EXHIBIT 99.1
                                                          News Release
 
                                             Contact:
                                                         Joe Baj, VP & Treasurer
                                                         (713)-267-7605
                                                         Linda McNeill, Treasury Manager
                                                         (713)-267-7622
    
                                       
BRISTOW GROUP REPORTS RECORD FISCAL 2007 FOURTH QUARTER AND
YEAR-END FINANCIAL RESULTS
 
HOUSTON, May 22, 2007 – Bristow Group Inc. (NYSE: BRS) today reported record financial results for its fiscal 2007 fourth quarter and year ended March 31, 2007.
 
Highlights include:
 
For the fiscal year ended March 31, 2007:

§  
Bristow’s results were the highest ever in the Company’s history for revenue, operating income, net income and earnings per share;

§  
Total revenue of $897.9 million increased by 16.8 percent over the fiscal year ended March 31, 2006, due to increased flight hours, improved pricing and the addition of new aircraft;

§  
Operating income of $115.3 million increased by 56.2 percent over the fiscal year ended March 31, 2006, primarily due to increases in revenue and gains on sales of aircraft, partially offset by higher maintenance and salary expense;

§  
Net income of $74.2 million rose 28.3 percent versus net income for the fiscal year ended March 31, 2006;

§  
Diluted earnings per share increased 11.8 percent to $2.74 compared to the prior year.  Diluted earnings per share for the fiscal year ended March 31, 2007 assumes the conversion of the Company’s Mandatory Convertible Preferred Stock, which adds approximately 3.4 million shares to the weighted average diluted shares outstanding for fiscal year 2007.
 
For the quarter ended March 31, 2007:

§  
Bristow achieved record quarterly revenue of $228.7 million, an increase of 13.6 percent over the fourth quarter of fiscal year 2006.  Revenue gains occurred in most of our business units, driven by a favorable change in mix of aircraft operating, improved pricing and the addition of new aircraft;

§  
Operating income of $32.4 million increased by 71.2 percent over the fourth quarter of fiscal year 2006, primarily due to increases in revenue and gains on sales of aircraft, partially offset by higher maintenance and salary expense;

§  
Net income of $27.4 million increased 54.0 percent versus net income for the fourth quarter of fiscal year 2006;

§  
Diluted earnings per share increased 21.3 percent to $0.91 compared to the fourth quarter of fiscal year 2006, primarily due to the higher level of operating income.  Diluted earnings per share for the fourth quarter of fiscal year 2007 assumes the conversion of the Company’s Mandatory Convertible Preferred Stock, which adds approximately 6.5 million shares to the weighted average diluted shares calculation for the fourth quarter of fiscal year 2007.
 
1

Capital and Liquidity:

§  
The March 31, 2007 consolidated balance sheet reflects $871.7 million in stockholders’ investment and $259.1 million of indebtedness, or 22.9 percent leverage;

§  
We had $184.2 million in cash and an undrawn $100 million revolving credit facility;

§  
We generated $104.4 million in cash from operations and spent $304.8 million on capital expenditures, primarily for aircraft, during the fiscal year ended March 31, 2007;

§  
Aircraft purchase commitments totaled $331.6 million, with options totaling $739.7 million as of March 31, 2007.

William E. Chiles, president and chief executive officer of Bristow Group Inc., said, “We are very pleased with our latest fiscal year and quarterly results.  This record performance is the result of our strategic efforts over the past year to improve our position, take advantage of expanding business opportunities and to improve our financial performance.  I am further encouraged that the Company is still at an early stage of our growth plans, which call for an expansion of our fleet capacity as well as improvements in margins and operating efficiencies.  Based on continued robust demand for our services and the limited supply of aircraft, we ordered additional large aircraft during the fourth quarter of fiscal year 2007.  We expect to realize the earnings power of our investments in these and other new aircraft throughout fiscal 2008 and 2009, as we place these new aircraft into service.”

CONFERENCE CALL

Management will conduct a conference call starting at 10:00 a.m. EDT (9:00 a.m. CDT) on Wednesday, May 23, 2007, to review financial results for the fiscal quarter and year ended March 31, 2007.  The conference call can be accessed as follows:
 
Via Webcast:
·  
Visit Bristow Group’s investor relations Web page at http://www.bristowgroup.com
 
·  
Live: Click on the link for “Q4 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 the U.S.:
·  
Live: Dial toll free (800) 218-0204
 
·  
Replay: A telephone replay will be available through June 6, 2007, by dialing toll free (800) 405-2236, passcode: 11089243
 
Via Telephone outside the U.S.:
·  
Live: Dial (303) 262-2130
 
·  
Replay: A telephone replay will be available through June 6, 2007 by dialing (303) 590-3000, passcode: 11089243
 
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.  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, 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.  The Company's common stock trades on the New York Stock Exchange under the symbol BRS.  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 customer demand, future results, the addition of new aircraft to our fleet, future investments and earnings power of aircraft.  It is important to note that the Company’s actual results could differ materially from those projected in such forward-looking statements.  Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company’s SEC filings, including but not limited to the Company’s annual report on Form 10-K for the fiscal year ended March 31, 2007.  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)
2



BRISTOW GROUP INC. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF INCOME
 
(In thousands, except per share amounts)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Twelve Months Ended
 
 
 
March 31,
 
March 31,
 
 
 
2007
 
2006
 
2007
 
2006
 
 
 
(Unaudited)
 
 
 
 
 
Gross revenue:
 
 
 
 
 
 
 
 
 
Operating revenue from non-affiliates
 
$
189,316
 
$
170,591
 
$
753,744
 
$
636,887
 
Operating revenue from affiliates
 
 
13,759
 
 
9,604
 
 
48,170
 
 
51,832
 
Reimbursable revenue from non-affiliates
 
 
23,136
 
 
19,770
 
 
90,020
 
 
75,861
 
Reimbursable revenue from affiliates
 
 
2,537
 
 
1,366
 
 
5,927
 
 
4,360
 
 
 
 
228,748
 
 
201,331
 
 
897,861
 
 
768,940
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
Direct cost
 
 
147,971
 
 
137,336
 
 
586,506
 
 
512,518
 
Reimbursable expense
 
 
25,420
 
 
20,411
 
 
94,685
 
 
78,525
 
Depreciation and amortization
 
 
10,563
 
 
10,096
 
 
42,643
 
 
42,256
 
General and administrative
 
 
17,302
 
 
15,943
 
 
69,342
 
 
61,948
 
Gain on disposal of assets
 
 
(4,911
)
 
(1,378
 
(10,618
)
 
(102
)
 
 
 
196,345
 
 
182,408
 
 
782,558
 
 
695,145
 
Operating income
 
 
32,403
 
 
18,923
 
 
115,303
 
 
73,795
 
Earnings from unconsolidated affiliates, net of losses
 
 
6,030
 
 
4,988
 
 
11,423
 
 
6,758
 
Interest income
 
 
2,750
 
 
1,280
 
 
8,950
 
 
4,159
 
Interest expense
 
 
(2,294
)
 
(3,401
)
 
(10,940
)
 
(14,689
)
Other income (expense), net
 
 
2,320
 
 
304
 
 
(8,998
)
 
4,612
 
Income before provision for income taxes and minority interest
 
 
41,209
 
 
22,094
 
 
115,738
 
 
74,635
 
Provision for income taxes
 
 
(13,642
)
 
(4,154
)
 
(40,366
)
 
(16,607
)
Minority interest
 
 
(150
)
 
(135
 
(1,200
)
 
(219
)
Net income
 
 
27,417
 
 
17,805
 
 
74,172
 
 
57,809
 
Preferred stock dividends
 
 
(3,162
)
 
 
 
(6,633
)
 
 
Net income available to common stockholders
 
$
24,255
 
$
17,805
 
$
67,539
 
$
57,809
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings per common share:
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
1.03
 
$
0.76
 
$
2.87
 
$
2.48
 
Diluted
 
$
0.91
 
$
0.75
 
$
2.74
 
$
2.45
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
 
23,560
 
 
23,361
 
 
23,496
 
 
23,341
 
Diluted
 
 
30,179
 
 
23,594
 
 
27,055
 
 
23,604
 


3


 BRISTOW GROUP INC. AND SUBSIDIARIES
 
CONSOLIDATED BALANCE SHEETS
 
(In thousands)
 
 
 
March 31,
 
March 31,
 
 
 
2007
 
2006
 
ASSETS
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash and cash equivalents
 
$
184,188
 
$
122,482
 
Accounts receivable from non-affiliates, net of allowance for doubtful accounts of $2.0 million and $4.6 million, respectively
 
 
158,770
 
 
144,521
 
Accounts receivable from affiliates, net of allowance for doubtful accounts of $3.2 million and $4.6 million, respectively
 
 
17,199
 
 
15,884
 
Inventories
 
 
157,870
 
 
147,860
 
Prepaid expenses and other
 
 
17,947
 
 
16,519
 
Total current assets
 
 
535,974
 
 
447,266
 
Investments in unconsolidated affiliates
 
 
46,828
 
 
39,912
 
Property and equipment — at cost:
 
 
 
 
 
 
 
Land and buildings
 
 
51,850
 
 
40,672
 
Aircraft and equipment
 
 
1,141,578
 
 
838,314
 
 
 
 
1,193,428
 
 
878,986
 
Less: accumulated depreciation and amortization
 
 
(301,520
)
 
(263,072
)
 
 
 
891,908
 
 
615,914
 
Goodwill
 
 
20,368
 
 
26,837
 
Prepaid pension costs
 
 
 
 
37,207
 
Other assets
 
 
10,725
 
 
9,277
 
 
 
$
1,505,803
 
$
1,176,413
 
LIABILITIES AND STOCKHOLDERS' INVESTMENT
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
Accounts payable
 
$
42,343
 
$
41,227
 
Accrued wages, benefits and related taxes
 
 
38,281
 
 
45,958
 
Income taxes payable
 
 
4,377
 
 
6,537
 
Other accrued taxes
 
 
9,084
 
 
6,471
 
Deferred revenues
 
 
16,283
 
 
9,994
 
Accrued maintenance and repairs
   
12,309
   
10,865
 
Other accrued liabilities
 
 
22,828
 
 
20,218
 
Deferred taxes
 
 
17,611
 
 
5,025
 
Short-term borrowings and current maturities of long-term debt
 
 
4,852
 
 
17,634
 
Total current liabilities
 
 
167,968
 
 
163,929
 
Long-term debt, less current maturities
 
 
254,230
 
 
247,662
 
Accrued pension liabilities
 
 
113,069
 
 
136,521
 
Other liabilities and deferred credits
 
 
17,345
 
 
18,016
 
Deferred taxes
 
 
76,089
 
 
68,281
 
Minority interest
 
 
5,445
 
 
4,307
 
Commitments and contingencies
 
 
 
 
 
 
 
Stockholders' investment:
 
 
 
 
 
 
 
5.50% mandatory convertible preferred stock, $.01 par value, authorized and outstanding 4,600,000 shares; entitled on liquidation to $230 million; net of offering costs of $7.4 million
 
 
222,554
 
 
 
Common Stock, $0.01 par value, authorized 35,000,000 shares; outstanding: 23,585,370 shares as of March 31, 2007 and 23,385,473 shares as of March 31, 2006 (exclusive of 1,281,050 treasury shares)
 
 
236
 
 
234
 
Additional paid-in capital
 
 
169,353
 
 
158,762
 
Retained earnings
 
 
515,589
 
 
447,524
 
Accumulated other comprehensive loss
 
 
(36,075
)
 
(68,823
)
 
 
 
871,657
 
 
537,697
 
 
 
$
1,505,803
 
$
1,176,413
 

4

BRISTOW GROUP INC. AND SUBSIDIARIES
CORPORATE ITEMS AFFECTING THE COMPARABILITY OF RESULTS
(In thousands, except per share amounts)
(Unaudited)

 
Three Months Ended March 31,
 
 
2007
 
2006
 
 
Pre-tax
Earnings
 
Net
Income
 
Diluted
Earnings
Per
Share
 
Pre-tax
Earnings
 
Net
Income
 
Diluted
Earnings
Per
Share
 
Investigations:
                                   
SEC (1)
$
 
$
 
$
 
$
(284
)
$
(185
)
$
(0.01
)
DOJ (2)
 
(380
)
 
(247
)
 
(0.01
)
 
(1,188
)
 
 (772
)
 
(0.03
)
Brazilian joint venture (3)
 
2,450
   
1,593
   
0.05
   
   
   
 
Resolution of tax contingencies (4)
 
   
1,113
   
0.04
   
   
2,800
   
0.12
 
Preferred Stock (5)
 
1,683
   
1,094
   
(0.21
)
 
   
   
 
Total
$
3,753
 
$
3,553
 
$
(0.13
)
$
(1,472
)
$
1,843
 
$
0.08
 
 
 
Twelve Months Ended March 31,
 
 
2007
 
2006
 
 
Pre-tax
Earnings
 
Net
Income
 
Diluted
Earnings
Per
Share
 
Pre-tax
Earnings
 
Net
Income
 
Diluted
Earnings
Per
Share
 
Investigations:
                                   
SEC (1)
$
(3,109
)
$
(2,021
)
$
(0.07
)
$
(10,492
)
$
(6,820
)
$
(0.29
)
DOJ (2)
 
(1,923
)
 
(1,250
)
 
(0.05
)
 
(2,583
)
 
(1,679
)
 
(0.07
)
Acquisitions and divestitures:
                                   
Brazilian joint venture (3)
 
2,450
   
1,593
   
0.06
   
(1,040
)
 
(676
)
 
(0.03
)
Expense of previously deferred acquisition costs  (6)
 
(1,889
)
 
(1,228
)
 
(0.05
)
 
   
   
 
Turbo asset sale (7)
 
120
   
(2,424
)
 
(0.09
)
 
   
   
 
Resolution of tax contingencies (4)
 
   
3,413
   
0.13
   
   
11,400
   
0.48
 
Foreign currency transaction gains (losses) (8)
 
(9,763
)
 
(6,346
)
 
(0.23
)
 
5,404
   
3,513
   
0.15
 
Preferred Stock (5)
 
4,288
   
2,787
   
(0.30
)
 
   
   
 
Total
$
(9,826
)
$
(5,476
)
$
(0.60
)
$
(8,711
)
$
5,738
 
$
0.24
 
______

(1)  
Represents costs incurred in conjunction with the SEC investigation regarding findings resulting from the internal review initiated by the Audit Committee of our board of directors in fiscal year 2005 of certain payments made by two of our affiliated entities in a foreign country.  The costs incurred for the twelve months ended March 31, 2007, consist primarily of $3.0 million (pre-tax) recorded for costs and fees we currently expect to incur in connection with the resolution of the SEC investigation, a substantial portion of which relates to legal fees.  There can be no assurance that these amounts currently recorded will be sufficient to resolve such matters or that such matters can ultimately be resolved until final action by the SEC.  These costs are included in general & administrative costs in our consolidated statements of income.

(2)  
Represents legal and other professional fees incurred in connection with a document subpoena received from the Antitrust Division of the DOJ in June 2005, which related to a grand jury investigation of potential antitrust violations among providers of helicopter transportation services in the U.S. Gulf of Mexico focusing on activities during the period from January 1, 2000 to June 13, 2005.  These costs are included in general & administrative costs in our consolidated statements of income.

(3)  
Represents a gain on the sale of our investment in a Brazilian joint venture in March 2007.  We had previously recorded an impairment charge during the three months ended December 31, 2005 to reduce the recorded value of our 50 percent investment in this joint venture, as we expected at that time that our investment would not be recoverable.  These amounts are included in other income (expense), net in our consolidated statements of income.

(4)  
Represents the resolution of tax contingencies resulting from our evaluation of the need for certain tax reserves in light of the expiration of the related statutes of limitations in the applicable periods.  These amounts represent a direct reduction in our provision for income taxes in our consolidated statements of income.

(5)  
Represents the effect of the preferred stock offering completed in September and October 2006.  The net income effect results from interest income earned on cash proceeds generated from the offering.  Diluted earnings per share for the three and twelve months ended March 31, 2007 was reduced by the effect of the inclusion of weighted average shares resulting from the assumed conversion of the preferred stock at the conversion rate that results in the most dilution, partially offset by the impact of higher interest income.

(6)  
Represents expense recorded in December 2006 for acquisition costs previously deferred in connection with an acquisition we were evaluating as we determined that the acquisition is no longer probable.  This expense is included within other income (expense), net in our consolidated statements of income.

(7)  
On November 30, 2006, we completed a sale of the assets of our aircraft engine overhaul business, Turbo, to Timken Alcor Aerospace Technologies, Inc. for approximately $14.6 million, including estimated post-closing adjustments.  The sale was effective November 30, 2006 and resulted in a pre-tax gain of $0.1 million, which is included in gain on disposition of assets in our consolidated statements of income.  However, the transaction resulted in additional tax expense of $2.5 million related to non-deductible goodwill recorded at the time we acquired Turbo in 2001.

(8)  
Represents foreign currency transaction gains and losses resulting from changes in exchange rates during the applicable periods, primarily related to the British pound sterling.  These gains and losses arose primarily from U.S. dollar-denominated transactions entered into by Bristow Aviation Holdings, Ltd., one of our consolidated subsidiaries (whose functional currency is the British pound sterling).  The effects of these foreign currency transaction gains and losses were offset to a large extent by corresponding charges or benefits in the cumulative translation adjustment in stockholders’ investment with no overall economic effect.  These amounts are included in other income (expense), net in our consolidated statements of income.

5



 BRISTOW GROUP INC. AND SUBSIDIARIES
 
SELECTED OPERATING DATA
 
(In thousands, except flight hours and percentages)
 
 
Beginning with our reporting for the three and twelve months ended March 31, 2007, we have made changes to the manner in which intercompany lease charges and depreciation are presented within our segments.  Intercompany lease revenues and expenses have been eliminated from our segment reporting, and depreciation expense of aircraft is presented in the segment that operates the aircraft.  Intercompany lease revenue was previously included in gross revenue for the segment leasing the aircraft to other segments with the related lease and operating expenses being included in the segment operating the aircraft during the period.  Also, depreciation expense associated with aircraft was previously included within operating expense of the segment leasing the aircraft to other segments versus the segment operating the aircraft.  Amounts presented for prior periods presented herein have been reclassified to conform to current period presentation.  In addition to selected operating data for the three and twelve months ended March 31, 2007 and the same periods in the prior year, we have presented in the tables below selected operating data for the last eight quarters based on the new segment presentation.
 
 
 

6

 
 
 
Three Months Ended
 
Twelve Months Ended
 
 
 
March 31,
 
March 31,
 
 
 
2007
 
2006
 
2007
 
2006
 
   
(Unaudited)
         
Flight hours (excludes unconsolidated affiliates) (Unaudited):
 
 
 
 
 
 
 
 
 
Helicopter Services:
 
 
 
 
 
 
 
 
 
North America
 
 
34,304
 
 
34,694
 
 
152,803
 
 
150,240
 
South and Central America
 
 
9,528
 
 
9,271
 
 
38,417
 
 
38,469
 
Europe
 
 
10,605
 
 
9,325
 
 
42,377
 
 
38,648
 
West Africa
 
 
8,329
 
 
8,349
 
 
36,124
 
 
34,185
 
Southeast Asia
 
 
3,340
 
 
3,275
 
 
12,668
 
 
12,119
 
Other International
 
 
2,199
 
 
1,691
 
 
9,318
 
 
6,711
 
Consolidated total
 
 
68,305
 
 
66,605
 
 
291,707
 
 
280,372
 

Gross revenue:
 
 
 
 
 
 
 
 
 
Helicopter Services:
 
 
 
 
 
 
 
 
 
North America
 
$
56,311
 
$
54,766
 
$
239,978
 
$
216,482
 
South and Central America
 
 
13,498
 
 
12,407
 
 
52,820
 
 
42,869
 
Europe
 
 
79,368
 
 
61,628
 
 
297,934
 
 
245,294
 
West Africa
 
 
33,133
 
 
27,535
 
 
131,141
 
 
107,411
 
Southeast Asia
 
 
20,557
 
 
16,883
 
 
73,404
 
 
61,168
 
Other International
 
 
13,404
 
 
10,583
 
 
46,005
 
 
35,339
 
EH Centralized Operations
 
 
3,468
 
 
4,052
 
 
13,896
 
 
10,749
 
Intrasegment eliminations
 
 
(3,563
)
 
(2,640
)
 
(12,058
)
 
(10,104
)
Total Helicopter Services
 
 
216,176
 
 
185,214
 
 
843,120
 
 
709,208
 
Production Management Services
 
 
14,216
 
 
18,006
 
 
64,814
 
 
68,170
 
Corporate
 
 
500
 
 
653
 
 
475
 
 
693
 
Intersegment eliminations
 
 
(2,144
)
 
(2,542
)
 
(10,548
)
 
(9,131
)
Consolidated total
 
$
228,748
 
$
201,331
 
$
897,861
 
$
768,940
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income:
 
 
 
 
 
 
 
 
 
 
 
 
 
Helicopter Services:
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
 
$
6,963
 
$
2,736
 
$
29,210
 
$
30,717
 
South and Central America
 
 
4,484
 
 
3,526
 
 
15,825
 
 
6,662
 
Europe
 
 
15,642
 
 
14,689
 
 
52,819
 
 
48,692
 
West Africa
 
 
5,779
 
 
1,462
 
 
18,798
 
 
11,981
 
Southeast Asia
 
 
4,695
 
 
3,401
 
 
13,370
 
 
9,851
 
Other International
 
 
2,380
 
 
3,669
 
 
9,309
 
 
9,062
 
EH Centralized Operations
 
 
(6,964
 
(8,922
 
(13,580
 
(25,012
Total Helicopter Services
 
 
32,979
 
 
20,561
 
 
125,751
 
 
91,953
 
Production Management Services
 
 
626
 
 
1,651
 
 
4,172
 
 
5,327
 
Gain on disposal of assets
 
 
4,911
 
 
1,378
 
 
10,618
 
 
102
 
Corporate
 
 
(6,113
)
 
(4,667
)
 
(25,238
)
 
(23,587
)
Consolidated total
 
$
32,403
 
$
18,923
 
$
115,303
 
$
73,795
 
                           
Operating margin (Unaudited):
 
 
 
 
 
 
 
 
 
 
 
 
 
Helicopter Services:
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
 
 
12.4
%
 
5.0
%
 
12.2
%
 
14.2
%
South and Central America
 
 
33.2
%
 
28.4
%
 
30.0
%
 
15.5
%
Europe
 
 
19.7
%
 
23.8
%
 
17.7
%
 
19.9
%
West Africa
 
 
17.4
%
 
5.3
%
 
14.3
%
 
11.2
%
Southeast Asia
 
 
22.8
%
 
20.1
%
 
18.2
%
 
16.1
%
Other International
 
 
17.8
%
 
34.7
%
 
20.2
%
 
25.6
%
Total Helicopter Services
 
 
15.3
%
 
11.1
%
 
14.9
%
 
13.0
%
Production Management Services
 
 
4.4
%
 
9.2
%
 
6.4
%
 
7.8
%
Consolidated total
 
 
14.2
%
 
9.4
%
 
12.8
%
 
9.6
%

7



   
Prior Segment
Classification
 
New Segment Classification
 
   
Three Months Ended
 
   
March 31,
2007
 
March 31,
2007
   
December 31, 2006
   
September 30, 2006
   
June 30, 2006
 
   
(Unaudited)
 
Flight hours (excludes unconsolidated affiliates):
                             
Helicopter Services:
                             
North America
 
34,304
 
 
34,304
 
 
34,742
 
 
41,148
   
42,609
 
South and Central America
 
9,528
 
 
9,528
 
 
9,973
 
 
9,631
   
9,285
 
Europe
 
10,605
 
 
10,605
 
 
10,917
 
 
10,685
   
10,170
 
West Africa
 
8,329
 
 
8,329
 
 
9,733
 
 
9,179
   
8,883
 
Southeast Asia
 
3,340
 
 
3,340
 
 
3,059
 
 
3,063
   
3,206
 
Other International
 
2,199
 
 
2,199
 
 
2,641
 
 
2,426
   
2,052
 
Consolidated total
 
68,305
 
 
68,305
 
 
71,065
 
 
76,132
   
76,205
 
                               
Gross revenue:
                             
Helicopter Services:
                             
North America
 $
61,452
 
 $
56,311
 
 $
57,795
 
$
62,504
 
$
63,368
 
South and Central America
 
13,814
 
 
13,498
 
 
13,173
 
 
13,137
   
13,012
 
Europe
 
78,779
 
 
79,368
 
 
73,879
 
 
72,706
   
71,981
 
West Africa
 
33,133
 
 
33,133
 
 
35,062
 
 
31,210
   
31,736
 
Southeast Asia
 
20,557
 
 
20,557
 
 
18,181
 
 
17,626
   
17,040
 
Other International
 
13,404
 
 
13,404
 
 
11,462
 
 
12,184
   
8,955
 
EH Centralized Operations
 
17,001
 
 
3,468
 
 
3,816
 
 
3,538
   
3,074
 
Intrasegment eliminations
 
(21,964
)
 
(3,563
)
 
(2,359
)
 
(3,276
)
 
(2,860
)
Total Helicopter Services
 
216,176
   
216,176
   
211,009
   
209,629
   
206,306
 
Production Management Services
 
14,216
   
14,216
   
15,130
   
17,784
   
17,684
 
Corporate
 
500
   
500
   
   
   
(25
)
Intersegment eliminations
 
(2,144
)
 
(2,144
)
 
(2,297
)
 
(3,204
)
 
(2,903
)
Consolidated total
$
228,748
 
$
228,748
 
$
223,842
 
$
224,209
 
$
221,062
 
 
                             
Operating income:
                             
Helicopter Services:
                             
North America
$
10,290
 
$
6,963
 
$
5,907
 
$
7,107
 
$
9,233
 
South and Central America
 
3,437
   
4,484
   
3,747
   
3,624
   
3,970
 
Europe
 
8,642
   
15,642
   
9,554
   
13,527
   
14,096
 
West Africa
 
3,107
   
5,779
   
5,838
   
2,848
   
4,333
 
Southeast Asia
 
2,868
   
4,695
   
3,030
   
3,210
   
2,435
 
Other International
 
1,651
   
2,380
   
1,642
   
3,771
   
1,516
 
EH Centralized Operations
 
2,984
   
(6,964
)
 
(2,265
)
 
(2,584
)
 
(1,767
)
Total Helicopter Services
 
32,979
   
32,979
   
27,453
   
31,503
   
33,816
 
Production Management Services
 
626
   
626
   
739
   
1,394
   
1,413
 
Gain on disposal of assets
 
4,911
   
4,911
   
1,042
   
3,667
   
998
 
Corporate
 
(6,113
)
 
(6,113
)
 
(8,255
)
 
(5,703
)
 
(5,167
)
Consolidated total
$
32,403
 
$
32,403
 
$
20,979
 
$
30,861
 
$
31,060
 
 
                             
Operating margin:
                             
Helicopter Services:
                             
North America
 
16.7
%
 
12.4
%
 
10.2
%
 
11.4
%
 
14.6
%
South and Central America
 
24.9
%
 
33.2
%
 
28.4
%
 
27.6
%
 
30.5
%
Europe
 
11.0
%
 
19.7
%
 
12.9
%
 
18.6
%
 
19.6
%
West Africa
 
9.4
%
 
17.4
%
 
16.7
%
 
9.1
%
 
13.7
%
Southeast Asia
 
14.0
%
 
22.8
%
 
16.7
%
 
18.2
%
 
14.3
%
Other International
 
12.3
%
 
17.8
%
 
14.3
%
 
31.0
%
 
16.9
%
Total Helicopter Services
 
15.3
%
 
15.3
%
 
13.0
%
 
15.0
%
 
16.4
%
Production Management Services
 
4.4
%
 
4.4
%
 
4.9
%
 
7.8
%
 
8.0
%
Consolidated total
 
14.2
%
 
14.2
%
 
9.4
%
 
13.8
%
 
14.1
%

8

 
   
New Segment Classification
 
   
Three Months Ended
 
   
March 31,
2006
 
December 31, 2005
   
September 30, 2005
   
June 30, 2005
 
   
(Unaudited)
 
Flight hours (excludes unconsolidated affiliates):
                         
Helicopter Services:
                         
North America
 
 
34,694
 
 
38,151
 
 
39,663
   
37,732
 
South and Central America
 
 
9,271
 
 
9,569
 
 
10,113
   
9,516
 
Europe
 
 
9,325
 
 
9,329
 
 
10,263
   
9,731
 
West Africa
 
 
8,349
 
 
8,867
 
 
8,625
   
8,344
 
Southeast Asia
 
 
3,275
 
 
3,117
 
 
3,005
   
2,722
 
Other International
 
 
1,691
 
 
1,728
 
 
1,689
   
1,603
 
Consolidated total
 
 
66,605
 
 
70,761
 
 
73,358
   
69,648
 

Gross revenue:
                         
Helicopter Services:
                         
North America
 
 $
54,766
 
 $
53,984
 
$
58,246
 
$
49,486
 
South and Central America
 
 
12,407
 
 
10,978
 
 
9,897
   
9,587
 
Europe
 
 
61,628
 
 
60,586
 
 
63,312
   
59,768
 
West Africa
 
 
27,535
 
 
27,427
 
 
26,539
   
25,910
 
Southeast Asia
 
 
16,883
 
 
15,789
 
 
14,688
   
13,808
 
Other International
 
 
10,583
 
 
9,087
 
 
8,081
   
7,588
 
EH Centralized Operations
 
 
4,052
 
 
3,103
 
 
1,656
   
1,938
 
Intrasegment eliminations
   
(2,640
)
 
(2,356
)
 
(2,976
)
 
(2,132
)
Total Helicopter Services
   
185,214
   
178,598
   
179,443
   
165,953
 
Production Management Services
   
18,006
   
16,253
   
16,942
   
16,969
 
Corporate
   
653
   
8
   
16
   
16
 
Intersegment eliminations
   
(2,542
)
 
(2,592
)
 
(1,996
)
 
(2,001
)
Consolidated total
 
$
201,331
 
$
192,267
 
$
194,405
 
$
180,937
 
 
                         
Operating income:
                         
Helicopter Services:
                         
North America
 
$
2,736
 
$
7,162
 
$
12,814
 
$
8,005
 
South and Central America
   
3,526
   
1,803
   
560
   
773
 
Europe
   
14,689
   
8,351
   
14,460
   
11,192
 
West Africa
   
1,462
   
3,364
   
3,589
   
3,566
 
Southeast Asia
   
3,401
   
3,071
   
1,584
   
1,795
 
Other International
   
3,669
   
2,682
   
1,273
   
1,438
 
EH Centralized Operations
   
(8,922
)
 
(3,628
)
 
(5,527
)
 
(6,935
)
Total Helicopter Services
   
20,561
   
22,805
   
28,753
   
19,834
 
Production Management Services
   
1,651
   
1,117
   
1,239
   
1,320
 
Gain on disposal of assets
   
1,378
   
(373
)
 
(1,495
)
 
592
 
Corporate
   
(4,667
)
 
(5,817
)
 
(6,402
)
 
(6,701
)
Consolidated total
 
$
18,923
 
$
17,732
 
$
22,095
 
$
15,045
 
 
                         
Operating margin:
                         
Helicopter Services:
                         
North America
   
5.0
%
 
13.3
%
 
22.0
%
 
16.2
%
South and Central America
   
28.4
%
 
16.4
%
 
5.7
%
 
8.1
%
Europe
   
23.8
%
 
13.8
%
 
22.8
%
 
18.7
%
West Africa
   
5.3
%
 
12.3
%
 
13.5
%
 
13.8
%
Southeast Asia
   
20.1
%
 
19.5
%
 
10.8
%
 
13.0
%
Other International
   
34.7
%
 
29.5
%
 
15.8
%
 
19.0
%
Total Helicopter Services
   
11.1
%
 
12.8
%
 
16.0
%
 
12.0
%
Production Management Services
   
9.2
%
 
6.9
%
 
7.3
%
 
7.8
%
Consolidated total
   
9.4
%
 
9.2
%
 
11.4
%
 
8.3
%

9