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May 27, 2018 6:30 AM ET

Bristow Group Reports Fiscal Fourth Quarter and Full Fiscal Year 2018 Results

Disclosure NewswireTM

iCrowdNewswire - May 27, 2018

HOUSTON, – Bristow Group Inc. (NYSE: BRS) today reported the following results for the fourth quarter and full fiscal year ended March 31, 2018. All amounts shown are dollar amounts in thousands unless otherwise noted:

 

  

Fourth Quarter

 

Full Year

  

FY2018

 

FY2017

 

% Change

 

FY2018

 

FY2017

 

% Change

Operating revenue

 

$

341,175

  

$

323,651

  

5.4

%

 

$

1,384,424

  

$

1,347,850

  

2.7

%

Net loss attributable to Bristow Group

 

(100,901)

  

(78,040)

  

(29.3)

%

 

(195,658)

  

(170,536)

  

(14.7)

%

Diluted loss per share

 

(2.84)

  

(2.22)

  

(27.9)

%

 

(5.54)

  

(4.87)

  

(13.8)

%

Adjusted EBITDA (1)

 

22,882

  

3,687

  

*

  

105,427

  

71,084

  

48.3

%

Adjusted net loss (1)

 

(17,038)

  

(40,302)

  

57.7

%

 

(75,007)

  

(74,525)

  

(0.6)

%

Adjusted diluted loss per share (1)

 

(0.48)

  

(1.15)

  

58.3

%

 

(2.13)

  

(2.13)

  

%

Operating cash flow

 

(10,237)

  

25,635

  

*

  

(19,544)

  

11,537

  

*

 

Capital expenditures

 

9,846

  

15,384

  

(36.0)

%

 

46,287

  

135,110

  

(65.7)

%

Rent expense

 

50,172

  

55,718

  

(10.0)

%

 

208,691

  

212,608

  

(1.8)

%

 

  

March 31,

 

December 31,

 

March 31,

 

% Change

 

% Change

  

2018

 

2017

 

2017

 

Quarter over quarter

 

Year over year

Cash

 

$

380,223

  

$

117,848

  

$

96,656

     

Undrawn borrowing capacity on Revolving Credit Facility (2)

 

  

387,584

  

260,320

     

Total liquidity

 

$

380,223

  

$

505,432

  

$

356,976

  

(24.8)

%

 

6.5

%

                   

 

  

______________

  

*       

percentage change too large to be meaningful or not applicable

  

(1)       

A full reconciliation of non-GAAP financial measures is included at the end of this news release.

  

(2)       

The Revolving Credit Facility was terminated on March 6, 2018. Our new $75 million Asset-Backed Revolving Credit Facility closed on April 17, 2018 and, therefore, availability under such facility is not included in liquidity as of March 31, 2018.

“The New Bristow was successful in executing our fiscal 2018 STRIVE priorities, including agreements to recover $136 million in OEM costs, reducing rent expense by returning aircraft to lessors, deferring approximately $190 million of capital expenditures, and increasing financial flexibility by completing over $700 million in new low cost financings,” said Jonathan Baliff, President and Chief Executive Officer of Bristow Group. “Our fourth quarter results reflect our global team’s delivery of world-class safety performance during very challenging times and the benefit of increased short-cycle offshore activity which continued to drive higher than expected adjusted EBITDA across all regions for fiscal 2018.”

BUSINESS AND FINANCIAL HIGHLIGHTS

  • Net loss was $100.9 million ($2.84 per diluted share) for the March 2018 quarter compared to a net loss of $78.0 million ($2.22 per diluted share) for the March 2017 quarter.
  • Adjusted net loss was $17.0 million ($0.48 per diluted share) for the March 2018 quarter compared to an adjusted net loss of $40.3 million ($1.15 per diluted share) for the March 2017 quarter; the March 2018 quarter is adjusted for $83.9 million in net unfavorable special items, including impairment of our investment in Líder in Brazil, and the March 2017 quarter is adjusted for $37.7 million in net unfavorable special items.   
  • Fiscal year 2018 adjusted EBITDA of $105.4 million was up 48% over fiscal year 2017 adjusted EBITDA and in-line with increased adjusted EBITDA guidance provided in February 2018.
  • Cash increase of $262 million in the March 2018 quarter to $380 million reflects the net benefit of the funding of our $350 million 8.75% five-year Senior Secured Notes, the termination of our Revolving Credit Facility and term loan repayments of $52.6 million.
  • We expect fiscal year 2019 adjusted EBITDA to be in the range of $90 million to $140 million.

“I am honored to work with a team that delivered notable successes for our clients and investors in fiscal 2018, especially in the areas of safety on the field and liquidity on the balance sheet,” said Jonathan Baliff. “Looking ahead, our fiscal 2019 priorities will focus on continued safety improvement, delivering world-class performance to our clients and proactively managing our cost structure across a more responsive, regionally-focused New Bristow, while we win more business in this short-cycle challenging market.”

Operating revenue from external clients by line of service was as follows:

 

  

Fourth Quarter

 

Full Year

  

FY2018

 

FY2017

 

% Change

 

FY2018

 

FY2017

 

% Change

             
  

(in thousands, except percentages)

Oil and gas services

 

$

232,278

  

$

233,753

  

(0.6)

%

 

$

947,462

  

$

956,649

  

(1.0)

%

U.K. SAR services

 

58,659

  

43,963

  

33.4

%

 

222,965

  

189,555

  

17.6

%

Fixed wing services

 

49,845

  

43,498

  

14.6

%

 

209,719

  

191,609

  

9.5

%

Corporate and other

 

393

  

2,437

  

(83.9)

%

 

4,278

  

10,037

  

(57.4)

%

Total operating revenue

 

$

341,175

  

$

323,651

  

5.4

%

 

$

1,384,424

  

$

1,347,850

  

2.7

%

FOURTH QUARTER FY2018 RESULTS

The year-over-year increase in revenue was primarily driven by the increase in U.K. SAR services due to additional bases coming online and an increase from our fixed wing services in our Europe Caspian, Asia Pacific and Africa regions. These revenue increases were partially offset by a decrease in our oil and gas services driven by declines in our Asia Pacific and Africa regions, while revenue from oil and gas services in our Americas and Europe Caspian regions improved.

We reported a net loss of $100.9 million and diluted loss per share of $2.84 for the March 2018 quarter compared to a net loss of $78.0 million and diluted loss per share of $2.22 for the March 2017 quarter. The year-over-year change in net loss and diluted loss per share was primarily due to a loss on impairment in the March 2018 quarter and higher interest expense resulting from additional borrowings, partially offset by the increase in revenue discussed above and an income tax benefit.

The net loss for the March 2018 quarter was significantly impacted by the following special items:

  • Loss on impairment totaling $90.2 million ($62.4 million net of tax including an additional $31.2 million in tax resulting from the repositioning of certain aircraft from one tax jurisdiction to another related to recent financing transactions), or $1.76 per share, including:
    • Impairment of investment in unconsolidated affiliates of $85.7 million related to impairment of our investment in Líder in Brazil, and
    • Impairment on inventories of $4.5 million;
  • Organizational restructuring costs of $8.5 million ($6.0 million net of tax), or $0.17 per share, all of which is severance expense; $6.4 million of the restructuring costs are included in direct costs and $2.1 million are included in general and administrative expense;
  • Early extinguishment of debt of $1.9 million ($1.3 million net of tax), or $0.04 per share, included in interest expense, which includes $1.8 million related to write-off of deferred financing fees and $0.1 million related to write-off of discount on debt; and
  • Loss on disposal of assets of $5.2 million ($40.1 million net of tax), or $1.13 per share; partially offset by
  • A non-cash benefit from tax items of $25.8 million, or $0.73 per share, that includes a one-time non-cash tax effect from the true-up of the one-time transition tax on the repatriation of foreign earnings under the Tax Cuts and Jobs Act (the “Act”) of $31.2 million and net reversal of valuation allowances on deferred tax assets of $17.3 million, partially offset by a $22.7 million expense related to the true-up of the revaluation of net deferred tax liabilities to a lower tax rate resulting from the Act.

Excluding these items, adjusted net loss and adjusted diluted loss per share improved to $17.0 million and $0.48, respectively, for the March 2018 quarter compared to $40.3 million and $1.15, respectively, for the March 2017 quarter. Adjusted EBITDA also improved year-over-year to $22.9 million in the March 2018 quarter from $3.7 million in the March 2017 quarter primarily due an increase in operating revenue in our Europe Caspian region, primarily due to additional bases coming online for U.K. SAR, and increased activity and in our Americas region, primarily due to increased activity in the U.S. Gulf of Mexico.

LIQUIDITY AND FINANCIAL FLEXIBILITY

Our cash balance of $380 million as of March 31, 2018 reflects the net benefit from closing and funding the $350 million8.75% five-year Senior Secured Notes and the repayment of our April 2019 bank maturities.

Don Miller, Senior Vice President and Chief Financial Officer, commented, “Fiscal year 2018 was a very successful year for Bristow as we materially improved our liquidity runway by repaying our 2019 bank maturities with the closing and funding of over $700 million in new low cost capital eliminating near term refinancing risk. The success of these financings will allow us to continue to focus on increasing revenue, reducing costs, and improving returns on our assets.”

REGIONAL PERFORMANCE

 

Europe Caspian

 
  

Fourth Quarter

 

Full Year

  

FY2018

 

FY2017

 

% Change

 

FY2018

 

FY2017

 

% Change

             
  

(in thousands, except percentages)

Operating revenue

 

$

194,429

  

$

162,511

  

19.6

%

 

$

765,412

  

$

710,581

  

7.7

%

Operating income (loss)

 

$

3,164

  

(4,628)

  

*

 

$

22,774

  

13,840

  

64.6

%

Operating margin

 

1.6

%

 

(2.8)

%

 

*

 

3.0

%

 

1.9

%

 

57.9

%

Adjusted EBITDA

 

$

22,787

  

$

1,890

  

*

 

$

81,503

  

$

45,163

  

80.5

%

Adjusted EBITDA margin

 

11.7

%

 

1.2

%

 

*

 

10.6

%

 

6.4

%

 

65.6

%

Rent expense

 

$

31,355

  

$

34,065

  

(8.0)

%

 

$

134,158

  

$

134,072

  

0.1

%

Loss on impairment

 

$

4,525

  

$

  

*

 

$

4,525

  

$

8,706

  

(48.0)

%

 

 

_______________

  

*      

percentage change too large to be meaningful or not applicable

The increase in operating revenue for the March 2018 quarter and fiscal year 2018 primarily resulted from an increase in activity and short-term contracts in Norway, the start-up of U.K. SAR bases and an increase in fixed wing revenue. Partially offsetting these increases was a decrease in U.K. oil and gas revenue resulting from the continued impact of the industry downturn on exploration activity. Eastern Airways contributed $30.7 million and $24.5 million in operating revenue for the March 2018 and 2017 quarters, respectively, and $118.5 million and $110.4 million in operating revenue for fiscal years 2018 and 2017, respectively.

During the March 2018 quarter and fiscal year 2018, our results for the Europe Caspian region were impacted by a reduction in rent expense of $2.8 million and $9.9 million, respectively, related to OEM cost recoveries that increased operating income and adjusted EBITDA.

During the March 2018 quarter and fiscal year 2018, we recorded an inventory impairment charge of $4.5 million for our fixed wing operations at Eastern Airways as a result of changes in expected future utilization of aircraft within those operations. During fiscal year 2017, we recorded an impairment charge of $8.7 million of goodwill related to Eastern Airways. Both the inventory and goodwill impairment charges were included in operating income, but were adjusted for in our calculation of adjusted EBITDA.

A substantial portion of our revenue in the Europe Caspian region is contracted in British pound sterling, which depreciated significantly against the U.S. dollar in fiscal year 2017 due to Brexit with a modest recovery in fiscal year 2018. As a result of the changes in the British pound sterling, adjusted EBITDA was favorably impacted by foreign currency exchange rate changes of $4.3 million and $9.2 million, respectively, during the March 2018 quarter and fiscal year 2018 compared to an unfavorable impact of $6.3 million and $35.6 million, respectively, during the March 2017quarter and fiscal year 2017.

Operating income, operating margin, adjusted EBITDA and adjusted EBITDA margin increased in the March 2018quarter and fiscal year 2018 primarily due to the increase in operating revenue, the reduction in rent expense related to the OEM cost recoveries and favorable impacts from changes in foreign currency exchange rates. These benefits were partially offset by increased salaries and benefits and maintenance expense year-over-year due to the increase in activity. Eastern Airways generated a negative $3.3 million and negative $4.3 million in adjusted EBITDA for the March 2018 and 2017 quarters, respectively, and a negative $6.9 million and negative $4.5 million in adjusted EBITDA for fiscal years 2018 and 2017, respectively.

 

Africa

 
  

Fourth Quarter

 

Full Year

  

FY2018

 

FY2017

 

% Change

 

FY2018

 

FY2017

 

% Change

             
  

(in thousands, except percentages)

Operating revenue

 

$

45,307

  

$

47,049

  

(3.7)

%

 

$

191,830

  

$

200,104

  

(4.1)

%

Earnings from unconsolidated affiliates

 

$

2,518

  

$

2,025

  

24.3

%

 

$

2,518

  

$

2,068

  

21.8

%

Operating income

 

$

3,973

  

$

10,225

  

(61.1)

%

 

$

32,326

  

$

30,179

  

7.1

%

Operating margin

 

8.8

%

 

21.7

%

 

(59.4)

%

 

16.9

%

 

15.1

%

 

11.9

%

Adjusted EBITDA

 

$

12,213

  

$

12,203

  

0.1

%

 

$

52,419

  

$

51,553

  

1.7

%

Adjusted EBITDA margin

 

27.0

%

 

25.9

%

 

4.2

%

 

27.3

%

 

25.8

%

 

5.8

%

Rent expense

 

$

2,133

  

$

2,000

  

6.7

%

 

$

8,557

  

$

8,101

  

5.6

%

The decrease in operating revenue for the March 2018 quarter and fiscal year 2018 primarily resulted from an overall decrease in activity compared to the prior year periods. Activity declined with certain clients and certain contracts ended, partially offset by an increase in activity from other clients. Additionally, fixed wing services in Africa generated operating revenue of $1.9 million and $1.8 million, respectively, for the March 2018 and 2017 quarters and $7.4 millionand $4.2 million, respectively, for fiscal years 2018 and 2017.

Operating income and operating margin decreased in the March 2018 quarter primarily due to employee severance costs resulting from the expiration of a significant contract in this region which was not renewed. Operating income and operating margin increased in fiscal year 2018 primarily due to a decrease in depreciation and amortization expense and lower operating expenses. Adjusted EBITDA increased in the March 2018 quarter and fiscal year 2018 compared to prior comparative periods primarily due to a favorable exchange rate impact compared to fiscal year 2017.

On March 31, 2018, a significant contract in this region expired and was not renewed. Additionally, changing regulations and political environment have made, and are expected to continue to make, our operating results for Nigeriaunpredictable. Market uncertainty related to the oil and gas downturn has continued in this region, putting smaller clients under increasing pressure as their activity declined, which has reduced our activity levels and overall pricing.

 

Americas

 
  

Fourth Quarter

 

Full Year

  

FY2018

 

FY2017

 

% Change

 

FY2018

 

FY2017

 

% Change

             
  

(in thousands, except percentages)

Operating revenue

 

$

57,480

  

$

51,966

  

10.6

%

 

$

236,364

  

$

220,544

  

7.2

%

Earnings from unconsolidated affiliates

 

$

590

  

$

253

  

133.2

%

 

$

4,302

  

$

5,207

  

(17.4)

%

Operating income (loss)

 

$

(84,592)

  

$

(1,566)

  

*

 

$

(73,057)

  

$

4,224

  

*

Operating margin

 

(147.2)

%

 

(3.0)

%

 

*

 

(30.9)

%

 

1.9

%

 

*

Adjusted EBITDA

 

$

7,580

  

$

5,635

  

34.5

%

 

$

41,010

  

$

39,952

  

2.6

%

Adjusted EBITDA margin

 

13.2

%

 

10.8

%

 

22.2

%

 

17.4

%

 

18.1

%

 

(3.9)

%

Rent expense

 

$

6,440

  

$

6,757

  

(4.7)

%

 

$

24,920

  

$

23,015

  

8.3

%

Loss on impairment

 

$

85,683

  

$

  

*

 

$

85,683

  

$

  

*

 

 

_______________

  

*      

percentage change too large to be meaningful or not applicable

Operating revenue increased for the March 2018 quarter and fiscal year 2018 compared to the prior year periods primarily due an increase in activity from our U.S. Gulf of Mexico operations and additional revenue from the search and rescue consortium in the U.S. Gulf of Mexico.

Earnings from unconsolidated affiliates, net of losses, decreased for fiscal year 2018 compared to fiscal year 2017 primarily due to a decrease in earnings from our investment in Líder in Brazil due to reduction in activity, partially offset by less of an unfavorable change in exchange rates. Changes in foreign currency exchange rates decreased our earnings from our investment in Líder by $0.3 million$0.6 million$2.0 million and $3.2 million in the March 2018 quarter, March 2017 quarter, fiscal year 2018 and fiscal year 2017, respectively.

Líder’s management has significantly decreased their future financial projections as a result of recent tender awards announced by Petrobras. Petrobras represented 64% and 66% of Líder’s operating revenue in calendar years 2017 and 2016, respectively. This significant decline in future forecasted results, coupled with previous declining financial results, triggered our review of the investment for potential impairment as of March 31, 2018. Based on the estimated fair value, we recorded an $85.7 million impairment in the March 2018 quarter. Our remaining investment in Líder as of March 31, 2018 is $62.3 million.

The decreases in operating income (loss) and operating margin for the March 2018 quarter and fiscal year 2018 is primarily due to the impairment of our investment in Líder discussed above. The increases in adjusted EBITDA and adjusted EBITDA margin for the March 2018 quarter and fiscal year 2018 were primarily driven by the increase in revenue discussed above.

 

Asia Pacific

 
  

Fourth Quarter

 

Full Year

  

FY2018

 

FY2017

 

% Change

 

FY2018

 

FY2017

 

% Change

             
  

(in thousands, except percentages)

Operating revenue

 

$

47,825

  

$

62,628

  

(23.6)

%

 

$

201,190

  

$

217,772

  

(7.6)

%

Operating income (loss)

 

$

(4,916)

  

$

3,610

  

*

 

$

(24,290)

  

$

(20,870)

  

(16.4)

%

Operating margin

 

(10.3)

%

 

5.8

%

 

*

 

(12.1)

%

 

(9.6)

%

 

(26.0)

%

Adjusted EBITDA

 

$

(1,926)

  

$

5,487

  

*

 

$

(1,424)

  

$

(5,026)

  

71.7

%

Adjusted EBITDA margin

 

(4.0)

%

 

8.8

%

 

*

 

(0.7)

%

 

(2.3)

%

 

69.6

%

Rent expense

 

$

8,552

  

$

10,956

  

(21.9)

%

 

$

32,908

  

$

39,759

  

(17.2)

%

Operating revenue decreased in the March 2018 quarter and fiscal year 2018 compared to the prior year periods primarily due to the early cancellation of a contract that generated an additional $17.2 million of operating revenue in the March 2017 quarter.

Airnorth contributed $17.2 million in operating revenue for both the March 2018 and 2017 quarters, and a negative $1.4 million and a negative $0.7 million in adjusted EBITDA for the March 2018 and 2017 quarters, respectively, and $83.8 million and $77.1 million in operating revenue and $7.2 million and $7.1 million in adjusted EBITDA for fiscal years 2018 and 2017, respectively.

Operating income (loss), operating margin, adjusted EBITDA and adjusted EBITDA margin declined for the March 2018quarter and fiscal year 2018 compared to the prior year periods primarily due to the contract cancellation discussed above, which contributed $11.1 million of operating income and adjusted EBITDA in the March 2017 quarter, and a decline in oil and gas revenue, which was only partially offset by cost reduction efforts.

 

Corporate and other

 
  

Fourth Quarter

 

Full Year

  

FY2018

 

FY2017

 

% Change

 

FY2018

 

FY2017

 

% Change

             
  

(in thousands, except percentages)

Operating revenue

 

$

393

  

$

2,452

  

(84.0)

%

 

$

4,305

  

$

10,369

  

(58.5)

%

Operating loss

 

$

(20,287)

  

$

(25,747)

  

21.2

%

 

$

(88,996)

  

$

(104,616)

  

14.9

%

Adjusted EBITDA

 

$

(17,772)

  

$

(21,528)

  

17.4

%

 

$

(68,081)

  

$

(60,558)

  

(12.4)

%

Rent expense

 

$

1,692

  

$

1,940

  

(12.8)

%

 

$

8,148

  

$

7,661

  

6.4

%

Loss on impairment

 

$

  

$

  

*

 

$

1,192

  

$

7,572

  

(84.3)

%

 

 

_______________

  

*      

percentage change too large to be meaningful or not applicable

Operating revenue decreased in the March 2018 quarter and fiscal year 2018 compared to prior periods primarily due to the sale of Bristow Academy on November 1, 2017.

Operating loss and adjusted EBITDA improved for the March 2018 quarter compared to the March 2017 quarter primarily due to a reduction in general and administrative expenses, partially offset by the decline in revenue discussed above. Operating loss for fiscal years 2018 and 2017 was most significantly impacted by $1.2 million and $7.6 million, respectively, of inventory impairment charges and a reduction in general and administrative expenses, partially offset by the decline in revenue. Adjusted EBITDA decreased year-over-year primarily due to foreign currency transaction losses of $4.4 million for fiscal year 2018 versus foreign currency transaction gains of $14.5 million for fiscal year 2017. This change in foreign currency impacts was partially offset by overall cost reduction activities that decreased general and administrative expenses as discussed above.

During fiscal years 2018 and 2017, we recorded $9.5 million and $10.9 million, respectively, related to organizational restructuring costs, which along with the inventory impairment charges discussed above, are excluded from adjusted EBITDA.

FY 2019 GUIDANCE

Guidance for selected financial measures is included in the tables that follow.

CONFERENCE CALL

Management will conduct a conference call starting at 10:00 a.m. ET (9:00 a.m. CT) on Thursday, May 24, 2018 to review financial results for the fiscal year 2018 fourth quarter and year ended March 31, 2018.  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 2018 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 1-877-404-9648

Via Telephone outside the U.S.:

  • Live: Dial 1-412-902-0030

ABOUT BRISTOW GROUP INC.

Bristow Group Inc. is the leading global industrial aviation services provider offering helicopter transportation, search and rescue (SAR) and aircraft support services, including maintenance, to government and civil organizations worldwide. Bristow 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 AustraliaBrazilCanadaRussiaand Trinidad. Bristow provides SAR services to the private sector worldwide and to the public sector for all of the U.K. on behalf of the Maritime and Coastguard Agency. For more information, visit 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, expected contract revenue, capital deployment strategy, operational and capital performance, expected cost management activities, expected capital expenditure deferrals, 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 supply and demand for oil and natural gas; fluctuations in levels of oil and natural gas production, exploration and development activities; the impact of competition; actions by clients and suppliers; the risk of reductions in spending on industrial aviation 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 December 31, 2017 and annual report on Form 10-K for the fiscal year ended March 31, 2017.  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)

Investor Relations
Linda McNeill
Director, Investor Relations
+1 713.267.7622

Global Media Relations
Adam Morgan
Director, Global Communications
+1 281.253.9005

 

BRISTOW GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts and percentages)

(Unaudited)

 
 

Fourth Quarter

 

Full Year

 

FY2018

 

FY2017

 

FY2018

 

FY2017

        

Gross revenue:

       

Operating revenue from non-affiliates

$

325,640

  

$

306,595

  

$

1,317,295

  

$

1,276,374

 

Operating revenue from affiliates

15,535

  

17,056

  

67,129

  

71,476

 

Reimbursable revenue from non-affiliates

17,267

  

12,543

  

60,538

  

52,652

 
 

358,442

  

336,194

  

1,444,962

  

1,400,502

 
        

Operating expense:

       

Direct cost

281,040

  

272,468

  

1,123,168

  

1,103,984

 

Reimbursable expense

16,981

  

12,217

  

59,346

  

50,313

 

Depreciation and amortization

29,923

  

25,694

  

124,042

  

118,748

 

General and administrative

46,292

  

46,089

  

184,987

  

195,367

 
 

374,236

  

356,468

  

1,491,543

  

1,468,412

 
        

Loss on impairment

(90,208)

  

  

(91,400)

  

(16,278)

 

Loss on disposal of assets

(5,177)

  

(1,422)

  

(17,595)

  

(14,499)

 

Earnings from unconsolidated affiliates, net of losses

3,344

  

2,168

  

6,738

  

6,945

 
        

Operating loss

(107,835)

  

(19,528)

  

(148,838)

  

(91,742)

 

Interest expense, net

(23,383)

  

(15,386)

  

(77,060)

  

(49,919)

 

Other income (expense), net

(3,223)

  

(1,123)

  

(3,076)

  

(2,641)

 

Loss before benefit (provision) for income taxes

(134,441)

  

(36,037)

  

(228,974)

  

(144,302)

 

Benefit (provision) for income taxes

33,437

  

(43,626)

  

30,891

  

(32,588)

 

Net loss

(101,004)

  

(79,663)

  

(198,083)

  

(176,890)

 

Net loss attributable to noncontrolling interests

103

  

1,623

  

2,425

  

6,354

 

Net loss attributable to Bristow Group

$

(100,901)

  

$

(78,040)

  

$

(195,658)

  

$

(170,536)

 
        

Loss per common share:

       

Basic

$

(2.84)

  

$

(2.22)

  

$

(5.54)

  

$

(4.87)

 

Diluted

$

(2.84)

  

$

(2.22)

  

$

(5.54)

  

$

(4.87)

 
        
        

Non-GAAP measures:

       

Adjusted EBITDA

$

22,882

  

$

3,687

  

$

105,427

  

$

71,084

 

Adjusted EBITDA margin

6.7

%

 

1.1

%

 

7.6

%

 

5.3

%

Adjusted net loss

$

(17,038)

  

$

(40,302)

  

$

(75,007)

  

$

(74,525)

 

Adjusted diluted loss per share

$

(0.48)

  

$

(1.15)

  

$

(2.13)

  

$

(2.13)

 

 

BRISTOW GROUP INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 
 

March 31,

 

2018

 

2017

ASSETS

Current assets:

   

Cash and cash equivalents

$

380,223

  

$

96,656

 

Accounts receivable from non-affiliates

233,386

  

198,129

 

Accounts receivable from affiliates

13,594

  

8,786

 

Inventories

129,614

  

124,911

 

Assets held for sale

30,348

  

38,246

 

Prepaid expenses and other current assets

47,234

  

41,143

 

Total current assets

834,399

  

507,871

 

Investment in unconsolidated affiliates

126,170

  

210,162

 

Property and equipment – at cost:

   

Land and buildings

250,040

  

231,448

 

Aircraft and equipment

2,511,131

  

2,622,701

 
 

2,761,171

  

2,854,149

 

Less – Accumulated depreciation and amortization

(693,151)

  

(599,785)

 
 

2,068,020

  

2,254,364

 

Goodwill

19,907

  

19,798

 

Other assets

116,506

  

121,652

 

Total assets

$

3,165,002

  

$

3,113,847

 
    

LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS’ INVESTMENT

Current liabilities:

   

Accounts payable

$

101,270

  

$

98,215

 

Accrued wages, benefits and related taxes

62,385

  

59,077

 

Income taxes payable

8,453

  

15,145

 

Other accrued taxes

7,378

  

9,611

 

Deferred revenue

15,833

  

19,911

 

Accrued maintenance and repairs

28,555

  

22,914

 

Accrued interest

16,345

  

12,909

 

Other accrued liabilities

65,978

  

46,679

 

Deferred taxes

  

830

 

Short-term borrowings and current maturities of long-term debt

56,700

  

131,063

 

Total current liabilities

362,897

  

416,354

 

Long-term debt, less current maturities

1,429,834

  

1,150,956

 

Accrued pension liabilities

37,034

  

61,647

 

Other liabilities and deferred credits

36,952

  

28,899

 

Deferred taxes

115,192

  

154,873

 

Redeemable noncontrolling interest

  

6,886

 

Stockholders’ investment:

   

Common stock

382

  

379

 

Additional paid-in capital

852,565

  

809,995

 

Retained earnings

793,783

  

991,906

 

Accumulated other comprehensive loss

(286,094)

  

(328,277)

 

Treasury shares, at cost

(184,796)

  

(184,796)

 

Total Bristow Group stockholders’ investment

1,175,840

  

1,289,207

 

Noncontrolling interests

7,253

  

5,025

 

Total stockholders’ investment

1,183,093

  

1,294,232

 

Total liabilities, redeemable noncontrolling interest and stockholders’ investment

$

3,165,002

  

$

3,113,847

 

 

BRISTOW GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 
 

Full Year

 

FY2018

 

FY2017

Cash flows from operating activities:

   

Net loss

$

(198,083)

  

$

(176,890)

 

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

   

Depreciation and amortization

124,042

  

118,748

 

Deferred income taxes

(49,334)

  

15,720

 

Write-off of deferred financing fees

2,969

  

923

 

Discount amortization on long-term debt

1,701

  

1,606

 

Loss on disposal of assets

17,595

  

14,499

 

Loss on impairment

91,400

  

16,278

 

Deferral of lease payments

3,991

  

 

Stock-based compensation

10,436

  

12,352

 

Equity in earnings from unconsolidated affiliates in excess of dividends received

(3,780)

  

(4,438)

 

Increase (decrease) in cash resulting from changes in:

   

Accounts receivable

(32,459)

  

23,759

 

Inventories

(2,154)

  

(1,958)

 

Prepaid expenses and other assets

11,913

  

1,267

 

Accounts payable

(3,385)

  

15,052

 

Accrued liabilities

6,070

  

(19,713)

 

Other liabilities and deferred credits

(466)

  

(5,668)

 

Net cash provided by (used in) operating activities

(19,544)

  

11,537

 

Cash flows from investing activities:

   

Capital expenditures

(46,287)

  

(135,110)

 

Proceeds from asset dispositions

48,740

  

18,471

 

Proceeds from OEM cost recoveries

94,463

  

 

Deposit received on aircraft held for sale

  

290

 

Net cash provided by (used in) investing activities

96,916

  

(116,349)

 

Cash flows from financing activities:

   

Proceeds from borrowings

896,874

  

708,267

 

Payment of contingent consideration

  

(10,000)

 

Debt issuance costs

(20,560)

  

(8,010)

 

Repayment of debt and debt redemption premiums

(671,567)

  

(570,328)

 

Purchase of 4½% Convertible Senior Notes call option

(40,393)

  

 

Proceeds from issuance of warrants

30,259

  

 

Partial prepayment of put/call obligation

(49)

  

(49)

 

Dividends paid to noncontrolling interest

(331)

  

(2,533)

 

Common stock dividends paid

(2,465)

  

(9,831)

 

Repurchases for tax withholdings on vesting of equity awards

(2,740)

  

(835)

 

Net cash provided by financing activities

189,028

  

106,681

 

Effect of exchange rate changes on cash and cash equivalents

17,167

  

(9,523)

 

Net increase (decrease) in cash and cash equivalents

283,567

  

(7,654)

 

Cash and cash equivalents at beginning of period

96,656

  

104,310

 

Cash and cash equivalents at end of period

$

380,223

  

$

96,656

 

 

BRISTOW GROUP INC. AND SUBSIDIARIES

SELECTED OPERATING DATA

(In thousands, except flight hours and percentages)

(Unaudited)

 
  

Fourth Quarter

 

Full Year

  

FY2018

 

FY2017

 

FY2018

 

FY2017

Flight hours (excluding Bristow Academy and unconsolidated affiliates):

        

Europe Caspian

 

22,347

  

20,203

  

91,109

  

85,906

 

Africa

 

6,645

  

6,704

  

29,206

  

29,573

 

Americas

 

7,887

  

6,151

  

31,697

  

23,655

 

Asia Pacific

 

6,326

  

6,359

  

26,317

  

26,118

 

Consolidated

 

43,205

  

39,417

  

178,329

  

165,252

 
         

Operating revenue:

        

Europe Caspian

 

$

194,429

  

$

162,511

  

$

765,412

  

$

710,581

 

Africa

 

45,307

  

47,049

  

191,830

  

200,104

 

Americas

 

57,480

  

51,966

  

236,364

  

220,544

 

Asia Pacific

 

47,825

  

62,628

  

201,190

  

217,772

 

Corporate and other

 

393

  

2,452

  

4,305

  

10,369

 

Intra-region eliminations

 

(4,259)

  

(2,955)

  

(14,677)

  

(11,520)

 

Consolidated

 

$

341,175

  

$

323,651

  

$

1,384,424

  

$

1,347,850

 
         

Operating income (loss):

        

Europe Caspian

 

$

3,164

  

$

(4,628)

  

$

22,774

  

$

13,840

 

Africa

 

3,973

  

10,225

  

32,326

  

30,179

 

Americas

 

(84,592)

  

(1,566)

  

(73,057)

  

4,224

 

Asia Pacific

 

(4,916)

  

3,610

  

(24,290)

  

(20,870)

 

Corporate and other

 

(20,287)

  

(25,747)

  

(88,996)

  

(104,616)

 

Loss on disposal of assets

 

(5,177)

  

(1,422)

  

(17,595)

  

(14,499)

 

Consolidated

 

$

(107,835)

  

$

(19,528)

  

$

(148,838)

  

$

(91,742)

 
         

Operating margin:

        

Europe Caspian

 

1.6

%

 

(2.8)

%

 

3.0

%

 

1.9

%

Africa

 

8.8

%

 

21.7

%

 

16.9

%

 

15.1

%

Americas

 

(147.2)

%

 

(3.0)

%

 

(30.9)

%

 

1.9

%

Asia Pacific

 

(10.3)

%

 

5.8

%

 

(12.1)

%

 

(9.6)

%

Consolidated

 

(31.6)

%

 

(6.0)

%

 

(10.8)

%

 

(6.8)

%

         

Adjusted EBITDA:

        

Europe Caspian

 

$

22,787

  

$

1,890

  

$

81,503

  

$

45,163

 

Africa

 

12,213

  

12,203

  

52,419

  

51,553

 

Americas

 

7,580

  

5,635

  

41,010

  

39,952

 

Asia Pacific

 

(1,926)

  

5,487

  

(1,424)

  

(5,026)

 

Corporate and other

 

(17,772)

  

(21,528)

  

(68,081)

  

(60,558)

 

Consolidated

 

$

22,882

  

$

3,687

  

$

105,427

  

$

71,084

 
         

Adjusted EBITDA margin:

        

Europe Caspian

 

11.7

%

 

1.2

%

 

10.6

%

 

6.4

%

Africa

 

27.0

%

 

25.9

%

 

27.3

%

 

25.8

%

Americas

 

13.2

%

 

10.8

%

 

17.4

%

 

18.1

%

Asia Pacific

 

(4.0)

%

 

8.8

%

 

(0.7)

%

 

(2.3)

%

Consolidated

 

6.7

%

 

1.1

%

 

7.6

%

 

5.3

%

 

  

Fourth Quarter

 

Full Year

  

FY2018

 

FY2017

 

FY2018

 

FY2017

Depreciation and amortization:

        

Europe Caspian

 

$

12,065

  

$

5,917

  

$

48,854

  

$

39,511

 

Africa

 

3,375

  

3,984

  

13,705

  

16,664

 

Americas

 

6,562

  

7,058

  

27,468

  

32,727

 

Asia Pacific

 

4,348

  

5,505

  

19,695

  

19,091

 

Corporate and other

 

3,573

  

3,230

  

14,320

  

10,755

 

Consolidated

 

$

29,923

  

$

25,694

  

$

124,042

  

$

118,748

 
         

Rent expense:

        

Europe Caspian

 

$

31,355

  

$

34,065

  

$

134,158

  

$

134,072

 

Africa

 

2,133

  

2,000

  

8,557

  

8,101

 

Americas

 

6,440

  

6,757

  

24,920

  

23,015

 

Asia Pacific

 

8,552

  

10,956

  

32,908

  

39,759

 

Corporate and other

 

1,692

  

1,940

  

8,148

  

7,661

 

Consolidated

 

$

50,172

  

$

55,718

  

$

208,691

  

$

212,608

 

 

BRISTOW GROUP INC. AND SUBSIDIARIES

AIRCRAFT COUNT

As of March 31, 2018

(Unaudited)

 
   

Aircraft in Consolidated Fleet

   
 

Percentage

of FY2018

Operating

Revenue

 

Helicopters

    
 

Small

 

Medium

 

Large

 

Fixed
Wing (1)

 

Total (2)(3)

 

Unconsolidated
Affiliates (4)

  
   

Total

Europe Caspian

55

%

 

  

16

  

82

  

34

  

132

  

  

132

 

Africa

14

%

 

9

  

28

  

4

  

4

  

45

  

48

  

93

 

Americas

17

%

 

16

  

41

  

16

  

  

73

  

62

  

135

 

Asia Pacific

14

%

 

  

10

  

21

  

14

  

45

  

  

45

 

Total

100

%

 

25

  

95

  

123

  

52

  

295

  

110

  

405

 

Aircraft not currently in

  fleet: (5)

              

On order

  

  

  

27

  

  

27

    

Under option

  

  

  

4

  

  

4

    

 

 

_______________

  

(1)       

Includes 34 fixed wing aircraft operated by Eastern Airways that are included in the Europe Caspian region, three fixed wing aircraft for which Eastern Airways provides technical support in our Africa region and 14 fixed wing aircraft operated by Airnorth that are included in the Asia Pacific region.

  

(2)       

Includes 11 aircraft held for sale and 105 leased aircraft as follows:

 

  

Held for Sale Aircraft in Consolidated Fleet

  

Helicopters

   
  

Small

 

Medium

 

Large

 

Fixed

Wing

 

Total

Europe Caspian

 

  

2

  

  

  

2

 

Africa

 

  

3

  

  

1

  

4

 

Americas

 

  

4

  

  

  

4

 

Asia Pacific

 

  

  

  

1

  

1

 

Total

 

  

9

  

  

2

  

11

 
           
  

Leased Aircraft in Consolidated Fleet

  

Helicopters

   
  

Small

 

Medium

 

Large

 

Fixed

Wing

 

Total

Europe Caspian

 

  

6

  

42

  

15

  

63

 

Africa

 

  

1

  

2

  

2

  

5

 

Americas

 

3

  

14

  

6

  

  

23

 

Asia Pacific

 

  

3

  

7

  

4

  

14

 

Total

 

3

  

24

  

57

  

21

  

105

 

 

  

(3)       

The average age of our fleet, excluding training aircraft, was nine years as of March 31, 2018.

  

(4)       

The 110 aircraft operated by our unconsolidated affiliates do not include those aircraft leased to us. Includes 41 helicopters (primarily medium) and 20 fixed wing aircraft owned and managed by Líder, our unconsolidated affiliate in Brazil, which is included in our Americas region, 41 helicopters and seven fixed wing aircraft owned by Petroleum Air Services, which is included in our Africa region, and one helicopter operated by Cougar, our unconsolidated affiliate in Canada, which is included in our Americas region.

  

(5)       

This table does not reflect aircraft which our unconsolidated affiliates may have on order or under option.

 

BRISTOW GROUP INC. AND SUBSIDIARIES

 

FY 2019 GUIDANCE

 

FY 2019 guidance as of March 31, 2018 (1)

 

Operating revenue 2

Adjusted EBITDA2,3

Rent2

Oil and gas

~$825M – $925M

~$20M – $50M

~$115M – $125M

U.K. SAR

~$230M – $240M

~$70M – $80M

~$45M – $50M

Eastern

~$90M – $100M

~$(5M) – $0M

~$10M – $12M

Airnorth

~$80M – $90M

~$5M – $10M

~$8M – $10M

Total

~$1.25B – $1.35B

~$90M – $140M

~$185M – $195M

    

G&A expense

~$150M – $170M

  

Depreciation expense

~$115M – $125M

  

Total aircraft rent 4

~$160M – $165M

  

Total non-aircraft rent 4

~$25M – $30M

  

Interest expense

~$100M – $110M

  

Non-aircraft capex

~$25M annually

  

Aircraft sale proceeds

~$15M annually

  

 

 

_____________

  

(1)       

FY 2019 guidance assumes foreign exchange rates as of March 31, 2018.

  

(2)       

Operating revenue, adjusted EBITDA and rent for oil and gas includes corporate and other revenue and the impact of corporate overhead expenses.

  

(3)       

Adjusted EBITDA for U.K. SAR and fixed wing (Eastern/Airnorth) excludes corporate overhead allocations consistent with financial reporting. Adjusted EBITDA is a non-GAAP measure of which the most comparable GAAP measure is net income (loss). We have not provided a reconciliation of this non-GAAP forward-looking information to GAAP. The most comparable GAAP measure to adjusted EBITDA is net income (loss), which is not calculated at this lower level of our business as we do not allocate certain costs, including corporate and other overhead costs, interest expense and income taxes within our accounting system. Providing this data would require unreasonable efforts in the form of allocations of other costs across the organization.

  

(4)       

Total aircraft rent and total non-aircraft rent are inclusive of the respective components of rent expense for U.K. SAR, Eastern, Airnorth plus oil and gas.

 

BRISTOW GROUP INC. AND SUBSIDIARIES

GAAP RECONCILIATIONS

(Unaudited)

 

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:

 
  

Fourth Quarter

 

Full Year

  

FY2018

 

FY2017

 

FY2018

 

FY2017

         
  

(In thousands, except per share amounts and percentages)

Net loss

 

$

(101,004)

  

$

(79,663)

  

$

(198,083)

  

$

(176,890)

 

Loss on disposal of assets

 

5,177

  

1,422

  

17,595

  

14,499

 

Special items

 

98,675

  

(3,084)

  

115,027

  

31,277

 

Depreciation and amortization

 

29,923

  

25,694

  

124,042

  

118,748

 

Interest expense

 

23,548

  

15,692

  

77,737

  

50,862

 

Provision (benefit) for income taxes

 

(33,437)

  

43,626

  

(30,891)

  

32,588

 

Adjusted EBITDA

 

$

22,882

  

$

3,687

  

$

105,427

  

$

71,084

 
         

Benefit (provision) for income taxes

 

$

33,437

  

(43,626)

  

$

30,891

  

$

(32,588)

 

Tax provision (benefit) on loss on disposal of asset

 

34,882

  

(618)

  

42,943

  

(6,476)

 

Tax provision (benefit) on special items

 

(56,729)

  

38,923

  

(58,016)

  

49,342

 

Adjusted benefit (provision) for income taxes

 

$

11,590

  

$

(5,321)

  

$

15,818

  

$

10,278

 
         

Effective tax rate (1)

 

24.9

%

 

(121.1)

%

 

13.5

%

 

(22.6)

%

Adjusted effective tax rate (1)

 

40.3

%

 

(14.5)

%

 

17.0

%

 

11.7

%

         

Net loss attributable to Bristow Group

 

$

(100,901)

  

$

(78,040)

  

$

(195,658)

  

$

(170,536)

 

Loss on disposal of assets

 

40,059

  

804

  

60,538

  

8,023

 

Special items

 

43,804

  

36,934

  

60,113

  

87,988

 

Adjusted net loss

 

$

(17,038)

  

$

(40,302)

  

$

(75,007)

  

$

(74,525)

 
         

Diluted loss per share

 

$

(2.84)

  

$

(2.22)

  

$

(5.54)

  

$

(4.87)

 

Loss on disposal of assets

 

1.13

  

0.02

  

1.72

  

0.23

 

Special items

 

1.23

  

1.05

  

1.70

  

2.51

 

Adjusted diluted loss per share

 

(0.48)

  

(1.15)

  

(2.13)

  

(2.13)

 

 

 

_______________

  

(1)       

Effective tax rate is calculated by dividing benefit (provision) for income taxes by pretax net income.  Adjusted effective tax rate is calculated by dividing adjusted benefit (provision) for income taxes by adjusted pretax net income. Tax expense (benefit) on loss on disposal of asset and tax expense (benefit) on special items is calculated using the statutory rate of the entity recording the loss on disposal of asset or special item.

 

  

Three Months Ended
 March 31, 2018

  

Adjusted

EBITDA

 

Adjusted

Net Income

 

Adjusted

Diluted

Earnings

Per Share

       
  

(In thousands, except per share amounts)

Loss on impairment (1)

 

$

90,208

  

$

62,406

  

$

1.76

 

Organizational restructuring costs (2)

 

8,467

  

5,959

  

0.17

 

Tax items (3)

 

  

(25,833)

  

(0.73)

 

Early extinguishment of debt (4)

 

  

1,272

  

0.04

 

Total special items

 

$

98,675

  

$

43,804

  

1.23

 
       
  

Three Months Ended
 March 31, 2017

 

Adjusted

EBITDA

 

Adjusted

Net Income

 

Adjusted

Diluted

Earnings

Per Share

       
  

(In thousands, except per share amounts)

Organizational restructuring costs (2)

 

$

2,814

  

$

2,071

  

$

0.06

 

Additional depreciation expense resulting from fleet changes (5)

 

  

712

  

0.02

 

Reversal of Airnorth contingent consideration (6)

 

(5,898)

  

(5,898)

  

(0.17)

 

Tax items (3)

 

  

40,049

  

1.14

 

Total special items

 

$

(3,084)

  

$

36,934

  

1.05

 
       
  

Fiscal Year Ended
 March 31, 2018

  

Adjusted

EBITDA

 

Adjusted

Net Income

 

Adjusted

Diluted

Earnings

Per Share

       
  

(In thousands, except per share amounts)

Loss on impairment (1)

 

$

91,400

  

$

63,222

  

$

1.79

 

Organizational restructuring costs (2)

 

23,627

  

17,633

  

0.50

 

Tax items (3)

 

  

(22,865)

  

(0.65)

 

Early extinguishment of debt (4)

 

  

2,123

  

0.06

 

Total special items

 

$

115,027

  

$

60,113

  

1.70

 
   
  

Fiscal Year Ended
 March 31, 2017

 

Adjusted

EBITDA

 

Adjusted

Net Income

 

Adjusted

Diluted

Earnings

Per Share

       
  

(In thousands, except per share amounts)

Organizational restructuring costs (2)

 

$

20,897

  

$

14,998

  

$

0.43

 

Loss on impairment (1)

 

16,278

  

12,566

  

0.35

 

Additional depreciation expense resulting from fleet changes (5)

 

  

6,843

  

0.19

 

Reversal of Airnorth contingent consideration (6)

 

(5,898)

  

(5,898)

  

(0.17)

 

Tax items (3)

 

  

59,479

  

1.70

 

Total special items

 

$

31,277

  

$

87,988

  

2.51

 

 

_______________

  

(1)       

Loss on impairment related to investment in unconsolidated affiliates for Líder in Brazil and inventories for the March 2018 quarter and fiscal year 2018, and inventories and Eastern Airways goodwill impairment for fiscal year 2017.

  

(2)       

Organizational restructuring costs include severance expense related to separation programs across our global organization designed to increase efficiency and cut costs as well other restructuring costs.

  

(3)       

Relates to a one-time non-cash tax effect from the true-up of the one-time transition tax on the repatriation of foreign earnings under the Act and net reversal of valuation allowances on deferred tax assets, partially offset by expense related to the true-up of the revaluation of net deferred tax liabilities to a lower tax rate resulting from the Act for the March 2018 quarter. Relates to a one-time non-cash tax benefit related to the revaluation of net deferred tax liabilities to a lower tax rate as a result of the Act and net reversal of valuation allowances on deferred tax assets, partially offset by the impact of the one-time transition tax on the repatriation of foreign earnings under the Act and a one-time non-cash tax expense from repositioning of certain aircraft from one tax jurisdiction to another related to recent financing transactions for fiscal year 2018. Relates to a one-time non-cash tax effect from repositioning of certain aircraft from one tax jurisdiction to another related to recent financing transactions for the March 2017 quarter and fiscal year 2017 and non-cash adjustments related to the valuation of deferred tax assets for all periods presented.

  

(4)       

Relates to discount and deferred financing fee write-offs related to early extinguishment of debt.

  

(5)       

Relates to additional depreciation expense due to fleet changes impacting the depreciable lives of certain aircraft.

  

(6)       

Relates to reversal of contingent consideration related to the Airnorth acquisition.

 

Contact Information:

Bristow Group Inc.

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