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Last updated on April 23, 2014 at 16:13 EDT

Bristow Group Reports Financial Results For Its 2012 Fiscal Fourth Quarter And Year Ended March 31, 2012

May 23, 2012

HOUSTON, May 23, 2012 /PRNewswire/ — Bristow Group Inc. (NYSE: BRS) today reported net income for the March 2012 quarter of $14.2 million, or $0.39 per diluted share, compared to net income of $30.9 million, or $0.84 per diluted share, in the same period a year ago. Adjusted net income, which excludes special items and asset disposition effects, was $44.6 million, or $1.22 per diluted share, for the March 2012 quarter, an increase of $12.8 million, or $0.36 per diluted share, over the March 2011 quarter.

Operating revenue for the March 2012 quarter increased 16% to $318.7 million from $273.7 million in the March 2011 quarter, with revenue growth across most of our business units led by Europe and West Africa.

Adjusted earnings before interest, taxes, depreciation, amortization and rent (“Adjusted EBITDAR”), which excludes special items and asset disposition effects, was $99.5 million for the March 2012 quarter compared to $81.1 million in the same period a year ago. Net cash provided by operating activities totaled $37.4 million for the March 2012 quarter compared to $36.0 million in the March 2011 quarter, and increased 53% to $231.3 million for the fiscal year ended March 31, 2012 from $151.4 million in the prior fiscal year.

The March 2012 quarter’s GAAP net income performance was negatively affected by the following:

  • An impact of $30.7 million related to aircraft sales activities, including a loss on disposal of assets of $28.6 million (which includes non-cash impairment charges of $23.6 million associated with held for sale aircraft) and $2.1 million in direct costs associated with a sale transaction executed during the quarter involving 11 large aircraft,
  • Non-cash impairment charges related to inventory of $1.3 million and two medium aircraft of $2.7 million resulting from a review of our operational fleet,
  • A $5.1 million decrease in earnings from unconsolidated affiliates, primarily resulting from lower earnings from our investment in Brazil,
  • A $31.0 million increase in direct costs and general and administrative expenses over the same period a year ago, primarily associated with increased activity, increased rent expense associated with a shift toward the leasing of more aircraft in the latter half of the fiscal year and higher corporate compensation, and
  • A $0.8 million increase in tax expense as a result of an internal restructuring, partially offset by a reduction in tax expense from the release of a tax reserve in a foreign jurisdiction.

Excluding the gains and losses on disposals of assets and special items in the March 2012 and March 2011 quarters, adjusted EBITDAR, adjusted net income and adjusted EPS improved over the March 2011 quarter primarily due to significant revenue growth across a majority of our global operations and a lower effective tax rate. See a break out of the special items impacting results for the March 2012 and March 2011 quarters at the end of this release.

“During fiscal year 2012, we continued to make progress in increasing our total return to shareholders,” said William E. Chiles, President and Chief Executive Officer of Bristow Group. “Our results for the March quarter exceeded our internal expectations as a result of better utilization of our fleet, cost containment, and more demand for our premium product. The strong adjusted EPS and EBITDAR performance was driven by Bristow’s Client Promise – to provide unmatched safety, reliability and hassle-free service – and resulted in stronger revenue generation in Nigeria and noteworthy sequential improvement in margins in Australia and Europe.”

“Going forward, we are expecting solid revenue growth in fiscal year 2013 while maintaining adjusted EBITDAR margins at the level attained in fiscal year 2012,” Mr. Chiles added. “Bristow’s record revenue and operating cash flows during this last fiscal year demonstrate our financial strength and commitment to smarter growth and a balanced return for our shareholders. This is why our Board of Directors is increasing our quarterly dividend 33% to $0.20 per share effective this quarter, reinforcing our confidence in the unique business model and investment vehicle that our company and talented employees represent.”

FOURTH QUARTER FY2012 RESULTS

  • Operating revenue increased 16% to $318.7 million compared to $273.7 million in the same period a year ago.
  • Operating income decreased by 47% to $26.2 million in the March 2012 quarter compared to $49.8 million in the March 2011 quarter, significantly impacted by non-cash impairment charges of $27.6 million.
  • Net income decreased by 54% to $14.2 million, or $0.39 per diluted share, compared to $30.9 million, or $0.84 per diluted share, in the March 2011 quarter. Adjusted net income increased 41% to $44.6 million, or $1.22 per diluted share, compared to $31.7 million, or $0.86 per diluted share, in the March 2011 quarter.
  • Adjusted EBITDAR, which excludes special items and asset disposition effects, increased 23% to $99.5 million for the March 2012 quarter compared to $81.1 million in the same period a year ago.
  • Cash as of March 31, 2012 totaled $262 million, up 125% from $116 million as of March 31, 2011. Our total liquidity, including cash on hand and unused amounts on our revolving credit facility, was $402 million as of March 31, 2012, up 54% from $261 million as of March 31, 2011.

Our Europe Business Unit experienced an increase in flying activity in the Northern North Sea in the U.K. and in Norway, which led to a 20% increase in operating revenue and improved adjusted EBITDAR margin to 36.1% from 34.4% in the prior year quarter.

Our West Africa Business Unit saw increased flying activity over the prior year quarter from new and existing contracts plus ad hoc flying, which led to a 30% increase in operating revenue and improved adjusted EBITDAR margin to 36.6% from 34.3% in the prior year quarter.

Our North America Business Unit continues to benefit from an increase in activity in the U.S. Gulf of Mexico as more drilling and completion permits are being issued and new large aircraft are operating in this market. Operating revenue increased 7% resulting from the addition of new large aircraft during fiscal year 2012 despite a decrease in flight hours from the March 2011 quarter. This revenue increase, coupled with a reduction in cost structure and the leasing of new aircraft, led to a more than doubling of adjusted EBITDAR margin to 19.4% from 8.5% in the prior year quarter.

Our Australia Business Unit saw an increase in revenue over the prior year quarter resulting from new contract work offsetting the loss of a major contract in May 2011. We saw a turnaround in this market in the second half of fiscal year 2012. The March 2012 quarter saw a sequential improvement with operating revenue of $43.4 million and adjusted EBITDAR margin of 35.6%, compared to $33.5 million and 23.5%, respectively, for the December 2011 quarter. The second half of fiscal year 2012 saw operating revenue of $76.9 million, 8% higher than the first half of the year, and adjusted EBITDAR margin of 30.4% compared to 17.8% in the first half.

We continue to see substantial growth opportunity in our Other International Business Unit as new aircraft commence work in a number of locations. However, our quarterly results were impacted negatively by earnings from Lider in Brazil due to a decline in aircraft utilization as certain aircraft were offline for maintenance, start up costs incurred in advance of revenue generation from new aircraft and changes in foreign currency exchange rates. We expect Lider’s results to improve over the remainder of calendar 2012, with the second half of the year being stronger than the first half as aircraft return to operations and new aircraft begin operating. As a result of lower earnings from Lider in the March 2012 quarter, our adjusted EBITDAR margin for Other International decreased to 42.9% from 59.4% in the March 2011 quarter.

FISCAL YEAR 2012 RESULTS

  • Operating revenue increased 8% to just under $1.2 billion compared to just over $1.1 billion a year ago.
  • Operating income decreased 39% to $115.8 million compared to $189.7 million in fiscal year 2011, significantly impacted by non-cash impairment charges of $57.6 million.
  • Net income decreased 52% to $63.5 million, or $1.73 per diluted share, compared to $132.3 million, or $3.60 per diluted share, for fiscal year 2011. Adjusted net income increased slightly to $114.6 million, or $3.12 per diluted share, compared to $113.0 million, or $3.08 per diluted share, for fiscal year 2011.
  • Adjusted EBITDAR, which excludes special items and asset disposition effects, was $319.5 million compared to $297.7 million for fiscal year 2011.

FLEET MANAGEMENT AND LEASING STRATEGY

In fiscal year 2012, we fully implemented our new Bristow Value Added (“BVA”) financial management framework — which replaced Return on Capital Employed (“ROCE”) — to enhance our focus on the returns we deliver above our capital costs. The BVA framework has yielded excellent results leading to a number of value-enhancing transactions.

In March 2012, we completed the sale of eleven large AS332L aircraft with cash proceeds of $28.9 million received in March relating to the first nine of these aircraft sold. The final two aircraft will be sold in fiscal year 2013. While resulting in a GAAP loss, this transaction allowed for the removal of older aircraft from our fleet that generated negative BVA and the reinvestment into newer, larger aircraft to generate positive BVA.

Also as a part of our BVA implementation, management commenced a new financing strategy in the December 2011 quarter whereby we will be using operating leases to a greater extent than in the past. As part of this strategy, during the period from December 2011 through March 2012 we received $171.2 million for the sale of nine existing and in-construction aircraft that we subsequently leased back.

“We continue to see success in implementing BVA, with a 53% increase in operating cash flow combined with low-cost, capital-efficient operating leases in fiscal year 2012,” said Jonathan E. Baliff, Senior Vice President and Chief Financial Officer of Bristow Group. “We expect to enter into more operating leases in future periods, with an initial aim for these leases to account for 20% to 30% of our Large Aircraft Equivalent (“LACE”) aircraft.”

DIVIDEND

In May 2011, our Board of Directors initiated a dividend of $0.15 per share of our common stock and then subsequently declared dividends at the same level for the remaining three quarters of fiscal year 2012. On May 18, 2012, our Board of Directors declared a dividend of $0.20 per share, a 33% increase from the previous level, reflecting management’s confidence in our cash generation ability and commitment to return value to our shareholders while we continue to grow globally.

This dividend will be paid on June 15, 2012 to shareholders of record on June 5, 2012. Based on shares outstanding at March 31, 2012, total dividend payments to be made during the three months ended June 30, 2012 will be approximately $7.2 million.

GUIDANCE

Bristow is issuing diluted earnings per share guidance for the full fiscal year 2013 that began on April 1, 2012 of $3.25 to $3.55, reflecting our expectation for continued growth, operational and capital efficiency, and the benefit of the Bristow Client Promise initiative across our business units.

As a reminder, our GAAP earnings per share guidance does not include gains and losses on disposals of assets as well as special items because their timing and amounts are more variable and less predictable. This guidance is based on current foreign currency exchange rates. In providing this guidance, the Company has not included the impact of any changes in accounting standards and any impact from significant acquisitions or divestitures. Changes in events or other circumstances that the Company does not currently anticipate or predict could result in earnings per share for fiscal year 2013 that are significantly above or below this guidance. Factors that could cause such changes are described below under Forward-Looking Statements Disclosure.

“Our dedication to the Bristow Client Promise: to provide unmatched safety, reliability and hassle-free service, has the company positioned for continued success in fiscal year 2013.” Mr. Baliff added, “Fiscal year 2013 EPS growth, when combined with our financial strength and commitment to a balanced return for investors, can deliver that success to our shareholders.”

CONFERENCE CALL

Management will conduct a conference call starting at 10:00 a.m. ET (9:00 a.m. CT) on Thursday, May 24, 2012 to review financial results for the fiscal year 2012 fourth quarter ended March 31, 2012. This release and the most recent investor slide presentation are available in the investor relations area of our web page at www.bristowgroup.com. The conference call can be accessed as follows:

Via Webcast:

  • Visit Bristow Group’s investor relations Web page at www.bristowgroup.com
  • Live: Click on the link for “Bristow Group Fiscal 2012 Fourth Quarter Earnings Conference Call”
  • Replay: A replay via webcast will be available approximately one hour after the call’s completion and will be accessible for approximately 90 days

Via Telephone within the U.S.:

  • Live: Dial toll free 1-877-941-8609
  • Replay: A telephone replay will be available through June 7, 2012 and may be accessed by calling toll free 1-800-406-7325, passcode: 4533630#

Via Telephone outside the U.S.:

  • Live: Dial 1-480-629-9692
  • Replay: A telephone replay will be available through June 7, 2012 and may be accessed by calling 1-303-590-3030, passcode: 4533630#

ABOUT BRISTOW GROUP INC.

Bristow Group Inc. is the leading provider of helicopter services to the worldwide offshore energy industry based on the number of aircraft operated and one of two helicopter service providers to the offshore energy industry with global operations. The Company has major transportation operations in the North Sea, Nigeria and the U.S. Gulf of Mexico, and in most of the other major offshore oil and gas producing regions of the world, including Alaska, Australia, Brazil, Russia and Trinidad. For more information, visit the Company’s website at www.bristowgroup.com.

FORWARD-LOOKING STATEMENTS DISCLOSURE

Statements contained in this news release that state the Company’s or management’s intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. These forward-looking statements include statements regarding earnings guidance, capital allocation strategy, revenue growth, margins, the impact of activity levels, business performance, and other market and industry conditions. It is important to note that the Company’s actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company’s SEC filings, including but not limited to the Company’s annual report on Form 10-K for the fiscal year ended March 31, 2012. Bristow Group Inc. disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events or otherwise.

Linda McNeill
Investor Relations
(713) 267-7622

(financial tables follow)

                                                                                           BRISTOW GROUP INC. AND SUBSIDIARIES
                                                                                            CONSOLIDATED STATEMENTS OF INCOME
                                                                                         (In thousands, except per share amounts)
                                                                                                       (Unaudited)

                                                                                                                                                          Three Months Ended              Fiscal Year Ended
                                                                                                                                                                March 31,                       March 31,
                                                                                                                                                                ---------                       ---------
                                                                                                 2012                    2011        2012            2011
                                                                                                 ----                    ----        ----            ----
    Gross revenue:
                                                            Operating revenue from non-
                                                            affiliates                                               $313,642              $263,118                   $1,170,299                   $1,051,829
                                                           Operating revenue from affiliates                            5,067                10,625                       28,928                       63,067
                                                            Reimbursable revenue from non-
                                                            affiliates                                                 39,557                36,452                      142,088                      117,366
                                                            Reimbursable revenue from
                                                            affiliates                                                    105                   (53)                         488                          546

                                                                                                                      358,371               310,142                    1,341,803                    1,232,808
                                                                                                                      -------               -------                    ---------                    ---------
    Operating expense:
                                                           Direct cost                                                210,188               188,842                      810,728                      748,053
                                                           Reimbursable expense                                        37,760                34,542                      136,922                      114,288
                                                           Impairment of inventories                                    1,309                     -                       25,919                            -
                                                           Depreciation and amortization                               25,296                27,740                       96,144                       89,377
                                                           General and administrative                                  34,617                25,013                      135,333                      120,145

                                                                                                                      309,170               276,137                    1,205,046                    1,071,863
                                                                                                                      -------               -------                    ---------                    ---------

    Gain (loss) on disposal of assets                                                                     (28,610)                  5,096                  (31,670)                  8,678
    Earnings from unconsolidated affiliates, net of losses                                                  5,622                  10,746                    10,679                 20,101
                                                                                                            -----                  ------                    ------                 ------
                                                           Operating income                                            26,213                49,847                      115,766                      189,724

    Interest income                                                                                           107                     215                       560                  1,092
    Interest expense                                                                                       (9,960)                 (9,924)                 (38,130)                (46,187)
    Other income (expense), net                                                                               638                  (1,842)                    1,246                 (4,230)
                                                                                                              ---                  ------                     -----                 ------
                                                            Income before provision for
                                                            income taxes                                               16,998                38,296                       79,442                      140,399
    Provision for income taxes                                                                             (2,422)                 (7,071)                 (14,201)                 (7,104)
                                                                                                           ------                  ------                   -------                 ------
                                                           Net income                                                  14,576                31,225                       65,241                      133,295
                                                            Net income attributable to
                                                            noncontrolling interests                                     (334)                 (357)                      (1,711)                        (980)

                                                            Net income attributable to
                                                            Bristow Group                                             $14,242               $30,868                      $63,530                     $132,315

    Earnings per common share:
                                                           Basic                                                        $0.40                 $0.85                        $1.76                        $3.67

                                                           Diluted                                                      $0.39                 $0.84                        $1.73                        $3.60

    Adjusted EBITDAR                                                                                      $99,458                 $81,055                  $319,488               $297,714
    Adjusted operating income                                                                             $60,964                 $50,057                  $180,864               $182,852
    Adjusted net income                                                                                   $44,558                 $31,711                  $114,641               $113,045
    Adjusted earnings per share                                                                             $1.22                   $0.86                     $3.12                  $3.08
                                                                       BRISTOW GROUP INC. AND SUBSIDIARIES
                                                                           CONSOLIDATED BALANCE SHEETS
                                                                                 (In thousands)
                                                                                   (Unaudited)

                                                                                                                                                                                         March 31,                     March 31,
                                                                                                                                                                                                        2012                2011
                                                                                                                                                                                                        ----                ----

                                                                                     ASSETS
    Current assets:
                                                                                                                                                                               Cash and cash
                                                                                                                                                                               equivalents                                          $261,550                $116,361
                                                                                                                                                                               Accounts receivable
                                                                                                                                                                               from non-
                                                                                                                                                                               affiliates                                            280,985                 247,135
                                                                                                                                                                               Accounts receivable
                                                                                                                                                                               from affiliates                                         5,235                  15,384
                                                                                                                                                                              Inventories                                            157,825                 196,207
                                                                                                                                                                              Assets held for sale                                    18,710                  31,556
                                                                                                                                                                               Prepaid expenses and
                                                                                                                                                                               other current
                                                                                                                                                                               assets                                                 12,168                  22,118

                                                                                                                                                                               Total current
                                                                                                                                                                               assets                                                736,473                 628,761
    Investment in unconsolidated affiliates                                                                                                                                                                   205,100                         208,634
    Property and equipment - at cost:
                                                                                                                                                                              Land and buildings                                      80,835                  98,054
                                                                                                                                                                               Aircraft and
                                                                                                                                                                               equipment                                           2,099,642               2,116,259

                                                                                                                                                                                                                                   2,180,477               2,214,313
                                                                                                                                                                               Less - Accumulated
                                                                                                                                                                               depreciation and
                                                                                                                                                                               amortization                                         (457,702)               (446,431)

                                                                                                                                                                                                                                   1,722,775               1,767,882
    Goodwill                                                                                                                                                                                                   29,644                          32,047
    Other assets                                                                                                                                                                                               46,371                          38,030
                                                                                                                                                                                                               ------                          ------
                                                                                                                                                                              Total assets                                        $2,740,363              $2,675,354
                                                                                                                                                                                                                                  ==========              ==========

                                                                    LIABILITIES AND STOCKHOLDERS' INVESTMENT

    Current liabilities:
                                                                                                                                                                              Accounts payable                                       $56,084                 $56,972
                                                                                                                                                                               Accrued wages,
                                                                                                                                                                               benefits and
                                                                                                                                                                               related taxes                                          44,325                  34,538
                                                                                                                                                                              Income taxes payable                                     9,732                  15,557
                                                                                                                                                                              Other accrued taxes                                      5,486                   4,048
                                                                                                                                                                              Deferred revenues                                       14,576                   9,613
                                                                                                                                                                               Accrued maintenance
                                                                                                                                                                               and repairs                                            14,252                  16,269
                                                                                                                                                                              Accrued interest                                         2,300                   2,279
                                                                                                                                                                               Other accrued
                                                                                                                                                                               liabilities                                            23,005                  19,613
                                                                                                                                                                              Deferred taxes                                          15,070                  12,176
                                                                                                                                                                               Short-term
                                                                                                                                                                               borrowings and
                                                                                                                                                                               current maturities
                                                                                                                                                                               of long-term debt                                      14,375                   8,979

                                                                                                                                                                               Total current
                                                                                                                                                                               liabilities                                           199,205                 180,044
    Long-term debt, less current maturities                                                                                                                                                                   742,870                         698,482
    Accrued pension liabilities                                                                                                                                                                               111,742                          99,645
    Other liabilities and deferred credits                                                                                                                                                                     16,768                          30,109
    Deferred taxes                                                                                                                                                                                            147,954                         148,299

    Stockholders' investment:
                                                                                                                                                                              Common stock                                               363                     363
                                                                                                                                                                               Additional paid-in
                                                                                                                                                                               capital                                               703,628                 689,795
                                                                                                                                                                              Retained earnings                                      993,435                 951,660
                                                                                                                                                                               Accumulated other
                                                                                                                                                                               comprehensive loss                                   (159,239)               (130,117)
                                                                                                                                                                              Treasury shares                                        (25,085)                      -

                                                                                                                                                                               Total Bristow Group
                                                                                                                                                                               Inc. stockholders'
                                                                                                                                                                               investment                                          1,513,102               1,511,701
                                                                                                                                                                               Noncontrolling
                                                                                                                                                                               interests                                               8,722                   7,074

                                                                                                                                                                              Total stockholders' investment                       1,521,824               1,518,775
                                                                                                                                                                                                                                   ---------               ---------
                                                                                                                                                                               Total liabilities and
                                                                                                                                                                               stockholders' investment                           $2,740,363              $2,675,354
                                                                                                                                                                                                                                  ==========              ==========
                                                                                            BRISTOW GROUP INC. AND SUBSIDIARIES
                                                                                           CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                       (In thousands)
                                                                                                        (Unaudited)

                                                                                                                                                             Fiscal Year ended
                                                                                                                                                   March 31,
                                                                                                                                                   ---------
                                                                                                                                                        2012                        2011
                                                                                                                                                        ----                        ----

    Cash flows from operating activities:
                                                                                      Net income                                                                                 $65,241            $133,295
    Adjustments to reconcile net income to net cash provided by operating activities:
                                                                                      Depreciation and amortization                                                               96,144              89,377
                                                                                      Deferred income taxes                                                                      (16,288)              3,617
                                                                                      Discount amortization on long-term debt                                                      3,380               3,176
                                                                                      (Gain) loss on disposal of assets                                                           31,670              (8,678)
                                                                                      Gain on sale of joint ventures                                                                   -                (572)
                                                                                      Impairment of inventories                                                                   25,919                   -
                                                                                      Impairment of Heliservicio investment                                                            -               2,445
                                                                                      Stock-based compensation                                                                    11,510              12,601
                                                                                       Equity in earnings from unconsolidated affiliates less than
                                                                                       (in excess of)
                                                                                      dividends received                                                                           5,486              (6,221)
                                                                                      Tax benefit related to stock-based compensation                                               (354)               (512)
    Increase (decrease) in cash resulting from changes in:
                                                                                      Accounts receivable                                                                        (12,847)            (53,445)
                                                                                      Inventories                                                                                  7,364              (4,718)
                                                                                      Prepaid expenses and other assets                                                            1,926               4,475
                                                                                      Accounts payable                                                                             2,675               4,819
                                                                                      Accrued liabilities                                                                         14,607             (10,573)
                                                                                      Other liabilities and deferred credits                                                      (5,086)            (17,731)

    Net cash provided by operating activities                                                                                                                          231,347             151,355

    Cash flows from investing activities:
                                                                                      Capital expenditures                                                                      (326,420)           (145,518)
                                                                                      Deposits on assets held for sale                                                               200               4,021
                                                                                      Proceeds from sale of joint ventures                                                             -               1,291
                                                                                      Proceeds from asset dispositions                                                           239,843              27,364
                                                                                      Investment in unconsolidated affiliates                                                     (2,378)                  -
    Net cash used in investing activities                                                                                                                              (88,755)           (112,842)

    Cash flows from financing activities:
                                                                                      Proceeds from borrowings                                                                   159,993             253,013
                                                                                      Debt issuance costs                                                                           (871)             (3,339)
                                                                                      Repayment of debt and debt redemption premiums                                            (113,419)           (266,105)
                                                                                      Distributions to noncontrolling interest owners                                                  -                (638)
                                                                                      Partial prepayment of put/call obligation                                                      (63)                (59)
                                                                                      Acquisition of noncontrolling interests                                                       (262)               (800)
                                                                                      Repurchase of common stock                                                                 (25,085)                  -
                                                                                      Common stock dividends paid                                                                (21,616)                  -
                                                                                      Issuance of common stock                                                                     5,293               1,953
                                                                                      Tax benefit related to stock-based compensation                                                354                 512

    Net cash provided by financing activities                                                                                                                            4,324             (15,463)
    Effect of exchange rate changes on cash and cash equivalents                                                                                                        (1,727)             15,518
                                                                                                                                                                        ------              ------
    Net increase in cash and cash equivalents                                                                                                                          145,189              38,568
    Cash and cash equivalents at beginning of period                                                                                                                   116,361              77,793
                                                                                                                                                                       -------              ------
    Cash and cash equivalents at end of period                                                                                                                        $261,550            $116,361
                                                                                                                                                                      ========            ========

                                                                                                       BRISTOW GROUP INC. AND SUBSIDIARIES
                                                                                                             SELECTED OPERATING DATA
                                                                                               (In thousands, except flight hours and percentages)
                                                                                                                   (Unaudited)

                                                                            Three Months Ended                            Fiscal Year Ended
                                                                                March 31,                                     March 31,
                                                                                ---------                                     ---------
                                                                                          2012                             2011                              2012                    2011
                                                                                          ----                             ----                              ----                    ----
    Flight hours (excludes Bristow Academy and unconsolidated affiliates) :
    Europe                                                                                             15,974                                        13,388            59,506                 54,463
    West Africa                                                                                        10,454                                         9,173            41,737                 38,390
    North America                                                                                      15,447                                        16,741            74,348                 81,503
    Australia                                                                                           2,945                                         3,825            11,131                 13,618
    Other International                                                                                 3,280                                        10,423            22,288                 45,894
                                                                                                       48,100                                        53,550           209,010                233,868
                                                                                                       ======                                        ======           =======                =======
    Operating revenue:
    Europe                                                                                           $121,027                                      $101,236          $449,854               $384,927
    West Africa                                                                                        66,156                                        50,813           246,349                217,256
    North America                                                                                      42,342                                        39,640           176,545                191,411
    Australia                                                                                          43,389                                        40,799           148,268                146,722
    Other International                                                                                34,557                                        36,263           141,504                146,020
    Corporate and other                                                                                11,904                                         7,405            38,447                 32,803
    Intrasegment eliminations                                                                            (666)                                       (2,413)           (1,740)                (4,243)
    Consolidated total                                                                               $318,709                                      $273,743        $1,199,227             $1,114,896
                                                                                                     ========                                      ========        ==========             ==========

    Operating income (loss):
    Europe                                                                                            $26,650                                       $23,939           $94,277                $89,320
    West Africa                                                                                        18,288                                        13,262            63,768                 62,051
    North America                                                                                       2,389                                        (1,602)            8,378                 14,527
    Australia                                                                                          11,601                                         9,312            19,840                 30,497
    Other International                                                                                 9,890                                        17,076            36,343                 42,038
    Corporate and other                                                                               (13,995)                                      (17,235)          (75,170)               (57,387)
    Gain (loss) on disposal of other assets                                                           (28,610)                                        5,095           (31,670)                 8,678
    Consolidated total                                                                                $26,213                                       $49,847          $115,766               $189,724
                                                                                                      =======                                       =======          ========               ========

    Operating margin:
    Europe                                                                                               22.0%                         23.6%                 21.0%             23.2%
    West Africa                                                                                          27.6%                         26.1%                 25.9%             28.6%
    North America                                                                                         5.6%                        (4.0)%                  4.7%              7.6%
    Australia                                                                                            26.7%                         22.8%                 13.4%             20.8%
    Other International                                                                                  28.6%                         47.1%                 25.7%             28.8%
    Consolidated total                                                                                    8.2%                         18.2%                  9.7%             17.0%

    Adjusted EBITDAR:
    Europe                                                                                            $43,678                                       $34,801          $147,870               $125,843
    West Africa                                                                                        24,223                                        17,432            86,158                 76,411
    North America                                                                                       8,226                                         3,379            30,609                 35,469
    Australia                                                                                          15,463                                        12,691            36,026                 43,053
    Other International                                                                                14,828                                        21,540            55,960                 57,385
    Corporate and other                                                                                (6,960)                                       (8,788)          (37,135)               (40,447)
    Consolidated total                                                                                $99,458                                       $81,055          $319,488               $297,714
                                                                                                      =======                                       =======          ========               ========

    Adjusted EBITDAR margin:
    Europe                                                                                               36.1%                         34.4%                 32.9%             32.7%
    West Africa                                                                                          36.6%                         34.3%                 35.0%             35.2%
    North America                                                                                        19.4%                          8.5%                 17.3%             18.5%
    Australia                                                                                            35.6%                         31.1%                 24.3%             29.3%
    Other International                                                                                  42.9%                         59.4%                 39.5%             39.3%
    Consolidated total                                                                                   31.2%                         29.6%                 26.6%             26.7%

                                                                                                                                                 BRISTOW GROUP INC. AND SUBSIDIARIES
                                                                                                                                                            AIRCRAFT COUNT
                                                                                                                                                         As of March 31, 2012
                                                                                                                                                             (Unaudited)

                                                                                                                                                                                                                                                                                                                                      Aircraft in Consolidated Fleet
                                                                                                                                                                                                                                                                                                                                      ------------------------------
                                                                                                                                                                                                                                                                                                                                                Helicopters
                                                                                                                                                                                                                                                                                                                                                -----------
                                                                                                                                                                                                                                                                                                                                                   Small                 Medium     Large     Training     Fixed   Wing     Total  (1)   Unconsolidated
                                                                                                                                                                                                                                                                                                                                                                                                                                         Affiliates (2)
                                                                                                                                                                                                                                                                                                                                                                                                                                                (3)         Total
                                                                                                                                                                                                                                                                                                                                                                         ------     -----     --------     ------------     -----       ---------------     -----
    Europe                                                                                                                                                                                                                                                                                                                                                         -         15        41            -                -        56                    64       120
    West Africa                                                                                                                                                                                                                                                                                                                                                   10         25         7            -                4        46                     -        46
    North America                                                                                                                                                                                                                                                                                                                                                 67         23         2            -                -        92                     -        92
    Australia                                                                                                                                                                                                                                                                                                                                                      2         10        17            -                -        29                     -        29
    Other International                                                                                                                                                                                                                                                                                                                                            4         43        15            -                -        62                   131       193
    Corporate and other                                                                                                                                                                                                                                                                                                                                            -          -         -           76                -        76                     -        76
                                                                                                                                                                                                                                                                                                                                                                 ---        ---       ---          ---              ---       ---                   ---       ---
    Total                                                                                                                                                                                                                                                                                                                                                         83        116        82           76                4       361                   195       556
                                                                                                                                                                                                                                                                                                                                                                 ===        ===       ===          ===              ===       ===                   ===       ===
    Aircraft not currently in fleet:(4)
    On order                                                                                                                                                                                                                                                                                                                                                       -          -        15            -                -        15
    Under option                                                                                                                                                                                                                                                                                                                                                   -         12        28            -                -        40
                (1)  Includes 19 aircraft held for sale and 57 leased aircraft as follows:

                                                                                                                              Held for Sale Aircraft in Consolidated Fleet
                                                                                                                              --------------------------------------------
                                                                                                                                               Helicopters
                                                                                                                                               -----------
                                                                                                                              Small                                            Medium     Large     Training     Fixed Wing     Total
                                                                                                                              -----                                            ------     -----     --------     ----------     -----
                     Europe                                                                                                   -                                                     2         3     -            -                  5
                     West Africa                                                                                              -                                                     1         -     -            -                  1
                     Australia                                                                                                -                                                     1         3     -            -                  4
                     Other International                                                                                      -                                                     6         1     -            -                  7
                     Corporate and other                                                                                      -                                                     -         -            2     -                  2
                                                                                                                              ---                                                 ---       ---          ---     ---              ---
                     Total                                                                                                    -                                                    10         7            2     -                 19
                                                                                                                              ===                                                 ===       ===          ===     ===              ===

                                                                                                                                  Leased Aircraft in Consolidated Fleet
                                                                                                                                  -------------------------------------
                                                                                                                                               Helicopters
                                                                                                                                               -----------
                                                                                                                              Small                                            Medium     Large     Training     Fixed Wing     Total
                                                                                                                              -----                                            ------     -----     --------     ----------     -----
                     Europe                                                                                                   -                                                -              9     -            -                  9
                     West Africa                                                                                              -                                                     1         -     -                     1         2
                     North America                                                                                                                                       1         11         2     -                     -        14
                     Australia                                                                                                                                           2          -         1     -                     -         3
                     Other International                                                                                                                                 -          -         1     -                     -         1
                     Corporate and other                                                                                                                                 -          -         -           28              -        28
                                                                                                                                                                       ---        ---       ---          ---            ---       ---
                     Total                                                                                                                                               3         12        13           28              1        57
                                                                                                                                                                       ===        ===       ===          ===            ===       ===

                (2)   The 195 aircraft operated by our unconsolidated affiliates do not include those aircraft leased
                      from us
                (3)   Includes 53 helicopters (primarily medium) and 33 fixed wing aircraft owned by Lider, our
                      unconsolidated affiliate in Brazil, included in our Other International business unit
                (4)   This table does not reflect aircraft which our unconsolidated affiliates may have on order or under
                      option
          BRISTOW GROUP INC. AND SUBSIDIARIES
                 GAAP RECONCILIATIONS
    These financial measures have not been
     prepared in accordance with generally
     accepted accounting principles ("GAAP") and
     have not been audited or reviewed by our
     independent auditor.  These financial
     measures are therefore considered non-GAAP
     financial measures.  Adjusted EBITDAR is
     calculated by taking our net income and
     adjusting for interest expense, depreciation
     and amortization, rent expense, benefit
     (provision) for income taxes, gain (loss) on
     disposal of assets and special items, if any.
      Adjusted operating income, adjusted net
      income and adjusted diluted earnings per
     share are each adjusted for gain (loss) on
     disposal of assets and special items, if any,
     during the reported periods.  Management
     believes these non-GAAP financial measures
     provide meaningful supplemental information
     regarding our results because they exclude
     amounts that management does not consider
     part of our normal and recurring operations
     when assessing and measuring the operational
     and financial performance of the
     organization.  A description of the
     adjustments to and reconciliations of these
     non-GAAP financial measures to the most
     comparable GAAP financial measures is as
     follows:
                                                   Three Months Ended                           Fiscal Year Ended
                                                        March 31,                                   March 31,
                                                        ---------                                   ---------
                                                  2012                          2011                   2012             2011
                                                  ----                          ----                   ----             ----
                                                                  (In thousands, except per share amounts)
                                                                                (Unaudited)

    Adjusted EBITDAR                                      $99,458                                   $81,055         $319,488   $297,714
             Gain (loss) on disposal of assets          (28,610)                                    5,096          (31,670)     8,678
             Special items                               (3,451)                                   (2,445)         (28,061)    (1,245)
             Rent expense                               (15,143)                                   (7,746)         (46,041)   (29,184)
             Interest expense                            (9,960)                                   (9,924)         (38,130)   (46,187)
             Depreciation and amortization              (25,296)                                  (27,740)         (96,144)   (89,377)
             Benefit (provision) for income taxes        (2,422)                                   (7,071)         (14,201)    (7,104)

    Net income                                          $14,576                                   $31,225          $65,241   $133,295
                                                        =======                                   =======          =======   ========

    Adjusted operating income                           $60,964                                   $50,057         $180,864   $182,852
             Gain (loss) on disposal of assets          (28,610)                                    5,096          (31,670)     8,678
             Special items                               (6,141)                                   (5,306)         (33,428)    (1,806)

    Operating income                                    $26,213                                   $49,847         $115,766   $189,724
                                                        =======                                   =======         ========   ========

    Adjusted net income                                 $44,558                                   $31,711         $114,641   $113,045
             Gain (loss) on disposal of assets          (24,533)                                    4,195          (26,008)     7,145
             Special items                               (5,783)                                   (5,038)         (25,103)    12,125

    Net income attributable to Bristow Group            $14,242                                   $30,868          $63,530   $132,315
                                                        =======                                   =======          =======   ========

    Adjusted earnings per share                           $1.22                                     $0.86            $3.12      $3.08
             Gain (loss) on disposal of assets            (0.67)                                     0.11            (0.71)      0.19
             Special items                                (0.16)                                    (0.13)           (0.68)      0.34
    Earnings per share                                     0.39                                      0.84             1.73       3.60
                                                                           Three Months Ended
                                                                             March 31, 2012
                                                                             --------------
                                                       Adjusted            Adjusted               Adjusted             Adjusted
                                                      Operating            EBITDAR               Net Income             Diluted
                                                                                                                       Earnings
                                                        Income                                                        Per Share
                                                        ------                                                        ---------
                                                                                             (In thousands, except per share amounts)
                                                                                                           (Unaudited)
     Impairment of inventories(1)                        $(1,309)                       $(1,309)                           $(934)            $(0.03)
     Impairment of aircraft(2)                            (2,690)                                        -                         (2,661)            (0.07)
     AS332L sale costs(3)                                 (2,142)                        (2,142)                          (1,393)             (0.04)
     Tax items(4)                                              -                              -                             (795)             (0.02)
                                                             ---                            ---                             ----
                                  Total special items             $(6,141)                          $(3,451)                       $(5,783)            (0.16)
                                                                  =======                           =======                        =======

                                                                         Three Months Ended
                                                                           March 31, 2011
                                                                           --------------
                                                       Adjusted            Adjusted               Adjusted             Adjusted
                                                      Operating            EBITDAR               Net Income             Diluted
                                                                                                                       Earnings
                                                        Income                                                            Per
                                                                                                                         Share
                                                                                                                         -----
                                                                                                    (In thousands, except per share amounts)
                                                                                                                  (Unaudited)
     Impairment of IT system(5)                          $(5,306)                 $                      -                        $(3,449)           $(0.09)
      Impairment of investment in
      affiliate(6)                                                     -                            (2,445)                        (1,589)            (0.04)
                                  Total special items             $(5,306)                          $(2,445)                       $(5,038)            (0.13)
                                                                  =======                           =======                        =======
                                                                             Fiscal Year Ended
                                                                              March 31, 2012
                                                                              --------------
                                                       Adjusted             Adjusted              Adjusted              Adjusted
                                                      Operating             EBITDAR               Net Income             Diluted
                                                                                                                        Earnings
                                                        Income                                                         Per Share
                                                        ------                                                         ---------
                                                                                               (In thousands, except per share amounts)
                                                                                                             (Unaudited)
     Impairment of inventories(1)                       $(25,919)                       $(25,919)                        $(18,514)            $(0.50)
     Impairment of aircraft(2)                            (2,690)                                         -                          (2,661)           (0.07)
      Impairment of assets in
      Creole,                                             (2,677)                                         -                          (1,740)           (0.05)
        Louisiana(7)
     AS332L sale costs(3)                                 (2,142)                         (2,142)                          (1,393)             (0.04)
     Tax items(4)                                              -                               -                             (795)             (0.02)
                                                             ---                             ---                             ----
                                  Total special items             $(33,428)                         $(28,061)                       $(25,103)           (0.68)
                                                                  ========                          ========                        ========

                                                                           Fiscal Year Ended
                                                                            March 31, 2011
                                                                            --------------
                                                       Adjusted             Adjusted              Adjusted              Adjusted
                                                      Operating             EBITDAR               Net Income             Diluted
                                                                                                                        Earnings
                                                        Income                                                             Per
                                                                                                                          Share
                                                                                                                          -----
                                                                                                     (In thousands, except per share amounts)
                                                                                                                    (Unaudited)
     Impairment of IT system(5)                          $(5,306)                  $                      -                         $(3,449)          $(0.09)
      Impairment of investment in
      affiliate(6)                                                      -                            (2,445)                         (1,589)           (0.04)
     Power-by-the-hour credit(8)                           3,500                           3,500                            2,520               0.07
      Retirement of 6 1/8% Senior
      Notes(9)                                                          -                            (2,300)                         (3,055)           (0.08)
     Tax items(4)                                              -                               -                           17,698               0.48
                                                             ---                             ---                           ------
                                  Total special items              $(1,806)                          $(1,245)                        $12,125             0.34
                                                                   =======                           =======                         =======
    (1)           Represents the non-cash write-
                  down of inventory spare parts to
                  lower of cost or market value as
                  management has made the
                  determination to operate certain
                  types of aircraft for a shorter
                  period than originally
                  anticipated.

    (2)           Represents a non-cash impairment
                  charge for two medium aircraft,
                  which management intends to sell
                  prior to the previously estimated
                  useful life of the aircraft,
                  recorded in depreciation and
                  amortization expense resulting
                  from the review of our operational
                  fleet.

    (3)           Represents direct costs recorded as
                  a result of the sale transaction
                  executed in March 2012 to sell 11
                  large aircraft.

    (4)           The amount for the three months and
                  fiscal year ended March 31, 2012
                  represents an increase in tax
                  expense related to dividend
                  inclusion as a result of internal
                  realignment, partially offset by a
                  reduction in tax expense from a
                  change from deduction of foreign
                  taxes paid to use of the taxes
                  paid as credits to offset U.S. tax
                  liabilities and a benefit from the
                  release of a tax reserve in a
                  foreign jurisdiction due to a
                  favorable response to a ruling
                  request.  The amount for the
                  fiscal year ended March 31, 2011
                  represents the impact of a
                  reduction in the provision for
                  income taxes related to
                  adjustments to deferred tax
                  liabilities that were no longer
                  required as a result of a
                  restructuring during the fiscal
                  year ended March 31, 2011.
    (5)           Represents additional depreciation
                  expense recorded as a result of the
                  non-cash impairment of previously
                  capitalized internal software costs
                  as the related project was abandoned
                  in the March 2011 quarter.

    (6)           Represents a non-cash charge recorded
                  as a reduction in other income
                  (expense), net related to the
                  impairment of our 24% investment in
                  Heliservicio, an unconsolidated
                  affiliate in Mexico, resulting from
                  the sale of the investment which was
                  pending as of March 31, 2011 and
                  closed on July 15, 2011.

    (7)           Represents a non-cash impairment
                  charge recorded in depreciation and
                  amortization expense resulting from
                  the abandonment of certain assets
                  located in Creole, Louisiana and used
                  in North America business unit as we
                  ceased operations from that location.

    (8)           Represents a reduction in maintenance
                  expense (included in direct cost)
                  associated with a credit resulting
                  from the renegotiation of a "power-
                  by-the-hour" contract for aircraft
                  maintenance with a third party
                  provider.

    (9)           Represents the impact from the early
                  retirement of the 61/8% Senior Notes,
                  which resulted in a $2.3 million
                  early redemption premium (included in
                  other income (expense), net) and the
                  non-cash write-off of $2.4 million
                  of unamortized debt issuance costs
                  (included in interest expense).

SOURCE Bristow Group Inc.


Source: PR Newswire