R
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For
the quarterly period ended June 30, 2009
|
|
OR
|
|
£
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For
the transition period
from to
|
Delaware
|
72-0679819
|
(State
or other jurisdiction of
|
(IRS
Employer
|
incorporation
or organization)
|
Identification
Number)
|
2000
W. Sam Houston Pkwy. S.,
|
77042
|
Suite
1700
|
(Zip
Code)
|
Houston,
Texas
|
|
(Address
of principal executive offices)
|
None
|
(Former
name, former address and former fiscal year, if changed since last
report)
|
Large
accelerated filer R
|
Accelerated
filer £
|
Non-accelerated
filer £
|
Smaller
reporting company £
|
(Do
not check if a smaller
reporting
company)
|
Page
|
|||
PART
I
|
|||
Item
1.
|
2
|
||
Item
2.
|
30
|
||
Item
3.
|
46
|
||
Item
4.
|
46
|
||
PART
II
|
|||
Item
1.
|
46
|
||
Item
1A.
|
47
|
||
Item
2.
|
47
|
||
Item
4.
|
47
|
||
Item
6.
|
48
|
||
49
|
Three
Months Ended
June
30,
|
|||||||||
2008
|
2009
|
||||||||
(Unaudited)
(In
thousands, except per
share
amounts)
|
|||||||||
Gross
revenue:
|
|||||||||
Operating
revenue from non-affiliates
|
$
|
241,134
|
$
|
248,891
|
|||||
Operating
revenue from affiliates
|
17,270
|
14,602
|
|||||||
Reimbursable
revenue from non-affiliates
|
24,371
|
25,853
|
|||||||
Reimbursable
revenue from affiliates
|
1,348
|
1,106
|
|||||||
284,123
|
290,452
|
||||||||
Operating
expense:
|
|||||||||
Direct
cost
|
186,973
|
180,677
|
|||||||
Reimbursable
expense
|
26,067
|
26,657
|
|||||||
Depreciation
and amortization
|
14,955
|
18,186
|
|||||||
General
and administrative
|
27,206
|
28,802
|
|||||||
255,201
|
254,322
|
||||||||
Gain
on disposal of assets
|
2,665
|
6,009
|
|||||||
Earnings
from unconsolidated affiliates, net of losses
|
7,723
|
2,633
|
|||||||
Operating
income
|
39,310
|
44,772
|
|||||||
Interest
income
|
1,447
|
222
|
|||||||
Interest
expense
|
(8,602
|
)
|
(10,012
|
)
|
|||||
Other
income (expense), net
|
1,692
|
(1,481
|
)
|
||||||
Income
before provision for income taxes
|
33,847
|
33,501
|
|||||||
Provision
for income taxes
|
(10,564
|
)
|
(9,510
|
)
|
|||||
Net
income
|
23,283
|
23,991
|
|||||||
Net
income attributable to noncontrolling
interests
|
(703
|
)
|
(268
|
)
|
|||||
Net
income attributable to Bristow
|
22,580
|
23,723
|
|||||||
Preferred
stock dividends
|
(3,162
|
)
|
(3,162
|
)
|
|||||
Net
income available to common stockholders
|
$
|
19,418
|
$
|
20,561
|
|||||
Earnings
per common share:
|
|||||||||
Basic
|
$
|
0.78
|
$
|
0.71
|
|||||
Diluted
|
$
|
0.72
|
$
|
0.66
|
March
31,
|
June
30,
|
||||||||||
2009
|
2009
|
||||||||||
(Unaudited)
|
|||||||||||
(In
thousands)
|
|||||||||||
ASSETS
|
|||||||||||
Current
assets:
|
|||||||||||
Cash
and cash
equivalents
|
$
|
300,969
|
$
|
138,295
|
|||||||
Accounts
receivable from non-affiliates, net of allowance for doubtful accounts of
$0.6 million
|
194,030
|
208,481
|
|||||||||
Accounts
receivable from affiliates, net of allowance for doubtful accounts of $3.4
million
|
22,644
|
23,580
|
|||||||||
Inventories
|
165,438
|
184,190
|
|||||||||
Prepaid
expenses and other assets
|
20,226
|
58,856
|
|||||||||
Total
current assets
|
703,307
|
613,402
|
|||||||||
Investment
in unconsolidated affiliates
|
20,265
|
199,734
|
|||||||||
Property
and equipment – at cost:
|
|||||||||||
Land
and buildings
|
68,961
|
75,277
|
|||||||||
Aircraft
and equipment
|
1,823,011
|
1,877,295
|
|||||||||
1,891,972
|
1,952,572
|
||||||||||
Less
– Accumulated depreciation and amortization
|
(350,515
|
)
|
(378,846
|
)
|
|||||||
1,541,457
|
1,573,726
|
||||||||||
Goodwill
|
44,654
|
46,808
|
|||||||||
Other
assets
|
24,888
|
24,409
|
|||||||||
$
|
2,334,571
|
$
|
2,458,079
|
||||||||
LIABILITIES
AND STOCKHOLDERS’ INVESTMENT
|
|||||||||||
Current
liabilities:
|
|||||||||||
Accounts
payable
|
$
|
44,892
|
$
|
61,490
|
|||||||
Accrued
wages, benefits and related taxes
|
39,939
|
28,996
|
|||||||||
Income
taxes payable
|
—
|
551
|
|||||||||
Other
accrued taxes
|
3,357
|
2,654
|
|||||||||
Deferred
revenues
|
17,593
|
18,872
|
|||||||||
Accrued
maintenance and repairs
|
10,317
|
10,934
|
|||||||||
Accrued
interest
|
6,434
|
8,608
|
|||||||||
Deposits
on assets held for sale
|
—
|
23,764
|
|||||||||
Other
accrued liabilities
|
20,164
|
21,545
|
|||||||||
Deferred
taxes
|
6,195
|
11,042
|
|||||||||
Short-term
borrowings and current maturities of long-term debt
|
8,948
|
8,953
|
|||||||||
Total
current liabilities
|
157,839
|
197,409
|
|||||||||
Long-term
debt, less current maturities
|
714,965
|
714,553
|
|||||||||
Accrued
pension liabilities
|
81,380
|
96,384
|
|||||||||
Other
liabilities and deferred credits
|
16,741
|
18,061
|
|||||||||
Deferred
taxes
|
127,266
|
133,138
|
|||||||||
Commitments
and contingencies (Note 7)
|
|||||||||||
Stockholders’
investment:
|
|||||||||||
5.50%
mandatory convertible preferred stock, $.01 par value, authorized and
outstanding 4,600,000 shares;
entitled
in liquidation to $230 million; net of offering costs of $7.4
million
|
222,554
|
222,554
|
|||||||||
Common
stock, $.01 par value, authorized 90,000,000 shares; outstanding:
29,111,436 as of March 31 and 29,336,770
as
of June 30 (exclusive of 1,281,050 treasury shares)
|
291
|
293
|
|||||||||
Additional
paid-in capital
|
436,296
|
439,712
|
|||||||||
Retained
earnings
|
718,493
|
739,054
|
|||||||||
Noncontrolling
interests
|
11,200
|
11,811
|
|||||||||
Accumulated
other comprehensive loss
|
(152,454
|
)
|
(114,890
|
)
|
|||||||
1,236,380
|
1,298,534
|
||||||||||
$
|
2,334,571
|
$
|
2,458,079
|
Three
Months Ended
June 30,
|
||||||||
2008
|
2009
|
|||||||
(Unaudited)
|
||||||||
(In
thousands)
|
||||||||
Cash
flows from operating activities:
|
||||||||
Net
income
|
$
|
23,283
|
$
|
23,991
|
||||
Adjustments
to reconcile net income to net cash provided by (used in) operating
activities:
|
||||||||
Depreciation
and amortization
|
14,955
|
18,186
|
||||||
Deferred
income taxes
|
3,342
|
2,810
|
||||||
Discount
amortization on long-term debt
|
114
|
725
|
||||||
Gain
on asset dispositions
|
(2,665
|
)
|
(6,009
|
)
|
||||
Gain
on Heliservicio investment sale
|
(1,438
|
)
|
—
|
|||||
Stock-based
compensation expense
|
1,884
|
3,607
|
||||||
Equity
in earnings from unconsolidated affiliates below dividends
received
|
6,161
|
1,078
|
||||||
Tax
benefit related to stock-based compensation
|
(231
|
)
|
(26
|
)
|
||||
Increase
(decrease) in cash resulting from changes in:
|
||||||||
Accounts
receivable
|
997
|
9,866
|
||||||
Inventories
|
911
|
(6,336
|
)
|
|||||
Prepaid
expenses and other assets
|
(3,628
|
)
|
(7,958
|
)
|
||||
Accounts
payable
|
1,188
|
6,081
|
||||||
Accrued
liabilities
|
(13,069
|
)
|
(13,127
|
)
|
||||
Other
liabilities and deferred credits
|
(2,160
|
)
|
2,092
|
|||||
Net
cash provided by operating activities
|
29,644
|
34,980
|
||||||
Cash
flows from investing activities:
|
||||||||
Capital
expenditures
|
(130,818
|
)
|
(86,040
|
)
|
||||
Deposits
on assets held for sale
|
—
|
23,764
|
||||||
Proceeds
from asset dispositions
|
7,406
|
40,364
|
||||||
Acquisitions,
net of cash received
|
356
|
(178,638
|
)
|
|||||
Net
cash used in investing activities
|
(123,056
|
)
|
(200,550
|
)
|
||||
Cash
flows from financing activities:
|
||||||||
Proceeds
from borrowings
|
115,000
|
—
|
||||||
Debt
issuance costs
|
(3,304
|
)
|
—
|
|||||
Repayment
of debt and debt redemption premiums
|
(1,597
|
)
|
(1,404
|
)
|
||||
Partial
prepayment of put/call obligation
|
(41
|
)
|
(19
|
)
|
||||
Preferred
Stock dividends paid
|
(3,162
|
)
|
(3,162
|
)
|
||||
Issuance
of common stock
|
225,117
|
346
|
||||||
Tax
benefit related to stock-based compensation
|
231
|
26
|
||||||
Net
cash provided by (used in) financing activities
|
332,244
|
(4,213
|
)
|
|||||
Effect
of exchange rate changes on cash and cash equivalents
|
(1,450
|
)
|
7,109
|
|||||
Net
increase (decrease) in cash and cash equivalents
|
237,382
|
(162,674
|
)
|
|||||
Cash
and cash equivalents at beginning of period
|
290,050
|
300,969
|
||||||
Cash
and cash equivalents at end of period
|
$
|
527,432
|
$
|
138,295
|
||||
Supplemental
disclosure of cash flow information:
|
||||||||
Cash
paid during the period for:
|
||||||||
Interest
|
$
|
7,529
|
$
|
9,180
|
||||
Income
taxes
|
$
|
12,240
|
$
|
4,265
|
||||
Non-cash
investing activities:
|
||||||||
Contribution
of note receivable and aircraft to RLR
|
$
|
(6,551
|
)
|
$
|
—
|
|||
Aircraft
received for investment in Heliservicio
|
$
|
2,410
|
$
|
—
|
·
|
Gain
on disposal of assets which was previously included within operating
expense has been reclassified to be included as a separate line below
operating expense, but still within operating income. We
believe that this presentation is preferable as our disposals of assets
typically result in gains, which would reduce operating expense and not
provide a clear presentation of our costs incurred to generate our
revenue.
|
·
|
Earnings
from unconsolidated affiliates which were previously excluded from
operating income have been reclassified to be included within operating
income. We believe that this presentation is preferable
as the operations of our unconsolidated affiliates are integral to our
operations as these entities are involved in aircraft operations similar
to ours in markets where governmental regulations limit foreign ownership
of aircraft companies or where conditions favor entering into joint
venture arrangement with local
partners.
|
Three
Months Ended
June
30,
|
|||||
2008
|
2009
|
||||
One
British pound sterling into U.S. dollars
|
|||||
High
|
2.00
|
1.66
|
|||
Average
|
1.97
|
1.55
|
|||
Low
|
1.94
|
1.44
|
|||
At
period-end
|
1.99
|
1.65
|
|||
One
euro into U.S. dollars
|
|||||
High
|
1.60
|
1.43
|
|||
Average
|
1.56
|
1.36
|
|||
Low
|
1.53
|
1.29
|
|||
At
period-end
|
1.58
|
1.40
|
|||
One
Australian dollar into U.S. dollars
|
|||||
High
|
0.96
|
0.82
|
|||
Average
|
0.94
|
0.76
|
|||
Low
|
0.90
|
0.69
|
|||
At
period-end
|
0.96
|
0.81
|
Three
Months Ended
June
30, 2009
|
|||
Revenue
|
$
|
(34,963
|
)
|
Operating
expense
|
32,424
|
||
Earnings
from unconsolidated affiliates
|
(472
|
)
|
|
Non-operating
expense
|
(1,866
|
)
|
|
Income
before provision for income
taxes
|
(4,877
|
)
|
|
Provision
for income taxes
|
1,384
|
||
Net
income
|
$
|
(3,493
|
)
|
March
31,
2009
|
June
30,
2009
|
|||||
(In
thousands)
|
||||||
7 ½% Senior Notes due 2017,
including $0.5 million of unamortized premium
|
$
|
350,537
|
$
|
350,521
|
||
6
⅛% Senior Notes due 2013
|
230,000
|
230,000
|
||||
3%
Convertible Senior Notes due 2038, including $21.9 million and $21.2
million of unamortized discount, respectively
|
93,067
|
93,792
|
||||
Bristow
Norway Debt
|
18,348
|
18,228
|
||||
RLR
Note
|
17,215
|
16,941
|
||||
Term
loans
|
14,382
|
13,806
|
||||
Other
debt
|
364
|
218
|
||||
Total
debt
|
723,913
|
723,506
|
||||
Less
short-term borrowings and current maturities of long-term
debt
|
(8,948
|
)
|
(8,953
|
)
|
||
Total
long-term debt
|
$
|
714,965
|
$
|
714,553
|
Market
Value of Common Stock
|
Number
of Shares of Common
Stock
Issued for Each $1,000
principal
amount of 3% Senior
Convertible
Notes
|
Total
Number of Common
Stock
Issued for 3%
Senior
Convertible Notes
|
|||
$46.87
or less
|
21.3356
|
2,453,594
|
|||
Between
$46.87 and $169.99
|
12.9308
to 21.3344
|
1,487,032
to 2,453,593
|
|||
$170.00
and above
|
12.9307
|
1,487,031
|
Date
of issue
|
June
2008
|
||
Expected
maturity date
|
June
2015
|
||
Remaining
life
|
7
years
|
||
Effective
interest rate
|
6.9%
|
||
Tax
rate over term of debt
|
35%
|
As
Previously Reported
|
Effect
of Change
|
As
Currently Reported
|
|||||||
Other
assets
|
$
|
25,590
|
$
|
(702
|
)
|
$
|
24,888
|
||
Total
debt
|
745,846
|
(21,933
|
)
|
723,913
|
|||||
Deferred
income tax liability
|
119,589
|
7,677
|
127,266
|
||||||
Additional
paid-in capital
|
421,391
|
14,905
|
436,296
|
||||||
Retained
earnings
|
719,844
|
(1,351
|
)
|
718,493
|
March
31, 2009
|
June
30, 2009
|
|||||
Equity
component- net carrying value
|
$
|
14,905
|
$
|
14,905
|
||
Liability
component:
|
||||||
Face
amount due at maturity
|
$ |
115,000
|
$
|
115,000
|
||
Unamortized
discount
|
(21,933
|
)
|
(21,208
|
)
|
||
Liability
component – net carrying value
|
$
|
93,067
|
$
|
93,792
|
As
Previously Reported
|
Effect
of Change
|
As
Currently Reported
|
|||||||
Interest
expense
|
$
|
8,493
|
$
|
109
|
$
|
8,602
|
|||
Income
tax expense
|
10,604
|
(40
|
)
|
10,564
|
|||||
Net
income attributable to Bristow
|
22,649
|
(69
|
)
|
22,580
|
|||||
Diluted
earnings per share
|
0.72
|
—
|
0.72
|
Three
Months Ended
June
30,
|
||||||
2008
|
2009
|
|||||
Contractual
coupon interest
|
$
|
134
|
$
|
863
|
||
Amortization
of debt discount
|
114
|
725
|
||||
Total
interest expense
|
$
|
248
|
$
|
1,588
|
·
|
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
June
30, 2009
|
|||||||||||||
Derivative
financial instrument asset
|
$
|
—
|
$
|
1,011
|
$
|
—
|
$
|
1,011
|
||||||||
Rabbi
trust investments
|
3,021
|
—
|
—
|
3,021
|
||||||||||||
Total
assetsTotal assets
|
$
|
3,021
|
$
|
1,011
|
$
|
—
|
$
|
4,032
|
||||||||
Derivative
financial instrument liability
|
—
|
(1,079
|
)
|
—
|
(1,079
|
)
|
||||||||||
Net
assets (liabilities)
|
$
|
3,021
|
$
|
(68
|
)
|
$
|
—
|
$
|
2,953
|
Nine
Months
Ending
|
Fiscal Year
Ending March 31,
|
|||||||||||||||||||||
March
31, 2010
|
2011
|
2012
|
2013
|
2014
|
Total
|
|||||||||||||||||
Commitments
as of June 30, 2009:
|
||||||||||||||||||||||
Number
of aircraft:
|
||||||||||||||||||||||
Small
|
1
|
—
|
—
|
—
|
—
|
1
|
||||||||||||||||
Medium
|
4
|
3
|
—
|
—
|
—
|
7
|
||||||||||||||||
Large
|
9
|
(1)
|
—
|
—
|
—
|
—
|
9
|
|||||||||||||||
14
|
(2)
|
3
|
(3)
|
—
|
—
|
—
|
17
|
|||||||||||||||
Related
expenditures (in thousands) (4)
|
$
|
157,846
|
$
|
11,547
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
169,393
|
||||||||||
Options
as of June 30, 2009:
|
||||||||||||||||||||||
Number
of aircraft:
|
||||||||||||||||||||||
Small
|
1
|
—
|
—
|
—
|
—
|
1
|
||||||||||||||||
Medium
|
—
|
—
|
3
|
9
|
15
|
27
|
||||||||||||||||
Large
|
—
|
—
|
10
|
5
|
4
|
19
|
||||||||||||||||
1
|
—
|
13
|
14
|
19
|
47
|
|||||||||||||||||
Related
expenditures (in thousands) (4)
|
$
|
4,340
|
$
|
—
|
$
|
268,142
|
$
|
231,993
|
$
|
320,963
|
$
|
825,438
|
(1)
|
Subsequent
to June 30, 2009, we entered into an agreement to extend the delivery date
to fiscal year 2011 for two large aircraft with commitments totaling $40.9
million. This agreement allows us to cancel these orders
without a termination fee through January 30, 2010 and February 28,
2010. These aircraft were previously scheduled to be delivered
in fiscal year 2010.
|
(2)
|
No
signed customer contracts are currently in place for 13 of these 14
aircraft.
|
(3)
|
No
signed customer contracts are currently in place for these three
aircraft.
|
(4)
|
Includes
progress payments on aircraft scheduled to be delivered in future
periods.
|
Orders
|
Options
|
|||||||
Beginning
of quarter
|
24
|
47
|
||||||
Aircraft
delivered
|
(10
|
)
|
—
|
|||||
Aircraft
ordered
|
3
|
—
|
||||||
End
of quarter
|
17
|
47
|
Amount
of Commitment Expiration Per Period
|
|||||||||||||||||
Total
|
Remainder
of Fiscal Year 2010
|
Fiscal
Years 2011-2012
|
Fiscal
Years 2013-2014
|
Fiscal
Year 2015 and Thereafter
|
|||||||||||||
$
|
45,941
|
$
|
239
|
$
|
22,249
|
$
|
23,453
|
$
|
—
|
Three
Months Ended
June
30,
|
|||||||
2008
|
2009
|
||||||
(In
thousands)
|
|||||||
Service
cost for benefits earned during the period
|
$
|
72
|
$
|
55
|
|||
Interest
cost on pension benefit obligation
|
7,715
|
5,836
|
|||||
Expected
return on assets
|
(6,969
|
)
|
(4,574
|
)
|
|||
Amortization
of unrecognized losses
|
1,283
|
1,086
|
|||||
Net
periodic pension cost
|
$
|
2,101
|
$
|
2,403
|
Three
Months Ended
June
30,
|
||||||
2008
|
2009
|
|||||
Net
income available to common stockholders (in thousands):
|
||||||
Income
available to common stockholders – basic
|
$
|
19,418
|
$
|
20,561
|
||
Preferred
Stock dividends
|
3,162
|
3,162
|
||||
Interest
expense on assumed conversion of 3% Convertible Senior Notes, net of tax
(1)
|
—
|
—
|
||||
Income
available to common stockholders – diluted
|
$
|
22,580
|
$
|
23,723
|
||
Shares:
|
||||||
Weighted
average number of common shares outstanding – basic
|
24,848,223
|
29,133,400
|
||||
Assumed
conversion of Preferred Stock outstanding during the period (2)
|
6,522,800
|
6,522,800
|
||||
Assumed
conversion of 3% Convertible Senior Notes outstanding during the period
(1)
|
—
|
—
|
||||
Net
effect of dilutive stock options and restricted stock units and restricted
stock awards based on the
treasury
stock method
|
181,002
|
125,670
|
||||
Weighted
average number of common shares outstanding – diluted
|
31,552,025
|
35,781,870
|
||||
Basic
earnings per common share
|
$
|
0.78
|
$
|
0.71
|
||
Diluted
earnings per common share
|
$
|
0.72
|
$
|
0.66
|
(1)
|
Diluted
earnings per common share for each of the three months ended June 30, 2008
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 Bristow's common stock exceeds the base
conversion price, holders will receive up to an additional 8.4049 shares
of Bristow 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 months
ended June 30, 2008 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. 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. For further details, see Note 10 in our fiscal year 2009
Financial Statements.
|
Three
Months Ended
June
30,
|
||||||||
2008
|
2009
|
|||||||
(In
thousands)
|
||||||||
Segment
gross revenue from external customers:
|
||||||||
U.S. Gulf
of Mexico
|
$
|
61,509
|
$
|
45,411
|
||||
Arctic
|
4,243
|
4,395
|
||||||
Latin
America
|
20,206
|
19,559
|
||||||
WH
Centralized Operations
|
1,858
|
766
|
||||||
Europe
|
95,286
|
114,415
|
||||||
West
Africa
|
43,300
|
54,817
|
||||||
Australia
|
33,113
|
28,163
|
||||||
Other
International
|
16,258
|
13,327
|
||||||
EH
Centralized Operations
|
2,167
|
2,304
|
||||||
Bristow Academy
|
6,151
|
7,293
|
||||||
Corporate
|
32
|
2
|
||||||
Total
segment gross revenue
|
$
|
284,123
|
$
|
290,452
|
Three
Months Ended
June
30,
|
||||||||
2008
|
2009
|
|||||||
(In
thousands)
|
||||||||
Intrasegment
gross revenue:
|
||||||||
U.S. Gulf
of Mexico
|
$
|
—
|
$
|
50
|
||||
Arctic
|
—
|
—
|
||||||
Latin
America
|
—
|
—
|
||||||
WH
Centralized Operations
|
402
|
719
|
||||||
Europe
|
144
|
628
|
||||||
West
Africa
|
—
|
—
|
||||||
Australia
|
—
|
—
|
||||||
Other
International
|
530
|
108
|
||||||
EH
Centralized Operations
|
148
|
1,355
|
||||||
Bristow Academy
|
—
|
—
|
||||||
Total
intrasegment gross revenue
|
$
|
1,224
|
$
|
2,860
|
Consolidated
gross revenue reconciliation:
|
||||||||
U.S. Gulf
of Mexico
|
$
|
61,509
|
$
|
45,461
|
||||
Arctic
|
4,243
|
4,395
|
||||||
Latin
America
|
20,206
|
19,559
|
||||||
WH
Centralized Operations
|
2,260
|
1,485
|
||||||
Europe
|
95,430
|
115,043
|
||||||
West
Africa
|
43,300
|
54,817
|
||||||
Australia
|
33,113
|
28,163
|
||||||
Other
International
|
16,788
|
13,435
|
||||||
EH
Centralized Operations
|
2,315
|
3,659
|
||||||
Bristow Academy
|
6,151
|
7,293
|
||||||
Intrasegment
eliminations
|
(1,224
|
)
|
(2,860
|
)
|
||||
Corporate
|
32
|
2
|
||||||
Total
consolidated gross revenue
|
$
|
284,123
|
$
|
290,452
|
Consolidated operating income
(loss) reconciliation:
|
||||||||
U.S. Gulf
of Mexico
|
$
|
7,989
|
$
|
6,240
|
||||
Arctic
|
519
|
605
|
||||||
Latin
America
|
9,701
|
4,779
|
||||||
WH
Centralized Operations
|
(676
|
)
|
(3,209
|
)
|
||||
Europe
|
19,466
|
18,778
|
||||||
West
Africa
|
6,516
|
14,238
|
||||||
Australia
|
2,145
|
6,175
|
||||||
Other
International
|
3,298
|
3,287
|
||||||
EH
Centralized Operations
|
(5,422
|
)
|
(2,893
|
)
|
||||
Bristow Academy
|
546
|
931
|
||||||
Gain
on disposal of assets
|
2,665
|
6,009
|
||||||
Corporate
|
(7,437
|
)
|
(10,168
|
)
|
||||
Total
consolidated operating income (1)
|
$
|
39,310
|
$
|
44,772
|
March
31,
|
June
30,
|
|||||||
2009
|
2009
|
|||||||
(In
thousands)
|
||||||||
Identifiable assets:
|
||||||||
U.S. Gulf
of Mexico
|
$
|
345,522
|
$
|
363,451
|
||||
Arctic
|
15,584
|
17,298
|
||||||
Latin
America
|
214,490
|
382,999
|
||||||
WH
Centralized Operations
|
12,480
|
12,177
|
||||||
Europe
|
683,191
|
779,763
|
||||||
West
Africa
|
269,618
|
293,951
|
||||||
Australia
|
175,031
|
208,672
|
||||||
Other
International
|
110,429
|
103,522
|
||||||
EH
Centralized Operations
|
30,241
|
22,453
|
||||||
Bristow Academy
|
37,961
|
37,966
|
||||||
Corporate
(2)
|
440,024
|
235,827
|
||||||
Total
identifiable assets
|
$
|
2,334,571
|
$
|
2,458,079
|
(1)
|
Operating
income includes depreciation and amortization expense in the following
amounts for the periods presented:
|
Three
Months Ended
June
30,
|
|||||||
2008
|
2009
|
||||||
(In
thousands)
|
|||||||
U.S. Gulf
of Mexico
|
$
|
2,957
|
$
|
3,167
|
|||
Arctic
|
224
|
191
|
|||||
Latin
America
|
1,930
|
2,546
|
|||||
WH
Centralized Operations
|
124
|
307
|
|||||
Europe
|
4,879
|
6,598
|
|||||
West
Africa
|
2,053
|
2,039
|
|||||
Australia
|
1,172
|
1,566
|
|||||
Other
International
|
966
|
876
|
|||||
EH
Centralized Operations
|
150
|
179
|
|||||
Bristow Academy
|
411
|
631
|
|||||
Corporate
|
89
|
86
|
|||||
Consolidated
total
|
$
|
14,955
|
$
|
18,186
|
(2)
|
Includes
$230.1 million and $191.6 million of construction in progress within
property and equipment on our condensed consolidated balance sheets as of
March 31 and June 30, 2009, respectively, which primarily represents
progress payments on aircraft to be delivered in future
periods.
|
Three
Months Ended
June
30,
|
||||||
2008
|
2009
|
|||||
(In
thousands)
|
||||||
Net
income
|
$
|
23,283
|
$
|
23,991
|
||
Other
comprehensive income (loss):
|
||||||
Currency
translation adjustments (1)
|
3,503
|
42,130
|
||||
Income
tax effect attributable to pension liability adjustment as a result of
internal
reorganization (2)
|
(9,371
|
)
|
—
|
|||
Unrealized
loss on cash flow hedges (net of income tax effect of $0.3 million and
$2.5 million, respectively)
|
(578
|
)
|
(4,566
|
)
|
||
Comprehensive
income
|
$
|
16,837
|
$
|
61,555
|
(1)
|
During
the three months ended June 30, 2009, the U.S. dollar weakened against the
British pound sterling, resulting in translation gains recorded as a
component of stockholders’ investment as of June 30,
2009.
|
(2)
|
On
April 1, 2008, we completed an internal reorganization that restructured
our holdings in Bristow Aviation Holdings Limited (“Bristow Aviation”) in
an effort to simplify our legal entity structure and reduce administrative
costs associated with our ownership in Bristow Aviation. In
late March 2008, we completed part of this overall restructuring that
resulted in the release of $3.5 million of previously provided U.S.
deferred tax on the assets subject to the restructuring. The
additional transactions completed on April 1, 2008 resulted in a charge to
other comprehensive income as a result of a reduction of $9.4 million in
deferred tax assets associated with our net pension liability; however,
these transactions did not result in a material impact on net
income.
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Gross
revenue
|
$
|
31
|
$
|
89,232
|
$
|
194,860
|
$
|
—
|
$
|
284,123
|
||||||||||
Intercompany
revenue
|
—
|
5,473
|
4,432
|
(9,905
|
)
|
—
|
||||||||||||||
31
|
94,705
|
199,292
|
(9,905
|
)
|
284,123
|
|||||||||||||||
Operating
expense:
|
||||||||||||||||||||
Direct
cost
|
40
|
59,453
|
153,547
|
—
|
213,040
|
|||||||||||||||
Intercompany
expenses
|
—
|
4,485
|
5,420
|
(9,905
|
)
|
—
|
||||||||||||||
Depreciation
and amortization
|
67
|
5,712
|
9,176
|
—
|
14,955
|
|||||||||||||||
General
and administrative
|
7,153
|
4,331
|
15,722
|
—
|
27,206
|
|||||||||||||||
7,260
|
73,981
|
183,865
|
(9,905
|
)
|
255,201
|
|||||||||||||||
Gain
on disposal of assets
|
—
|
1,963
|
702
|
—
|
2,665
|
|||||||||||||||
Earnings
from unconsolidated affiliates,
net
|
49,123
|
3,454
|
4,269
|
(49,123
|
)
|
7,723
|
||||||||||||||
Operating
income
|
41,894
|
26,141
|
20,398
|
(49,123
|
)
|
39,310
|
||||||||||||||
Interest
income
|
20,935
|
65
|
451
|
(20,004
|
)
|
1,447
|
||||||||||||||
Interest
expense
|
(8,852
|
)
|
—
|
(19,754
|
)
|
20,004
|
(8,602
|
)
|
||||||||||||
Other
income (expense), net
|
4,680
|
(25
|
)
|
(2,963
|
)
|
—
|
1,692
|
|||||||||||||
Income
before provision for income
taxes
|
58,657
|
26,181
|
(1,868
|
)
|
(49,123
|
)
|
33,847
|
|||||||||||||
Allocation
of consolidated income taxes
|
(36,034
|
)
|
(3,873
|
)
|
29,343
|
—
|
(10,564
|
)
|
||||||||||||
Net
income
|
22,623
|
22,308
|
27,475
|
(49,123
|
)
|
23,283
|
||||||||||||||
Net
income attributable to noncontrolling
interests
|
(43
|
)
|
—
|
(660
|
)
|
—
|
(703
|
)
|
||||||||||||
Net
income attributable to Bristow
|
$
|
22,580
|
$
|
22,308
|
$
|
26,815
|
$
|
(49,123
|
)
|
$
|
22,580
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Gross
revenue
|
$
|
—
|
$
|
72,092
|
$
|
218,360
|
$
|
—
|
$
|
290,452
|
||||||||||
Intercompany
revenue
|
—
|
7,893
|
3,349
|
(11,242
|
)
|
—
|
||||||||||||||
—
|
79,985
|
221,709
|
(11,242
|
)
|
290,452
|
|||||||||||||||
Operating
expense:
|
||||||||||||||||||||
Direct
cost
|
(82
|
)
|
46,436
|
160,980
|
—
|
207,334
|
||||||||||||||
Intercompany
expenses
|
7
|
3,654
|
7,581
|
(11,242
|
)
|
—
|
||||||||||||||
Depreciation
and amortization
|
179
|
6,801
|
11,206
|
—
|
18,186
|
|||||||||||||||
General
and administrative
|
12,814
|
3,232
|
12,756
|
—
|
28,802
|
|||||||||||||||
12,918
|
60,123
|
192,523
|
(11,242
|
)
|
254,322
|
|||||||||||||||
Gain
on disposal of assets
|
—
|
—
|
6,009
|
—
|
6,009
|
|||||||||||||||
Earnings
from unconsolidated affiliates,
net
|
17,141
|
—
|
3,341
|
(17,849
|
)
|
2,633
|
||||||||||||||
Operating
income
|
4,223
|
19,862
|
38,536
|
(17,849
|
)
|
44,772
|
||||||||||||||
Interest
income
|
30,433
|
12
|
145
|
(30,368
|
)
|
222
|
||||||||||||||
Interest
expense
|
(10,287
|
)
|
—
|
(30,093
|
)
|
30,368
|
(10,012
|
)
|
||||||||||||
Other
income (expense), net
|
(238
|
)
|
(538
|
)
|
(705
|
)
|
—
|
(1,481
|
)
|
|||||||||||
Income
before provision for income
taxes
|
24,131
|
19,336
|
7,883
|
(17,849
|
)
|
33,501
|
||||||||||||||
Allocation
of consolidated income taxes
|
(304
|
)
|
(2,901
|
)
|
(6,305
|
)
|
—
|
(9,510
|
)
|
|||||||||||
Net
income
|
23,827
|
16,435
|
1,578
|
(17,849
|
)
|
23,991
|
||||||||||||||
Net
income attributable to noncontrolling
interests
|
(104
|
)
|
—
|
(164
|
)
|
—
|
(268
|
)
|
||||||||||||
Net
income attributable to Bristow
|
$
|
23,723
|
$
|
16,435
|
$
|
1,414
|
$
|
(17,849
|
)
|
$
|
23,723
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Elimination
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
ASSETS
|
||||||||||||||||||||
Current
assets:
|
||||||||||||||||||||
Cash
and cash equivalents
|
$
|
226,691
|
$
|
5,445
|
$
|
68,833
|
$
|
—
|
$
|
300,969
|
||||||||||
Accounts
receivable
|
11,931
|
67,047
|
172,974
|
(35,278
|
)
|
216,674
|
||||||||||||||
Inventories
|
—
|
82,422
|
83,016
|
—
|
165,438
|
|||||||||||||||
Prepaid
expenses and other
|
1,000
|
6,200
|
30,676
|
(17,650
|
)
|
20,226
|
||||||||||||||
Total
current assets
|
239,622
|
161,114
|
355,499
|
(52,928
|
)
|
703,307
|
||||||||||||||
Intercompany
investment
|
924,815
|
62,990
|
251,960
|
(1,239,765
|
)
|
—
|
||||||||||||||
Investment
in unconsolidated affiliates
|
1,631
|
150
|
18,484
|
—
|
20,265
|
|||||||||||||||
Intercompany
notes receivable
|
835,439
|
—
|
(8,709
|
)
|
(826,730
|
)
|
—
|
|||||||||||||
Property
and equipment – at cost:
|
||||||||||||||||||||
Land
and buildings
|
212
|
48,770
|
19,979
|
—
|
68,961
|
|||||||||||||||
Aircraft
and equipment
|
7,280
|
768,709
|
1,047,022
|
—
|
1,823,011
|
|||||||||||||||
7,492
|
817,479
|
1,067,001
|
—
|
1,891,972
|
||||||||||||||||
Less: Accumulated
depreciation and amortization
|
(1,511
|
)
|
(129,675
|
)
|
(219,329
|
)
|
—
|
(350,515
|
)
|
|||||||||||
5,981
|
687,804
|
847,672
|
—
|
1,541,457
|
||||||||||||||||
Goodwill
|
—
|
4,486
|
40,168
|
—
|
44,654
|
|||||||||||||||
Other
assets
|
113,735
|
1,151
|
186,726
|
(276,724
|
)
|
24,888
|
||||||||||||||
$
|
2,121,223
|
$
|
917,695
|
$
|
1,691,800
|
$
|
(2,396,147
|
)
|
$
|
2,334,571
|
||||||||||
LIABILITIES
AND STOCKHOLDERS’ INVESTMENT
|
||||||||||||||||||||
Current
liabilities:
|
||||||||||||||||||||
Accounts
payable
|
$
|
938
|
$
|
20,772
|
$
|
50,230
|
$
|
(27,048
|
)
|
$
|
44,892
|
|||||||||
Accrued
liabilities
|
11,458
|
22,703
|
90,594
|
(26,951
|
)
|
97,804
|
||||||||||||||
Deferred
taxes
|
(1,575
|
)
|
—
|
7,770
|
—
|
6,195
|
||||||||||||||
Short-term
borrowings and current maturities of
long-term
debt
|
3,040
|
—
|
5,908
|
—
|
8,948
|
|||||||||||||||
Total
current
liabilities
|
13,861
|
43,475
|
154,502
|
(53,999
|
)
|
157,839
|
||||||||||||||
Long-term
debt, less current maturities
|
670,565
|
—
|
44,400
|
—
|
714,965
|
|||||||||||||||
Intercompany
notes payable
|
—
|
355,150
|
572,148
|
(927,298
|
)
|
—
|
||||||||||||||
Accrued
pension liabilities
|
—
|
—
|
81,380
|
—
|
81,380
|
|||||||||||||||
Other
liabilities and deferred credits
|
3,340
|
8,567
|
181,964
|
(177,130
|
)
|
16,741
|
||||||||||||||
Deferred
taxes
|
97,503
|
6,299
|
23,464
|
—
|
127,266
|
|||||||||||||||
Stockholders’
investment:
|
||||||||||||||||||||
Preferred
stock
|
222,554
|
—
|
—
|
—
|
222,554
|
|||||||||||||||
Common
stock
|
291
|
4,996
|
9,646
|
(14,642
|
)
|
291
|
||||||||||||||
Additional
paid-in-capital
|
436,296
|
17,906
|
542,992
|
(560,898
|
)
|
436,296
|
||||||||||||||
Retained
earnings
|
718,493
|
481,302
|
12,860
|
(494,162
|
)
|
718,493
|
||||||||||||||
Noncontrolling
interests
|
7,107
|
—
|
4,093
|
—
|
11,200
|
|||||||||||||||
Accumulated
other comprehensive income
(loss)
|
(48,787
|
)
|
—
|
64,351
|
(168,018
|
)
|
(152,454
|
)
|
||||||||||||
1,335,954
|
504,204
|
633,942
|
(1,237,720
|
)
|
1,236,380
|
|||||||||||||||
$
|
2,121,223
|
$
|
917,695
|
$
|
1,691,800
|
$
|
(2,396,147
|
)
|
$
|
2,334,571
|
Parent
|
Non-
|
|||||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||||
(In
thousands)
|
||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||
Current
assets:
|
||||||||||||||||||||||
Cash
and cash equivalents
|
$
|
62,275
|
$
|
2,214
|
$
|
73,806
|
$
|
—
|
$
|
138,295
|
||||||||||||
Accounts
receivable
|
10,232
|
59,333
|
179,831
|
(17,335
|
)
|
232,061
|
||||||||||||||||
Inventories
|
—
|
85,289
|
98,901
|
—
|
184,190
|
|||||||||||||||||
Prepaid
expenses and other
|
851
|
30,517
|
34,915
|
(7,427
|
)
|
58,856
|
||||||||||||||||
Total
current assets
|
73,358
|
177,353
|
387,453
|
(24,762
|
)
|
613,402
|
||||||||||||||||
Intercompany
investment
|
953,071
|
62,721
|
251,672
|
(1,267,464
|
)
|
—
|
||||||||||||||||
Investment
in unconsolidated affiliates
|
—
|
844
|
198,890
|
—
|
199,734
|
|||||||||||||||||
Intercompany
notes receivable
|
1,067,838
|
—
|
(201,398
|
)
|
(866,440
|
)
|
—
|
|||||||||||||||
Property
and equipment – at cost:
|
||||||||||||||||||||||
Land
and buildings
|
212
|
50,234
|
24,831
|
—
|
75,277
|
|||||||||||||||||
Aircraft
and equipment
|
8,156
|
737,231
|
1,131,908
|
—
|
1,877,295
|
|||||||||||||||||
8,368
|
787,465
|
1,156,739
|
—
|
1,952,572
|
||||||||||||||||||
Less: Accumulated
depreciation and amortization
|
(1,648
|
)
|
(134,764
|
)
|
(242,434
|
)
|
—
|
(378,846
|
)
|
|||||||||||||
6,720
|
652,701
|
914,305
|
—
|
1,573,726
|
||||||||||||||||||
Goodwill
|
—
|
4,486
|
42,322
|
—
|
46,808
|
|||||||||||||||||
Other
assets
|
113,462
|
1,149
|
186,928
|
(277,130
|
)
|
24,409
|
||||||||||||||||
$
|
2,214,449
|
$
|
899,254
|
$
|
1,780,172
|
$
|
(2,435,796
|
)
|
$
|
2,458,079
|
||||||||||||
LIABILITIES
AND STOCKHOLDERS’ INVESTMENT
|
||||||||||||||||||||||
Current
liabilities:
|
||||||||||||||||||||||
Accounts
payable
|
$
|
2,857
|
$
|
11,650
|
$
|
53,979
|
$
|
(6,996
|
)
|
$
|
61,490
|
|||||||||||
Accrued
liabilities
|
12,845
|
47,465
|
73,380
|
(17,766
|
)
|
115,924
|
||||||||||||||||
Deferred
taxes
|
(1,712
|
)
|
—
|
12,754
|
—
|
11,042
|
||||||||||||||||
Short-term
borrowings and current maturities of
long-term
debt
|
3,091
|
—
|
5,862
|
—
|
8,953
|
|||||||||||||||||
Total
current liabilities
|
17,081
|
59,115
|
145,975
|
(24,762
|
)
|
197,409
|
||||||||||||||||
Long-term
debt, less current maturities
|
671,223
|
—
|
43,330
|
—
|
714,553
|
|||||||||||||||||
Intercompany
notes payable
|
—
|
304,254
|
662,186
|
(966,440
|
)
|
—
|
||||||||||||||||
Accrued
pension liabilities
|
—
|
—
|
96,384
|
—
|
96,384
|
|||||||||||||||||
Other
liabilities and deferred credits
|
3,709
|
8,507
|
182,975
|
(177,130
|
)
|
18,061
|
||||||||||||||||
Deferred
taxes
|
100,419
|
6,604
|
26,115
|
—
|
133,138
|
|||||||||||||||||
Stockholders’
investment:
|
||||||||||||||||||||||
5.50%
mandatory convertible preferred stock
|
222,554
|
—
|
—
|
—
|
222,554
|
|||||||||||||||||
Common
stock
|
293
|
4,996
|
32,863
|
(37,859
|
)
|
293
|
||||||||||||||||
Additional
paid-in-capital
|
439,712
|
18,041
|
552,968
|
(571,009
|
)
|
439,712
|
||||||||||||||||
Retained
earnings
|
739,054
|
497,737
|
5,524
|
(503,261
|
)
|
739,054
|
||||||||||||||||
Noncontrolling
interests
|
7,411
|
—
|
4,400
|
—
|
11,811
|
|||||||||||||||||
Accumulated
other comprehensive income
(loss)
|
12,993
|
—
|
27,452
|
(155,335
|
)
|
(114,890
|
)
|
|||||||||||||||
1,422,017
|
520,774
|
623,207
|
(1,267,464
|
)
|
1,298,534
|
|||||||||||||||||
$
|
2,214,449
|
$
|
899,254
|
$
|
1,780,172
|
$
|
(2,435,796
|
)
|
$
|
2,458,079
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Net
cash provided by (used in) operating activities
|
$
|
(12,270
|
)
|
$
|
17,713
|
$
|
25,958
|
$
|
(1,757
|
)
|
$
|
29,644
|
||||||||
Cash
flows from investing activities:
|
||||||||||||||||||||
Capital
expenditures
|
(1,069
|
)
|
(87,744
|
)
|
(42,005
|
)
|
—
|
(130,818
|
)
|
|||||||||||
Proceeds
from asset dispositions
|
—
|
3,230
|
4,176
|
—
|
7,406
|
|||||||||||||||
Acquisition,
net of cash received
|
—
|
356
|
—
|
—
|
356
|
|||||||||||||||
Net
cash used in investing activities
|
(1,069
|
)
|
(84,158
|
)
|
(37,829
|
)
|
—
|
(123,056
|
)
|
|||||||||||
Cash
flows from financing activities:
|
||||||||||||||||||||
Proceeds
from borrowings
|
115,000
|
—
|
—
|
—
|
115,000
|
|||||||||||||||
Debt
issuance costs
|
(3,304
|
)
|
—
|
—
|
—
|
(3,304
|
)
|
|||||||||||||
Repayment
of debt and debt redemption premiums
|
(575
|
)
|
—
|
(1,022)
|
—
|
(1,597
|
)
|
|||||||||||||
Increases
(decreases) in cash related to intercompany
advances
and debt
|
(75,949
|
)
|
66,084
|
8,783
|
1,082
|
—
|
||||||||||||||
Partial
prepayment of put/call obligation
|
(41
|
)
|
—
|
—
|
—
|
(41
|
)
|
|||||||||||||
Preferred
Stock dividends paid
|
(3,162
|
)
|
—
|
—
|
—
|
(3,162
|
)
|
|||||||||||||
Issuance
of common stock
|
225,117
|
—
|
—
|
—
|
225,117
|
|||||||||||||||
Tax
benefit related to stock-based compensation
|
231
|
—
|
—
|
—
|
231
|
|||||||||||||||
Net
cash provided by financing activities
|
257,317
|
66,084
|
7,761
|
1,082
|
332,244
|
|||||||||||||||
Effect
of exchange rate changes on cash and cash
equivalents
|
(248
|
)
|
—
|
(1,202
|
)
|
—
|
(1,450
|
)
|
||||||||||||
Net
increase (decrease) in cash and cash
equivalents
|
243,730
|
(361
|
)
|
(5,312
|
)
|
(675
|
)
|
237,382
|
||||||||||||
Cash
and cash equivalents at beginning of
period
|
226,494
|
361
|
63,195
|
—
|
290,050
|
|||||||||||||||
Cash
and cash equivalents at end of period
|
$
|
470,224
|
$
|
—
|
$
|
57,883
|
$
|
(675
|
)
|
$
|
527,432
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Net
cash provided by (used in) operating activities
|
$
|
(26,247
|
)
|
$
|
27,483
|
$
|
33,744
|
$
|
—
|
$
|
34,980
|
|||||||||
Cash
flows from investing activities:
|
||||||||||||||||||||
Capital
expenditures
|
(876
|
)
|
(1,524
|
)
|
(83,640
|
)
|
—
|
(86,040
|
)
|
|||||||||||
Deposits
on assets held for sale
|
—
|
23,764
|
—
|
—
|
23,764
|
|||||||||||||||
Proceeds
from asset dispositions
|
—
|
—
|
40,364
|
—
|
40,364
|
|||||||||||||||
Acquisition,
net of cash received
|
—
|
—
|
(178,638
|
)
|
—
|
(178,638
|
)
|
|||||||||||||
Net
cash used in investing activities
|
(876
|
)
|
22,240
|
(221,914
|
)
|
—
|
(200,550
|
)
|
||||||||||||
Cash
flows from financing activities:
|
||||||||||||||||||||
Repayment
of debt and debt redemption premiums
|
(575
|
)
|
—
|
(829)
|
—
|
(1,404
|
)
|
|||||||||||||
Increases
(decreases) in cash related to intercompany
advances
and debt
|
(141,681
|
)
|
(52,954
|
)
|
194,635
|
—
|
—
|
|||||||||||||
Dividends
paid
|
8,750
|
—
|
(8,750
|
)
|
—
|
—
|
||||||||||||||
Partial
prepayment of put/call obligation
|
(19
|
)
|
—
|
—
|
—
|
(19
|
)
|
|||||||||||||
Preferred
Stock dividends paid
|
(3,162
|
)
|
—
|
—
|
—
|
(3,162
|
)
|
|||||||||||||
Issuance
of common stock
|
346
|
—
|
—
|
—
|
346
|
|||||||||||||||
Tax
benefit related to stock-based compensation
|
26
|
—
|
—
|
—
|
26
|
|||||||||||||||
Net
cash provided by (used in) financing activities
|
(136,315
|
)
|
(52,954
|
)
|
185,056
|
(4,213
|
)
|
|||||||||||||
Effect
of exchange rate changes on cash and cash
equivalents
|
(978
|
)
|
—
|
8,087
|
—
|
7,109
|
||||||||||||||
Net
increase (decrease) in cash and cash
equivalents
|
(164,416
|
)
|
(3,231
|
)
|
4,973
|
—
|
(162,674
|
)
|
||||||||||||
Cash
and cash equivalents at beginning of
period
|
226,691
|
5,445
|
68,833
|
—
|
300,969
|
|||||||||||||||
Cash
and cash equivalents at end of period
|
$
|
62,275
|
$
|
2,214
|
$
|
73,806
|
$
|
—
|
$
|
138,295
|
·
|
the
risks and uncertainties described under “Item 1A. Risk Factors” in the
fiscal year 2009 Annual Report;
|
·
|
the
level of activity in the oil and natural gas industry is lower than
anticipated;
|
·
|
production-related
activities become more sensitive to variances in commodity
prices;
|
·
|
the
major oil companies do not continue to expand
internationally;
|
·
|
market
conditions are weaker than
anticipated;
|
·
|
we
are unable to acquire additional aircraft due to limited availability or
unable to exercise aircraft purchase
options;
|
·
|
we
are unable to obtain financing or we are unable to draw on our credit
facilities;
|
·
|
we
are not able to re-deploy our aircraft to regions with greater
demand;
|
·
|
we
do not achieve the anticipated benefit of our fleet renewal and growth
strategy;
|
·
|
the
outcome of the U.S. Department of Justice (“DOJ”) investigation relating
to the Internal Review, which is ongoing, has a greater than anticipated
financial or business impact; and
|
·
|
the
outcome of the DOJ antitrust investigation, which is ongoing, has a
greater than anticipated financial or business
impact.
|
·
|
Western
Hemisphere
|
−
|
U.S. Gulf
of Mexico
|
−
|
Arctic
|
−
|
Latin
America
|
−
|
Western
Hemisphere (“WH”) Centralized
Operations
|
·
|
Eastern
Hemisphere
|
−
|
Europe
|
−
|
West
Africa
|
−
|
Australia
|
−
|
Other
International
|
−
|
Eastern
Hemisphere (“EH”) Centralized
Operations
|
·
|
Global
Training
|
−
|
Bristow Academy
|
Percentage
of
Current Quarter Revenue
|
Aircraft
in Consolidated Fleet
|
|||||||||||||||||||
Helicopters
|
||||||||||||||||||||
Small
|
Medium
|
Large
|
Training
|
Fixed Wing
|
Total (1)
|
|
Unconsolidated Affiliates
(2)
|
Total
|
||||||||||||
U.S. Gulf
of Mexico
|
16
|
%
|
60
|
26
|
7
|
—
|
—
|
93
|
—
|
93
|
||||||||||
Arctic
|
1
|
%
|
13
|
2
|
—
|
—
|
1
|
16
|
—
|
16
|
||||||||||
Latin
America
|
7
|
%
|
5
|
35
|
2
|
—
|
—
|
42
|
92
|
134
|
||||||||||
WH
Centralized Operations
|
1
|
%
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||
Europe
|
39
|
%
|
—
|
12
|
41
|
—
|
—
|
53
|
—
|
53
|
||||||||||
West
Africa
|
19
|
%
|
12
|
32
|
5
|
—
|
5
|
54
|
—
|
54
|
||||||||||
Australia
|
10
|
%
|
2
|
9
|
15
|
—
|
—
|
26
|
—
|
26
|
||||||||||
Other
International
|
4
|
%
|
—
|
15
|
10
|
—
|
—
|
25
|
41
|
66
|
||||||||||
EH
Centralized Operations
|
1
|
%
|
—
|
—
|
—
|
—
|
—
|
—
|
63
|
63
|
||||||||||
Bristow Academy
|
2
|
%
|
—
|
—
|
—
|
75
|
1
|
76
|
—
|
76
|
||||||||||
Total
|
100
|
%
|
92
|
131
|
80
|
75
|
7
|
385
|
196
|
581
|
||||||||||
Aircraft
not currently in fleet: (3)
|
||||||||||||||||||||
On
order
|
1
|
7
|
9
|
—
|
—
|
17
|
||||||||||||||
Under
option
|
1
|
27
|
19
|
—
|
—
|
47
|
(1)
|
Includes
twelve aircraft held for sale.
|
(2)
|
The
180 aircraft operated and 16 aircraft managed by our unconsolidated
affiliates are in addition to those aircraft leased from
us.
|
(3)
|
This
table does not reflect aircraft which our unconsolidated affiliates may
have on order or under option.
|
·
|
Grow our
business. We plan to continue to grow our business
globally and increase our revenue and profitability, subject to managing
through cyclical downturns in the energy industry. We have a
footprint in most major oil and gas producing regions of the world, and we
expect to have the opportunity to expand and deepen our presence in many
of these markets. We anticipate this growth will result
primarily from the deployment of new aircraft into markets where we expect
they will be most profitably employed, as well as by executing
opportunistic acquisitions and investments. Through our
relationships with our existing customers, we are aware of future business
opportunities in the markets we currently serve that would allow us to
grow through fleet additions. Our acquisition-related growth
may include increasing our role and participation with existing
unconsolidated affiliates or investing in new companies, and may include
increasing our position in existing markets or expanding into new
markets.
|
·
|
Be the preferred provider of
helicopter services. We position our business as the
preferred provider of helicopter services by maintaining strong
relationships with our customers and providing safe and high-quality
service. We focus on maintaining relationships with our
customers’ field operations and corporate management. We
believe that this focus helps us better anticipate customer needs and
provide our customers with the right aircraft in the right place at the
right time, which in turn allows us to better manage our existing fleet
and capital investment program. We also leverage our close
relationships with our customers to establish mutually beneficial
operating practices and safety standards worldwide. By applying
standard operating and safety practices across our global operations, we
are able to provide our customers with consistent, high-quality service in
each of their areas of operation. By better understanding our
customers’ needs and by virtue of our global operations and safety
standards, we have effectively competed against other helicopter service
providers based on aircraft availability, customer service, safety and
reliability, and not just price.
|
·
|
Integrate our global
operations. We are an integrated global operator, and we
intend to continue to identify and implement further opportunities to
integrate our global organization. We have integrated our
operations among previously independently managed businesses, created a
global flight and maintenance standards group, improved our global asset
allocation and made other changes in our corporate and field
operations.
|
·
|
Capital
expenditures are being carefully evaluated and
prioritized;
|
·
|
Management
salaries have been frozen; and
|
·
|
We
are in consultations with U.K. union representatives and employees in our
Europe and EH Centralized Operations business units regarding staffing
reductions in fiscal year 2010. Similar actions are occurring
in other business units as part of an overall plan to reduce our work
force by 5% to 10% to meet changing market conditions while maintaining
operational safety.
|
Three
Months Ended
June
30,
|
Favorable
|
||||||||||||||||
2008
|
2009
|
(Unfavorable)
|
|||||||||||||||
(Unaudited)
(In
thousands, except per share
amounts,
percentages and flight hours)
|
|||||||||||||||||
Gross
revenue:
|
|||||||||||||||||
Operating
revenue
|
$
|
258,404
|
$
|
263,493
|
$
|
5,089
|
2.0
|
%
|
|||||||||
Reimbursable
revenue
|
25,719
|
26,959
|
1,240
|
4.8
|
%
|
||||||||||||
Total
gross revenue
|
284,123
|
290,452
|
6,329
|
2.2
|
%
|
||||||||||||
Operating
expense:
|
|||||||||||||||||
Direct
cost
|
186,973
|
180,677
|
6,296
|
3.4
|
%
|
||||||||||||
Reimbursable
expense
|
26,067
|
26,657
|
(590
|
)
|
(2.3
|
)
|
%
|
||||||||||
Depreciation
and amortization
|
14,955
|
18,186
|
(3,231
|
)
|
(21.6
|
)
|
%
|
||||||||||
General
and administrative
|
27,206
|
28,802
|
(1,596
|
)
|
(5.9
|
)
|
%
|
||||||||||
255,201
|
254,322
|
879
|
0.3
|
%
|
|||||||||||||
Gain
on disposal of assets (1)
|
2,665
|
6,009
|
3,344
|
125.5
|
%
|
||||||||||||
Earnings
from unconsolidated affiliates, net of losses (1)
|
7,723
|
2,633
|
(5,090
|
)
|
(65.9
|
)
|
%
|
||||||||||
Operating
income
|
39,310
|
44,772
|
5,462
|
13.9
|
%
|
||||||||||||
Interest
income (expense), net
|
(7,155
|
)
|
(9,790
|
)
|
(2,635
|
)
|
(36.8
|
)
|
%
|
||||||||
Other
income (expense), net
|
1,692
|
(1,481
|
)
|
(3,173
|
)
|
(187.5
|
)
|
%
|
|||||||||
Income
before provision for income taxes
|
33,847
|
33,501
|
(346
|
)
|
(1.0
|
)
|
%
|
||||||||||
Provision
for income taxes
|
(10,564
|
)
|
(9,510
|
)
|
1,054
|
10.0
|
%
|
||||||||||
Net
income
|
23,283
|
23,991
|
708
|
3.0
|
%
|
||||||||||||
Net
income attributable to noncontrolling interests
|
(703
|
)
|
(268
|
)
|
435
|
61.9
|
%
|
||||||||||
Net
income attributable to Bristow
|
$
|
22,580
|
$
|
23,723
|
$
|
1,143
|
5.1
|
%
|
|||||||||
Diluted
earnings per common share
|
$
|
0.72
|
$
|
0.66
|
$
|
(0.06
|
)
|
(8.3
|
)
|
%
|
|||||||
Operating
margin (2)
|
13.8
|
%
|
15.4
|
%
|
1.6
|
%
|
11.6
|
%
|
|||||||||
Flight
hours (3)
|
75,454
|
60,533
|
(14,921
|
)
|
(19.8
|
)
|
%
|
(1)
|
Gain
on disposal of assets which was previously included within operating
expense has been reclassified in this Quarterly Report to be included as a
separate line below operating expense, but still within operating
income. Earnings from unconsolidated affiliates which were
previously included in non-operating income have been reclassified in this
Quarterly Report to be included within operating
income. Amounts presented for the Comparable Quarter have been
restated to conform to Current Quarter presentation. See Note 1
in the “Notes to Condensed Consolidated Financial Statements” included
elsewhere in this Quarterly Report for further discussion of these changes
in presentation.
|
(2)
|
Operating
margin is calculated as operating income divided by gross
revenue.
|
(3)
|
Excludes
flight hours from Bristow Academy and unconsolidated
affiliates.
|
Three
Months Ended June 30,
|
Favorable
|
|||||||||||||||
2008
|
2009
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages and flight hours)
|
||||||||||||||||
Gross
revenue
|
$
|
61,509
|
$
|
45,461
|
$
|
(16,048
|
)
|
(26.1
|
)%
|
|||||||
Operating
expense
|
$
|
53,520
|
$
|
39,221
|
$
|
14,299
|
26.7
|
%
|
||||||||
Operating
margin
|
13.0
|
%
|
13.7
|
%
|
0.7
|
%
|
|
5.4
|
%
|
|||||||
Flight
hours
|
37,639
|
20,421
|
(17,218
|
)
|
(45.7
|
)%
|
Three
Months Ended June 30,
|
Favorable
|
|||||||||||||||
2008
|
2009
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages and flight hours)
|
||||||||||||||||
Gross
revenue
|
$
|
4,243
|
$
|
4,395
|
$
|
152
|
3.6
|
%
|
||||||||
Operating
expense
|
$
|
3,724
|
$
|
3,790
|
$
|
(66
|
)
|
(1.8
|
)%
|
|||||||
Operating
margin
|
12.2
|
%
|
13.8
|
%
|
1.6
|
%
|
13.1
|
%
|
||||||||
Flight
hours
|
2,437
|
2,348
|
(89
|
)
|
(3.7
|
)%
|
Three
Months Ended June 30,
|
Favorable
|
||||||||||||||||
2008
|
2009
|
(Unfavorable)
|
|||||||||||||||
(In
thousands, except percentages and flight hours)
|
|||||||||||||||||
Gross
revenue
|
$
|
20,206
|
$
|
19,559
|
$
|
(647
|
)
|
(3.2
|
)
|
%
|
|||||||
Operating
expense
|
$
|
13,731
|
$
|
15,572
|
$
|
(1,841
|
)
|
(13.4
|
)
|
%
|
|||||||
Earnings
from unconsolidated affiliates
|
$
|
3,226
|
$
|
792
|
$
|
(2,434
|
)
|
(75.4
|
)
|
%
|
|||||||
Operating
margin
|
48.0
|
%
|
24.4
|
%
|
(23.6
|
)
|
%
|
(49.2
|
)
|
%
|
|||||||
Flight
hours
|
8,539
|
8,586
|
47
|
0.6
|
%
|
Three
Months Ended June 30,
|
||||||||||||||||
2008
|
2009
|
Unfavorable
|
||||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Gross
revenue
|
$
|
2,260
|
$
|
1,485
|
$
|
(775
|
)
|
(34.3
|
)%
|
|||||||
Operating
expense
|
2,936
|
4,694
|
(1,758
|
)
|
(59.9
|
)%
|
||||||||||
Operating
loss
|
$
|
(676
|
)
|
$
|
(3,209
|
)
|
$
|
(2,533
|
)
|
(374.7
|
)%
|
Three
Months Ended June 30,
|
Favorable
|
||||||||||||||||
2008
|
2009
|
(Unfavorable)
|
|||||||||||||||
(In
thousands, except percentages and flight hours)
|
|||||||||||||||||
Gross
revenue
|
$
|
95,430
|
$
|
115,043
|
$
|
19,613
|
20.6
|
%
|
|||||||||
Operating
expense
|
$
|
77,954
|
$
|
96,297
|
$
|
(18,343
|
)
|
(23.5
|
)
|
%
|
|||||||
Earnings
from unconsolidated affiliates
|
$
|
1,990
|
$
|
32
|
$
|
(1,958
|
)
|
*
|
|||||||||
Operating
margin
|
20.4
|
%
|
16.3
|
%
|
(4.1
|
)
|
%
|
(20.1
|
)
|
%
|
|||||||
Flight
hours
|
10,306
|
14,855
|
4,549
|
44.1
|
%
|
Three
Months Ended June 30,
|
Favorable
|
||||||||||||||||
2008
|
2009
|
(Unfavorable)
|
|||||||||||||||
(In
thousands, except percentages and flight hours)
|
|||||||||||||||||
Gross
revenue
|
$
|
43,300
|
$
|
54,817
|
$
|
11,517
|
26.6
|
%
|
|||||||||
Operating
expense
|
$
|
36,784
|
$
|
40,579
|
$
|
(3,795
|
)
|
(10.3
|
)
|
%
|
|||||||
Operating
margin
|
15.0
|
%
|
26.0
|
%
|
11.0
|
%
|
73.3
|
%
|
|||||||||
Flight
hours
|
9,598
|
8,950
|
(648
|
)
|
(6.8
|
)
|
%
|
Three
Months Ended June 30,
|
Favorable
|
|||||||||||||||
2008
|
2009
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages and flight hours)
|
||||||||||||||||
Gross
revenue
|
$
|
33,113
|
$
|
28,163
|
$
|
(4,950
|
)
|
(14.9
|
)%
|
|||||||
Operating
expense
|
$
|
30,968
|
$
|
21,988
|
$
|
8,980
|
29.0
|
%
|
||||||||
Operating
margin
|
6.5
|
%
|
21.9
|
%
|
15.4
|
%
|
236.9
|
%
|
||||||||
Flight
hours
|
4,040
|
2,880
|
(1,160
|
)
|
(28.7
|
)%
|
Three
Months Ended June 30,
|
Favorable
|
|||||||||||||||
2008
|
2009
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages and flight hours)
|
||||||||||||||||
Gross
revenue
|
$
|
16,788
|
$
|
13,435
|
$
|
(3,353
|
)
|
(20.0
|
)%
|
|||||||
Operating
expense
|
$
|
13,550
|
$
|
10,163
|
$
|
3,387
|
25.0
|
%
|
||||||||
Earnings
from unconsolidated affiliates
|
$
|
60
|
$
|
15
|
$
|
(45
|
)
|
(75.0
|
)%
|
|||||||
Operating
margin
|
19.6
|
%
|
24.5
|
%
|
4.9
|
%
|
25.0
|
%
|
||||||||
Flight
hours
|
2,895
|
2,493
|
(402
|
)
|
(13.9
|
)%
|
Three
Months Ended June 30,
|
Favorable
|
|||||||||||||||
2008
|
2009
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Gross
revenue
|
$
|
2,315
|
$
|
3,659
|
$
|
1,344
|
58.1
|
%
|
||||||||
Operating
expense
|
10,236
|
8,346
|
1,890
|
18.5
|
%
|
|||||||||||
Earnings
from unconsolidated affiliates
|
2,499
|
1,794
|
(705
|
)
|
(28.2
|
)%
|
||||||||||
Operating
loss
|
$
|
(5,422
|
)
|
$
|
(2,893
|
)
|
$
|
2,529
|
46.6
|
%
|
Three
Months Ended June 30,
|
Favorable
|
|||||||||||||||
2008
|
2009
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Gross
revenue
|
$
|
6,151
|
$
|
7,293
|
$
|
1,142
|
18.6
|
%
|
||||||||
Operating
expense
|
$
|
5,605
|
$
|
6,362
|
$
|
(757
|
)
|
(13.5
|
)%
|
|||||||
Operating
margin
|
8.9
|
%
|
12.8
|
%
|
3.9
|
%
|
43.8
|
%
|
Three
Months Ended June 30,
|
Favorable
|
|||||||||||||||
2008
|
2009
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Gross
revenue
|
$
|
32
|
$
|
2
|
$
|
(30
|
)
|
(93.8
|
)%
|
|||||||
Operating
expense
|
7,417
|
|
10,170
|
(2,753
|
)
|
(37.1
|
)%
|
|||||||||
Losses from
unconsolidated affiliates
|
(52
|
)
|
—
|
52
|
100.0
|
%
|
||||||||||
Operating
loss
|
$
|
(7,437
|
)
|
$
|
(10,168
|
)
|
$
|
(2,731
|
)
|
(36.7
|
)%
|
Three
Months Ended June 30,
|
Favorable
|
|||||||||||||||
2008
|
2009
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Interest
income
|
$
|
1,447
|
$
|
222
|
$
|
(1,225
|
)
|
(84.7
|
)%
|
|||||||
Interest
expense
|
(10,857
|
)
|
(11,399
|
)
|
(542
|
)
|
(5.0
|
)%
|
||||||||
Amortization
of debt discount
|
(114
|
)
|
(725
|
)
|
(611
|
)
|
*
|
|||||||||
Amortization
of debt fees
|
(413
|
)
|
(496
|
)
|
(83
|
)
|
(20.1
|
)%
|
||||||||
Capitalized
interest
|
2,782
|
2,608
|
(174
|
)
|
6.3
|
%
|
||||||||||
Interest
expense, net
|
$
|
(7,155
|
)
|
$
|
(9,790
|
)
|
$
|
(2,635
|
)
|
(36.8
|
)%
|
Three
Months Ended June 30,
|
||||||||||||||||
2008
|
2009
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Foreign
currency losses
|
$
|
(367
|
)
|
$
|
(1,481
|
)
|
$
|
(1,114
|
)
|
(303.5
|
)%
|
|||||
Other
|
2,059
|
—
|
(2,059
|
)
|
(100.0
|
)%
|
||||||||||
Total
|
$
|
1,692
|
$
|
(1,481
|
)
|
$
|
(3,173
|
)
|
(187.5
|
)%
|
Three
Months Ended June 30,
|
Favorable
|
|||||||||||||||
2008
|
2009
|
(Unfavorable)
|
||||||||||||||
(In
thousands, except percentages)
|
||||||||||||||||
Effective
tax rate
|
31.2
|
%
|
28.4
|
%
|
2.8
|
%
|
9.0
|
%
|
||||||||
Net foreign tax on non-U.S. earnings |
$
|
2,003 | $ | 5,933 | $ |
(3,930
|
) | (196.2 | )% | |||||||
Foreign earnings indefinitely reinvested abroad | (4,152 | ) | (10,894 | ) | 6,742 | 162.4 | % | |||||||||
Change in valuation allowance for foreign tax credit utilization |
—
|
954 | (954 | ) | (100.0 | )% | ||||||||||
Expense
from change in tax contingency
|
|
188
|
|
1,276
|
|
(1,088
|
)
|
*
|
Three Months Ended
June
30,
|
||||||
2008
|
2009
|
|||||
Number
of aircraft delivered:
|
||||||
Small
|
—
|
2
|
||||
Medium
|
3
|
4
|
||||
Large
|
2
|
3
|
||||
Fixed
wing
|
—
|
1
|
||||
Training
|
2
|
—
|
||||
Total
aircraft
|
7
|
10
|
||||
Capital
expenditures (in thousands):
|
||||||
Aircraft
and related equipment
|
$
|
123,434
|
$
|
79,622
|
||
Other
|
7,384
|
6,418
|
||||
Total
capital expenditures
|
$
|
130,818
|
$
|
86,040
|
Payments
Due by Period
|
||||||||||||||||||||||||
Nine
Months
Ending
|
Fiscal
Year Ending March 31,
|
|||||||||||||||||||||||
Total
|
March
31,
2010
|
2011
|
2012
–
2013
|
2014
and
beyond
|
Other
|
|||||||||||||||||||
(In
thousands)
|
||||||||||||||||||||||||
Contractual
obligations:
|
||||||||||||||||||||||||
Long-term
debt and short-term borrowings:
|
||||||||||||||||||||||||
Principal (1)
|
$
|
744,193
|
$
|
4,561
|
$
|
16,170
|
$
|
8,741
|
$
|
714,721
|
$
|
—
|
||||||||||||
Interest
|
389,623
|
37,450
|
45,566
|
90,159
|
216,448
|
—
|
||||||||||||||||||
Aircraft
operating leases (2)
|
70,113
|
7,009
|
6,879
|
9,441
|
46,784
|
—
|
||||||||||||||||||
Other
operating leases (3)
|
47,786
|
4,557
|
5,675
|
9,706
|
27,848
|
—
|
||||||||||||||||||
Pension
obligations (4)
|
200,242
|
6,049
|
24,029
|
48,946
|
121,218
|
—
|
||||||||||||||||||
Aircraft
purchase obligations (5)
|
169,393
|
157,846
|
11,547
|
—
|
—
|
—
|
||||||||||||||||||
Other
purchase obligations (6)
|
32,047
|
32,047
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Tax
reserves (7)
|
6,424
|
—
|
—
|
—
|
—
|
6,424
|
||||||||||||||||||
Total
contractual cash obligations
|
$
|
1,659,821
|
$
|
249,519
|
$
|
109,866
|
$
|
166,993
|
$
|
1,127,019
|
$
|
6,424
|
||||||||||||
Other
commercial commitments:
|
||||||||||||||||||||||||
Debt
guarantees (8)
|
$
|
16,468
|
$
|
—
|
$
|
—
|
$
|
16,468
|
$
|
—
|
$
|
—
|
||||||||||||
Other
guarantees (9)
|
29,473
|
239
|
4,818
|
2,192
|
22,224
|
—
|
||||||||||||||||||
Letters
of credit
|
1,396
|
1,157
|
239
|
—
|
—
|
—
|
||||||||||||||||||
Contingent
consideration (10)
|
53,125
|
8,500
|
8,500
|
36,125
|
—
|
—
|
||||||||||||||||||
Other
commitments
(11)
|
101,751
|
17,644
|
18,883
|
19,224
|
46,000
|
—
|
||||||||||||||||||
Total
commercial commitments
|
$
|
202,213
|
$
|
27,540
|
$
|
32,440
|
$
|
74,009
|
$
|
68,224
|
$
|
—
|
(1)
|
Excludes
unamortized premium on the 7½% Senior Notes of $0.5 million and
unamortized discount on the 3% Senior Convertible Notes of $21.2
million.
|
(2)
|
Primarily
represents separate operating leases for nine aircraft with a subsidiary
of General Electric Capital Corporation with terms of fifteen years
expiring in August 2023.
|
(3)
|
Represents
minimum rental payments required under operating leases that have initial
or remaining non-cancelable lease terms in excess of one
year.
|
(4)
|
Represents
expected funding for pension benefits in future periods. These
amounts are undiscounted and are based on the expectation that both the
U.K. and Norway pension plans will be fully funded in approximately ten
years. As of June 30, 2009, we had recorded on our condensed
consolidated balance sheet a $96.4 million pension liability associated
with these obligations. Also, the timing of the funding is
dependent on actuarial valuations and resulting negotiations with the plan
trustees.
|
(5)
|
Subsequent
to June 30, 2009, we entered into an agreement to extend the delivery date
to fiscal year 2011 for two large aircraft with commitments totaling $40.9
million. This agreement allows us to cancel these orders
without a termination fee through January 30, 2010 and February 28,
2010. These aircraft were previously scheduled to be delivered
in fiscal year 2010. For further details on our aircraft
purchase obligations, see Note 7 in the “Notes to Condensed Consolidated
Financial Statements” included elsewhere in this Quarterly
Report.
|
(6)
|
Other
purchase obligations primarily represent unfilled purchase orders for
aircraft parts and commitments associated with upgrading facilities at our
bases.
|
(7)
|
Represents
gross unrecognized tax benefits (see discussion in Note 7 in the “Notes to
Consolidated Financial Statements” included in the fiscal year 2009 Annual
Report) that may
result in cash payments being made to certain tax
authorities. We are not able to reasonably estimate in which
future periods this amount will ultimately be settled and
paid.
|
(8)
|
We
have guaranteed the repayment of up to £10 million ($16.5 million) of the
debt of FBS, an unconsolidated affiliate. This amount is not
included in the “Contractual Obligations” section of the table
above.
|
(9)
|
Relates
to an indemnity agreement between us and Afianzadora Sofimex, S.A. to
support issuance of surety bonds on behalf of Heliservicio from time to
time. As of June 30, 2009, surety bonds denominated in Mexican
pesos with an aggregate value of 373 million Mexican pesos ($28.3 million)
were outstanding and surety
bonds denominated in U.S. dollars with an aggregate value of $1.2 million
were outstanding. Furthermore, we have received a counter-guarantee
from our partner in
Heliservicio, for 76% ($22.4 million) of the surety bonds
outstanding.
|
(10)
|
The
Líder purchase agreement includes incremental and cumulative earn-out
payments based upon the achievement of growth targets over the next three
years. See Note 2 in the “Notes to Condensed Consolidated
Financial Statements” included elsewhere in this Quarterly Report for
discussion of the Líder acquisition.
|
(11)
|
In
connection with the Bristow Norway acquisition (see “Part
I. Item I. Business — Overview” included in the
fiscal year 2009 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. 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 existing three aircraft leases
expire in December 2009, June 2010 and 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
|
Approximate
Dollar Value of Shares That May Yet Be Purchased Under the
Program
|
|||||||||
April
1, 2009 − April 30, 2009
|
10,872
|
$
|
22.76
|
—
|
$
|
—
|
|
(1) No
shares were purchased during the periods from May 1 − June 30,
2009.
|
|
(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 an employee under our 2004
and 2007 Stock Incentive Plans.
|
1.
|
For
the election of directors, all nominees were approved. The
results were as follows:
|
Nominee
|
For
|
Withheld
|
||
Thomas
N. Amonett
|
27,543,590
|
375,468
|
||
Stephen
J. Cannon
|
27,637,669
|
281,389
|
||
Jonathan
H. Cartwright
|
27,343,807
|
575,251
|
||
William
E. Chiles
|
27,625,613
|
293,445
|
||
Michael
A. Flick
|
27,636,994
|
282,064
|
||
Thomas
C. Knudson
|
27,633,770
|
285,288
|
||
Ken
C. Tamblyn
|
27,635,325
|
283,733
|
||
William
P. Wyatt
|
24,569,358
|
3,349,700
|
2.
|
Proposal
to approve and ratify the selection of KPMG LLP as the Company’s
independent auditors for the fiscal year ending March 31,
2010. The results were as
follows:
|
For
|
Against
|
Abstain
|
Broker No-Vote
|
27,849,163
|
64,781
|
5,114
|
—
|
Exhibit
Number
|
Description
of Exhibit
|
Líder
Aviação Holding S.A. Shareholders Agreement dated May 26,
2009.
|
|
10.2†
|
Form
of Stock Option Award Letter (incorporated by reference to Exhibit 10.1 to
the Company’s Current Report on Form 8-K dated June 10,
2009).
|
10.3†
|
Form
of Restricted Stock Award Letter (incorporated by reference to Exhibit
10.2 to the Company’s Current Report on Form 8-K dated June 10,
2009).
|
10.4†
|
Form
of Performance Cash Award Letter (incorporated by reference to Exhibit
10.3 to the Company’s Current Report on Form 8-K dated June 10,
2009).
|
10.5†
|
Bristow
Group Inc. Fiscal Year 2010 Annual Incentive Compensation Plan
(incorporated by reference to Exhibit 10.4 to the Company’s Current Report
on Form 8-K dated June 10, 2009).
|
Letter
from KPMG LLP dated August 5, 2009, 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.
|
*
|
Filed
herewith.
|
**
|
Furnished
herewith.
|
† | Compensatory plan or arrangement. |
+ | Confidential information has been omitted from this exhibit and filed separately with the SEC pursuant to a confidential treatment request under Rule 24(b)-2. |
Exhibit
Number
|
Description
of Exhibit
|
10.1*+
|
Líder
Aviação Holding S.A. Shareholders Agreement dated May 26,
2009.
|
10.2†
|
Form
of Stock Option Award Letter (incorporated by reference to Exhibit 10.1 to
the Company’s Current Report on Form 8-K dated June 10,
2009).
|
10.3†
|
Form
of Restricted Stock Award Letter (incorporated by reference to Exhibit
10.2 to the Company’s Current Report on Form 8-K dated June 10,
2009).
|
10.4†
|
Form
of Performance Cash Award Letter (incorporated by reference to Exhibit
10.3 to the Company’s Current Report on Form 8-K dated June 10,
2009).
|
10.5†
|
Bristow
Group Inc. Fiscal Year 2010 Annual Incentive Compensation Plan
(incorporated by reference to Exhibit 10.4 to the Company’s Current Report
on Form 8-K dated June 10, 2009).
|
15.1*
|
Letter
from KPMG LLP dated August 5, 2009, regarding unaudited interim
information.
|
31.1**
|
Rule
13a-14(a) Certification by Chief Executive Officer of
Registrant.
|
31.2**
|
Rule
13a-14(a) Certification by Chief Financial Officer of
Registrant.
|
32.1**
|
Certification
of Chief Executive Officer of registrant pursuant to 18 U.S.C. Section
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
32.2**
|
Certification
of Chief Financial Officer of Registrant pursuant to 18 U.S.C. Section
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
*
|
Filed
herewith.
|
**
|
Furnished
herewith.
|
† | Compensatory plan or arrangement. |
+ | Confidential information has been omitted from this exhibit and filed separately with the SEC pursuant to a confidential treatment request under Rule 24(b)-2. |