R
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
For
the quarterly period ended December 31, 2007
|
|
OR
|
|
£
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
For
the transition period
from to
|
Delaware
|
72-0679819
|
(State
or other jurisdiction of
|
(IRS
Employer
|
incorporation
or organization)
|
Identification
Number)
|
2000
W. Sam Houston Pkwy. S.,
|
77042
|
Suite
1700
|
(Zip
Code)
|
Houston,
Texas
|
|
(Address
of principal executive offices)
|
None
|
(Former
name, former address and former fiscal year, if changed since last
report)
|
Page
|
|||
PART
I
|
|||
Item
1.
|
2
|
||
Item
2.
|
31
|
||
Item
3.
|
54
|
||
Item
4.
|
55
|
||
PART
II
|
|||
Item
1.
|
56
|
||
Item
1A.
|
56
|
||
Item
2.
|
57
|
||
Item
6.
|
58
|
||
59
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
||||||||||||||
2006
|
2007
|
2006
|
2007
|
||||||||||||
(Unaudited)
|
|||||||||||||||
(In
thousands, except per share amounts)
|
|||||||||||||||
Gross
revenue:
|
|||||||||||||||
Operating
revenue from non-affiliates
|
$
|
180,343
|
$
|
222,831
|
$
|
530,323
|
$
|
642,598
|
|||||||
Operating
revenue from affiliates
|
10,701
|
13,633
|
34,411
|
38,588
|
|||||||||||
Reimbursable
revenue from non-affiliates
|
18,793
|
23,439
|
58,794
|
66,075
|
|||||||||||
Reimbursable
revenue from affiliates
|
1,172
|
1,617
|
3,390
|
5,218
|
|||||||||||
211,009
|
261,520
|
626,918
|
752,479
|
||||||||||||
Operating
expense:
|
|||||||||||||||
Direct
cost
|
140,867
|
169,704
|
408,977
|
475,416
|
|||||||||||
Reimbursable
expense
|
20,575
|
24,344
|
62,691
|
68,587
|
|||||||||||
Depreciation
and amortization
|
11,015
|
12,445
|
31,942
|
36,127
|
|||||||||||
General
and administrative
|
19,355
|
22,373
|
49,662
|
61,018
|
|||||||||||
Gain
on disposal of assets
|
(1,044
|
)
|
(4,094
|
)
|
(5,706
|
)
|
(3,921
|
)
|
|||||||
190,768
|
224,772
|
547,566
|
637,227
|
||||||||||||
Operating
income
|
20,241
|
36,748
|
79,352
|
115,252
|
|||||||||||
Earnings
from unconsolidated affiliates, net of losses
|
2,106
|
3,725
|
5,393
|
11,233
|
|||||||||||
Interest
income
|
3,767
|
3,697
|
6,027
|
9,781
|
|||||||||||
Interest
expense
|
(2,539
|
)
|
(6,684
|
)
|
(8,646
|
)
|
(16,135
|
)
|
|||||||
Other
income (expense), net
|
(5,226
|
)
|
989
|
(11,319
|
)
|
1,775
|
|||||||||
Income
from continuing operations before provision for income taxes and
minority
interest
|
18,349
|
38,475
|
70,807
|
121,906
|
|||||||||||
Provision
for income taxes
|
(8,158
|
)
|
(12,302
|
)
|
(25,390
|
)
|
(40,035
|
)
|
|||||||
Minority
interest
|
(257
|
)
|
61
|
(1,049
|
)
|
(392
|
)
|
||||||||
Income
from continuing operations
|
9,934
|
26,234
|
44,368
|
81,479
|
|||||||||||
Discontinued
operations:
|
|||||||||||||||
Income
(loss) from discontinued operations before provision for income
taxes
|
812
|
(1,429
|
)
|
3,721
|
690
|
||||||||||
Provision
for income taxes on discontinued operations
|
(295
|
)
|
(4,657
|
)
|
(1,334
|
)
|
(5,399
|
)
|
|||||||
Income
(loss) from discontinued operations
|
517
|
(6,086
|
)
|
2,387
|
(4,709
|
)
|
|||||||||
Net
income
|
10,451
|
20,148
|
46,755
|
76,770
|
|||||||||||
Preferred
stock dividends
|
(3,150
|
)
|
(3,162
|
)
|
(3,471
|
)
|
(9,487
|
)
|
|||||||
Net
income available to common stockholders
|
$
|
7,301
|
$
|
16,986
|
$
|
43,284
|
$
|
67,283
|
|||||||
Basic
earnings per common share:
|
|||||||||||||||
Earnings
from continuing operations
|
$
|
0.29
|
$
|
0.97
|
$
|
1.75
|
$
|
3.03
|
|||||||
Earnings
(loss) from discontinued operations
|
0.02
|
(0.26
|
)
|
0.10
|
(0.19
|
)
|
|||||||||
Net
earnings
|
$
|
0.31
|
$
|
0.71
|
$
|
1.85
|
$
|
2.84
|
|||||||
Diluted
earnings per common share:
|
|||||||||||||||
Earnings
from continuing operations
|
$
|
0.29
|
$
|
0.86
|
$
|
1.71
|
$
|
2.68
|
|||||||
Earnings
(loss) from discontinued operations
|
0.02
|
(0.20
|
)
|
0.09
|
(0.16
|
)
|
|||||||||
Net
earnings
|
$
|
0.31
|
$
|
0.66
|
$
|
1.80
|
$
|
2.52
|
March
31,
2007
|
December
31,
2007
|
||||||||
(Unaudited)
|
|||||||||
(In
thousands)
|
|||||||||
ASSETS
|
|||||||||
Current
assets:
|
|||||||||
Cash
and cash
equivalents
|
$
|
178,268
|
$
|
315,265
|
|||||
Accounts
receivable from
non-affiliates, net of allowance for doubtful accounts of $1.8
million
and $1.8 million,
respectively
|
147,608
|
185,083
|
|||||||
Accounts
receivable from
affiliates, net of allowance for doubtful accounts of $3.2
million
and $3.2 million,
respectively
|
17,199
|
16,960
|
|||||||
Inventories
|
157,563
|
174,681
|
|||||||
Prepaid
expenses and
other
|
17,387
|
18,154
|
|||||||
Current
assets from discontinued
operations
|
17,949
|
—
|
|||||||
Total
current
assets
|
535,974
|
710,143
|
|||||||
Investment
in unconsolidated
affiliates
|
46,828
|
53,834
|
|||||||
Property
and equipment – at
cost:
|
|||||||||
Land
and
buildings
|
51,785
|
57,820
|
|||||||
Aircraft
and
equipment
|
1,139,781
|
1,399,044
|
|||||||
1,191,566
|
1,456,864
|
||||||||
Less
–
Accumulated
depreciation
and amortization
|
(300,045
|
)
|
(306,673
|
)
|
|||||
891,521
|
1,150,191
|
||||||||
Goodwill
|
6,630
|
15,633
|
|||||||
Other
assets
|
10,725
|
30,590
|
|||||||
Long-term
assets from discontinued
operations
|
14,125
|
—
|
|||||||
$
|
1,505,803
|
$
|
1,960,391
|
||||||
LIABILITIES
AND STOCKHOLDERS’
INVESTMENT
|
|||||||||
Current
liabilities:
|
|||||||||
Accounts
payable
|
$
|
40,459
|
$
|
37,997
|
|||||
Accrued
wages, benefits and
related taxes
|
36,390
|
37,021
|
|||||||
Income
taxes
payable
|
3,412
|
8,777
|
|||||||
Other
accrued
taxes
|
9,042
|
2,991
|
|||||||
Deferred
revenues
|
16,283
|
19,876
|
|||||||
Accrued
maintenance and
repairs
|
12,309
|
15,932
|
|||||||
Accrued
interest
|
4,511
|
8,780
|
|||||||
Other
accrued
liabilities
|
17,151
|
20,702
|
|||||||
Deferred
taxes
|
18,097
|
11,352
|
|||||||
Short-term
borrowings and current
maturities of long-term debt
|
4,852
|
7,351
|
|||||||
Current
liabilities from
discontinued operations
|
5,462
|
—
|
|||||||
Total
current
liabilities
|
167,968
|
170,779
|
|||||||
Long-term
debt, less current
maturities
|
254,230
|
600,469
|
|||||||
Accrued
pension
liabilities
|
113,069
|
107,005
|
|||||||
Other
liabilities and deferred
credits
|
17,345
|
15,024
|
|||||||
Deferred
taxes
|
76,054
|
102,681
|
|||||||
Long-term
liabilities from
discontinued operations
|
35
|
—
|
|||||||
Minority
interest
|
5,445
|
5,099
|
|||||||
Commitments
and contingencies
(Note 6)
|
|||||||||
Stockholders’
investment:
|
|||||||||
5.50%
mandatory convertible
preferred stock, $.01 par value, authorized and outstanding 4,600,000
shares; entitled on liquidation to $230 million; net of offering
costs of
$7.4 million
|
222,554
|
222,554
|
|||||||
Common
stock, $.01 par value,
authorized 35,000,000 shares as of March 31 and 90,000,000
shares as of December
31;
out
standing: 23,585,370 as of
March 31 and 23,900,591 as of December 31 (exclusive of 1,281,050
treasury
shares)
|
236
|
239
|
|||||||
Additional
paid-in
capital
|
169,353
|
183,517
|
|||||||
Retained
earnings
|
515,589
|
582,872
|
|||||||
Accumulated
other comprehensive
loss
|
(36,075
|
)
|
(29,848
|
)
|
|||||
871,657
|
959,334
|
||||||||
$
|
1,505,803
|
$
|
1,960,391
|
Nine
Months Ended
|
||||||||
December
31,
|
||||||||
2006
|
2007
|
|||||||
(Unaudited)
|
||||||||
(In
thousands)
|
||||||||
Cash
flows from operating
activities:
|
||||||||
Net
income
|
$
|
46,755
|
$
|
76,770
|
||||
Adjustments
to reconcile net
income to net cash provided by (used in) operating
activities:
|
||||||||
Depreciation
and
amortization
|
32,080
|
36,228
|
||||||
Deferred
income
taxes
|
17,177
|
19,952
|
||||||
Gain
on disposal of discontinued
operations
|
—
|
(476
|
)
|
|||||
Gain
on asset
dispositions
|
(5,707
|
)
|
(3,924
|
)
|
||||
Stock-based
compensation
expense
|
3,465
|
7,176
|
||||||
Equity
in earnings from
unconsolidated affiliates in excess ofdividends
received
|
(430
|
)
|
(4,774
|
)
|
||||
Minority
interest in
earnings
|
1,049
|
392
|
||||||
Tax
benefit related to exercise of
stock options
|
(837
|
)
|
(2,008
|
)
|
||||
Increase
(decrease) in cash
resulting from changes in:
|
||||||||
Accounts
receivable
|
(4,380
|
)
|
(40,778
|
)
|
||||
Inventories
|
(10,706
|
)
|
(17,231
|
)
|
||||
Prepaid
expenses and
other
|
(206
|
)
|
(8,204
|
)
|
||||
Accounts
payable
|
(15,991
|
)
|
(4,714
|
)
|
||||
Accrued
liabilities
|
6,303
|
9,685
|
||||||
Other
liabilities and deferred
credits
|
(707
|
)
|
(10,335
|
)
|
||||
Net
cash provided by operating
activities
|
67,865
|
57,759
|
||||||
Cash
flows from investing
activities:
|
||||||||
Capital
expenditures
|
(216,246
|
)
|
(288,847
|
)
|
||||
Proceeds
from asset
dispositions
|
24,005
|
23,007
|
||||||
Acquisitions,
net of cash
received
|
—
|
(14,622
|
)
|
|||||
Net
proceeds from sale of
discontinued operations
|
—
|
21,958
|
||||||
Note
issued to unconsolidated
affiliate
|
—
|
(4,141
|
)
|
|||||
Investment
in unconsolidated
affiliate
|
—
|
(1,960
|
)
|
|||||
Net
cash used in investing
activities
|
(192,241
|
)
|
(264,605
|
)
|
||||
Cash
flows from financing
activities:
|
||||||||
Proceeds
from
borrowings
|
—
|
350,622
|
||||||
Debt
issuance
costs
|
—
|
(5,806
|
)
|
|||||
Issuance
of Preferred
Stock
|
223,550
|
—
|
||||||
Preferred
Stock issuance
costs
|
(994
|
)
|
—
|
|||||
Repayment
of debt and debt
redemption premiums
|
(5,570
|
)
|
(8,175
|
)
|
||||
Partial
prepayment of put/call
obligation
|
(96
|
)
|
(120
|
)
|
||||
Preferred
Stock dividends
paid
|
(2,944
|
)
|
(9,487
|
)
|
||||
Issuance
of common
stock
|
2,926
|
5,226
|
||||||
Tax
benefit related to exercise of
stock options
|
837
|
2,008
|
||||||
Net
cash provided by financing
activities
|
217,709
|
334,268
|
||||||
Effect
of exchange rate changes on
cash and cash equivalents
|
3,884
|
3,655
|
||||||
Net
increase in cash and cash
equivalents
|
97,217
|
131,077
|
||||||
Cash
and cash equivalents at
beginning of period (including $2.6 million and $5.9 million in
cash
related to discontinued operations as of March 31, 2006 and March
31,
2007, respectively)
|
122,482
|
184,188
|
||||||
Cash
and cash equivalents at end
of period (including $4.0
million in cash related to
discontinued operations as of December 31, 2006)
|
$
|
219,699
|
$
|
315,265
|
||||
Supplemental
disclosure of cash
flow information:
|
||||||||
Cash
paid during the period
for:
|
||||||||
Interest,
net of interest
capitalized
|
$
|
10,914
|
$
|
20,441
|
||||
Income
taxes
|
$
|
15,676
|
$
|
21,321
|
Three
Months
Ended
December
31,
|
Nine
Months
Ended
December
31,
|
||||||||||||||
2006
|
2007
|
2006
|
2007
|
||||||||||||
High
|
$
|
1.98
|
$
|
2.11
|
$
|
1.98
|
$
|
2.11
|
|||||||
Average
|
1.91
|
2.05
|
1.87
|
2.02
|
|||||||||||
Low
|
1.86
|
1.98
|
1.74
|
1.97
|
Sale
price
|
$
|
22,500
|
||
Adjustment
for working
capital
|
7,801
|
|||
Gross
proceeds
|
30,301
|
|||
Net
assets
sold
|
(29,825
|
)
|
||
476
|
||||
Transaction
expenses
|
(2,031
|
)
|
||
Pre-tax
loss on
sale
|
(1,555
|
)
|
||
Provision
for income taxes
(1)
|
(4,613
|
)
|
||
After-tax
loss on sale of
discontinued operations
|
$
|
(6,168
|
)
|
(1)
|
Includes
$5.2 million of tax
expense related to taxes on non-deductible
goodwill.
|
April 2, 2007
|
|||||
(In thousands)
|
|||||
Current
assets
|
$
|
2,925
|
|||
Property
and
equipment
|
8,689
|
||||
Other
assets
|
12,011
|
||||
Total
assets
acquired
|
23,625
|
||||
Current
liabilities, including
debt
|
8,461
|
||||
Total
liabilities
assumed
|
8,461
|
||||
Net
assets
acquired
|
$
|
15,164
|
March
31,
2007
|
December
31,
2007
|
|||||
7
½% Senior Notes due 2017, including $0.6 million of unamortized
premium
|
$
|
—
|
$
|
350,617
|
||
6
⅛% Senior Notes due 2013
|
230,000
|
230,000
|
||||
Term
loans
|
18,848
|
17,257
|
||||
Hemisco
Helicopters International, Inc. note
|
4,380
|
4,380
|
||||
Short-term
advance from customer
|
1,400
|
1,400
|
||||
Note
to Sakhalin Aviation Services Ltd.
|
389
|
256
|
||||
Sakhalin
debt
|
4,065
|
3,130
|
||||
Bristow
Academy debt
|
—
|
780
|
||||
Total
debt
|
259,082
|
607,820
|
||||
Less
short-term borrowings and current maturities of long-term
debt
|
(4,852
|
)
|
(7,351
|
)
|
||
Total
long-term debt
|
$
|
254,230
|
$
|
600,469
|
Three
Months
Ending March 31,
|
Fiscal
Year Ending March 31,
|
|||||||||||||||||||||
2008
|
2009
|
2010
|
2011
|
2012-2013
|
Total
|
|||||||||||||||||
Commitments
as of December 31,
2007:
|
||||||||||||||||||||||
Number
of
aircraft:
|
||||||||||||||||||||||
Small
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||
Medium
|
—
|
6
|
3
|
—
|
—
|
9
|
||||||||||||||||
Large
|
2
|
11
|
4
|
—
|
—
|
17
|
||||||||||||||||
Training
|
2
|
—
|
—
|
—
|
—
|
2
|
||||||||||||||||
4
|
(1)
|
17
|
(2)
(3)
|
7
|
(3)
|
—
|
—
|
28
|
||||||||||||||
Related
expenditures (in
thousands) (4)
|
$
|
63,872
|
$
|
217,573
|
$
|
63,211
|
$
|
—
|
$
|
—
|
$
|
344,656
|
||||||||||
Options
as of December 31,
2007:
|
||||||||||||||||||||||
Number
of
aircraft:
|
||||||||||||||||||||||
Medium
|
—
|
—
|
2
|
8
|
11
|
21
|
||||||||||||||||
Large
|
—
|
—
|
7
|
6
|
—
|
13
|
||||||||||||||||
—
|
—
|
9
|
14
|
11
|
34
|
|||||||||||||||||
Related
expenditures (in
thousands) (4)
|
$
|
1,121
|
$
|
57,583
|
$
|
201,184
|
$
|
132,174
|
$
|
80,586
|
$
|
472,648
|
(1)
|
Signed
customer contracts are
currently in place for both large aircraft.
|
(2)
|
Signed
customer contracts are
currently in place for 6 of these 17 aircraft.
|
(3)
|
Includes orders for one large aircraft in fiscal year 2009 and three medium and four large aircraft in fiscal year 2010, which were approved by our board of directors on January 10, 2008. |
(4)
|
Includes
progress payments on
aircraft scheduled to be delivered in future
periods.
|
Three
Months Ended
|
||||||||||||||||||||||
June
30, 2007
|
September
30, 2007
|
December
31, 2007
|
||||||||||||||||||||
Orders
|
Options
|
Orders
|
Options
|
Orders
|
Options
|
|||||||||||||||||
Beginning
of
quarter
|
31
|
52
|
32
|
52
|
32
|
42
|
||||||||||||||||
Aircraft
delivered
|
(7
|
)
|
—
|
(9
|
)
|
—
|
(12
|
)
|
—
|
|||||||||||||
Aircraft
ordered (1)
|
2
|
—
|
5
|
(6
|
)
|
8
|
(8
|
)
|
||||||||||||||
Training
aircraft
|
6
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||
Orders
converted to
options
|
—
|
—
|
4
|
(4
|
)
|
—
|
—
|
|||||||||||||||
End
of
quarter
|
32
|
52
|
32
|
42
|
28
|
34
|
(1)
|
The
five aircraft ordered during
the three months ended September 30, 2007 were in place of six
of our
existing options.
|
Amount
of Commitment Expiration Per Period
|
|||||||||||||||||
Total
|
Remainder
of Fiscal Year 2008
|
Fiscal
Years 2009-2010
|
Fiscal
Years 2011-2012
|
Fiscal
Year 2013 and Thereafter
|
|||||||||||||
(In
thousands)
|
|||||||||||||||||
$
|
37,382
|
$
|
14,056
|
$
|
3,417
|
$
|
19,909
|
$
|
—
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
||||||||||||||
2006
|
2007
|
2006
|
2007
|
||||||||||||
(In
thousands)
|
|||||||||||||||
Service
cost for benefits earned during the period
|
$
|
66
|
$
|
73
|
$
|
194
|
$
|
215
|
|||||||
Interest
cost on pension benefit obligation
|
5,742
|
6,756
|
16,847
|
19,990
|
|||||||||||
Expected
return on assets
|
(5,941
|
)
|
(6,994
|
)
|
(17,431
|
)
|
(20,694
|
)
|
|||||||
Amortization
of unrecognized experience losses
|
921
|
1,055
|
2,702
|
3,121
|
|||||||||||
Net
periodic pension cost
|
$
|
788
|
$
|
890
|
$
|
2,312
|
$
|
2,632
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
|||||||||||
2006
|
2007
|
2006
|
2007
|
|||||||||
Earnings
(in thousands):
|
||||||||||||
Continuing
operations:
|
||||||||||||
Income
available to common stockholders – basic
|
$
|
6,784
|
$
|
23,072
|
$
|
40,897
|
$
|
71,992
|
||||
Preferred
Stock dividends
|
—
|
3,162
|
3,471
|
9,487
|
||||||||
Income
available to common stockholders – diluted
|
$
|
6,784
|
$
|
26,234
|
$
|
44,368
|
$
|
81,479
|
||||
Discontinued
operations:
|
||||||||||||
Income
(loss) available to common stockholders – basic and
diluted
|
$
|
517
|
$
|
(6,086
|
)
|
$
|
2,387
|
$
|
(4,709
|
)
|
||
Net
earnings:
|
||||||||||||
Income
available to common stockholders – basic
|
$
|
7,301
|
$
|
16,986
|
$
|
43,284
|
$
|
67,283
|
||||
Preferred
Stock dividends
|
—
|
3,162
|
3,471
|
9,487
|
||||||||
Income
available to common stockholders – diluted
|
$
|
7,301
|
$
|
20,148
|
$
|
46,755
|
$
|
76,770
|
||||
Shares:
|
||||||||||||
Weighted
average number of common shares outstanding – basic
|
23,506,295
|
23,811,848
|
23,428,374
|
23,727,522
|
||||||||
Assumed
conversion of Preferred Stock outstanding during the period (1)
|
—
|
6,522,800
|
2,386,504
|
6,522,800
|
||||||||
Net
effect of dilutive stock options and restricted stock units based
on the
treasury stock method
|
134,417
|
192,610
|
152,437
|
199,702
|
||||||||
Weighted
average number of common shares outstanding – diluted
|
23,640,712
|
30,527,258
|
25,967,315
|
30,450,024
|
||||||||
Basic
earnings per common share:
|
||||||||||||
Earnings
from continuing operations
|
$
|
0.29
|
$
|
0.97
|
$
|
1.75
|
$
|
3.03
|
||||
Earnings
(loss) from discontinued operations
|
0.02
|
(0.26
|
)
|
0.10
|
(0.19
|
)
|
||||||
Net
earnings
|
$
|
0.31
|
$
|
0.71
|
$
|
1.85
|
$
|
2.84
|
||||
Diluted
earnings per common share:
|
||||||||||||
Earnings
from continuing operations
|
$
|
0.29
|
$
|
0.86
|
$
|
1.71
|
$
|
2.68
|
||||
Earnings
(loss) from discontinued operations
|
0.02
|
(0.20
|
)
|
0.09
|
(0.16
|
)
|
||||||
Net
earnings
|
$
|
0.31
|
$
|
0.66
|
$
|
1.80
|
$
|
2.52
|
(1)
|
Diluted
earnings per common share
included weighted average shares resulting from the assumed conversion
of
our Preferred Stock at the conversion rate that results in the
most
dilution: 1.4180 shares of common stock for each share of
Preferred Stock. If the average of the closing price per share
of our common stock on each of the 20 consecutive trading days
ending on
the third day immediately preceding the mandatory conversion date
of
September 15, 2009 is greater than $35.26 per share, then the Preferred
Stock will convert into fewer shares than assumed for diluted earnings
per
common share. If such average is $43.19 per share or more, then
the Preferred Stock will convert into 1,197,840 fewer shares than
assumed
for diluted earnings per common
share.
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2006
|
2007
|
2006
|
2007
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Gross
revenue from external
customers:
|
||||||||||||||||
North
America
|
$
|
57,302
|
$
|
56,046
|
$
|
180,412
|
$
|
177,891
|
||||||||
South
and Central
America
|
13,173
|
16,476
|
39,322
|
49,463
|
||||||||||||
Europe
|
72,479
|
94,384
|
214,581
|
270,259
|
||||||||||||
West
Africa
|
35,062
|
46,287
|
98,008
|
125,369
|
||||||||||||
Southeast
Asia
|
18,181
|
29,918
|
52,847
|
76,268
|
||||||||||||
Other
International
|
11,462
|
11,615
|
32,582
|
34,862
|
||||||||||||
EH
Centralized
Operations
|
3,350
|
2,788
|
9,192
|
8,114
|
||||||||||||
Bristow Academy
|
—
|
3,969
|
—
|
10,216
|
||||||||||||
Corporate
|
—
|
37
|
(26
|
)
|
37
|
|||||||||||
Total
segment gross
revenue
|
$
|
211,009
|
$
|
261,520
|
$
|
626,918
|
$
|
752,479
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2006
|
2007
|
2006
|
2007
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Intrasegment
gross
revenue:
|
||||||||||||||||
North
America
|
$
|
493
|
$
|
1,221
|
$
|
3,255
|
$
|
2,374
|
||||||||
South
and Central
America
|
—
|
—
|
—
|
—
|
||||||||||||
Europe
|
1,400
|
716
|
3,985
|
1,657
|
||||||||||||
West
Africa
|
—
|
—
|
—
|
—
|
||||||||||||
Southeast
Asia
|
—
|
—
|
—
|
—
|
||||||||||||
Other
International
|
—
|
259
|
19
|
513
|
||||||||||||
EH
Centralized
Operations
|
466
|
2,451
|
1,236
|
9,261
|
||||||||||||
Bristow Academy
|
—
|
—
|
—
|
—
|
||||||||||||
Total
intrasegment gross
revenue
|
$
|
2,359
|
$
|
4,647
|
$
|
8,495
|
$
|
13,805
|
Consolidated
gross revenue
reconciliation:
|
||||||||||||||||
North
America
|
$
|
57,795
|
$
|
57,267
|
$
|
183,667
|
$
|
180,265
|
||||||||
South
and Central
America
|
13,173
|
16,476
|
39,322
|
49,463
|
||||||||||||
Europe
|
73,879
|
95,100
|
218,566
|
271,916
|
||||||||||||
West
Africa
|
35,062
|
46,287
|
98,008
|
125,369
|
||||||||||||
Southeast
Asia
|
18,181
|
29,918
|
52,847
|
76,268
|
||||||||||||
Other
International
|
11,462
|
11,874
|
32,601
|
35,375
|
||||||||||||
EH
Centralized
Operations
|
3,816
|
5,239
|
10,428
|
17,375
|
||||||||||||
Bristow Academy
|
—
|
3,969
|
—
|
10,216
|
||||||||||||
Intrasegment
eliminations
|
(2,359
|
)
|
(4,647
|
)
|
(8,495
|
)
|
(13,805
|
)
|
||||||||
Corporate
|
—
|
37
|
(26
|
)
|
37
|
|||||||||||
Total
consolidated gross revenue
(1)
|
$
|
211,009
|
$
|
261,520
|
$
|
626,918
|
$
|
752,479
|
Consolidated
operating income
(loss) reconciliation:
|
||||||||||||||||
North
America
|
$
|
5,906
|
$
|
6,875
|
$
|
22,246
|
$
|
28,458
|
||||||||
South
and Central
America
|
3,747
|
4,132
|
11,341
|
12,390
|
||||||||||||
Europe
|
9,554
|
20,695
|
37,177
|
57,165
|
||||||||||||
West
Africa
|
5,838
|
7,019
|
13,019
|
25,308
|
||||||||||||
Southeast
Asia
|
3,030
|
6,476
|
8,675
|
15,710
|
||||||||||||
Other
International
|
1,642
|
712
|
6,929
|
4,758
|
||||||||||||
EH
Centralized
Operations
|
(2,265
|
)
|
(6,404
|
)
|
(6,616
|
)
|
(13,930
|
)
|
||||||||
Bristow Academy
|
—
|
(130
|
)
|
—
|
(612
|
)
|
||||||||||
Gain
on disposal of
assets
|
1,044
|
4,094
|
5,706
|
3,921
|
||||||||||||
Corporate
|
(8,255
|
)
|
(6,721
|
)
|
(19,125
|
)
|
(17,916
|
)
|
||||||||
Total
consolidated operating
income
|
$
|
20,241
|
$
|
36,748
|
$
|
79,352
|
$
|
115,252
|
March
31,
2007
|
December
31,
2007
|
||||||||
(In
thousands)
|
|||||||||
Identifiable
assets:
|
|||||||||
North
America
|
$
|
268,984
|
$
|
275,665
|
|||||
South
and Central
America
|
158,383
|
187,337
|
|||||||
Europe
|
419,923
|
508,385
|
|||||||
West
Africa
|
159,781
|
218,106
|
|||||||
Southeast
Asia
|
59,400
|
115,575
|
|||||||
Other
International
|
77,357
|
104,007
|
|||||||
EH
Centralized
Operations
|
71,918
|
54,894
|
|||||||
Bristow Academy
|
—
|
30,815
|
|||||||
Corporate
(2)
|
257,983
|
465,607
|
|||||||
Total
consolidated identifiable
assets (3)
|
$
|
1,473,729
|
$
|
1,960,391
|
(1)
|
Includes
reimbursable revenue of
$20.0 million and $25.1 million for the three months ended December
31,
2006 and 2007, respectively, and $62.2 million and $71.3 million
for the
nine months ended December 31, 2006 and 2007,
respectively.
|
(2)
|
Includes
$165.4 million and
$247.9 million,
respectively, in progress
payments on aircraft scheduled to be delivered in future periods,
which is
included in construction in progress within property and equipment
on our
condensed consolidated balance sheets as of March 31 and December
31,
2007.
|
(3)
|
Excludes
$32.1 million in
identifiable assets from discontinued operations as of March 31,
2007.
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2006
|
2007
|
2006
|
2007
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Net
income
|
$
|
10,451
|
$
|
20,148
|
$
|
46,755
|
$
|
76,770
|
||||||||
Other
comprehensive income (loss):
|
||||||||||||||||
Currency
translation adjustments
|
15,892
|
(8,980
|
)
|
37,213
|
6,357
|
|||||||||||
Unrealized
loss on cash flow hedges (net of income tax
effect
of $0.1 million)
|
—
|
(130
|
)
|
—
|
(130
|
)
|
||||||||||
Comprehensive
income
|
$
|
26,343
|
$
|
11,038
|
$
|
83,968
|
$
|
82,997
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Gross
revenue
|
$
|
(1
|
)
|
$
|
69,118
|
$
|
141,892
|
$
|
—
|
$
|
211,009
|
|||||||||
Intercompany
revenue
|
—
|
3,954
|
2,807
|
(6,761
|
)
|
—
|
||||||||||||||
(1
|
)
|
73,072
|
144,699
|
(6,761
|
)
|
211,009
|
||||||||||||||
Operating
expense:
|
||||||||||||||||||||
Direct
cost
|
(187
|
)
|
48,443
|
113,186
|
—
|
161,442
|
||||||||||||||
Intercompany
expenses
|
—
|
2,808
|
3,953
|
(6,761
|
)
|
—
|
||||||||||||||
Depreciation
and
amortization
|
71
|
4,811
|
6,133
|
—
|
11,015
|
|||||||||||||||
General
and
administrative
|
8,370
|
3,746
|
7,239
|
—
|
19,355
|
|||||||||||||||
Gain
on disposal of
assets
|
—
|
(978
|
)
|
(66
|
)
|
—
|
(1,044
|
)
|
||||||||||||
8,254
|
58,830
|
130,445
|
(6,761
|
)
|
190,768
|
|||||||||||||||
Operating
income
(loss)
|
(8,255
|
)
|
14,242
|
14,254
|
—
|
20,241
|
||||||||||||||
Earnings
(losses) from
unconsolidated affiliates,
net
|
2,055
|
(184
|
)
|
2,341
|
(2,106
|
)
|
2,106
|
|||||||||||||
Interest
income
|
21,496
|
23
|
1,029
|
(18,781
|
)
|
3,767
|
||||||||||||||
Interest
expense
|
(2,826
|
)
|
—
|
(18,494
|
)
|
18,781
|
(2,539
|
)
|
||||||||||||
Other
expense,
net
|
(1,908
|
)
|
(36
|
)
|
(3,282
|
)
|
—
|
(5,226
|
)
|
|||||||||||
Income
from continuing operations
before provision for
income
taxes and minority interest
|
10,562
|
14,045
|
(4,152
|
)
|
(2,106
|
)
|
18,349
|
|||||||||||||
Allocation
of consolidated income
taxes
|
(74
|
)
|
(1,585
|
)
|
(6,499
|
)
|
—
|
(8,158
|
)
|
|||||||||||
Minority
interest
|
(37
|
)
|
—
|
(220
|
)
|
—
|
(257
|
)
|
||||||||||||
Income
(loss) from continuing
operations
|
10,451
|
12,460
|
(10,871
|
)
|
(2,106
|
)
|
9,934
|
|||||||||||||
Discontinued
operations:
|
||||||||||||||||||||
Income
from discontinued
operations
before
provision for income
taxes
|
—
|
812
|
—
|
—
|
812
|
|||||||||||||||
Provision
for income taxes on
discontinuedoperations
|
—
|
(295
|
)
|
—
|
—
|
(295
|
)
|
|||||||||||||
Income
from discontinued
operations
|
—
|
517
|
—
|
—
|
517
|
|||||||||||||||
Net
income
(loss)
|
$
|
10,451
|
$
|
12,977
|
$
|
(10,871
|
)
|
$
|
(2,106
|
)
|
$
|
10,451
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Gross
revenue
|
$
|
(26
|
)
|
$
|
208,072
|
$
|
418,872
|
$
|
—
|
$
|
626,918
|
|||||||||
Intercompany
revenue
|
—
|
10,634
|
8,528
|
(19,162
|
)
|
—
|
||||||||||||||
(26
|
)
|
218,706
|
427,400
|
(19,162
|
)
|
626,918
|
||||||||||||||
Operating
expense:
|
||||||||||||||||||||
Direct
cost
|
7
|
150,645
|
321,016
|
—
|
471,668
|
|||||||||||||||
Intercompany
expenses
|
—
|
8,529
|
10,583
|
(19,112
|
)
|
—
|
||||||||||||||
Depreciation
and
amortization
|
153
|
13,494
|
18,295
|
—
|
31,942
|
|||||||||||||||
General
and
administrative
|
18,936
|
10,655
|
20,121
|
(50
|
)
|
49,662
|
||||||||||||||
Gain
on disposal of
assets
|
—
|
(1,169
|
)
|
(4,537
|
)
|
—
|
(5,706
|
)
|
||||||||||||
19,096
|
182,154
|
365,478
|
(19,162
|
)
|
547,566
|
|||||||||||||||
Operating
income
(loss)
|
(19,122
|
)
|
36,552
|
61,922
|
—
|
79,352
|
||||||||||||||
Earnings
(losses) from
unconsolidated affiliates,
net
|
26,715
|
(809
|
)
|
6,358
|
(26,871
|
)
|
5,393
|
|||||||||||||
Interest
income
|
51,457
|
57
|
3,092
|
(48,579
|
)
|
6,027
|
||||||||||||||
Interest
expense
|
(9,292
|
)
|
—
|
(47,933
|
)
|
48,579
|
(8,646
|
)
|
||||||||||||
Other
expense,
net
|
(2,002
|
)
|
(130
|
)
|
(9,187
|
)
|
—
|
(11,319
|
)
|
|||||||||||
Income
from continuing operations
before provision for
income
taxes and minority
interest
|
47,756
|
35,670
|
14,252
|
(26,871
|
)
|
70,807
|
||||||||||||||
Allocation
of consolidated income
taxes
|
(883
|
)
|
(3,272
|
)
|
(21,235
|
)
|
—
|
(25,390
|
)
|
|||||||||||
Minority
interest
|
(118
|
)
|
—
|
(931
|
)
|
—
|
(1,049
|
)
|
||||||||||||
Income
(loss) from continuing
operations
|
46,755
|
32,398
|
(7,914
|
)
|
(26,871
|
)
|
44,368
|
|||||||||||||
Discontinued
operations:
|
||||||||||||||||||||
Income
from discontinued
operations
before
provision for income
taxes
|
—
|
3,721
|
—
|
—
|
3,721
|
|||||||||||||||
Provision
for income taxes on
discontinued operations
|
—
|
(1,334
|
)
|
—
|
—
|
(1,334
|
)
|
|||||||||||||
Income
from discontinued
operations
|
—
|
2,387
|
—
|
—
|
2,387
|
|||||||||||||||
Net
income
(loss)
|
$
|
46,755
|
$
|
34,785
|
$
|
(7,914
|
)
|
$
|
(26,871
|
)
|
$
|
46,755
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Gross
revenue
|
$
|
39
|
$
|
73,788
|
$
|
187,693
|
$
|
—
|
$
|
261,520
|
||||||||||
Intercompany
revenue
|
—
|
5,421
|
4,491
|
(9,912
|
)
|
—
|
||||||||||||||
39
|
79,209
|
192,184
|
(9,912
|
)
|
261,520
|
|||||||||||||||
Operating
expense:
|
||||||||||||||||||||
Direct
cost
|
75
|
51,022
|
142,951
|
—
|
194,048
|
|||||||||||||||
Intercompany
expenses
|
—
|
4,495
|
5,417
|
(9,912
|
)
|
—
|
||||||||||||||
Depreciation
and
amortization
|
71
|
5,423
|
6,951
|
—
|
12,445
|
|||||||||||||||
General
and
administrative
|
8,625
|
1,571
|
12,177
|
—
|
22,373
|
|||||||||||||||
Gain
on disposal of
assets
|
—
|
(2,481
|
)
|
(1,613
|
)
|
—
|
(4,094
|
)
|
||||||||||||
8,771
|
60,030
|
165,883
|
(9,912
|
)
|
224,772
|
|||||||||||||||
Operating
income
(loss)
|
(8,732
|
)
|
19,179
|
26,301
|
—
|
36,748
|
||||||||||||||
Earnings
from unconsolidated
affiliates,
net
|
16,141
|
2
|
3,723
|
(16,141
|
)
|
3,725
|
||||||||||||||
Interest
income
|
22,965
|
93
|
501
|
(19,862
|
)
|
3,697
|
||||||||||||||
Interest
expense
|
(6,682
|
)
|
1
|
(19,865
|
)
|
19,862
|
|
(6,684
|
)
|
|||||||||||
Other
income (expense),
net
|
550
|
(478
|
)
|
917
|
—
|
989
|
||||||||||||||
Income
from continuing operations
before provision for
income
taxes and minority
interest
|
24,242
|
18,797
|
11,577
|
(16,141
|
)
|
38,475
|
||||||||||||||
Allocation
of consolidated income
taxes
|
(4,042
|
)
|
3,372
|
(11,632
|
)
|
—
|
(12,302
|
)
|
||||||||||||
Minority
interest
|
(52
|
)
|
—
|
113
|
—
|
61
|
||||||||||||||
Income
from continuing
operations
|
20,148
|
22,169
|
58
|
(16,141
|
)
|
26,234
|
||||||||||||||
Discontinued
operations:
|
||||||||||||||||||||
Loss
from discontinued
operations
before
provision for income
taxes
|
—
|
(1,429
|
)
|
—
|
—
|
(1,429
|
)
|
|||||||||||||
Provision
for income taxes on
discontinued operations
|
—
|
(4,657
|
)
|
—
|
—
|
(4,657
|
)
|
|||||||||||||
Loss
from discontinued
operations
|
—
|
(6,086
|
)
|
—
|
—
|
(6,086
|
)
|
|||||||||||||
Net
income
(loss)
|
$
|
20,148
|
$
|
16,083
|
$
|
58
|
$
|
(16,141
|
)
|
$
|
20,148
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Gross
revenue
|
$
|
39
|
$
|
227,072
|
$
|
525,368
|
$
|
—
|
$
|
752,479
|
||||||||||
Intercompany
revenue
|
—
|
14,575
|
13,988
|
(28,563
|
)
|
—
|
||||||||||||||
39
|
241,647
|
539,356
|
(28,563
|
)
|
752,479
|
|||||||||||||||
Operating
expense:
|
||||||||||||||||||||
Direct
cost
|
75
|
150,851
|
393,077
|
—
|
544,003
|
|||||||||||||||
Intercompany
expenses
|
—
|
14,114
|
14,449
|
(28,563
|
)
|
—
|
||||||||||||||
Depreciation
and
amortization
|
213
|
15,876
|
20,038
|
—
|
36,127
|
|||||||||||||||
General
and
administrative
|
19,625
|
8,048
|
33,345
|
—
|
61,018
|
|||||||||||||||
Loss
on disposal of
assets
|
—
|
(2,458
|
)
|
(1,463
|
)
|
—
|
(3,921
|
)
|
||||||||||||
19,913
|
186,431
|
459,446
|
(28,563
|
)
|
637,227
|
|||||||||||||||
Operating
income
(loss)
|
(19,874
|
)
|
55,216
|
79,910
|
—
|
115,252
|
||||||||||||||
Earnings
from unconsolidated
affiliates,
net
|
60,022
|
315
|
10,918
|
(60,022
|
)
|
11,233
|
||||||||||||||
Interest
income
|
65,344
|
137
|
1,669
|
(57,369
|
)
|
9,781
|
||||||||||||||
Interest
expense
|
(17,743
|
)
|
1
|
(55,762
|
)
|
57,369
|
(16,135
|
)
|
||||||||||||
Other
income (expense),
net
|
510
|
(575
|
)
|
1,840
|
—
|
1,775
|
||||||||||||||
Income
from continuing operations
before provision for
income
taxes and minority
interest
|
88,259
|
55,094
|
38,575
|
(60,022
|
)
|
121,906
|
||||||||||||||
Allocation
of consolidated income
taxes
|
(11,339
|
)
|
854
|
(29,550
|
)
|
—
|
(40,035
|
)
|
||||||||||||
Minority
interest
|
(150
|
)
|
—
|
(242
|
)
|
—
|
(392
|
)
|
||||||||||||
Income
from continuing
operations
|
76,770
|
55,948
|
8,783
|
(60,022
|
)
|
81,479
|
||||||||||||||
Discontinued
operations:
|
||||||||||||||||||||
Income
from discontinued
operations
before
provision for income
taxes
|
—
|
690
|
—
|
—
|
690
|
|||||||||||||||
Provision
for income taxes on
discontinued operations
|
—
|
(5,399
|
)
|
—
|
—
|
(5,399
|
)
|
|||||||||||||
Income
from discontinued
operations
|
—
|
(4,709
|
)
|
—
|
—
|
(4,709
|
)
|
|||||||||||||
Net
income
(loss)
|
$
|
76,770
|
$
|
51,239
|
$
|
8,783
|
$
|
(60,022
|
)
|
$
|
76,770
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
ASSETS
|
||||||||||||||||||||
Current
assets:
|
||||||||||||||||||||
Cash
and cash
equivalents
|
$
|
133,010
|
$
|
(2,486
|
)
|
$
|
47,744
|
$
|
—
|
$
|
178,268
|
|||||||||
Accounts
receivable
|
32,103
|
51,331
|
123,453
|
(42,080
|
)
|
164,807
|
||||||||||||||
Inventories
|
—
|
72,527
|
85,036
|
—
|
157,563
|
|||||||||||||||
Prepaid
expenses and
other
|
830
|
9,391
|
7,166
|
—
|
17,387
|
|||||||||||||||
Current
assets from discontinued
operations
|
—
|
17,949
|
—
|
—
|
17,949
|
|||||||||||||||
Total
current
assets
|
165,943
|
148,712
|
263,399
|
(42,080
|
)
|
535,974
|
||||||||||||||
Intercompany
investment
|
297,113
|
1,046
|
—
|
(298,159
|
)
|
—
|
||||||||||||||
Investment
in unconsolidated
affiliates
|
4,643
|
1,611
|
40,574
|
—
|
46,828
|
|||||||||||||||
Intercompany
notes
receivable
|
825,203
|
—
|
11,980
|
(837,183
|
)
|
—
|
||||||||||||||
Property
and equipment – at
cost:
|
||||||||||||||||||||
Land
and
buildings
|
263
|
36,624
|
14,898
|
—
|
51,785
|
|||||||||||||||
Aircraft
and
equipment
|
2,259
|
548,814
|
588,708
|
—
|
1,139,781
|
|||||||||||||||
2,522
|
585,438
|
603,606
|
—
|
1,191,566
|
||||||||||||||||
Less: Accumulated
depreciation and amortization
|
(1,471
|
)
|
(121,892
|
)
|
(176,682
|
)
|
—
|
(300,045
|
)
|
|||||||||||
1,051
|
463,546
|
426,924
|
—
|
891,521
|
||||||||||||||||
Goodwill
|
—
|
4,745
|
1,774
|
111
|
6,630
|
|||||||||||||||
Other
assets
|
9,348
|
224
|
1,153
|
—
|
10,725
|
|||||||||||||||
Long-term
assets from discontinued
operations
|
—
|
14,125
|
—
|
—
|
14,125
|
|||||||||||||||
$
|
1,303,301
|
$
|
634,009
|
$
|
745,804
|
$
|
(1,177,311
|
)
|
$
|
1,505,803
|
||||||||||
LIABILITIES
AND STOCKHOLDERS’
INVESTMENT
|
||||||||||||||||||||
Current
liabilities:
|
||||||||||||||||||||
Accounts
payable
|
$
|
1,043
|
$
|
14,744
|
$
|
36,028
|
$
|
(11,356
|
)
|
$
|
40,459
|
|||||||||
Accrued
liabilities
|
10,736
|
15,945
|
103,141
|
(30,724
|
)
|
99,098
|
||||||||||||||
Deferred
taxes
|
217
|
486
|
17,394
|
—
|
18,097
|
|||||||||||||||
Short-term
borrowings and
current
maturities
of long-term
debt
|
—
|
—
|
4,852
|
—
|
4,852
|
|||||||||||||||
Current
liabilities from
discontinued operations
|
—
|
5,462
|
—
|
—
|
5,462
|
|||||||||||||||
Total
current
liabilities
|
11,996
|
36,637
|
161,415
|
(42,080
|
)
|
167,968
|
||||||||||||||
Long-term
debt, less current
maturities
|
234,379
|
—
|
19,851
|
—
|
254,230
|
|||||||||||||||
Intercompany
notes
payable
|
14,569
|
230,773
|
591,841
|
(837,183
|
)
|
—
|
||||||||||||||
Other
liabilities and deferred
credits
|
4,529
|
9,644
|
116,241
|
—
|
130,414
|
|||||||||||||||
Deferred
taxes
|
42,655
|
2,260
|
31,139
|
—
|
76,054
|
|||||||||||||||
Long-term
liabilities from
discontinued operations
|
—
|
35
|
—
|
—
|
35
|
|||||||||||||||
Minority
interest
|
2,042
|
—
|
3,403
|
—
|
5,445
|
|||||||||||||||
Stockholders’
investment:
|
||||||||||||||||||||
5.50%
mandatory convertible
preferred stock
|
222,554
|
—
|
—
|
—
|
222,554
|
|||||||||||||||
Common
stock
|
236
|
4,062
|
35,426
|
(39,488
|
)
|
236
|
||||||||||||||
Additional
paid-in-capital
|
169,353
|
51,170
|
8,015
|
(59,185
|
)
|
169,353
|
||||||||||||||
Retained
earnings
|
515,589
|
299,428
|
(82,414
|
)
|
(217,014
|
)
|
515,589
|
|||||||||||||
Accumulated
other comprehensive
income
(loss)
|
85,399
|
—
|
(139,113
|
)
|
17,639
|
(36,075
|
)
|
|||||||||||||
993,131
|
354,660
|
(178,086
|
)
|
(298,048
|
)
|
871,657
|
||||||||||||||
$
|
1,303,301
|
$
|
634,009
|
$
|
745,804
|
$
|
(1,177,311
|
)
|
$
|
1,505,803
|
Parent
|
Non-
|
||||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
|||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||||
(In
thousands)
|
|||||||||||||||||||||
ASSETS
|
|||||||||||||||||||||
Current
assets:
|
|||||||||||||||||||||
Cash
and cash
equivalents
|
$
|
262,885
|
$
|
10,142
|
$
|
42,238
|
$
|
—
|
$
|
315,265
|
|||||||||||
Accounts
receivable
|
26,874
|
72,800
|
149,550
|
(47,181
|
)
|
202,043
|
|||||||||||||||
Inventories
|
—
|
74,402
|
100,279
|
—
|
174,681
|
||||||||||||||||
Prepaid
expenses and
other
|
279
|
4,078
|
13,797
|
—
|
18,154
|
||||||||||||||||
Total
current
assets
|
290,038
|
161,422
|
305,864
|
(47,181
|
)
|
710,143
|
|||||||||||||||
Intercompany
investment
|
401,524
|
1,046
|
15,031
|
(417,601
|
)
|
—
|
|||||||||||||||
Investment
in unconsolidated
affiliates
|
4,486
|
3,885
|
45,463
|
—
|
53,834
|
||||||||||||||||
Intercompany
notes
receivable
|
1,009,768
|
—
|
(20,248
|
)
|
(989,520
|
)
|
—
|
||||||||||||||
Property
and equipment – at
cost:
|
|||||||||||||||||||||
Land
and
buildings
|
347
|
43,676
|
13,797
|
—
|
57,820
|
||||||||||||||||
Aircraft
and
equipment
|
2,676
|
662,964
|
733,404
|
—
|
1,399,044
|
||||||||||||||||
3,023
|
706,640
|
747,201
|
—
|
1,456,864
|
|||||||||||||||||
Less: Accumulated
depreciation and amortization
|
(1,540
|
)
|
(132,409
|
)
|
(172,724
|
)
|
—
|
(306,673
|
)
|
||||||||||||
1,483
|
574,231
|
574,477
|
—
|
1,150,191
|
|||||||||||||||||
Goodwill
|
—
|
4,644
|
10,989
|
—
|
15,633
|
||||||||||||||||
Other
assets
|
13,985
|
4,416
|
12,189
|
—
|
30,590
|
||||||||||||||||
$
|
1,721,284
|
$
|
749,644
|
$
|
943,765
|
$
|
(1,454,302
|
)
|
$
|
1,960,391
|
|||||||||||
LIABILITIES
AND STOCKHOLDERS’
INVESTMENT
|
|||||||||||||||||||||
Current
liabilities:
|
|||||||||||||||||||||
Accounts
payable
|
$
|
1,049
|
$
|
14,589
|
$
|
44,838
|
$
|
(22,479
|
)
|
$
|
37,997
|
||||||||||
Accrued
liabilities
|
1,935
|
21,850
|
114,996
|
(24,702
|
)
|
114,079
|
|||||||||||||||
Deferred
taxes
|
439
|
—
|
10,913
|
—
|
11,352
|
||||||||||||||||
Short-term
borrowings and
current
maturities
of long-term
debt
|
—
|
—
|
7,351
|
—
|
7,351
|
||||||||||||||||
Total
current
liabilities
|
3,423
|
36,439
|
178,098
|
(47,181
|
)
|
170,779
|
|||||||||||||||
Long-term
debt, less current
maturities
|
584,997
|
—
|
15,472
|
—
|
600,469
|
||||||||||||||||
Intercompany
notes
payable
|
—
|
321,799
|
667,721
|
(989,520
|
)
|
—
|
|||||||||||||||
Other
liabilities and deferred
credits
|
4,015
|
9,416
|
108,598
|
—
|
122,029
|
||||||||||||||||
Deferred
taxes
|
53,509
|
3,226
|
45,946
|
—
|
102,681
|
||||||||||||||||
Minority
interest
|
2,079
|
—
|
3,020
|
—
|
5,099
|
||||||||||||||||
Stockholders’
investment:
|
|||||||||||||||||||||
5.50%
mandatory convertible
preferred stock
|
222,554
|
—
|
—
|
—
|
222,554
|
||||||||||||||||
Common
stock
|
239
|
4,996
|
67,380
|
(72,376
|
)
|
239
|
|||||||||||||||
Additional
paid-in-capital
|
183,517
|
23,101
|
76,073
|
(99,174
|
)
|
183,517
|
|||||||||||||||
Retained
earnings
|
582,872
|
350,667
|
(73,631
|
)
|
(277,036
|
)
|
582,872
|
||||||||||||||
Accumulated
other comprehensive
income
(loss)
|
84,079
|
—
|
(144,912
|
)
|
30,985
|
(29,848
|
)
|
||||||||||||||
1,073,261
|
378,764
|
(75,090
|
)
|
(417,601
|
)
|
959,334
|
|||||||||||||||
$
|
1,721,284
|
$
|
749,644
|
$
|
943,765
|
$
|
(1,454,302
|
)
|
$
|
1,960,391
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Net
cash provided by (used in)
operating activities
|
$
|
(17,569
|
)
|
$
|
28,583
|
$
|
36,910
|
$
|
19,941
|
$
|
67,865
|
|||||||||
Cash
flows from investing
activities:
|
||||||||||||||||||||
Capital
expenditures
|
(527
|
)
|
(153,214
|
)
|
(62,505
|
)
|
—
|
(216,246
|
)
|
|||||||||||
Proceeds
from asset
dispositions
|
13,200
|
3,843
|
6,962
|
—
|
24,005
|
|||||||||||||||
Net
cash used in investing
activities
|
12,673
|
(149,371
|
)
|
(55,543
|
)
|
—
|
(192,241
|
)
|
||||||||||||
Cash
flows from financing
activities:
|
||||||||||||||||||||
Issuance
of Preferred
Stock
|
223,550
|
—
|
—
|
—
|
223,550
|
|||||||||||||||
Preferred
Stock issuance
costs
|
(994
|
)
|
—
|
—
|
—
|
(994
|
)
|
|||||||||||||
Preferred
Stock dividends
paid
|
(2,944
|
)
|
—
|
—
|
—
|
(2,944
|
)
|
|||||||||||||
Repayment
of debt and debt
redemption premiums
|
—
|
—
|
(5,570
|
)
|
—
|
(5,570
|
)
|
|||||||||||||
Increases
(decreases) in cash
related to intercompany
advances
and
debt
|
(111,640
|
)
|
123,048
|
8,533
|
(19,941
|
)
|
—
|
|||||||||||||
Partial
prepayment of put/call
obligation
|
(96
|
)
|
—
|
—
|
—
|
(96
|
)
|
|||||||||||||
Issuance
of common
stock
|
2,926
|
—
|
—
|
—
|
2,926
|
|||||||||||||||
Tax
benefit related to exercise of
stock options
|
837
|
—
|
—
|
—
|
837
|
|||||||||||||||
Net
cash provided by financing
activities
|
111,639
|
123,048
|
2,963
|
(19,941
|
)
|
217,709
|
||||||||||||||
Effect
of exchange rate changes on
cash and cash equivalents
|
172
|
—
|
3,712
|
—
|
3,884
|
|||||||||||||||
Net
increase (decrease) in cash
and cash
equivalents
|
106,915
|
2,260
|
(11,958
|
)
|
—
|
97,217
|
||||||||||||||
Cash
and cash equivalents at
beginningof
period
(including
$2.6
million in cash related to
discontinued operations)
|
74,601
|
1,363
|
46,518
|
—
|
122,482
|
|||||||||||||||
Cash
and cash equivalents at end
of period
(including
$4.0
million incash related to
discontinued operations)
|
$
|
181,516
|
$
|
3,623
|
$
|
34,560
|
$
|
—
|
$
|
219,699
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Net
cash provided by (used in)
operating activities
|
$
|
3,957
|
$
|
51,016
|
$
|
(2,150
|
)
|
$
|
4,936
|
$
|
57,759
|
|||||||||
Cash
flows from investing
activities:
|
||||||||||||||||||||
Capital
expenditures
|
(6,942
|
)
|
(219,635
|
)
|
(62,270
|
)
|
—
|
(288,847
|
)
|
|||||||||||
Proceeds
from asset
dispositions
|
—
|
11,505
|
11,502
|
—
|
23,007
|
|||||||||||||||
Acquisition,
net of cash
received
|
(16,990
|
)
|
—
|
2,368
|
(14,622
|
)
|
||||||||||||||
Net
proceeds from sale of
discontinued operations
|
21,958
|
—
|
—
|
—
|
21,958
|
|||||||||||||||
Notes
issued to unconsolidated
affiliate
|
—
|
(4,141
|
)
|
—
|
—
|
(4,141
|
)
|
|||||||||||||
Investment
in unconsolidated
affiliate
|
—
|
(1,960
|
)
|
—
|
—
|
(1,960
|
)
|
|||||||||||||
Net
cash used in investing
activities
|
(1,974
|
)
|
(214,231
|
)
|
(48,400
|
)
|
—
|
(264,605
|
)
|
|||||||||||
Cash
flows from financing
activities:
|
||||||||||||||||||||
Proceeds
from
borrowings
|
350,622
|
—
|
—
|
—
|
350,622
|
|||||||||||||||
Debt
issuance
costs
|
(5,806
|
)
|
—
|
—
|
—
|
(5,806
|
)
|
|||||||||||||
Repayment
of debt and debt
redemption premiums
|
—
|
—
|
(8,175
|
)
|
—
|
(8,175
|
)
|
|||||||||||||
Increases
(decreases) in cash
related to intercompany
advances
and
debt
|
(214,279
|
)
|
169,923
|
49,292
|
(4,936
|
)
|
—
|
|||||||||||||
Partial
prepayment of put/call
obligation
|
(120
|
)
|
—
|
—
|
—
|
(120
|
)
|
|||||||||||||
Preferred
Stock dividends
paid
|
(9,487
|
)
|
—
|
—
|
—
|
(9,487
|
)
|
|||||||||||||
Issuance
of common
stock
|
5,226
|
—
|
—
|
—
|
5,226
|
|||||||||||||||
Tax
benefit related to exercise of
stock options
|
2,008
|
—
|
—
|
—
|
2,008
|
|||||||||||||||
Net
cash provided by financing
activities
|
128,164
|
169,923
|
41,117
|
(4,936
|
)
|
334,268
|
||||||||||||||
Effect
of exchange rate changes on
cash and cash
equivalents
|
(272
|
) |
—
|
3,927
|
—
|
3,655
|
||||||||||||||
Net
increase (decrease) in cash
and cash
equivalents
|
129,875
|
6,708
|
(5,506
|
)
|
—
|
131,077
|
||||||||||||||
Cash
and cash equivalents at
beginningof
period (including
$5.9
million in cash related to
discontinued
operations)
|
133,010
|
3,434
|
47,744
|
—
|
184,188
|
|||||||||||||||
Cash
and cash equivalents at end
of period
|
$
|
262,885
|
$
|
10,142
|
$
|
42,238
|
$
|
—
|
$
|
315,265
|
·
|
the
risks and uncertainties
described under “Part II. Item 1A. Risk Factors” and under “Item 1A. Risk
Factors” in the fiscal year 2007 Annual
Report;
|
·
|
the
level of activity in the oil
and natural gas industry is lower than
anticipated;
|
·
|
production-related
activities
become more sensitive to variances in commodity
prices;
|
·
|
the
major oil companies do not
continue to expand
internationally;
|
·
|
market
conditions are weaker than
anticipated;
|
·
|
we
are not able to re-deploy our
aircraft to regions with the greater
demand;
|
·
|
we
do not achieve the anticipated
benefit of our fleet renewal program;
and
|
·
|
the
outcome of the United States
Department of Justice (“DOJ”) antitrust investigation, which is ongoing,
has a greater than anticipated financial or business
impact.
|
·
|
Western
Hemisphere
|
−
|
North
America
|
−
|
South
and Central
America
|
·
|
Eastern
Hemisphere
|
−
|
Europe
|
−
|
West
Africa
|
−
|
Southeast
Asia
|
−
|
Other
International
|
−
|
Eastern
Hemisphere(“EH”) Centralized
Operations
|
·
|
Global
Training
|
−
|
Bristow Academy
|
Percentage
of
|
Aircraft
in Consolidated Fleet
|
||||||||||||||||
Current
|
Helicopters
|
||||||||||||||||
Period
Revenue
|
Small
|
Medium
|
Large
|
Fixed
Wing
|
Total
|
Unconsolidated
Affiliates
|
Total
|
||||||||||
North
America
|
23
|
%
|
125
|
31
|
4
|
1
|
161
|
—
|
161
|
||||||||
South
and Central
America
|
7
|
%
|
2
|
29
|
1
|
—
|
32
|
17
|
49
|
||||||||
Europe
|
36
|
%
|
1
|
9
|
42
|
—
|
52
|
31
|
83
|
||||||||
West
Africa
|
17
|
%
|
12
|
28
|
2
|
7
|
49
|
—
|
49
|
||||||||
Southeast
Asia
|
10
|
%
|
3
|
11
|
10
|
—
|
24
|
—
|
24
|
||||||||
Other
International
|
5
|
%
|
—
|
12
|
9
|
2
|
23
|
41
|
64
|
||||||||
EH
Centralized
Operations
|
1
|
%
|
—
|
—
|
—
|
—
|
—
|
57
|
57
|
||||||||
Bristow Academy
|
1
|
%
|
66
|
—
|
—
|
1
|
67
|
—
|
67
|
||||||||
Total
(1)
|
100
|
%
|
209
|
120
|
68
|
11
|
408
|
146
|
554
|
||||||||
Aircraft
not currently in
fleet:
|
|||||||||||||||||
On
order (2)
|
2
|
9
|
17
|
—
|
28
|
||||||||||||
Under
option
|
—
|
21
|
13
|
—
|
34
|
(1)
|
Includes
7 aircraft held for
sale.
|
(2)
|
The
two small aircraft on order
are training aircraft.
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
|||||||||||
2006
|
2007
|
2006
|
2007
|
|||||||||
(Unaudited)
|
||||||||||||
(In
thousands)
|
||||||||||||
Gross
revenue:
|
||||||||||||
Operating
revenue
|
$
|
191,044
|
$
|
236,464
|
$
|
564,734
|
$
|
681,186
|
||||
Reimbursable
revenue
|
19,965
|
25,056
|
62,184
|
71,293
|
||||||||
Total
gross revenue
|
211,009
|
261,520
|
626,918
|
752,479
|
||||||||
Operating
expense:
|
||||||||||||
Direct
cost
|
140,867
|
169,704
|
408,977
|
475,416
|
||||||||
Reimbursable
expense
|
20,575
|
24,344
|
62,691
|
68,587
|
||||||||
Depreciation
and amortization
|
11,015
|
12,445
|
31,942
|
36,127
|
||||||||
General
and administrative
|
19,355
|
22,373
|
49,662
|
61,018
|
||||||||
Gain
on disposal of assets
|
(1,044
|
)
|
(4,094
|
)
|
(5,706
|
)
|
(3,921
|
)
|
||||
Total
operating expense
|
190,768
|
224,772
|
547,566
|
637,227
|
||||||||
Operating
income
|
20,241
|
36,748
|
79,352
|
115,252
|
||||||||
Earnings
from unconsolidated affiliates, net of losses
|
2,106
|
3,725
|
5,393
|
11,233
|
||||||||
Interest
income (expense), net
|
1,228
|
(2,987
|
)
|
(2,619
|
)
|
(6,354
|
)
|
|||||
Other
income (expense), net
|
(5,226
|
)
|
989
|
(11,319
|
)
|
1,775
|
||||||
Income
from continuing operations before provision for income taxes and
minority
interest
|
18,349
|
38,475
|
70,807
|
121,906
|
||||||||
Provision
for income taxes
|
(8,158
|
)
|
(12,302
|
)
|
(25,390
|
)
|
(40,035
|
)
|
||||
Minority
interest
|
(257
|
)
|
61
|
(1,049
|
)
|
(392
|
)
|
|||||
Income
from continuing operations
|
9,934
|
26,234
|
44,368
|
81,479
|
||||||||
Discontinued
operations:
|
||||||||||||
Income
(loss) from discontinued operations before provision for income
taxes
|
812
|
(1,429
|
)
|
3,721
|
690
|
|||||||
Provision
for income taxes on discontinued operations
|
(295
|
)
|
(4,657
|
)
|
(1,334
|
)
|
(5,399
|
)
|
||||
Income
(loss) from discontinued operations
|
517
|
(6,086
|
)
|
2,387
|
(4,709
|
)
|
||||||
Net
income
|
$
|
10,451
|
$
|
20,148
|
$
|
46,755
|
$
|
76,770
|
Three
Months Ended December
31,
|
||||||||||||||||||
2006
|
2007
|
|||||||||||||||||
Pre-tax
Earnings
|
Net
Income
|
Diluted
Earnings
Per
Share
|
Pre-tax
Earnings
|
Net
Income
|
Diluted
Earnings
Per
Share
|
|||||||||||||
(In
thousands, except per share
amounts)
|
||||||||||||||||||
Continuing
operations:
|
||||||||||||||||||
Investigations:
|
||||||||||||||||||
SEC
(1)
|
$
|
(3,000
|
)
|
$
|
(2,067
|
)
|
$
|
(0.09
|
)
|
$
|
—
|
$
|
—
|
$
|
—
|
|||
DOJ
(1)
|
(670
|
)
|
(462
|
)
|
(0.02
|
)
|
(296
|
)
|
(192
|
)
|
(0.01
|
)
|
||||||
Tax
contingency related
items(2)
|
—
|
800
|
0.03
|
—
|
600
|
0.02
|
||||||||||||
Acquisitions
and
divestitures:
|
||||||||||||||||||
Expense
of previously deferred
acquisition costs (3)
|
(1,889
|
)
|
(1,302
|
)
|
(0.06
|
)
|
—
|
—
|
—
|
|||||||||
Turbo
asset sale (4)
|
(120
|
)
|
(2,419
|
)
|
(0.10
|
)
|
—
|
—
|
—
|
|||||||||
7
½% Senior Notes due 2017 (5)
|
—
|
—
|
—
|
(3,024
|
)
|
(1,966
|
)
|
(0.06
|
)
|
|||||||||
Foreign
currency transaction gains
(losses) (6)
|
(3,413
|
)
|
(2,352
|
)
|
(0.10
|
)
|
963
|
626
|
0.02
|
|||||||||
Preferred
Stock(7)
|
2,334
|
1,608
|
(0.07
|
)
|
—
|
—
|
(0.15
|
)
|
||||||||||
Total
—
continuing
operations
|
(6,758
|
)
|
(6,194
|
)
|
(0.41
|
)
|
(2,357
|
)
|
(932
|
)
|
(0.18
|
)
|
||||||
Discontinued
operations
(8)
|
—
|
—
|
—
|
(1,555
|
)
|
(6,168
|
)
|
(0.20
|
)
|
|||||||||
Total
|
$
|
(6,758
|
)
|
$
|
(6,194
|
)
|
$
|
(0.41
|
)
|
$
|
(3,912
|
)
|
$
|
(7,100
|
)
|
$
|
(0.38
|
)
|
Nine
Months Ended December
31,
|
||||||||||||||||||
2006
|
2007
|
|||||||||||||||||
Pre-tax
Earnings
|
Net
Income
|
Diluted
Earnings
Per
Share
|
Pre-tax
Earnings
|
Net
Income
|
Diluted
Earnings
Per
Share
|
|||||||||||||
(In
thousands, except per share
amounts)
|
||||||||||||||||||
Continuing
operations:
|
||||||||||||||||||
Investigations:
|
||||||||||||||||||
SEC
(1)
|
$
|
(3,105
|
)
|
$
|
(2,096
|
)
|
$
|
(0.08
|
)
|
$
|
1,000
|
$
|
650
|
$
|
0.02
|
|||
DOJ
(1)
|
(1,542
|
)
|
(1,041
|
)
|
(0.04
|
)
|
(784
|
)
|
(510
|
)
|
(0.02
|
)
|
||||||
Tax
contingency related
items(2)
|
(2,800
|
)
|
410
|
0.02
|
5,396
|
4,907
|
0.16
|
|||||||||||
Acquisitions
and
divestitures:
|
||||||||||||||||||
Expense
of previously deferred
acquisition costs (3)
|
(1,889
|
)
|
(1,275
|
)
|
(0.05
|
)
|
—
|
—
|
—
|
|||||||||
Turbo
asset sale (4)
|
(120
|
)
|
(2,421
|
)
|
(0.09
|
)
|
—
|
—
|
—
|
|||||||||
7
½% Senior Notes due 2017 (5)
|
—
|
—
|
—
|
(6,397
|
)
|
(4,158
|
)
|
(0.14
|
)
|
|||||||||
Foreign
currency transaction gains
(losses) (6)
|
(9,555
|
)
|
(6,450
|
)
|
(0.25
|
)
|
1,707
|
1,110
|
0.04
|
|||||||||
Preferred
Stock(7)
|
2,605
|
1,758
|
(0.16
|
)
|
—
|
—
|
(0.66
|
)
|
||||||||||
Total
—
continuing
operations
|
(16,406
|
)
|
(11,115
|
)
|
(0.65
|
)
|
922
|
1,999
|
(0.60
|
)
|
||||||||
Discontinued
operations
(8)
|
—
|
—
|
—
|
(1,555
|
)
|
(6,168
|
)
|
(0.20
|
)
|
|||||||||
Total
|
$
|
(16,406
|
)
|
$
|
(11,115
|
)
|
$
|
(0.65
|
)
|
$
|
(633
|
)
|
$
|
(4,169
|
)
|
$
|
(0.80
|
)
|
(1)
|
In
December 2006, we recorded a
pre-tax charge of $3.0 million for costs and fees we expected to
incur in
connection with the resolution of the U.S. Securities and Exchange
Commission (“SEC”) investigation regarding findings resulting from the
review of
payments
made by affiliated entities in foreign countries and other issues
initiated by the Audit Committee of our board of directors in February
2005 (“the Internal
Review”),
a substantial portion of which
related to legal fees in connection with the investigation. We
reversed $1.0 million of this charge in September 2007 upon settlement
of
the investigation with the SEC. Further, amounts and costs
incurred related to both the SEC and DOJ investigations are included
in
general & administrative costs in our condensed consolidated
statements of income.
|
(2)
|
Includes
$5.4 million in reversal
of accrual for sales tax contingency during the Current Period
($2.8
million of which was originally accrued during the Comparable Period)
in
West Africa (see discussion included under “Business Unit Operating
Results ― Current
Period Compared to
Comparable Period ―
West Africa” included
elsewhere in this Quarterly Report) included in direct costs in
our
condensed consolidated statements of income and a direct reduction
in our
provision for income taxes in our condensed consolidated statements
of
income for income tax contingency items for all periods presented,
which
represents the remainder of the impact on net income and diluted
earnings
per share.
|
(3)
|
Represents
a charge recorded in
the Comparable Quarter and the Comparable Period for acquisition
costs
previously deferred in connection with an acquisition we were evaluating
as we determined subsequently that the acquisition was no longer
probable
(see discussion in Note 2 in the “Notes to Condensed Consolidated
Financial Statements” included elsewhere in this Quarterly
Report).
|
(4)
|
Included
in gain on disposal of
assets in our condensed consolidated statements of income. $2.5
million is included as a direct increase in our provision for income
taxes.
|
(5)
|
Represents
the impact on interest
expense, net of interest income earned on additional cash, resulting
from
the issuance of the 7 ½% Senior Notes in June and November 2007 (see
discussion in Note 5 in the “Notes to Condensed Consolidated Financial
Statements” included elsewhere in this Quarterly
Report).
|
(6)
|
Included
in other income
(expense), net in our condensed consolidated statements of
income.
|
(7)
|
Represents
the impact on diluted
earnings per share of the inclusion of weighted average shares
resulting
from the assumed conversion of Preferred Stock, partially offset
by
interest income earned on cash balances generated through the Preferred
Stock offering in September and October 2006. See Note 9 in the
“Notes to Consolidated Financial Statements” in the fiscal year 2007
Annual Report for a further discussion of the Preferred Stock
offering.
|
(8)
|
Represents
the loss recorded, net
of transaction costs and the tax impact of non-deductible goodwill,
related to the Grasso disposition (see discussion in Note 2 in
the “Notes
to Condensed Consolidated Financial Statements” included elsewhere in this
Quarterly Report).
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2006
|
2007
|
2006
|
2007
|
|||||||||||||
Flight
hours (excludes
unconsolidated affiliates):
|
||||||||||||||||
North
America
|
34,742
|
34,658
|
118,499
|
114,552
|
||||||||||||
South
and Central
America
|
9,973
|
10,417
|
28,889
|
32,594
|
||||||||||||
Europe
|
10,917
|
11,625
|
31,772
|
33,940
|
||||||||||||
West
Africa
|
9,733
|
9,824
|
27,795
|
28,609
|
||||||||||||
Southeast
Asia
|
3,059
|
4,590
|
9,328
|
11,578
|
||||||||||||
Other
International
|
2,641
|
2,120
|
7,119
|
6,844
|
||||||||||||
Consolidated
total
|
71,065
|
73,234
|
223,402
|
228,117
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2006
|
2007
|
2006
|
2007
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Gross
revenue:
|
||||||||||||||||
North
America
|
$
|
57,795
|
$
|
57,267
|
$
|
183,667
|
$
|
180,265
|
||||||||
South
and Central
America
|
13,173
|
16,476
|
39,322
|
49,463
|
||||||||||||
Europe
|
73,879
|
95,100
|
218,566
|
271,916
|
||||||||||||
West
Africa
|
35,062
|
46,287
|
98,008
|
125,369
|
||||||||||||
Southeast
Asia
|
18,181
|
29,918
|
52,847
|
76,268
|
||||||||||||
Other
International
|
11,462
|
11,874
|
32,601
|
35,375
|
||||||||||||
EH
Centralized
Operations
|
3,816
|
5,239
|
10,428
|
17,375
|
||||||||||||
Bristow Academy
|
—
|
3,969
|
—
|
10,216
|
||||||||||||
Intrasegment
eliminations
|
(2,359
|
)
|
(4,647
|
)
|
(8,495
|
)
|
(13,805
|
)
|
||||||||
Corporate
|
—
|
37
|
(26
|
)
|
37
|
|||||||||||
Consolidated
total(1)
|
$
|
211,009
|
$
|
261,520
|
$
|
626,918
|
$
|
752,479
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2006
|
2007
|
2006
|
2007
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Operating
expense: (2)
|
||||||||||||||||
North
America
|
$
|
51,889
|
$
|
50,392
|
$
|
161,421
|
$
|
151,807
|
||||||||
South
and Central
America
|
9,426
|
12,344
|
27,981
|
37,073
|
||||||||||||
Europe
|
64,325
|
74,405
|
181,389
|
214,751
|
||||||||||||
West
Africa
|
29,224
|
39,268
|
84,989
|
100,061
|
||||||||||||
Southeast
Asia
|
15,151
|
23,442
|
44,172
|
60,558
|
||||||||||||
Other
International
|
9,820
|
11,162
|
25,672
|
30,617
|
||||||||||||
EH
Centralized
Operations
|
6,081
|
11,643
|
17,044
|
31,305
|
||||||||||||
Bristow Academy
|
—
|
4,099
|
—
|
10,828
|
||||||||||||
Intrasegment
eliminations
|
(2,359
|
)
|
(4,647
|
)
|
(8,495
|
)
|
(13,805
|
)
|
||||||||
Corporate
|
8,255
|
6,758
|
19,099
|
17,953
|
||||||||||||
Gain
on disposal of
assets
|
(1,044
|
)
|
(4,094
|
)
|
(5,706
|
)
|
(3,921
|
)
|
||||||||
Consolidated
total
|
$
|
190,768
|
$
|
224,772
|
$
|
547,566
|
$
|
637,227
|
Operating
income
(loss):
|
||||||||||||||||
North
America
|
$
|
5,906
|
$
|
6,875
|
$
|
22,246
|
$
|
28,458
|
||||||||
South
and Central
America
|
3,747
|
4,132
|
11,341
|
12,390
|
||||||||||||
Europe
|
9,554
|
20,695
|
37,177
|
57,165
|
||||||||||||
West
Africa
|
5,838
|
7,019
|
13,019
|
25,308
|
||||||||||||
Southeast
Asia
|
3,030
|
6,476
|
8,675
|
15,710
|
||||||||||||
Other
International(3)
|
1,642
|
712
|
6,929
|
4,758
|
||||||||||||
EH
Centralized
Operations
|
(2,265
|
)
|
(6,404
|
)
|
(6,616
|
)
|
(13,930
|
)
|
||||||||
Bristow Academy
|
—
|
(130
|
)
|
—
|
(612
|
)
|
||||||||||
Gain
on disposal of
assets
|
1,044
|
4,094
|
5,706
|
3,921
|
||||||||||||
Corporate
|
(8,255
|
)
|
(6,721
|
)
|
(19,125
|
)
|
(17,916
|
)
|
||||||||
Consolidated
operating
income
|
20,241
|
36,748
|
79,352
|
115,252
|
||||||||||||
Earnings
from unconsolidated
affiliates
|
2,106
|
3,725
|
5,393
|
11,233
|
||||||||||||
Interest
income
|
3,767
|
3,697
|
6,027
|
9,781
|
||||||||||||
Interest
expense
|
(2,539
|
)
|
(6,684
|
)
|
(8,646
|
)
|
(16,135
|
)
|
||||||||
Other
income (expense),
net
|
(5,226
|
)
|
989
|
(11,319
|
)
|
1,775
|
||||||||||
Income
from continuing operations
before provision for income taxes
and
minority
interest
|
18,349
|
38,475
|
70,807
|
121,906
|
||||||||||||
Provision
for income
taxes
|
(8,158
|
)
|
(12,302
|
)
|
(25,390
|
)
|
(40,035
|
)
|
||||||||
Minority
interest
|
(257
|
)
|
61
|
(1,049
|
)
|
(392
|
)
|
|||||||||
Income
from continuing
operations
|
$
|
9,934
|
$
|
26,234
|
$
|
44,368
|
$
|
81,479
|
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||
December
31,
|
December
31,
|
||||||||||||
2006
|
2007
|
2006
|
2007
|
||||||||||
Operating
margin: (4)
|
|||||||||||||
North
America
|
10.2
|
%
|
12.0
|
%
|
12.1
|
%
|
15.8
|
%
|
|||||
South
and Central
America
|
28.4
|
%
|
25.1
|
%
|
28.8
|
%
|
25.1
|
%
|
|||||
Europe
|
12.9
|
%
|
21.8
|
%
|
17.0
|
%
|
21.0
|
%
|
|||||
West
Africa
|
16.7
|
%
|
15.2
|
%
|
13.3
|
%
|
20.2
|
%
|
|||||
Southeast
Asia
|
16.7
|
%
|
21.6
|
%
|
16.4
|
%
|
20.6
|
%
|
|||||
Other
International
|
14.3
|
%
|
6.0
|
%
|
21.3
|
%
|
13.5
|
%
|
|||||
EH
Centralized
Operations
|
(59.4
|
)%
|
(122.2
|
)%
|
(63.4
|
)%
|
(80.2
|
)%
|
|||||
Bristow Academy
|
N/A
|
(3.3
|
)%
|
N/A
|
(6.0
|
)%
|
|||||||
Consolidated
total
|
9.6
|
%
|
14.1
|
%
|
12.7
|
%
|
15.3
|
%
|
(1)
|
Includes
reimbursable revenue of
$20.0 million and $25.1 million for the three months ended December
31,
2006 and 2007, respectively, and $62.2 million and $71.3 million
for the
nine months ended December 31, 2006 and 2007,
respectively.
|
(2)
|
Operating
expenses include
depreciation and amortization in the following amounts for the
periods
presented:
|
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||||
December
31,
|
December
31,
|
||||||||||||||
2006
|
2007
|
2006
|
2007
|
||||||||||||
(In
thousands)
|
|||||||||||||||
North
America
|
$
|
2,909
|
$
|
3,081
|
$
|
8,545
|
$
|
9,089
|
|||||||
South
and Central
America
|
1,011
|
977
|
2,934
|
2,891
|
|||||||||||
Europe
|
3,174
|
4,403
|
8,658
|
12,020
|
|||||||||||
West
Africa
|
1,773
|
1,591
|
5,041
|
5,179
|
|||||||||||
Southeast
Asia
|
837
|
1,209
|
2,872
|
2,880
|
|||||||||||
Other
International
|
943
|
797
|
2,632
|
2,293
|
|||||||||||
EH
Centralized
Operations
|
296
|
(18
|
)
|
1,106
|
590
|
||||||||||
Bristow Academy
|
—
|
334
|
—
|
972
|
|||||||||||
Corporate
|
72
|
71
|
154
|
213
|
|||||||||||
Consolidated
total
|
$
|
11,015
|
$
|
12,445
|
$
|
31,942
|
$
|
36,127
|
(3)
|
Includes
a gain on the sale of an
aircraft used in our Italy operations
of $2.1 million for the
three and nine months ended December 31, 2006.
|
(4)
|
Operating
margin is calculated as
gross revenue less operating expense divided by gross
revenue.
|
Nine
Months Ended December 31,
|
||||||
2006
|
2007
|
|||||
Number
of aircraft delivered:
|
||||||
Small
|
3
|
3
|
||||
Medium
|
11
|
14
|
||||
Large
|
3
|
6
|
||||
Fixed
wing
|
—
|
1
|
||||
Training
|
—
|
5
|
||||
Total
aircraft
|
17
|
29
|
||||
Capital
expenditures (in thousands):
|
||||||
Aircraft
and related equipment
|
$
|
208,963
|
$
|
278,715
|
||
Other
|
7,283
|
10,132
|
||||
Total
capital expenditures
|
$
|
216,246
|
$
|
288,847
|
Payments
Due by
Period
|
|||||||||||||||||||
Three
Months
|
|||||||||||||||||||
Ending
|
Fiscal
Year Ending March
31,
|
||||||||||||||||||
Total
|
March
31,
2008
|
2009
- 2010
|
2011
- 2012
|
2013
and
beyond
|
|||||||||||||||
(In
thousands)
|
|||||||||||||||||||
Contractual
obligations:
|
|||||||||||||||||||
Long-term
debt and short-term
borrowings:
|
|||||||||||||||||||
Principal(1)
|
$
|
607,199
|
$
|
2,995
|
$
|
7,708
|
$
|
4,637
|
$
|
591,859
|
|||||||||
Interest
|
382,173
|
14,464
|
90,515
|
89,764
|
187,430
|
||||||||||||||
Aircraft
operating leases
(2)
|
57,425
|
1,575
|
12,830
|
14,471
|
28,549
|
||||||||||||||
Other
operating leases
(3)
|
19,557
|
1,037
|
7,133
|
5,082
|
6,305
|
||||||||||||||
Pension
obligations(4)
|
168,300
|
3,644
|
29,149
|
29,149
|
106,358
|
||||||||||||||
Aircraft
purchase
obligations
|
344,656
|
63,872
|
217,573
|
63,211
|
—
|
||||||||||||||
Other
purchase
obligations(5)
|
39,020
|
33,128
|
5,892
|
—
|
—
|
||||||||||||||
Total
contractual cash
obligations
|
$
|
1,618,330
|
$
|
120,715
|
$
|
370,800
|
$
|
206,314
|
$
|
920,501
|
|||||||||
Other
commercial
commitments:
|
|||||||||||||||||||
Debt
guarantees(6)
|
$
|
30,199
|
$
|
10,290
|
$
|
—
|
$
|
19,909
|
$
|
—
|
|||||||||
Other
guarantees(6)
|
7,183
|
3,766
|
3,417
|
—
|
—
|
||||||||||||||
Letters
of credit (7) (8)
|
3,806
|
3,806
|
—
|
—
|
—
|
||||||||||||||
Total
commercial
commitments
|
$
|
41,188
|
$
|
17,862
|
$
|
3,417
|
$
|
19,909
|
$
|
—
|
(1)
|
Excludes
unamortized premium on
the 7 ½% Senior Notes of $0.6 million.
|
(2)
|
Represents
nine aircraft that we
sold on December 30, 2005 for $68.6 million in aggregate to a subsidiary
of General Electric Capital Corporation and then leased back under
separate operating leases with terms of ten years expiring in January
2016. A deferred gain on the sale of the aircraft was recorded
in the amount of approximately $10.8 million in aggregate, which
is being
amortized over the lease term.
|
(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 pension
will be
fully funded in approximately 10 years. As of December 31,
2007, we had recorded on our balance sheet a $107.0 million pension
liability associated with this obligation. Also, the timing of
the funding is dependent on actuarial valuations, the performance
of the plan’s
investments and
resulting negotiations with the plan trustees.
|
(5)
|
Other
purchase obligations
primarily represent unfilled purchase orders for aircraft parts,
commitments associated with upgrading facilities at our bases and
amounts
committed under a supply agreement (See Note 6 in the “Notes to Condensed
Consolidated Financial Statements” included elsewhere in this Quarterly
Report).
|
(6)
|
See
Note 6 in the “Notes to
Condensed Consolidated Financial Statements” included elsewhere in this
Quarterly Report for further details. Additionally, the bank
has an option to put to us the remaining amount of the RLR debt
of
$10.3 million,
which we have guaranteed
in the event of default of our partner in RLR. This amount is
not included in the table above.
|
(7)
|
In
January 2006, a letter of
credit was issued for $2.5 million in conjunction with the additional
collateral for the sale and leaseback financing discussed in Note
6 in the
“Notes to Consolidated Financial Statements” included in the fiscal year
2007 Annual Report. The letter of credit was extended to
January 31, 2009.
|
(8)
|
As
a result of the previously
disclosed sale of Grasso in November 2007, a $0.7 million letter
of credit
was cancelled in January
2008.
|
Period
(1)
|
Total
Number of Shares
Purchased (2)
|
Average
Price Paid Per Share
|
Total
Number of Shares Purchased as Part of Publicly Announced
Program
|
Approximate
Dollar Value of Shares That May Yet Be Purchased Under the
Program
|
|||||||||
November
1, 2007 – November 30, 2007
|
6,500
|
$
|
48.34
|
—
|
$
|
—
|
(1)
|
No
shares were purchased during
the periods of October 1, 2007 — October
31, 2007 and December 1,
2007 — December
31,
2007.
|
(2)
|
The
total number of shares purchased in the period consists of shares
withheld
by us in satisfaction of withholding taxes due upon the vesting
of
restricted stock units granted to an employee under our 2004 Stock
Incentive Plan.
|
Exhibit
Number
|
Description
of Exhibit
|
3.1
|
Amended
and Restated Bylaws of Bristow Group Inc. effective December 21,
2007
(incorporated by reference to Exhibit 3.2 of Amendment No. 1 to
Form S-4
filed on January 10, 2008).
|
Letter
from KPMG LLP dated February 5, 2008, regarding unaudited interim
information.
|
|
Rule
13a-14(a) Certification by President and Chief Executive Officer
of
Registrant.
|
|
Rule
13a-14(a) Certification by Executive Vice President and Chief Financial
Officer of Registrant.
|
|
Certification
of Chief Executive Officer of registrant pursuant to 18 U.S.C.
Section
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of
2002.
|
|
Certification
of Chief Financial Officer of Registrant pursuant to 18 U.S.C.
Section
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of
2002.
|
*
|
Filed
herewith.
|
**
|
Furnished
herewith.
|