
|
18
|
—
|
—
|
35
|
—
|
35
|
||||||||||
Other International
|
12
|
%
|
5
|
43
|
12
|
—
|
—
|
60
|
133
|
193
|
||||||||||
Corporate and other
|
3
|
%
|
—
|
—
|
—
|
77
|
—
|
77
|
—
|
77
|
||||||||||
Total
|
100
|
%
|
92
|
126
|
80
|
77
|
3
|
378
|
196
|
574
|
||||||||||
Aircraft not currently in fleet: (3)
|
||||||||||||||||||||
On order
|
—
|
3
|
6
|
—
|
—
|
9
|
||||||||||||||
Under option
|
—
|
25
|
9
|
—
|
—
|
34
|
(1)
|
Includes 14 aircraft held for sale.
|
(2)
|
The 196 aircraft operated by our unconsolidated affiliates do not include those aircraft leased from us.
|
(3)
|
This table does not reflect aircraft which our unconsolidated affiliates may have on order or under option.
|
Three Months Ended
December 31,
|
Favorable
|
|||||||||||||||||
2010
|
2009
|
(Unfavorable)
|
||||||||||||||||
(Unaudited)
(In thousands, except per share
amounts, percentages and flight hours)
|
||||||||||||||||||
Gross revenue:
|
||||||||||||||||||
Operating revenue
|
$
|
282,607
|
$
|
275,488
|
$
|
7,119
|
2.6
|
%
|
||||||||||
Reimbursable revenue
|
35,262
|
27,818
|
7,444
|
26.8
|
%
|
|||||||||||||
Total gross revenue
|
317,869
|
303,306
|
14,563
|
4.8
|
%
|
|||||||||||||
Operating expense:
|
||||||||||||||||||
Direct cost
|
186,937
|
189,456
|
2,519
|
1.3
|
%
|
|||||||||||||
Reimbursable expense
|
34,548
|
28,219
|
(6,329
|
)
|
(22.4
|
)
|
%
|
|||||||||||
Depreciation and amortization
|
21,338
|
20,663
|
(675
|
)
|
(3.3
|
)
|
%
|
|||||||||||
General and administrative
|
33,715
|
30,758
|
(2,957
|
)
|
(9.6
|
)
|
%
|
|||||||||||
276,538
|
269,096
|
(7,442
|
)
|
(2.8
|
)
|
%
|
||||||||||||
Gain (loss) on disposal of assets
|
(33
|
)
|
2,448
|
(2,481
|
)
|
(101.3
|
)
|
%
|
||||||||||
Earnings from unconsolidated affiliates, net of losses
|
5,341
|
3,068
|
2,273
|
74.1
|
%
|
|||||||||||||
Operating income
|
46,639
|
39,726
|
6,913
|
17.4
|
%
|
|||||||||||||
Interest income (expense), net
|
(13,356
|
)
|
(10,614
|
)
|
(2,742
|
)
|
(25.8
|
)
|
%
|
|||||||||
Other income (expense), net
|
(2,792
|
)
|
3,695
|
(6,487
|
)
|
(175.6
|
)
|
%
|
||||||||||
Income before provision for income taxes
|
30,491
|
32,807
|
(2,316
|
)
|
(7.1
|
)
|
%
|
|||||||||||
(Provision for) benefit from income taxes
|
11,823
|
(5,681
|
)
|
17,504
|
308.1
|
%
|
||||||||||||
Net income
|
42,314
|
27,126
|
15,188
|
56.0
|
%
|
|||||||||||||
Net income attributable to noncontrolling interests
|
(555
|
)
|
(448
|
)
|
(107
|
)
|
(23.9
|
)
|
%
|
|||||||||
Net income attributable to Bristow Group
|
$
|
41,759
|
$
|
26,678
|
$
|
15,081
|
56.5
|
%
|
||||||||||
Diluted earnings per common share
|
$
|
1.13
|
$
|
0.74
|
$
|
0.39
|
52.7
|
%
|
||||||||||
Operating margin (1)
|
14.7
|
%
|
13.1
|
%
|
1.6
|
%
|
12.2
|
%
|
||||||||||
EBITDA (2)
|
$
|
65,602
|
$
|
64,449
|
$
|
1,153
|
1.8
|
%
|
||||||||||
Flight hours (3)
|
58,291
|
54,522
|
3,769
|
6.9
|
%
|
Nine Months Ended
December 31,
|
Favorable
|
|||||||||||||||||
2010
|
2009
|
(Unfavorable)
|
||||||||||||||||
(Unaudited)
(In thousands, except per share
amounts, percentages and flight hours)
|
||||||||||||||||||
Gross revenue:
|
||||||||||||||||||
Operating revenue
|
$
|
841,153
|
$
|
804,083
|
$
|
37,070
|
4.6
|
%
|
||||||||||
Reimbursable revenue
|
81,513
|
81,290
|
223
|
|
0.3
|
|
%
|
|||||||||||
Total gross revenue
|
922,666
|
885,373
|
37,293
|
4.2
|
%
|
|||||||||||||
Operating expense:
|
||||||||||||||||||
Direct cost
|
559,211
|
543,525
|
(15,686
|
)
|
(2.9
|
)
|
%
|
|||||||||||
Reimbursable expense
|
79,746
|
81,180
|
1,434
|
1.8
|
%
|
|||||||||||||
Depreciation and amortization
|
61,637
|
57,319
|
(4,318
|
)
|
(7.5
|
)
|
%
|
|||||||||||
General and administrative
|
95,132
|
89,246
|
(5,886
|
)
|
(6.6
|
)
|
%
|
|||||||||||
795,726
|
771,270
|
(24,456
|
)
|
(3.2
|
)
|
%
|
||||||||||||
Gain on disposal of assets
|
3,582
|
13,337
|
(9,755
|
)
|
(73.1
|
)
|
%
|
|||||||||||
Earnings from unconsolidated affiliates, net of losses
|
9,355
|
10,625
|
(1,270
|
)
|
(12.0
|
)
|
%
|
|||||||||||
Operating income
|
139,877
|
138,065
|
1,812
|
1.3
|
%
|
|||||||||||||
Interest income (expense), net
|
(35,386
|
)
|
(30,834
|
)
|
(4,552
|
)
|
(14.8
|
)
|
%
|
|||||||||
Other income (expense), net
|
(2,388
|
)
|
4,023
|
(6,411
|
)
|
(159.4
|
)
|
%
|
||||||||||
Income before provision for income taxes
|
102,103
|
111,254
|
(9,151
|
)
|
(8.2
|
)
|
%
|
|||||||||||
(Provision for) benefit from income taxes
|
(33
|
)
|
(26,427
|
)
|
26,394
|
99.9
|
%
|
|||||||||||
Net income
|
102,070
|
84,827
|
17,243
|
20.3
|
%
|
|||||||||||||
Net income attributable to noncontrolling interests
|
(623
|
)
|
(1,256
|
)
|
633
|
50.4
|
%
|
|||||||||||
Net income attributable to Bristow Group
|
$
|
101,447
|
$
|
83,571
|
$
|
17,876
|
21.4
|
%
|
||||||||||
Diluted earnings per common share
|
$
|
2.77
|
$
|
2.32
|
$
|
0.45
|
19.4
|
%
|
||||||||||
Operating margin (1)
|
15.2
|
%
|
15.6
|
%
|
(0.4
|
)%
|
(2.6
|
)
|
%
|
|||||||||
EBITDA (2)
|
$
|
200,003
|
$
|
200,204
|
$
|
(201
|
)
|
(0.1
|
)
|
%
|
||||||||
Flight hours (3)
|
180,318
|
172,980
|
7,338
|
4.2
|
%
|
(1)
|
Operating margin is calculated as operating income divided by gross revenue.
|
(2)
|
EBITDA, or Earnings Before Interest Taxes Depreciation and Amortization, is a measure that has not been prepared in accordance with U.S. generally accepted accounting policies (“GAAP”) and has not been audited or reviewed by our independent auditors. EBITDA is therefore considered a non-GAAP financial measure. Management believes EBITDA provides meaningful supplemental information regarding our operating results because it excludes amounts that management does not consider part of operating results when assessing and measuring the operational and financial performance of the organization. A description of adjustments and a reconciliation to net income, the most comparable GAAP financial measure to EBITDA, is as follows:
|
Three Months
Ended December 31,
|
Nine Months
Ended December 31,
|
||||||||||||||
2010
|
2009
|
2010
|
2009
|
||||||||||||
(In thousands)
|
|||||||||||||||
Net income
|
$
|
42,314
|
$
|
27,126
|
$
|
102,070
|
$
|
84,827
|
|||||||
Provision for (benefit from) income taxes
|
(11,823
|
)
|
5,681
|
33
|
26,427
|
||||||||||
Interest expense
|
13,773
|
10,979
|
36,263
|
31,631
|
|||||||||||
Depreciation and amortization
|
21,338
|
20,663
|
61,637
|
57,319
|
|||||||||||
EBITDA
|
$
|
65,602
|
$
|
64,449
|
$
|
200,003
|
$
|
200,204
|
(3)
|
Excludes flight hours from Bristow Academy and unconsolidated affiliates.
|
Current Quarter
|
||||||||||||||||
Operating
Income
|
Operating
Margin
|
EBITDA
|
Net
Income
|
Diluted
Earnings
Per
Share
|
||||||||||||
(In thousands, except percentages and per share amounts)
|
||||||||||||||||
As reported
|
$
|
46,639
|
14.7%
|
$
|
65,602
|
$
|
41,759
|
$
|
1.13
|
|||||||
Adjust for:
|
||||||||||||||||
Power-by-the-hour credit
|
(3,500
|
)
|
—
|
(3,500
|
)
|
(2,894
|
)
|
$
|
(0.08
|
)
|
||||||
Retirement of 6 1/8% Senior Notes
|
—
|
—
|
2,300
|
3,966
|
$
|
0.11
|
||||||||||
Tax items
|
—
|
—
|
—
|
(16,573
|
)
|
$
|
(0.45
|
)
|
||||||||
Loss on disposal of assets
|
33
|
33
|
27
|
$
|
—
|
|||||||||||
Adjusted
|
$
|
43,172
|
13.6%
|
(1)
|
$
|
64,435
|
$
|
26,285
|
$
|
0.71
|
Comparable Quarter
|
||||||||||||||||
Operating
Income
|
Operating Margin
|
EBITDA
|
Net
Income
|
Diluted
Earnings
Per
Share
|
||||||||||||
(In thousands, except percentages and per share amounts)
|
||||||||||||||||
As reported
|
$
|
39,726
|
13.1%
|
$
|
64,449
|
$
|
26,678
|
$
|
0.74
|
|||||||
Adjust for:
|
||||||||||||||||
Officer severance costs
|
1,744
|
—
|
1,744
|
1,442
|
$
|
0.04
|
||||||||||
Hedging gains
|
—
|
—
|
(2,804
|
)
|
(2,318
|
)
|
$
|
(0.06
|
)
|
|||||||
Gain on disposal of assets
|
(2,448
|
)
|
—
|
(2,448
|
)
|
(2,024
|
)
|
$
|
(0.06
|
)
|
||||||
Adjusted
|
$
|
39,022
|
12.9%
|
(1)
|
$
|
60,941
|
$
|
23,778
|
$
|
0.66
|
(1)
|
Adjusted operating margin is calculated as adjusted operating income presented herein divided by gross revenue of $317.9 million in the Current Quarter and $303.3 million in the Comparable Quarter.
|
Current Period
|
||||||||||||||||
Operating Income
|
Operating Margin
|
EBITDA
|
Net
Income
|
Diluted
Earnings
Per
Share
|
||||||||||||
(In thousands, except percentages and per share amounts)
|
||||||||||||||||
As reported
|
$
|
139,877
|
15.2%
|
$
|
200,003
|
$
|
101,447
|
$
|
2.77
|
|||||||
Adjust for:
|
||||||||||||||||
Power-by-the-hour credit
|
(3,500
|
)
|
—
|
(3,500
|
)
|
(2,904
|
)
|
$
|
(0.08
|
)
|
||||||
Retirement of 6 1/8% Senior Notes
|
—
|
—
|
2,300
|
3,900
|
$
|
0.11
|
||||||||||
Tax items
|
—
|
—
|
—
|
(17,338
|
)
|
$
|
(0.47
|
)
|
||||||||
Gain on disposal of assets
|
(3,582
|
)
|
(3,582
|
)
|
(2,972
|
)
|
$
|
(0.08
|
)
|
|||||||
Adjusted
|
$
|
132,795
|
14.4%
|
(1)
|
$
|
195,221
|
$
|
82,133
|
$
|
2.24
|
Comparable Period
|
||||||||||||||||
Operating Income
|
Operating Margin
|
EBITDA
|
Net
Income
|
Diluted
Earnings
Per
Share
|
||||||||||||
(In thousands, except percentages and per share amounts)
|
||||||||||||||||
As reported
|
$
|
138,065
|
15.6%
|
$
|
200,204
|
$
|
83,571
|
$
|
2.32
|
|||||||
Adjust for:
|
||||||||||||||||
Officer severance costs
|
4,874
|
—
|
4,874
|
3,944
|
$
|
0.11
|
||||||||||
Hedging gains
|
—
|
—
|
(3,936
|
)
|
(3,001
|
)
|
$
|
(0.08
|
)
|
|||||||
Tax items
|
—
|
—
|
—
|
5,200
|
$
|
0.14
|
||||||||||
Gain on disposal of assets
|
(13,337
|
)
|
—
|
(13,337
|
)
|
(10,792
|
)
|
$
|
(0.30
|
)
|
||||||
Adjusted
|
$
|
129,602
|
14.6%
|
(1)
|
$
|
187,805
|
$
|
78,922
|
$
|
2.19
|
(1)
|
Adjusted operating margin is calculated as adjusted operating income presented herein divided by gross revenue of $922.7 million in the Current Period and $885.4 million in the Comparable Period.
|
Three Months Ended
December 31,
|
Favorable
|
||||||||||||||||
2010
|
2009
|
(Unfavorable)
|
|||||||||||||||
(In thousands, except percentages and flight hours)
|
|||||||||||||||||
Gross revenue
|
$
|
129,828
|
$
|
119,290
|
$
|
10,538
|
8.8
|
%
|
|||||||||
Operating expense
|
$
|
107,848
|
$
|
102,593
|
$
|
(5,255
|
) |
(5.1
|
) |
%
|
|||||||
Earnings from unconsolidated affiliates, net of losses
|
$
|
3,490
|
$
|
2,542
|
$
|
948
|
37.3
|
%
|
|||||||||
Operating margin
|
19.6
|
%
|
16.1
|
%
|
3.5
|
%
|
21.7
|
%
|
|||||||||
Flight hours
|
13,676
|
13,597
|
79
|
0.6
|
%
|
Three Months Ended
December 31,
|
Favorable
|
|||||||||||||||
2010
|
|
2009
|
(Unfavorable)
|
|||||||||||||
(In thousands, except percentages and flight hours)
|
||||||||||||||||
Gross revenue
|
$
|
45,629
|
$
|
45,684
|
$
|
(55
|
)
|
(0.1
|
)%
|
|||||||
Operating expense
|
$
|
43,712
|
$
|
44,173
|
$
|
461
|
1.0
|
%
|
||||||||
Operating margin
|
4.2
|
%
|
3.3
|
%
|
0.9
|
%
|
27.3
|
%
|
||||||||
Flight hours
|
20,079
|
17,712
|
2,367
|
13.4
|
%
|
Three Months Ended
December 31,
|
Favorable
|
||||||||||||||||
2010
|
2009
|
(Unfavorable)
|
|||||||||||||||
(In thousands, except percentages and flight hours)
|
|||||||||||||||||
Gross revenue
|
$
|
53,725
|
$
|
58,736
|
$
|
(5,011
|
)
|
(8.5
|
)
|
%
|
|||||||
Operating expense
|
$
|
37,730
|
$
|
43,823
|
$
|
6,093
|
13.9
|
%
|
|||||||||
Operating margin
|
29.8
|
%
|
25.4
|
%
|
4.4
|
%
|
17.3
|
%
|
|||||||||
Flight hours
|
9,885
|
9,175
|
710
|
7.7
|
%
|
Three Months Ended
December 31,
|
Favorable
|
||||||||||||||
2010
|
2009
|
(Unfavorable)
|
|||||||||||||
(In thousands, except percentages and flight hours)
|
|||||||||||||||
Gross revenue
|
$
|
41,440
|
$
|
38,188
|
$
|
3,252
|
8.5
|
%
|
|||||||
Operating expense
|
$
|
34,301
|
$
|
28,830
|
$
|
(5,471
|
)
|
(19.0
|
)%
|
||||||
Operating margin
|
17.2
|
%
|
24.5
|
%
|
(7.3
|
)%
|
(29.8
|
)%
|
|||||||
Flight hours
|
3,234
|
3,304
|
(70
|
)
|
(2.1
|
)%
|
Three Months Ended
December 31,
|
Favorable
|
||||||||||||||
2010
|
2009
|
(Unfavorable)
|
|||||||||||||
(In thousands, except percentages and flight hours)
|
|||||||||||||||
Gross revenue
|
$
|
41,865
|
$
|
33,345
|
$
|
8,520
|
25.6
|
%
|
|||||||
Operating expense
|
$
|
32,124
|
$
|
28,690
|
$
|
(3,434
|
)
|
(12.0
|
)%
|
||||||
Earnings from unconsolidated affiliates, net of losses
|
$
|
1,854
|
$
|
526
|
$
|
1,328
|
252.5
|
%
|
|||||||
Operating margin
|
27.7
|
%
|
15.5
|
%
|
12.2
|
%
|
78.7
|
%
|
|||||||
Flight hours
|
11,417
|
10,734
|
683
|
6.4
|
%
|
Three Months Ended
December 31,
|
Favorable
|
|||||||||||||||
2010
|
2009
|
(Unfavorable)
|
||||||||||||||
(In thousands, except percentages)
|
||||||||||||||||
Gross revenue
|
$
|
6,393
|
$
|
8,464
|
$
|
(2,071
|
)
|
(24.5
|
)%
|
|||||||
Operating expense
|
21,834
|
21,388
|
(446
|
)
|
(2.1
|
)%
|
||||||||||
Earnings from unconsolidated affiliates, net of losses
|
(3
|
)
|
—
|
(3
|
)
|
(100.0
|
)%
|
|||||||||
Operating loss
|
$
|
(15,444
|
)
|
$
|
(12,924
|
)
|
$
|
(2,520
|
)
|
(19.5
|
)%
|
Three Months Ended
December 31,
|
Favorable
|
|||||||||||||||
2010
|
2009
|
(Unfavorable)
|
||||||||||||||
(In thousands, except percentages)
|
||||||||||||||||
Interest income
|
$
|
417
|
$
|
365
|
$
|
52
|
14.2
|
%
|
||||||||
Interest expense
|
(11,459
|
)
|
(11,405
|
)
|
(54
|
)
|
(0.5
|
)%
|
||||||||
Amortization of debt discount
|
(794
|
)
|
(751
|
)
|
(43
|
)
|
(5.7
|
)%
|
||||||||
Amortization of debt fees
|
(2,799
|
)
|
(496
|
)
|
(2,303
|
)
|
*
|
|||||||||
Capitalized interest
|
1,279
|
1,673
|
(394
|
)
|
(23.6
|
)%
|
||||||||||
Interest expense, net
|
$
|
(13,356
|
)
|
$
|
(10,614
|
)
|
$
|
(2,742
|
)
|
(25.8
|
)%
|
Three Months Ended
December 31,
|
Favorable
|
|||||||||||||||
2010
|
2009
|
(Unfavorable)
|
||||||||||||||
(In thousands, except percentages)
|
||||||||||||||||
Foreign currency (losses) gains
|
$
|
(487
|
)
|
$
|
731
|
$
|
(1,218
|
)
|
(166.6
|
)%
|
||||||
Other
|
(2,305
|
)
|
2,964
|
(5,269
|
)
|
(177.8
|
)%
|
|||||||||
Total
|
$
|
(2,792
|
)
|
$
|
3,695
|
$
|
(6,487
|
)
|
(175.6
|
)%
|
Three Months Ended
December 31,
|
Favorable
|
|||||||||||||||
2010
|
2009
|
(Unfavorable)
|
||||||||||||||
(In thousands, except percentages)
|
||||||||||||||||
Effective income tax rate
|
(38.8
|
)%
|
17.3
|
%
|
56.1
|
%
|
*
|
|||||||||
Net foreign tax on non-U.S. earnings
|
$
|
4,935
|
$
|
2,636
|
$
|
(2,299
|
)
|
(87.2
|
)%
|
|||||||
Foreign earnings indefinitely reinvested abroad
|
(10,018
|
)
|
(10,304
|
)
|
(286
|
)
|
2.8
|
%
|
||||||||
Change in valuation allowance for foreign tax credit utilization
|
—
|
456
|
456
|
100.0
|
%
|
|||||||||||
Expense from change in tax contingency
|
1,041
|
461
|
(580
|
)
|
(125.8
|
)%
|
||||||||||
Release of deferred tax liability due to restructure
|
(17,698
|
)
|
—
|
17,698
|
*
|
Nine Months Ended
December 31,
|
Favorable
|
||||||||||||||||
2010
|
2009
|
(Unfavorable)
|
|||||||||||||||
(In thousands, except percentages and flight hours)
|
|||||||||||||||||
Gross revenue
|
$
|
349,114
|
$
|
348,268
|
$
|
846
|
|
0.2
|
%
|
|
|||||||
Operating expense
|
$
|
291,963
|
$
|
296,580
|
$
|
4,617
|
1.6
|
% |
|
||||||||
Earnings from unconsolidated affiliates, net of losses
|
$
|
8,230
|
$
|
6,392
|
$
|
1,838
|
28.8
|
% |
|
||||||||
Operating margin
|
18.7
|
%
|
16.7
|
%
|
2.0
|
%
|
12.0
|
% |
|
||||||||
Flight hours
|
41,075
|
42,694
|
(1,619
|
)
|
(3.8
|
)%
|
|
Nine Months Ended
December 31,
|
Favorable
|
|||||||||||||||
2010
|
|
2009
|
(Unfavorable)
|
|||||||||||||
(In thousands, except percentages and flight hours)
|
||||||||||||||||
Gross revenue
|
$
|
153,721
|
$
|
144,277
|
$
|
9,444
|
6.5
|
%
|
||||||||
Operating expense
|
$
|
137,592
|
$
|
133,624
|
$
|
(3,968
|
)
|
(3.0
|
)%
|
|||||||
Operating margin
|
10.5
|
%
|
7.4
|
%
|
3.1
|
%
|
41.9
|
%
|
||||||||
Flight hours
|
64,762
|
61,044
|
3,718
|
6.1
|
%
|
Nine Months Ended
December 31,
|
Favorable
|
||||||||||||||||
2010
|
2009
|
(Unfavorable)
|
|||||||||||||||
(In thousands, except percentages and flight hours)
|
|||||||||||||||||
Gross revenue
|
$
|
170,931
|
$
|
165,005
|
$
|
5,926
|
3.6
|
%
|
|||||||||
Operating expense
|
$
|
122,142
|
$
|
121,365
|
$
|
(777
|
)
|
(0.6
|
)
|
%
|
|||||||
Operating margin
|
28.5
|
%
|
26.4
|
%
|
2.1
|
%
|
8.0
|
%
|
|||||||||
Flight hours
|
29,217
|
26,595
|
2,622
|
9.9
|
%
|
Nine Months Ended
December 31,
|
Favorable
|
|||||||||||||||
2010
|
2009
|
(Unfavorable)
|
||||||||||||||
(In thousands, except percentages and flight hours)
|
||||||||||||||||
Gross revenue
|
$
|
114,095
|
$
|
96,684
|
$
|
17,411
|
18.0
|
%
|
||||||||
Operating expense
|
$
|
92,910
|
$
|
74,659
|
$
|
(18,251
|
)
|
(24.4
|
)%
|
|||||||
Operating margin
|
18.6
|
%
|
22.8
|
%
|
(4.2
|
)%
|
(18.4
|
)%
|
||||||||
Flight hours
|
9,793
|
8,978
|
815
|
9.1
|
%
|
Nine Months Ended
December 31,
|
Favorable
|
||||||||||||||
2010
|
2009
|
(Unfavorable)
|
|||||||||||||
(In thousands, except percentages and flight hours)
|
|||||||||||||||
Gross revenue
|
$
|
110,979
|
$
|
103,346
|
$
|
7,633
|
7.4
|
%
|
|||||||
Operating expense
|
$
|
87,201
|
$
|
82,200
|
$
|
(5,001
|
)
|
(6.1
|
)%
|
||||||
Earnings from unconsolidated affiliates, net of losses
|
$
|
1,184
|
$
|
4,225
|
$
|
(3,041
|
)
|
(72.0
|
)%
|
||||||
Operating margin
|
22.5
|
%
|
24.5
|
%
|
(2.0
|
)%
|
(8.2
|
)%
|
|||||||
Flight hours
|
35,471
|
33,669
|
1,802
|
5.4
|
%
|
Nine Months Ended
December 31,
|
Favorable
|
|||||||||||||||
2010
|
2009
|
(Unfavorable)
|
||||||||||||||
(In thousands, except percentages)
|
||||||||||||||||
Gross revenue
|
$
|
25,656
|
$
|
31,642
|
$
|
(5,986
|
)
|
(18.9
|
)%
|
|||||||
Operating expense
|
65,748
|
66,691
|
943
|
1.4
|
%
|
|||||||||||
Earnings from unconsolidated affiliates, net of losses
|
(59
|
)
|
8
|
(67
|
)
|
*
|
||||||||||
Operating loss
|
$
|
(40,151
|
)
|
$
|
(35,041
|
)
|
$
|
(5,110
|
)
|
(14.6
|
)%
|
Nine Months Ended
December 31,
|
Favorable
|
|||||||||||||||
2010
|
2009
|
(Unfavorable)
|
||||||||||||||
(In thousands, except percentages)
|
||||||||||||||||
Interest income
|
$
|
877
|
$
|
797
|
$
|
80
|
10.0
|
%
|
||||||||
Interest expense
|
(34,786
|
)
|
(34,129
|
)
|
(657
|
)
|
(1.9
|
)%
|
||||||||
Amortization of debt discount
|
(2,360
|
)
|
(2,213
|
)
|
(147
|
)
|
(6.6
|
)%
|
||||||||
Amortization of debt fees
|
(3,791
|
)
|
(1,489
|
)
|
(2,302
|
)
|
(154.6
|
)%
|
||||||||
Capitalized interest
|
4,674
|
6,200
|
(1,526
|
)
|
(24.6
|
)%
|
||||||||||
Interest expense, net
|
$
|
(35,386
|
)
|
$
|
(30,834
|
)
|
$
|
(4,552
|
)
|
(14.8
|
)%
|
Nine Months Ended
December 31,
|
Favorable
|
|||||||||||||||
2010
|
2009
|
(Unfavorable)
|
||||||||||||||
(In thousands, except percentages)
|
||||||||||||||||
Foreign currency losses
|
$
|
(671
|
)
|
$
|
(74
|
)
|
$
|
(597
|
)
|
*
|
||||||
Other
|
(1,717
|
)
|
4,097
|
(5,814
|
)
|
(141.9
|
)%
|
|||||||||
Total
|
$
|
(2,388
|
)
|
$
|
4,023
|
$
|
(6,411
|
)
|
(159.4
|
)%
|
Nine Months Ended
December 31,
|
Favorable
|
|||||||||||||||
2010
|
2009
|
(Unfavorable)
|
||||||||||||||
(In thousands, except percentages)
|
||||||||||||||||
Effective income tax rate
|
0.0
|
%
|
23.8
|
%
|
23.8
|
%
|
*
|
|||||||||
Net foreign tax on non-U.S. earnings
|
$
|
10,332
|
$
|
12,266
|
$
|
1,934
|
15.8
|
%
|
||||||||
Foreign earnings indefinitely reinvested abroad
|
(29,912
|
)
|
(31,895
|
)
|
(1,983
|
)
|
(6.2
|
)%
|
||||||||
Change in valuation allowance for foreign tax credit utilization
|
—
|
1,503
|
1,503
|
100.0
|
%
|
|||||||||||
Expense from change in tax contingency
|
2,658
|
3,720
|
1,062
|
28.5
|
%
|
|||||||||||
Foreign statutory rate reduction
|
(2,038
|
)
|
—
|
2,038
|
*
|
|||||||||||
Release of deferred tax liability due to restructure
|
(17,698
|
)
|
—
|
17,698
|
*
|
Nine Months Ended
December 31,
|
||||||
2010
|
2009
|
|||||
Number of aircraft delivered:
|
||||||
Small
|
—
|
4
|
||||
Medium
|
4
|
8
|
||||
Large
|
1
|
7
|
||||
Fixed wing
|
—
|
1
|
||||
Total aircraft
|
5
|
20
|
||||
Capital expenditures (in thousands):
|
||||||
Aircraft and related equipment
|
$
|
104,071 |
$
|
236,248
|
||
Other
|
18,677 |
14,024
|
||||
Total capital expenditures
|
$
|
122,748
|
$
|
250,272
|
Payments Due by Period
|
||||||||||||||||||||||||
Nine Months
Ending
|
Fiscal Year Ending March 31,
|
|||||||||||||||||||||||
Total
|
March 31,
2011
|
2012 –
2013
|
2014 –
2015
|
2016 and
beyond
|
Other
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Contractual obligations:
|
||||||||||||||||||||||||
Long-term debt and short-term borrowings:
|
||||||||||||||||||||||||
Principal (1)
|
$
|
741,680
|
$
|
1,881
|
$
|
25,801
|
$
|
53,770
|
$
|
660,228
|
$
|
—
|
||||||||||||
Interest
|
326,815
|
17,677
|
76,977
|
81,012
|
151,149
|
—
|
||||||||||||||||||
Aircraft operating leases (2)
|
105,464
|
3,841
|
26,273
|
25,122
|
50,228
|
—
|
||||||||||||||||||
Other operating leases (3)
|
54,912
|
3,875
|
16,388
|
9,552
|
25,097
|
—
|
||||||||||||||||||
Capital lease obligation
|
11,115
|
293
|
2,340
|
2,340
|
6,142
|
—
|
||||||||||||||||||
Pension obligations (4)
|
155,135
|
5,118
|
42,070
|
43,230
|
64,717
|
—
|
||||||||||||||||||
Aircraft purchase obligations (5)
|
105,264
|
13,333
|
91,931
|
—
|
—
|
—
|
||||||||||||||||||
Other purchase obligations (6)
|
19,776
|
19,572
|
204
|
—
|
—
|
—
|
||||||||||||||||||
Tax reserves (7)
|
11,485
|
—
|
—
|
—
|
—
|
11,485
|
||||||||||||||||||
Total contractual cash obligations
|
$
|
1,531,646
|
$
|
65,590
|
$
|
281,984
|
$
|
215,026
|
$
|
957,561
|
$
|
11,485
|
||||||||||||
Other commercial commitments:
|
||||||||||||||||||||||||
Debt guarantees (8)
|
$
|
15,655
|
$
|
—
|
$
|
15,655
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||||
Other guarantees (9)
|
23,817
|
1,712
|
3,368
|
18,737
|
—
|
—
|
||||||||||||||||||
Letters of credit
|
1,791
|
1,791
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Contingent consideration (10)
|
36,125
|
—
|
36,125
|
—
|
—
|
—
|
||||||||||||||||||
Other commitments (11)
|
72,124
|
6,900
|
19,224
|
46,000
|
—
|
—
|
||||||||||||||||||
Total commercial commitments
|
$
|
149,512
|
$
|
10,403
|
$
|
74,372
|
$
|
64,737
|
$
|
—
|
$
|
—
|
(1)
|
Excludes unamortized premium on the 7½% Senior Notes due 2017 of $0.4 million and unamortized discount on the 3% Convertible Senior Notes due 2038 of $16.6 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. For further details, see discussion in Note 8 in the “Notes to Consolidated Financial Statements” included in the fiscal year 2010 Annual Report
|
(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 both the U.K. and Norway pension plans will be fully funded in approximately seven and ten years, respectively. As of December 31, 2010, we had recorded on our condensed consolidated balance sheet a $112.2 million pension liability associated with these obligations. 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 5 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 9 in the “Notes to Consolidated Financial Statements” included in the fiscal year 2010 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 ($15.7 million) of the debt of FBS, an unconsolidated affiliate.
|
(9)
|
Relates to an indemnity agreement between us and Afianzadora Sofimex, S.A. to support the issuance of surety bonds on behalf of Heliservicio from time to time. As of December 31, 2010, surety bonds denominated in Mexican pesos with an aggregate value of 295 million Mexican pesos ($23.8 million) were outstanding. Furthermore, we have received a counter-guarantee from our partner in Heliservicio for 76% ($18.1 million) of the surety bonds outstanding. As discussed in Note 2 in the “Notes to Condensed Consolidated Financial Statements” included elsewhere in this Quarterly Report, on January 14, 2011 we entered into an agreement to sell our interest in Heliservicio. This agreement provides for our release from the indemnity agreement to Afianzadora Sofimex, S.A. We expect this transaction to be completed by March 31, 2011 at which time we will no longer provide this guarantee.
|
(10)
|
The Líder purchase agreement includes incremental and cumulative earn-out payments based upon the achievement of growth targets over the three-year periods ending December 31, 2011. Based on Líder’s audited results for the periods ended December 31, 2010 and 2009, $17.0 million in earn-out payments was not earned, leaving maximum total earn-out payments of $36.1 million. See Note 2 in the “Notes to Consolidated Financial Statements” included in the fiscal year 2010 Annual Report for discussion of the Líder acquisition.
|
(11)
|
In connection with the Bristow Norway acquisition (see Note 2 in the “Notes to Consolidated Financial Statements” included in the fiscal year 2010 Annual 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 and one option expired. 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 aircraft lease expires in August 2011.
|
Period (1)
|
Total Number of Shares Purchased (2)
|
Average Price Paid
Per Share
|
Total Number of
Shares Purchased as Part of Publicly Announced Program
|
|
Maximum Number
(or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plans or Programs
|
|||||||||
November 1, 2010 – November 30, 2010
|
421
|
$
|
41.31
|
—
|
$
|
—
|
||||||||
December 1, 2010 – December 31, 2010
|
22,459
|
$
|
47.61
|
—
|
$
|
—
|
(1)
|
No shares were purchased during the period of October 1, 2010 – October 31, 2010.
|
(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 and awards granted to employees under our 2007 Stock Incentive Plan.
|
Exhibit
Number
|
Description of Exhibit
|
10.1
|
Amended and Restated Bylaws (incorporated by reference to Exhibit 5.1 to the Company’s Current Report on Form 8-K dated November 4, 2010).
|
10.2*
|
Amended and Restated Revolving Credit and Term Loan Agreement.
|
15.1*
|
Letter from KPMG LLP dated February 2, 2011, 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.
|
101.INS±
|
XBRL Instance Document.
|
101.SCH±
|
XBRL Taxonomy Extension Schema Document.
|
101.CAL±
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.LAB±
|
XBRL Taxonomy Extension Labels Linkbase Document.
|
101.PRE±
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
*
|
Filed herewith.
|
**
|
Furnished herewith.
|
±
|
Furnished herewith. In accordance with Rule 406T of Regulation S-T, the information in these exhibits shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.
|
By: /s/ Jonathan E. Baliff
|
|
Jonathan E. Baliff
|
|
Senior Vice President and Chief Financial Officer
|
By: /s/ Brian J. Allman
|
|
Brian J. Allman
|
|
Vice President, Chief Accounting Officer
|
Exhibit
Number
|
Description of Exhibit
|
10.1
|
Amended and Restated Bylaws (incorporated by reference to Exhibit 5.1 to the Company’s Current Report on Form 8-K dated November 4, 2010).
|
Amended and Restated Revolving Credit and Term Loan Agreement.
|
|
Letter from KPMG LLP dated February 2, 2011, regarding unaudited interim information.
|
|
Rule 13a-14(a) Certification by Chief Executive Officer of Registrant.
|
|
Rule 13a-14(a) Certification by 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.
|
|
101.INS±
|
XBRL Instance Document.
|
101.SCH±
|
XBRL Taxonomy Extension Schema Document.
|
101.CAL±
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.LAB±
|
XBRL Taxonomy Extension Labels Linkbase Document.
|
101.PRE±
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
*
|
Filed herewith.
|
**
|
Furnished herewith.
|
±
|
Furnished herewith. In accordance with Rule 406T of Regulation S-T, the information in these exhibits shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.
|