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Last updated on April 23, 2014 at 11:31 EDT

Bristow Group Reports Financial Results For Its 2013 Fiscal First Quarter Ended June 30, 2012

August 6, 2012

HOUSTON, Aug. 6, 2012 /PRNewswire/ — Bristow Group Inc. (NYSE:BRS) today reported net income for the June 2012 quarter of $23.7 million, or $0.65 per diluted share, compared to net income of $21.0 million, or $0.57 per diluted share, in the same period a year ago. Adjusted net income, which excludes asset dispositions and a special item, was $29.6 million, or $0.81 per diluted share, for the June 2012 quarter, an increase of $9.7 million, or $0.27 per diluted share, over the June 2011 quarter.

Operating revenue for the June 2012 quarter increased 12% to $320.7 million from $286.8 million in the June 2011 quarter, with revenue growth in Europe, West Africa and North America.

Adjusted earnings before interest, taxes, depreciation, amortization and rent (“Adjusted EBITDAR”), which excludes asset dispositions and a special item, increased 26% to $84.3 million for the June 2012 quarter from $67.0 million in the same quarter a year ago. Net cash provided by operating activities also increased, totaling $55.4 million in the June 2012 quarter compared to $52.9 million in the June 2011 quarter and $37.4 million in the March 2012 quarter.

The June 2012 quarter’s GAAP net income was affected by the following items, the first two of which are not included in adjusted net income:

  • A loss on disposal of assets of $5.3 million (which includes non-cash impairment charges of $1.9 million associated with aircraft held for sale), compared with a gain on disposal of assets of $1.4 million in the June 2011 quarter,
  • A special charge of $2.2 million for severance costs related to the termination of a contract in the Southern North Sea, and
  • Compensation expense of approximately $2.0 million included in general and administrative expense related to the departure of an officer of the Company.

“The strong operating performance we experienced in our fiscal 2012 fourth quarter continued in the first quarter of fiscal 2013,” said William E. Chiles, President and Chief Executive Officer of Bristow Group. “We are benefitting from the strength of the deep-water markets as our results for the June 2012 quarter were driven by higher activity in the North Sea, recovery in the U.S. Gulf of Mexico, higher aircraft utilization levels in Nigeria and lower costs primarily at the corporate level.”

Mr. Chiles continued, “We are expecting the solid revenue growth experienced over the recent quarters to continue throughout the remainder of fiscal 2013, and anticipate strong adjusted EBITDAR margins. The Bristow Client Promise – to provide unmatched safety, reliability and hassle-free service – is making a real difference for our clients and as a result, we are being awarded new contracts with better terms for our value proposition.”

FIRST QUARTER FY2013 RESULTS

  • Operating revenue increased 12% to $320.7 million compared to $286.8 million in the same period a year ago.
  • Operating income increased 10% to $40.0 million compared to $36.4 million in the June 2011 quarter.
  • Net income increased 12% to $23.7 million, or $0.65 per diluted share, compared to $21.0 million, or $0.57 per diluted share, in the June 2011 quarter. Adjusted net income increased 49% to $29.6 million, or $0.81 per diluted share, compared to $19.9 million, or $0.54 per diluted share, in the June 2011 quarter.
  • Adjusted EBITDAR increased 26% to $84.3 million compared to $67.0 million in the same period a year ago.
  • Cash totaled $227.3 million and our total liquidity, which includes cash and borrowing availability on our $200 million revolving credit facility, was $387 million as of June 30, 2012.

There continues to be strong demand both from new and existing clients in the Northern North Sea and in Norway. To meet this demand, we have added new large aircraft to our Europe Business Unit over the past year. These new aircraft, as well as an overall increase in flying activity, led to a 14% increase in operating revenue and an 11% increase in adjusted EBITDAR over the June 2011 quarter. Adjusted EBITDAR margin of 32.2% was slightly lower than the prior year quarter’s margin of 33.0%.

Activity levels continue to be strong in our West Africa Business Unit, where we saw a 12% increase in flight hours over the June 2011 quarter, leading to a 27% increase in operating revenue, a 37% increase in adjusted EBITDAR and an 8% increase in adjusted EBITDAR margin.

The addition of S-92 large aircraft to our fleet of our North America Business Unit continues to drive operating improvement in the U.S. Gulf of Mexico along with the issuance of more drilling and completion permits. Operating revenue increased 20% resulting from the addition of the new large aircraft despite no significant change in flight hours from the June 2011 quarter. This revenue increase, coupled with a reduction in cost structure and the leasing of new aircraft, led to an almost doubling of adjusted EBITDAR and a significant increase in adjusted EBITDAR margin to 23.2% from 14.3% in the prior year quarter. Adjusted EBITDAR margin also improved sequentially over the March 2012 quarter performance of 19.4%.

Despite a decrease in operating revenue in our Australia Business Unit, adjusted EBITDAR improved 25% and adjusted EBITDAR margin improved 34% over the June 2011 quarter in this market. The improvement represents the result of significant work in this market to reduce costs and better utilize our existing fleet.

Our Other International Business Unit was negatively affected by a decline in activity in Mexico, and an increase in operating costs in Trinidad and lower than expected earnings from Líder in Brazil. Our earnings from Líder were less than expected for the June 2012 quarter due to changes in foreign exchange rates and startup costs that were incurred for new aircraft in advance of revenue generation. We expect Líder’s contribution to our earnings to remain unpredictable over the remainder of fiscal year 2013. The results from Mexico, Trinidad and Brazil were the primary contributors to the 25% decrease in adjusted EBITDAR margin for Other International compared with the June 2011 quarter.

CONTRACT AWARDS

We recently announced that we have secured several major new multi-year contracts for the provision of a total of 20 large aircraft that are expected to generate in excess of $2 billion in revenue in Europe, Australia and Brazil. This contract work, with higher pricing and improved terms, comes online over the period beginning in the September 2012 quarter through fiscal year 2015, with three aircraft starting work under these contracts in the September 2012 quarter, ten aircraft in fiscal year 2014 and seven aircraft in fiscal year 2015.

DIVIDEND

On July 31, 2012, our Board of Directors declared a sixth consecutive quarterly dividend. This dividend of $0.20 per share will be paid on September 14, 2012 to shareholders of record on August 31, 2012. Based on shares outstanding at June 30, 2012, total dividend payments to be made during the three months ended September 30, 2012 will be approximately $7.2 million.

GUIDANCE

Bristow is reaffirming today the adjusted earnings per share guidance provided in May 2012 for the full fiscal year 2013 of $3.25 to $3.55.

“Our 2013 guidance reaffirmation is based on the results of this historically strong first quarter of our fiscal year,” said Jonathan E. Baliff, Senior Vice President and Chief Financial Officer of Bristow Group. “In addition to the stronger performance and earnings per share growth year over year, we continued to generate significant operating cash flow. This is a testament to the hard work of our global operations and commercial teams.”

As a reminder, our GAAP earnings per share guidance does not include unrealized 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 and divestitures. Changes in events or other circumstances that the Company cannot 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.

CONFERENCE CALL

Management will conduct a conference call starting at 10:00 a.m. ET (9:00 a.m. CT) on Tuesday, August 7, 2012 to review financial results for the fiscal year 2013 first quarter ended June 30, 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 2013 First 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 1-877-941-0843
  • Replay: A telephone replay will be available through August 21, 2012 and may be accessed by calling toll free 1-800-406-7325, passcode: 4552131#

Via Telephone outside the U.S.:

  • Live: Dial 1-480-629-9819
  • Replay: A telephone replay will be available through August 21, 2012 and may be accessed by calling 1-303-590-3030, passcode: 4552131#

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, 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 quarterly report on Form 10-Q for the quarter ended June 30, 2012 and the 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, percentages and flight hours)
                                                           (Unaudited)

                                                                                            Three Months Ended
                                                                                    June 30,
                                                                                    --------
                                                                                        2012                    2011
                                                                                        ----                    ----
    Gross Revenue:
                                               Operating
                                               revenue                               $320,654                        $286,761
                                               Reimbursable
                                               revenue                                 41,954                          34,344

                                              Total gross revenue                     362,608                         321,105
                                                                                      -------                         -------

    Operating expense:
                                              Direct cost                             222,768                         196,622
                                               Reimbursable
                                               expense                                 40,172                          33,134
                                               Depreciation
                                               and
                                               amortization                            21,372                          22,708
                                               General and
                                               administrative                          34,977                          39,645

                                                                                      319,289                         292,109

                                               Gain (loss) on
                                               disposal of
                                               assets                                  (5,315)                          1,416
                                               Earnings from
                                               unconsolidated
                                              affiliates, net of losses                1,989                   5,993
                                                                                       -----                   -----

    Operating income                                                   39,993                      36,405
                                               Interest
                                               expense, net                            (8,686)                         (8,784)
                                               Other income
                                               (expense),
                                               net                                       (931)                            204

                                               Income before
                                               provision for
                                               income taxes                            30,376                          27,825
                                               Provision for
                                               income taxes                            (6,180)                         (6,606)

    Net income                                                         24,196                      21,219
                                               Net income
                                               attributable
                                               to
                                               noncontrolling
                                               interests                                 (534)                           (174)

    Net income attributable to Bristow Group                          $23,662                     $21,045
                                                                      =======                     =======

    Diluted earnings per common share                                   $0.65                       $0.57
    Operating margin                                                     12.5%                       12.7%
    Flight hours                                                       55,128                      54,056

    Non-GAAP financial measures:
                                               Adjusted
                                               operating
                                               income                                 $47,470                         $34,989
                                               Adjusted
                                               operating
                                               income margin                             14.8%                           12.2%
                                               Adjusted
                                               EBITDAR                                $84,273                         $67,025
                                               Adjusted
                                               EBITDAR
                                               margin                                    26.3%                           23.4%
                                               Adjusted net
                                               income                                 $29,618                         $19,878
                                               Adjusted
                                               diluted
                                               earnings per
                                               share                                    $0.81                           $0.54

                                              BRISTOW GROUP INC. AND SUBSIDIARIES
                                                  CONSOLIDATED BALANCE SHEETS
                                                         (In thousands)
                                                          (Unaudited)

                                                                                                 June 30,  March 31,
                                                                                                      2012       2012
                                                                                                      ----       ----
                                                             ASSETS
    Current assets:
                                            Cash and cash
                                            equivalents                               $227,250               $261,550
                                            Accounts
                                            receivable
                                            from non-
                                            affiliates                                 287,131                280,985
                                            Accounts
                                            receivable
                                            from
                                            affiliates                                   4,828                  5,235
                                           Inventories                                 157,543                157,825
                                            Assets held for
                                            sale                                        18,100                 18,710
                                            Prepaid
                                            expenses and
                                            other current
                                            assets                                      12,239                 12,168

                                           Total current assets                        707,091                736,473
    Investment in unconsolidated
     affiliates                                                          201,042                   205,100
    Property and equipment - at cost:
                                            Land and
                                            buildings                                   81,816                 80,835
                                            Aircraft and
                                            equipment                                2,143,073              2,099,642

                                                                                     2,224,889              2,180,477
                                            Less -
                                            Accumulated
                                            depreciation
                                            and
                                            amortization                              (467,887)              (457,702)

                                                                                     1,757,002              1,722,775
    Goodwill                                                              29,339                    29,644
    Other assets                                                          45,905                    46,371
                                                                          ------                    ------
    Total assets                                                      $2,740,379                $2,740,363
                                                                      ==========                ==========

                                            LIABILITIES AND STOCKHOLDERS' INVESTMENT
    Current liabilities:
                                            Accounts
                                            payable                                    $57,876                $56,084
                                            Accrued wages,
                                            benefits and
                                            related taxes                               42,815                 44,325
                                            Income taxes
                                            payable                                      9,910                  9,732
                                            Other accrued
                                            taxes                                        6,653                  5,486
                                            Deferred
                                            revenue                                     12,914                 14,576
                                            Accrued
                                            maintenance
                                            and repairs                                 16,182                 14,252
                                            Accrued
                                            interest                                     7,950                  2,300
                                            Other accrued
                                            liabilities                                 26,615                 23,005
                                           Deferred taxes                               14,963                 15,070
                                            Short-term
                                            borrowings and
                                            current
                                            maturities of
                                            long-term
                                            debt                                        16,562                 14,375

                                           Total current liabilities                   212,440                199,205
    Long-term debt, less current
     maturities                                                          719,737                   742,870
    Accrued pension liabilities                                          109,792                   111,742
    Other liabilities and deferred credits                                14,823                    16,768
    Deferred taxes                                                       142,388                   147,954
    Stockholders' investment:
                                           Common shares                                   363                    363
                                            Additional
                                            paid-in
                                            capital                                    705,984                703,628
                                            Retained
                                            earnings                                 1,009,952                993,435
                                            Accumulated
                                            other
                                            comprehensive
                                            loss                                      (158,934)              (159,239)
                                           Treasury shares                             (25,085)               (25,085)

    Total Bristow Group Inc. stockholders'
     investment                                                        1,532,280                 1,513,102
    Noncontrolling interests                                               8,919                     8,722
                                                                           -----                     -----
    Total stockholders' investment                                     1,541,199                 1,521,824
                                                                       ---------                 ---------
    Total liabilities and stockholders'
     investment                                                       $2,740,379                $2,740,363
                                                                      ==========                ==========

                                        BRISTOW GROUP INC. AND SUBSIDIARIES
                                       CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                  (In thousands)
                                                    (Unaudited)

                                                                                         Three Months Ended
                                                                                             June 30,
                                                                                             --------
                                                                                          2012                 2011
                                                                                          ----                 ----

    Cash flows from operating activities:
                                             Net income                      $24,196                        $21,219
    Adjustments to reconcile net income to
     net cash provided by operating
     activities:
                                              Depreciation
                                              and
                                              amortization                    21,372                         22,708
                                              Deferred
                                              income taxes                    (6,071)                         2,949
                                              Discount
                                              amortization
                                              on long-term
                                              debt                               870                            822
                                              Loss (gain) on
                                              disposal of
                                              assets                           5,315                         (1,416)
                                              Stock-based
                                              compensation                     2,848                          5,196
                                              Equity in
                                              earnings from
                                              unconsolidated
                                              affiliates
                                              less than (in
                                              excess of)
                                              dividends
                                              received                         4,129                         (1,393)
                                              Tax benefit
                                              related to
                                              stock-based
                                              compensation                      (404)                          (101)
    Increase (decrease) in cash resulting
     from changes in:
                                              Accounts
                                              receivable                     (10,081)                        10,640
                                             Inventories                      (1,869)                        (5,420)
                                              Prepaid
                                              expenses and
                                              other assets                     3,816                          3,701
                                              Accounts
                                              payable                            960                         (5,527)
                                              Accrued
                                              liabilities                     11,212                            459
                                              Other
                                              liabilities
                                              and deferred
                                              credits                           (881)                          (948)

    Net cash provided by operating
     activities                                                 55,412                  52,889

    Cash flows from investing activities:
                                              Capital
                                              expenditures                   (86,555)                       (72,235)
                                              Proceeds from
                                              asset
                                              dispositions                    20,227                            833
                                              Investment in
                                              unconsolidated
                                              affiliates                        (850)                             -
    Net cash used in investing activities                     (67,178)                (71,402)

    Cash flows from financing activities:
                                              Proceeds from
                                              borrowings                           -                         55,000
                                              Repayment of
                                              debt and debt
                                              redemption
                                              premiums                       (21,800)                       (31,274)
                                              Partial
                                              prepayment of
                                              put/call
                                              obligation                         (17)                           (15)
                                              Common stock
                                              dividends
                                              paid                            (7,145)                        (5,410)
                                              Issuance of
                                              common stock                       311                          1,183
                                              Tax benefit
                                              related to
                                              stock-based
                                              compensation                       404                            101

    Net cash  provided by (used in)
     financing activities                                     (28,247)                  19,585
    Effect of exchange rate changes on cash
     and cash equivalents                                        5,713                    (363)
                                                                 -----                    ----
    Net increase (decrease) in cash and
     cash equivalents                                         (34,300)                     709
    Cash and cash equivalents at beginning
     of period                                                 261,550                 116,361
                                                               -------                 -------
    Cash and cash equivalents at end of
     period                                                   $227,250                $117,070
                                                              ========                ========

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

                                                                    Three Months Ended
                                                                         June 30,
                                                                         --------
                                                                  2012                 2011
                                                                  ----                 ----
    Flight hours (excludes Bristow
     Academy and
    unconsolidated affiliates):
    Europe                                                                  17,236            14,182
    West Africa                                                             10,754             9,629
    North America                                                           20,169            20,434
    Australia                                                                2,792             3,382
    Other International                                                      4,177             6,429
                                                                             -----             -----
    Consolidated total                                                      55,128            54,056
                                                                            ======            ======
    Operating revenue:
    Europe                                                                $123,235          $108,288
    West Africa                                                             66,355            52,251
    North America                                                           52,625            43,913
    Australia                                                               38,171            40,920
    Other International                                                     33,227            34,549
    Corporate and other                                                      7,420             6,847
    Intrasegment eliminations                                                 (379)               (7)
                                                                              ----               ---
    Consolidated total                                                    $320,654          $286,761
                                                                          ========          ========
    Operating income (loss):
    Europe                                                                 $21,876           $23,249
    West Africa                                                             16,131            11,231
    North America                                                            6,475             1,584
    Australia                                                                6,509             4,524
    Other International                                                      7,387            11,910
    Corporate and other                                                    (13,070)          (17,509)
    Gain (loss) on disposal of assets                                       (5,315)            1,416
                                                                            ------             -----
    Consolidated total                                                     $39,993           $36,405
                                                                           =======           =======
    Operating margin:
    Europe                                                                    17.8%             21.5%
    West Africa                                                               24.3%             21.5%
    North America                                                             12.3%              3.6%
    Australia                                                                 17.1%             11.1%
    Other International                                                       22.2%             34.5%
    Consolidated total                                                        12.5%             12.7%

                                                                  Three Months Ended
                                                                       June 30,
                                                                  2012                 2011
                                                                  ----
    Adjusted EBITDAR:
    Europe                                                                 $39,664           $35,700
    West Africa                                                             21,163            15,430
    North America                                                           12,200             6,267
    Australia                                                               10,325             8,281
    Other International                                                     12,014            16,624
    Corporate and other                                                    (11,093)          (15,277)
    Consolidated total                                                     $84,273           $67,025
                                                                           =======           =======
    Adjusted EBITDAR margin:
    Europe                                                                    32.2%             33.0%
    West Africa                                                               31.9%             29.5%
    North America                                                             23.2%             14.3%
    Australia                                                                 27.0%             20.2%
    Other International                                                       36.2%             48.1%
    Consolidated total                                                        26.3%             23.4%

                                                                                                BRISTOW GROUP INC. AND SUBSIDIARIES
                                                                                                          AIRCRAFT COUNT
                                                                                                        As of June 30, 2012
                                                                                                            (Unaudited)

                                                             Aircraft in Consolidated Fleet
                                         ------------------------------
                                                             Helicopters
                                         -----------
                                                Small                           Medium               Large                          Training     Fixed         Unconsolidated
                                                                                                                                                 Wing          Affiliates (3)
                                                                                                                                                 ----           -------------
                                                                                                                   Total                         Total
                                                                                                                   (1)(2)
                                                                                                                    -----
    Europe                                                 -                                 15                43                              -         -  58                 64 122
    West Africa                                           10                                 25                 7                              -         3  45                  -  45
    North America                                         67                                 22                 2                              -         -  91                  -  91
    Australia                                              2                                 10                16                              -         -  28                  -  28
    Other International                                    4                                 40                14                              -         -  58                130 188
    Corporate and other                                    -                                  -                 -                             77         -  77                  -  77
                                                         ---                                ---               ---                            ---       --- ---                --- ---
    Total                                                 83                                112                82                             77         3 357                194 551
                                                         ===                                ===               ===                            ===       === ===                === ===
    Aircraft not currently in fleet: (4)
        On order                                           -                                  -                17                              -         -  17
        Under option                                       -                                 12                24                              -         -  36

_________

    (1)          Includes 17 aircraft
                 held for sale and 56
                 leased aircraft as
                 follows:

                                      Held for Sale Aircraft in Consolidated Fleet
                            --------------------------------------------
                                      Helicopters
                           -----------
                         Small                           Medium                    Large     Training     Fixed Total
                                                                                                          Wing
                                                                                                          ----
     Europe                         -                                  2                   3            -   -           5
     West Africa                    -                                  1                   -            -   -           1
     North America                  -                                  -                   -            -   -           -
     Australia                      -                                  1                   3            -   -           4
     Other International            -                                  7                   -            -   -           7
     Corporate and other            -                                  -                   -            -   -           -
                                  ---                                ---                 ---          ---  ---        ---
     Total                          -                                 11                   6            -   -          17
                                  ===                                ===                 ===          ===  ===        ===

                                       Leased Aircraft in Consolidated Fleet
                              -------------------------------------
                                      Helicopters
                         -----------
                         Small                           Medium                    Large     Training     Fixed Total
                                                                                                          Wing
                                                                                                          ----
     Europe                         -                                  -                   8            -   -           8
     West Africa                    -                                  1                   -            -   -           1
     North America                  1                                 11                   2            -   -          14
     Australia                      2                                  -                   1            -   -           3
     Other International            -                                  -                   -            -   -           -
     Corporate and other            -                                  -                   -           30   -          30
                                  ---                                ---                 ---          ---  ---        ---
     Total                          3                                 12                  11           30   -          56
                                  ===                                ===                 ===          ===  ===        ===
    (2)          The average age of our fleet,
                 excluding training aircraft, was 12
                 years as of June 30, 2012.
    (3)          The 194 aircraft operated by our
                 unconsolidated affiliates do not
                 include those aircraft leased from
                 us.
    (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 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
                                                                                 June 30,
                                                                                 --------
                                                                             2012                         2011
                                                                             ----                         ----
                                                                        (In thousands, except per
                                                                              share amounts)
                                                                                (Unaudited)
              Adjusted
              operating
              income                                                      $47,470                                  $34,989
                             Gain (loss) on disposal of
                             assets                                                   (5,315)                                   1,416
                             Severance costs for termination
                             of a contract                                            (2,162)                                       -
                                                                                      ------                                      ---
              Operating
              income                                                      $39,993                                  $36,405
                                                                          =======                                  =======

              Adjusted
              EBITDAR                                                     $84,273                                  $67,025
                             Gain (loss) on disposal of
                             assets                                                   (5,315)                                   1,416
                             Severance costs for termination
                             of a contract                                            (2,162)                                       -
                            Depreciation and amortization                            (21,372)                                 (22,708)
                            Rent expense                                             (16,274)                                  (8,953)
                            Interest expense                                          (8,774)                                  (8,955)
                            Provision for income taxes                                (6,180)                                  (6,606)
                                                                                      ------                                   ------
             Net income                                                   $24,196                                  $21,219
                                                                          =======                                  =======

              Adjusted net
              income                                                      $29,618                                  $19,878
                             Gain (loss) on disposal of
                             assets                                                   (4,234)                                   1,167
                             Severance costs for termination
                             of a contract                                            (1,722)                                       -
                                                                                      ------                                      ---
              Net income
              attributable
              to Bristow
              Group                                                       $23,662                                  $21,045
                                                                          =======                                  =======

              Adjusted
              diluted
              earnings per
              share                                                         $0.81                                    $0.54
                             Gain (loss) on disposal of
                             assets                                                    (0.12)                                    0.03
                             Severance costs for termination
                             of a contract                                             (0.05)                                       -
              Diluted
              earnings per
              share                                                          0.65                                     0.57

SOURCE Bristow Group Inc.


Source: PR Newswire