Bristow Group Reports Financial Results For Its 2014 Fiscal First Quarter Ended June 30, 2013 -- FIRST QUARTER GAAP NET INCOME OF $26.9 MILLION ($0.74 PER DILUTED SHARE) -- FIRST QUARTER ADJUSTED NET INCOME OF $36.5 MILLION ($1.00 PER DILUTED SHARE), WHICH EXCLUDES THE IMPACT OF SPECIAL ITEMS AND ASSET DISPOSITIONS -- NEW DIVIDEND POLICY APPROVED BY BOARD WITH A GOAL OF AN ANNUALIZED QUARTERLY DIVIDEND PAYOUT RATIO OF 20-30% OF FORWARD ADJUSTED EARNINGS PER SHARE -- COMPANY REAFFIRMS GUIDANCE RANGE FOR FULL FISCAL YEAR 2014 ADJUSTED EPS OF $4.20 - $4.50 PR Newswire HOUSTON, Aug. 5, 2013 HOUSTON, Aug. 5, 2013 /PRNewswire/ -- Bristow Group Inc. (NYSE: BRS) today reported net income for the June 2013 quarter of $26.9 million, or $0.74 per diluted share, compared to net income of $23.7 million, or $0.65 per diluted share, in the same period a year ago. Adjusted net income, which excludes special items and asset disposition effects, increased 23% to $36.5 million, or $1.00 per diluted share, for the June 2013 quarter, compared to $29.6 million or $0.81 per diluted share, in the June 2012 quarter. Adjusted earnings before interest, taxes, depreciation, amortization and rent ("adjusted EBITDAR"), which excludes special items and asset disposition effects, was $102.5 million for the June 2013 quarter compared to $84.3 million in the same period a year ago, an increase of 22%. Net cash provided by operating activities totaled $36.4 million for the June 2013 quarter compared to $55.4 million in the June 2012 quarter. The improvement in adjusted EBITDAR, adjusted net income and adjusted diluted earnings per share compared to the June 2012 quarter was primarily driven by: oImproved pricing and increased activity with new and existing clients in our Europe and West Africa Business Units; oAircraft operating in Canada for our Canadian affiliate, Cougar Helicopters Inc. ("Cougar"), beginning in October 2012; and oAn improvement in earnings for our Other International Business Unit, driven by increased earnings from unconsolidated affiliates, primarily from Lider in Brazil. "This was a record first quarter for Bristow, with excellent top-line growth leading to revenue and adjusted earnings per share at levels never before seen in this period. The results coming out of our core businesses in Europe and West Africa are now being matched by excellent performance from our investments in Brazil and Atlantic Canada," said William E. Chiles, President and Chief Executive Officer of Bristow Group. "This financial performance is even more notable given the operational challenges and maintenance expenses associated with the Eurocopter EC225s suspension of operations which impacted our adjusted EBITDAR margins in the quarter. We look forward to the commercial, operational, and financial benefits of the EC225 return to service and the contribution from the Gap SAR and INPEX contracts during the rest of our fiscal year and new contract wins in East Africa for the future." FIRST QUARTER FY2014 RESULTS oOperating revenue increased 12% to $359.5 million compared to $320.7 million in the same period a year ago. oOperating income increased 40% to $56.1 million compared to $40.0 million in the June 2012 quarter. oNet income increased by 14% to $26.9 million, or $0.74 per diluted share, compared to $23.7 million, or $0.65 per diluted share, in the June 2012 quarter. Adjusted net income, which excludes special items and asset disposition effects, increased 23% to $36.5 million, or $1.00 per diluted share, compared to $29.6 million, or $0.81 per diluted share, in the June 2012 quarter. oAdjusted EBITDAR, which excludes special items and asset disposition effects, increased 22% to $102.5 million compared to $84.3 million in the same period a year ago. oCash as of June 30, 2013 totaled $160.0 million compared to $215.6 million as of March 31, 2013. Our total liquidity, including cash on hand and availability on our revolving credit facility, was $407.4 million as of June 30, 2013 compared to $415.0 million as of March 31, 2013. The 12% increase in operating revenue primarily resulted from: oThe addition of new contracts with improved pricing and improvements in flight activity in our Europe and West Africa Business Units, and oThe addition of eight aircraft operating in Canada that contributed $16.1 million ($8.2 million in North America and $7.9 million in Corporate and other). Our GAAP results for the June 2013 quarter were impacted by the following items that are excluded from our adjusted non-GAAP financial measures for the quarter: oA loss on disposal of assets of $1.7 million, which compares to a loss of $5.3 million in the June 2012 quarter, and oA charge to interest expense of $12.7 million, resulting from the write-off of unamortized deferred financing fees related to a potential financing in connection with our bid to provide search and rescue ("SAR") services in the U.K. During the June 2013 quarter, we increased our borrowing capacity on our revolving credit facility from $200 million to $350 million and cancelled this potential financing. This special item decreased net income by $8.3 million and earnings per share by $0.23 during the June 2013 quarter. The June 2012 quarter was also impacted by a special item in the form of $2.2 million of severance costs related to the termination of a contract in the Southern North Sea, which decreased operating income by $2.2 million, net income by $1.7 million and earnings per share by $0.05 during that period. After adjusting for the loss on disposal of assets and for special items in the June 2013 and 2012 quarters, we saw an improvement in the financial measures used by management to assess and measure our financial performance, including a 21.8% improvement in adjusted operating income, an improvement in adjusted operating margin from 14.8% to 16.1%, a 21.6% improvement in adjusted EBITDAR, an improvement in adjusted EBITDAR margin from 26.3% to 28.5%, a 23.2% improvement in adjusted net income and a 23.5% improvement in adjusted diluted earnings per share. This improvement was driven by strong revenue performance and the increase in earnings from unconsolidated affiliates in the June 2013 quarter, partially offset by the increases in salaries and benefits, maintenance expense, general and administrative expense, and rent expense. Despite the significant increase in operating revenue across most of our business units, adjusted EBITDAR margin decreased compared to the June 2012 quarter for certain business units due to additional maintenance and labor costs incurred in the June 2013 quarter to support Eurocopter AS332L aircraft returned to service after we ceased operating Eurocopter EC225 aircraft in October 2012. Additionally, as we spoke about in last quarter, we are incurring costs in Europe and Australia in anticipation of new contract start-ups later in fiscal year 2014, including the Gap SAR and INPEX contracts. A significant portion of the costs related to the AS332L aircraft and contract additions are non-recurring; therefore, we expect adjusted EBITDAR margin to improve in these affected markets over the remainder of our fiscal year 2014. FIRST QUARTER FY2014 BUSINESS UNIT RESULTS Europe Business Unit The assets of our Europe Business Unit have continued to expand over the last twelve months with the addition of large aircraft. These new aircraft, as well as an overall increase in activity with existing clients and under new contracts primarily in the Northern North Sea in the U.K. resulted in $21.4 million of increased revenue and were the primary contributor to the revenue growth. We increased our fleet in this market by executing operating leases for new large aircraft beginning in late fiscal year 2012 and fiscal year 2013. While adjusted EBITDAR increased almost 5% year-over-year as a result of the operation of the additional aircraft, maintenance and salary increases (discussed above) resulted in a decrease in adjusted EBITDAR margin to 30.3% in the June 2013 quarter compared to 32.2% in the June 2012 quarter. West Africa Business Unit Activity levels continued to be strong in our West Africa Business Unit, leading to a 14.2% increase in operating revenue for the June 2013 quarter compared to the June 2012 quarter. These strong activity levels also resulted in a 12.1% improvement in adjusted EBITDAR compared with June 2012 quarter. However, due to the timing of maintenance activities, adjusted EBITDAR margins remained mostly flat in this business unit, at 31.3% for the June 2013 quarter compared to 31.9% for the June 2012 quarter. North America Business Unit Our entry into the Atlantic Canada market through our investment in Cougar drove the improvement in revenue, adjusted EBITDAR and adjusted EBITDAR margin in North America. Offsetting this improvement was a decline in activity in our U.S. Gulf of Mexico business, primarily related to small aircraft. Aircraft operating for Cougar in Canada contributed $8.2 million in revenue in the June 2013 quarter. Driven by this performance, North America's adjusted EBITDAR and adjusted EBITDAR margin improved to $17.0 million and 29.2%, respectively, in the June 2013 quarter compared to $12.2 million and 23.2%, respectively, in the June 2012 quarter. Australia Business Unit Operating revenue for Australia remained flat due to an increase in operating revenue from new contracts and ad hoc work, offset by a decrease in activity due to the end of short-term contracts and impact of foreign currency exchange rate changes. However, as a result of costs we incurred in the June 2013 quarter in anticipation of contracts that start in the fourth quarter of the current fiscal year, adjusted EBITDAR and adjusted EBITDAR margin decreased to $6.8 million and 17.7%, respectively, in the June 2013 quarter from $10.3 million and 27.0%, respectively, in the June 2012 quarter. Other International Business Unit Our Other International Business Unit saw an increase in adjusted EBITDAR margin to 67.4% in the June 2013 quarter compared to 36.2% in the same quarter a year ago, primarily resulting from an increase of $11.0 million in earnings from unconsolidated affiliates. This increase was driven by our investment in Lider, which improved by $8.6 million in the June 2013 quarter due to the addition of new aircraft on contract, cost controls and the impact of foreign currency items compared to the June 2012 quarter. This business unit's growth outlook also includes following global clients into emerging areas, including new contract wins in East Africa for the future. UPDATE ON EC225 OPERATIONS Eurocopter, the manufacturer of the EC225 Super Puma aircraft, has indicated that they have determined the root causes of the gear shaft failure in the EC225 that occurred in 2012. This determination has been reviewed and verified by airworthiness authorities and independent third parties. The definitive solution to the problem will be a redesign of the gear shaft with earliest possible availability being in the middle of calendar year 2014. However, in July 2013 the European Aviation Safety Authority (the "EASA") issued an airworthiness directive providing for interim solutions involving minor aircraft modifications and new maintenance/operating procedures for mitigating shaft failure and enhancing early detection. The Civil Aviation Authorities in the U.K. and Norway have issued safety directives, which superseded and revoked the safety directive of October 2012 and now permits a return to service of the EC225 aircraft over harsh environments conditional upon compliance with the EASA airworthiness directive. We have commenced the required modifications and are carrying out the required inspections on our EC225 fleet in the U.K., Norway and Australia. Currently, no client contracts have been cancelled in connection with the suspension in operations of the EC225 aircraft and we believe we have the contractual right to continue to receive monthly standing charges billed to our clients. In certain instances we have agreed to reduced monthly standing charge billings for the affected aircraft. We have been able to substantially replace the lost utilization from the EC225 aircraft with other aircraft, mitigating the impact on our results of operations during the June 2013 quarter. The current situation will continue until the necessary modifications are made to the EC225 fleet and we are confident that the interim modifications will allow us to operate the aircraft safely, which could result in our return to revenue service for the EC225 aircraft in the third quarter of our fiscal year 2014. Until then, this situation could have a material adverse effect on our future business, financial condition and results of operations. DIVIDEND On August 1, 2013, our Board of Directors approved our tenth consecutive quarterly dividend. This dividend of $0.25 per share will be paid on September 13, 2013 to shareholders of record on August 30, 2013 and is 67% higher than the first dividend paid in June 2011. Based on shares outstanding as of June 30, 2013, the total quarterly dividend payment will be approximately $9.1 million. Additionally, our board of directors approved a dividendpolicy with a goal of an annualized quarterly dividend payout ratio of 20-30% of forward adjusted earnings per share, although actual dividend payments are at the discretion of the board and may not meet this ratio. GUIDANCE Bristow is reaffirming our adjusted diluted earnings per share guidance for the full fiscal year 2014 of $4.20 to $4.50, reflecting our expectation for continued growth, and improving operational and capital efficiency. "Our continued improvement in operating and commercial performance has delivered this first quarter's strong net income and cash generation, as seen in the over 20% growth in adjusted EBITDAR over the same period a year ago," said Jonathan E. Baliff, Senior Vice President and Chief Financial Officer of Bristow Group. "Combined with the proceeds from the recent sale of our interest in the FB entities in Europe, Bristow has liquidity to fund our Oil & Gas business and civilian SAR growth while providing a balanced return through growing quarterly dividends and potential share repurchases." As a reminder, our earnings per share guidance does not include gains and losses on asset dispositions 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, we have 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 we do not currently anticipate or predict could result in earnings per share for fiscal year 2014 that are significantly above or below this guidance, including the impact of the suspension of EC225 aircraft and changes in the market and industry. Factors that could cause such changes are described below under the 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 6, 2013 to review financial results for the fiscal year 2014 first quarter ended June 30, 2013. 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: oVisit Bristow Group's investor relations Web page at www.bristowgroup.com oLive: Click on the link for "Bristow Group Fiscal 2014 First Quarter Earnings Conference Call" oReplay: 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.: oLive: Dial toll free 1-877-941-9205 oReplay: A telephone replay will be available through August 20, 2013 and may be accessed by calling toll free 1-800-406-7325, passcode: 4627637# Via Telephone outside the U.S.: oLive: Dial 1-480-629-9771 oReplay: A telephone replay will be available through August 20, 2013 and may be accessed by calling 1-303-590-3030, passcode: 4627637# 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, Canada, 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, EC225 return to service, capital allocation strategy, operational and capital performance, shareholder return, liquidity and 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. Risks and uncertainties include without limitation: fluctuations in the demand for our services; fluctuations in worldwide prices of and demand for natural gas and oil; fluctuations in levels of natural gas and oil exploration and development activities; the impact of competition; actions by customers; the risk of reductions in spending on helicopter services by governmental agencies; changes in tax and other laws and regulations; changes in foreign exchange rates and controls; risks associated with international operations; operating risks inherent in our business, including the possibility of declining safety performance; general economic conditions including the capital and credit markets; our ability to obtain financing; the risk of grounding of segments of our fleet for extended periods of time or indefinitely; our ability to re-deploy our aircraft to regions with greater demand; our ability to acquire additional aircraft and dispose of older aircraft through sales into the aftermarket; the possibility that we do not achieve the anticipated benefit of our fleet investment program; availability of employees; and political instability, war or acts of terrorism in any of the countries where we operate. 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, 2013 and annual report on Form 10-K for the fiscal year ended March 31, 2013. 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. (financial tables follow) BRISTOW GROUP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts and percentages) (Unaudited) Three Months Ended June 30, 2013 2012 Gross revenue: Operating revenue from non-affiliates $ 336,248 $ 314,849 Operating revenue from affiliates 23,299 5,805 Reimbursable revenue from non-affiliates 39,382 41,954 Reimbursable revenue from affiliates 65 — 398,994 362,608 Operating expense: Direct cost 255,256 222,768 Reimbursable expense 36,743 40,172 Depreciation and amortization 22,819 21,372 General and administrative 40,308 34,977 355,126 319,289 Loss on disposal of assets (1,721) (5,315) Earnings from unconsolidated affiliates, net of 13,972 1,989 losses Operating income 56,119 39,993 Interest income 119 88 Interest expense (20,370) (8,774) Other income (expense), net (1,366) (931) Income before provision for income taxes 34,502 30,376 Provision for income taxes (7,590) (6,180) Net income 26,912 24,196 Net income attributable to noncontrolling (26) (534) interests Net income attributable to Bristow Group $ 26,886 $ 23,662 Earnings per common share: Basic $ 0.74 $ 0.66 Diluted $ 0.74 $ 0.65 Non-GAAAP measures: Adjusted operating income $ 57,840 $ 47,470 Adjusted operating margin 16.1 % 14.8 % Adjusted EBITDAR $ 102,473 $ 84,273 Adjusted EBITDAR margin 28.5 % 26.3 % Adjusted net income $ 36,504 $ 29,618 Adjusted diluted earnings per share $ 1.00 $ 0.81 BRISTOW GROUP INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) June 30, March 31, 2013 2013 ASSETS Current assets: Cash and cash equivalents $ 159,992 $ 215,623 Accounts receivable from non-affiliates 260,719 254,520 Accounts receivable from affiliates 7,937 8,261 Inventories 157,946 153,969 Assets held for sale 13,627 8,290 Prepaid expenses and other current assets 32,266 35,095 Total current assets 632,487 675,758 Investment in unconsolidated affiliates 276,997 272,123 Property and equipment – at cost: Land and buildings 109,125 108,593 Aircraft and equipment 2,461,555 2,306,054 2,570,680 2,414,647 Less – Accumulated depreciation and (507,390) (493,575) amortization 2,063,290 1,921,072 Goodwill 28,845 28,897 Other assets 56,868 52,842 Total assets $ 3,058,487 $ 2,950,692 LIABILITIES AND STOCKHOLDERS' INVESTMENT Current liabilities: Accounts payable $ 73,138 $ 69,821 Accrued wages, benefits and related taxes 47,709 56,084 Income taxes payable 6,839 11,659 Other accrued taxes 8,128 7,938 Deferred revenue 23,916 21,646 Accrued maintenance and repairs 15,506 15,391 Accrued interest 6,475 14,249 Other accrued liabilities 20,251 20,714 Deferred taxes 3,911 — Short-term borrowings and current maturities of 6,950 22,323 long-term debt Total current liabilities 212,823 239,825 Long-term debt, less current maturities 882,823 764,946 Accrued pension liabilities 121,476 126,647 Other liabilities and deferred credits 53,532 57,196 Deferred taxes 159,926 151,121 Stockholders' investment: Common stock 369 367 Additional paid-in capital 737,070 731,883 Retained earnings 1,112,644 1,094,803 Accumulated other comprehensive loss (204,242) (199,683) Treasury shares (26,304) (26,304) Total Bristow Group stockholders' investment 1,619,537 1,601,066 Noncontrolling interests 8,370 9,891 Total stockholders' investment 1,627,907 1,610,957 Total liabilities and stockholders' investment $ 3,058,487 $ 2,950,692 BRISTOW GROUP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Three Months Ended June 30, 2013 2012 Cash flows from operating activities: Net income $ 26,912 $ 24,196 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 22,819 21,372 Deferred income taxes 11,768 (6,071) Write-off of deferred financing fees 12,733 — Discount amortization on long-term debt 921 870 Loss on disposal of assets 1,721 5,315 Stock-based compensation 2,869 2,848 Equity in earnings from unconsolidated affiliates (in (4,974) 4,129 excess of) less than dividends received Tax benefit related to stock-based compensation (2,522) (404) Increase (decrease) in cash resulting from changes in: Accounts receivable (6,949) (10,081) Inventories (4,112) (1,869) Prepaid expenses and other assets (791) 3,816 Accounts payable 4,339 960 Accrued liabilities (18,782) 11,212 Other liabilities and deferred credits (9,539) (881) Net cash provided by operating activities 36,413 55,412 Cash flows from investing activities: Capital expenditures (179,532) (86,555) Proceeds from asset dispositions 1,893 20,227 Investment in unconsolidated affiliate — (850) Net cash used in investing activities (177,639) (67,178) Cash flows from financing activities: Proceeds from borrowings 103,357 — Debt issuance costs (12,733) — Repayment of debt (1,733) (21,800) Partial prepayment of put/call obligation (14) (17) Common stock dividends paid (9,045) (7,145) Issuance of common stock 3,004 311 Tax benefit related to stock-based compensation 2,522 404 Net cash provided by (used in) financing activities 85,358 (28,247) Effect of exchange rate changes on cash and cash 237 5,713 equivalents Net decrease in cash and cash equivalents (55,631) (34,300) Cash and cash equivalents at beginning of period 215,623 261,550 Cash and cash equivalents at end of period $ 159,992 $ 227,250 BRISTOW GROUP INC. AND SUBSIDIARIES SELECTED OPERATING DATA (In thousands, except flight hours and percentages) (Unaudited) Three Months Ended June 30, 2013 2012 Flight hours (excluding Bristow Academy and unconsolidated affiliates): Europe 16,294 17,236 West Africa 11,716 10,754 North America 15,922 20,169 Australia 2,794 2,792 Other International 3,365 4,177 Consolidated 50,091 55,128 Operating revenue: Europe $ 137,159 $ 123,235 West Africa 75,779 66,355 North America 58,235 52,625 Australia 38,213 38,171 Other International 32,893 33,227 Corporate and other 18,115 7,420 Intra-business unit eliminations (847) (379) Consolidated $ 359,547 $ 320,654 Operating income (loss): Europe $ 20,021 $ 21,876 West Africa 19,253 16,131 North America 8,123 6,475 Australia 3,280 6,509 Other International 18,442 7,387 Corporate and other (11,279) (13,070) Loss on disposal of assets (1,721) (5,315) Consolidated $ 56,119 $ 39,993 Operating margin: Europe 14.6 % 17.8 % West Africa 25.4 % 24.3 % North America 13.9 % 12.3 % Australia 8.6 % 17.1 % Other International 56.1 % 22.2 % Consolidated 15.6 % 12.5 % Adjusted EBITDAR: Europe $ 41,492 $ 39,664 West Africa 23,720 21,163 North America 17,023 12,200 Australia 6,774 10,325 Other International 22,185 12,014 Corporate and other (8,721) (11,093) Consolidated $ 102,473 $ 84,273 Adjusted EBITDAR margin: Europe 30.3 % 32.2 % West Africa 31.3 % 31.9 % North America 29.2 % 23.2 % Australia 17.7 % 27.0 % Other International 67.4 % 36.2 % Consolidated 28.5 % 26.3 % BRISTOW GROUP INC. AND SUBSIDIARIES AIRCRAFT COUNT As of June 30, 2013 (Unaudited) Aircraft in Consolidated Fleet Percentage Helicopters of Current Quarter Fixed Unconsolidated Operating Small Medium Large Training Wing Total^^(1)(2) Affiliates^(3) Total Revenue Europe 38 % — 10 52 — — 62 64 126 West Africa 21 % 9 26 6 — 3 44 — 44 North America 16 % 62 24 11 — — 97 — 97 Australia 11 % 2 7 15 — — 24 — 24 Other 9 % 3 30 13 — — 46 134 180 International Corporate and 5 % — — — 80 — 80 — 80 other Total 100 % 76 97 97 80 3 353 198 551 Aircraft not currently in fleet:^(4) On order — 14 44 — — 58 Under option — 26 44 — — 70 _________ ^(1) Includes 12 aircraft held for sale and 72 leased aircraft as follows: Held for Sale Aircraft in Consolidated Fleet Helicopters Fixed Small Medium Large Training Total Wing Europe — — — — — — West Africa — — — — — — North America 7 — — — — 7 Australia — — — — — — Other International 1 4 — — — 5 Corporate and other — — — — — — Total 8 4 — — — 12 Leased Aircraft in Consolidated Fleet Helicopters Fixed Small Medium Large Training Total Wing Europe — 1 17 — — 18 West Africa — 1 — — — 1 North America 1 12 2 — — 15 Australia 2 — 3 — — 5 Other International — — — — — — Corporate and other — — — 33 — 33 Total 3 14 22 33 — 72 ^(2) The average age of our fleet, excluding training aircraft, was 11 years as of June 30, 2013. The 198 aircraft operated by our unconsolidated affiliates do not include those aircraft leased from us. Includes 57 helicopters (primarily medium) and 32 fixed wing aircraft owned and managed by ^(3) Lider, our unconsolidated affiliate in Brazil, which is included in our Other International business unit. On July 15, 2013, we sold our interest in the unconsolidated affiliates operating 64 aircraft in Europe. This table does not reflect aircraft which our unconsolidated affiliates may have on order or under option. On July 11, 2013, we ^(4) entered into an agreement to order 11 AW189 large aircraft which are reflected in this table. These aircraft orders have delivery dates in fiscal years 2015 and 2016. 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. 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, 2013 2012 (In thousands, except per share amounts) Adjusted operating $ 57,840 $ 47,470 income Loss on disposal of (1,721) (5,315) assets Special items ^(i) — (2,162) Operating income $ 56,119 $ 39,993 Adjusted EBITDAR $ 102,473 $ 84,273 Loss on disposal of (1,721) (5,315) assets Special items ^(i) — (2,162) Depreciation and (22,819) (21,372) amortization Rent expense (23,061) (16,274) Interest expense (20,370) (8,774) Provision for income (7,590) (6,180) taxes Net income $ 26,912 $ 24,196 Adjusted net income $ 36,504 $ 29,618 Loss on disposal of (1,342) (4,234) assets ^(ii) Special items ^(i) (8,276) (1,722) (ii) Net income attributable $ 26,886 $ 23,662 to Bristow Group Adjusted diluted $ 1.00 $ 0.81 earnings per share Loss on disposal of (0.04) (0.12) assets ^(ii) Special items ^(i) (0.23) (0.05) (ii) Diluted earnings per 0.74 0.65 share Our GAAP results for the June 2013 quarter were impacted by the ^(i) following items that are excluded from our adjusted non-GAAP financial measures for the quarter: • A loss on disposal of assets of $1.7 million, which compares to a loss of $5.3 million in the June 2012 quarter, and A charge to interest expense of $12.7 million, resulting from the write-off of unamortized deferred financing fees related to a • potential financing in connection with our bid to provide SAR services in the U.K. During the June 2013 quarter, we increased our borrowing capacity on our revolving credit facility from $200 million to $350 million and cancelled this potential financing. The June 2012 quarter was also impacted by a special item in the form of $2.2 million of severance costs related to the termination of a contract in the Southern North Sea. These amounts are presented after applying the appropriate tax effect ^(ii) to each item and dividing by the weighted average shares outstanding during the period to calculate the earnings per share impact. Linda McNeill Investor Relations (713) 267-7622 SOURCE Bristow Group Inc. Website: http://www.bristowgroup.com
Bristow Group Reports Financial Results For Its 2014 Fiscal First Quarter Ended June 30, 2013
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