Bristow's Earnings Climb 30%
Bristow Group Inc. on Tuesday reported financial results for its fiscal 2007 second quarter and six months ended September 30, 2006.
Highlights included the following:
For the quarter ended September 30, 2006:
--Net income of $19.1 million increased 30.3 percent versus net income for the September quarter a year ago; earnings per diluted share of $0.79 rose 27.4 percent for the same three-month period; --Total revenue of $224.2 million increased by 15.3 percent over the second quarter a year ago due to increased revenues in all business units driven by increased flight hours, improved pricing and additional aircraft; --The earnings improvement was driven primarily by increases in revenues, gains on sales of older aircraft, and earnings from affiliates, partially offset by higher maintenance and salary expenses, and an increased effective tax rate; --The effective tax rate of 33 percent for the second fiscal quarter was in line with expectations; --Diluted earnings per share were reduced $0.02 due to the increase in weighted average shares from recently completed preferred stock offering.
For the six months ended September 30, 2006:
--Net income of $36.3 million rose 36.5 percent versus net income for the six months ended September 30, 2005; earnings per diluted share of $1.52 rose 34.5 percent over the same period; --Total revenue in the first half of fiscal year 2007 increased by 18.6 percent to $445.3 million; the revenue increase was driven by increased flight hours, improved pricing and additional aircraft; --In addition to items impacting earnings for the second quarter, six-month results were also affected by foreign currency exchange losses.
Capital and Liquidity:
--The recent issuance of our preferred stock provided $222.7 million in net proceeds; --The September 30, 2006 consolidated balance sheets reflect $794.4 million in stockholders' investment and $260.5 million of indebtedness or 24.7 percent leverage; --Also at that time, we had $268.3 million in cash and an undrawn $100 million revolving credit facility; --We generated $48.7 million in cash from operations and spent $115.5 million on aircraft during the six months ended September 30, 2006; --Aircraft purchase commitments (including four large aircraft ordered in early October) totaled $403.0 million with options totaling $377.5 million.
William E. Chiles, president and chief executive officer of Bristow Group Inc., said, "The very robust level of offshore oil and gas activity worldwide coupled with our strategic expansion of operations in new and existing markets have put Bristow Group in a position to produce record results in fiscal 2007. Although we are pleased with our financial results to date in fiscal 2007, we expect to realize the earnings power of our investments in new aircraft when a significant portion of the aircraft we are purchasing are placed in service and contributing to our earnings in late fiscal 2008. Our strong financial results and our recently completed preferred stock offering provide us the capital to make additional investments in our growth strategy by ordering more aircraft and/or investing in business acquisitions. If the market demand remains strong, we may access the capital markets for additional funds (likely on a leveraged basis) in calendar year 2007 to fund the remaining portion of our growth plans."
Management will conduct a conference call starting at 10:00 a.m. EST (9:00 a.m. CST) on Wednesday, November 8, 2006, to review financial results for the three and six months ended September 30, 2006. The conference call can be accessed as follows:
- Visit Bristow Group's investor relations Web page at http://www.bristowgroup.com
- Live: Click on the link for "Q2 2007 Bristow Group Inc. Earnings Conference Call"
- Replay: A replay via webcast will be available approximately one hour after the call's completion
Via Telephone within U.S.:
- Live: Dial toll free 800-561-2813, passcode: 69789476
- Replay: A telephone replay will be available through December 8, 2006, by dialing toll free 888-286-8010, passcode: 21529507
Via Telephone outside the U.S.:
- Live: Dial 617-614-3529, passcode: 69789476
- Replay: A telephone replay will be available through December 8, 2006, by dialing 617-801-6888, passcode: 21529507
ABOUT BRISTOW GROUP INC.
Bristow Group Inc. is a leading provider of helicopter services to the worldwide energy industry. Through its subsidiaries, affiliates and joint ventures, the Company has major transportation operations in the U.S. Gulf of Mexico and the North Sea, and in most of the other major offshore oil and gas producing regions of the world, including Alaska, Australia, Brazil, China, Mexico, Nigeria, Russia and Trinidad. Additionally, the Company is a leading provider of production management services for oil and gas production facilities in the U.S. Gulf of Mexico.
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