EXHIBIT 99.1
 
News Release

Linda McNeill, Investor Relations
(713) 267-7622
 

BRISTOW GROUP REPORTS STRONG FINANCIAL RESULTS
FOR THE DECEMBER 2007 QUARTER
 
§  
Revenue increased by 24%
 
§  
Net earnings per share more than doubled
 
 
HOUSTON, February 5, 2008 – Bristow Group Inc. (NYSE: BRS) today reported financial results for its December 2007 quarter.
 
Highlights include:
 
For the quarter ended December 31, 2007:

§  
Revenue of $261.5 million increased by 24% over the December 2006 quarter.  Revenue gains occurred primarily in our Europe, West Africa and Southeast Asia business units, driven by increases in rates for helicopter services, increased demand for helicopter services from our existing customers and the addition of new aircraft.

§  
Operating income of $36.7 million increased 82% from $20.2 million in the December 2006 quarter, and operating margin increased to 14.1% versus 9.6% for the December 2006 quarter.  The improvements were primarily the result of higher revenue and the inclusion in the December 2007 quarter of $4.1 million of gains on disposal of assets compared to $1.0 million for the December 2006 quarter.  Additionally, operating income and margin were impacted by the items discussed below.

§  
Net income of $20.1 million increased 91% from $10.5 million for the December 2006 quarter.  Net income for the December 2007 quarter includes the previously announced loss of $6.2 million ($0.20 per diluted share) on the sale of our Grasso Production Management (“Grasso”) business in November 2007, which is presented as discontinued operations.

§  
Diluted earnings per share from continuing operations almost tripled to $0.86 from $0.29 for the December 2006 quarter, while diluted earnings per share on net earnings increased to $0.66 from $0.31 for the December 2006 quarter.

§  
Diluted earnings per share for the December 2007 quarter reflects the assumed conversion of the Company’s Mandatory Convertible Preferred Stock, which added approximately 6.5 million to our weighted average diluted shares.  However, diluted earnings per share for the December 2006 quarter was reduced by the preferred stock dividends, while the weighted-average shares outstanding did not include the assumed conversion of preferred stock into common shares.  The computation was different in the December 2006 quarter because inclusion of these shares and preferred stock dividends would have had an anti-dilutive effect for that period.

§  
Operating results for the December 2007 quarter included the following items:

o  
An impairment charge of $1.8 million related to inventory utilized on S-61 search and rescue (“SAR”) configured aircraft.
 
 
1

 
o  
$2.5 million of retroactive compensation cost increases recorded within our West Africa operations resulting from the completion of union negotiations.

o  
$1.5 million of retroactive rate increases with a major customer in Nigeria.

Excluding these items, operating income would have been $39.5 million, operating margin would have been 15.1%, income from continuing operations would have been $28.0 million and diluted EPS from continuing operations would have been $0.92.


For the nine months ended December 31, 2007:

§  
Revenue of $752.5 million increased 20% over the same period of fiscal year 2007 due to revenue gains in most business units, driven by increases in rates for helicopter services, increased demand for helicopter services from our existing customers and the addition of new aircraft.

§  
Operating income of $115.3 million increased 45% from $79.4 million for the nine months ended December 31, 2006, and operating margin increased to 15.3% versus 12.7% for the nine months ended December 31, 2006.  The improvements were primarily the result of the improvement in rates.  Additionally, operating income and margin were impacted by the items discussed below.

§  
Net income of $76.8 million increased 64% from $46.8 million for the nine months ended December 31, 2006.  Net income for the nine months ended December 31, 2007 includes the previously announced loss of $6.2 million ($0.20 per diluted share) on the sale of our Grasso business in November 2007, which is presented as discontinued operations.

§  
Diluted earnings per share from continuing operations increased 57% to $2.68 from $1.71 for the nine months ended December 31, 2006 while diluted earnings per share on net earnings increased to $2.52 from $1.80 for the nine months ended December 31, 2006.

§  
Diluted earnings per share for the nine months ended December 31, 2007 and 2006 reflected the assumed conversion of the Company’s Mandatory Convertible Preferred Stock, which added approximately 6.5 million and 2.4 million shares, respectively, to our weighted-average diluted shares.

§  
Operating results for the nine months ended December 31, 2007 included the following items:

o  
An impairment charge of $1.8 million related to inventory utilized on S-61 SAR configured aircraft.

o  
Reversal of $1.0 million of previously accrued SEC settlement costs.

o  
Reversal of a $5.4 million accrual for sales tax contingency in Nigeria.

Excluding these items, operating income would have been $110.7 million, operating margin would have been 14.7%, income from continuing operations would have been $78.5 million and diluted EPS from continuing operations would have been $2.58.
 
 
Capital and Liquidity:

§  
The December 31, 2007 consolidated balance sheet reflected $959.3 million in stockholders’ investment and $607.8 million of indebtedness.

§  
We had $315.3 million in cash and an undrawn $100 million revolving credit facility.
 
 
2

 
§  
We generated $57.8 million of cash from operating activities, $344.8 million in net proceeds from the issuance of 7 ½% senior notes, $23.0 million of cash from asset dispositions and $22.0 million in net cash from the sale of Grasso during the nine months ended December 31, 2007.

§  
We used $288.8 million for capital expenditures – primarily for aircraft – and $14.6 million for the acquisitions (net of cash acquired) of Bristow Academy and Vortex during the nine months ended December 31, 2007.

§  
Aircraft purchase commitments totaled $344.7 million for 28 aircraft, with options totaling $472.6 million for 34 aircraft as of December 31, 2007.


William E. Chiles, President and Chief Executive Officer of Bristow Group Inc., said, “We remain very pleased with our operational and financial performance. The delivery of new aircraft as well as rate increases in several operating regions produced strong revenues and earnings performance in the December quarter.  We renegotiated and extended the last of our major contracts in Nigeria at significantly better rates during the quarter, which should result in improved operating margins for our West Africa business unit – and move us closer to meeting our return on capital goal for this region.  We also saw improved rates from the North Sea.

“We continued to invest in our fleet with the exercise of options on eight additional aircraft, including five large- and three medium-sized helicopters from Sikorsky and Eurocopter.

“During the quarter we also completed the sale of our Grasso Production Management business, which makes Bristow Group a pure play in helicopter transportation services principally to the offshore energy industry.”


CONFERENCE CALL

Management will conduct a conference call starting at 10:00 a.m. EST (9:00 a.m. CST) on Wednesday, February 6, 2008, to review financial results for the fiscal quarter ended December 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 “Q3 2008 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) 219-6110
§  
Replay: A telephone replay will be available through Friday, February 22, by dialing toll free (800) 405-2236, passcode: 11106959#
 
Via Telephone outside the U.S.:
§  
Live: Dial (303) 262-2143
§  
Replay: A telephone replay will be available through Friday, February 22, by dialing (303) 590-3000, passcode: 11106959#


 
3
 
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.  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 margins, rate of return and the addition of new aircraft to our fleet.  It is important to note that the Company’s actual results could differ materially from those projected in such forward-looking statements.  Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company’s SEC filings, including but not limited to the Company’s quarterly report on Form 10-Q for the quarter ended December 31, 2007 and the annual report on Form 10-K for the 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)


4

On November 2, 2007, we sold our Grasso business, which comprised our entire Production Management Services segment.  The financial results for our Production Management Services segment are classified as discontinued operations in the consolidated statements of income and balance sheets presented below.  In addition to statements of incomefor the three and ninemonths ended December 31, 2007and the same periods in the prior year, we have provided in the tables at the end of this release our consolidated statements of income for the three months ended June 30, September 30, and December 31, 2006 and March 31, June 30, September 30 and December 31, 2007 with the financial results for our Production Management Services segment classified as discontinued operations to conform to the current presentation.
 
BRISTOW GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
 
Three Months Ended
December 31,
  
Nine Months Ended
December 31,
  
 
2006
  
2007
  
2006
  
2007
  
Gross revenue:
                              
Operating revenue from non-affiliates
$
180,343
    
$
222,831
    
$
530,323
    
$
642,598
  
Operating revenue from affiliates
  
10,701
      
13,633
      
34,411
      
38,588
  
Reimbursable revenue from non-affiliates
  
18,793
      
23,439
      
58,794
      
66,075
  
Reimbursable revenue from affiliates
  
1,172
      
1,617
      
3,390
      
5,218
  
   
211,009
      
261,520
      
626,918
      
752,479
  
Operating expense:
                              
Direct cost
  
140,867
      
169,704
      
408,977
      
475,416
  
Reimbursable expense
  
20,575
      
24,344
      
62,691
      
68,587
  
Depreciation and amortization
  
11,015
      
12,445
      
31,942
      
36,127
  
General and administrative
  
19,355
      
22,373
      
49,662
      
61,018
  
Gain on disposal of assets
  
(1,044
)
    
(4,094
)
    
(5,706
)
    
(3,921
)
   
190,768
      
224,772
      
547,566
      
637,227
  
Operating income 
  
20,241
      
36,748
      
79,352
      
115,252
  
Earnings from unconsolidated affiliates, net of losses
  
2,106
      
3,725
      
5,393
      
11,233
  
Interest income
  
3,767
      
3,697
      
6,027
      
9,781
  
Interest expense
  
(2,539
)
    
(6,684
)
    
(8,646
)
    
(16,135
)
Other income (expense), net
  
(5,226
)
    
989
      
(11,319
)
    
1,775
  
Income from continuing operations before provision for income taxes and minority interest
  
18,349
      
38,475
      
70,807
      
121,906
  
Provision for income taxes
  
(8,158
)
    
(12,302
)
    
(25,390
)
    
(40,035
)
Minority interest
  
(257
)
    
61
      
(1,049
)
    
(392
)
Income from continuing operations
  
9,934
      
26,234
      
44,368
      
81,479
  
Discontinued operations:
                              
Income (loss) from discontinued operations before provision for income taxes
  
812
      
(1,429
)
    
3,721
      
690
  
Provision for income taxes on discontinued operations
  
(295
)
    
(4,657
)
    
(1,334
)
    
(5,399
)
Income (loss) from discontinued operations
  
517
      
(6,086
)
    
2,387
      
(4,709
)
Net income 
  
10,451
      
20,148
      
46,755
      
76,770
  
Preferred stock dividends
  
(3,150
)
    
(3,162
)
    
(3,471
)
    
(9,487
)
Net income available to common stockholders
$
7,301
    
$
16,986
    
$
43,284
    
$
67,283
  
Basic earnings per common share:
                              
Earnings from continuing operations
$
0.29
    
$
0.97
    
$
1.75
    
$
3.03
  
Earnings (loss) from discontinued operations
  
0.02
      
(0.26
)
    
0.10
      
(0.19
)
Net earnings
$
0.31
    
$
0.71
    
$
1.85
    
$
2.84
  
Diluted earnings per common share:
                              
Earnings from continuing operations
$
0.29
    
$
0.86
    
$
1.71
    
$
2.68
  
Earnings (loss) from discontinued operations
  
0.02
      
(0.20
)
    
0.09
      
(0.16
)
Net earnings
$
0.31
    
$
0.66
    
$
1.80
    
$
2.52
  

5

BRISTOW GROUP INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
 
   
March 31,
2007
  
December 31,
2007
  
       
(Unaudited)
  
ASSETS
Current assets:
              
 
Cash and cash equivalents
  
$
178,268
  
$
315,265
  
 
Accounts receivable from non-affiliates
    
147,608
    
185,083
  
 
Accounts receivable from affiliates
    
17,199
    
16,960
  
 
Inventories
    
157,563
    
174,681
  
 
Prepaid expenses and other  
    
17,387
    
18,154
  
 
Current assets from discontinued operations 
    
17,949
    
—
  
 
Total current assets
    
535,974
    
710,143
  
Investment in unconsolidated affiliates
    
46,828
    
53,834
  
Property and equipment – at cost:
              
 
Land and buildings
    
51,785
    
57,820
  
 
Aircraft and equipment
    
1,139,781
    
1,399,044
  
         
1,191,566
    
1,456,864
  
 
Less – Accumulated depreciation and amortization 
    
(300,045
)
  
(306,673
)
         
891,521
    
1,150,191
  
Goodwill 
    
6,630
    
15,633
  
Other assets
    
10,725
    
30,590
  
Long-term assets from discontinued operations
    
14,125
    
—
  
   
$
1,505,803
  
$
1,960,391
  
               
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
Current liabilities:
              
 
Accounts payable
  
$
40,459
  
$
37,997
  
 
Accrued wages, benefits and related taxes
    
36,390
    
37,021
  
 
Income taxes payable
    
3,412
    
8,777
  
 
Other accrued taxes
    
9,042
    
2,991
  
 
Deferred revenues                                                                                                          
   
16,283
    
19,876
  
 
Accrued maintenance and repairs
    
12,309
    
15,932
  
 
Accrued interest
    
4,511
    
8,780
  
 
Other accrued liabilities
    
17,151
    
20,702
  
 
Deferred taxes
    
18,097
    
11,352
  
 
Short-term borrowings and current maturities of long-term debt
    
4,852
    
7,351
  
 
Current liabilities from discontinued operations
    
5,462
    
—
  
 
Total current liabilities  
    
167,968
    
170,779
  
Long-term debt, less current maturities
    
254,230
    
600,469
  
Accrued pension liabilities 
    
113,069
    
107,005
  
Other liabilities and deferred credits
    
17,345
    
15,024
  
Deferred taxes
    
76,054
    
102,681
  
Long-term liabilities from discontinued operations
    
35
    
—
  
Minority interest
    
5,445
    
5,099
  
Commitments and contingencies
              
Stockholders’ investment:
              
 
5.50% mandatory convertible preferred stock
    
222,554
    
222,554
  
 
Common stock
    
236
    
239
  
 
Additional paid-in capital
    
169,353
    
183,517
  
 
Retained earnings
    
515,589
    
582,872
  
 
Accumulated other comprehensive loss                                                                                                          
   
(36,075
)
  
(29,848
)
     
871,657
    
959,334
  
   
$
1,505,803
  
$
1,960,391
  


6

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

 
Three Months Ended December 31,
  
 
2006
  
2007
  
 
Pre-tax
Earnings
  
Net
Income
  
Diluted
Earnings
Per
Share
  
Pre-tax
Earnings
  
Net
Income
  
Diluted
Earnings
Per
Share
  
Continuing operations:
                                    
Investigations:
                                    
SEC  (1)
$
(3,000
)
$
(2,067
)
$
(0.09
)
$
—
  
$
—
  
$
—
  
DOJ (2)
  
(670
)
  
(462
)
  
(0.02
)
  
(296
)
  
(192
)
  
(0.01
)
Tax contingency related items (3)
  
—
    
800
    
0.03
    
—
    
600
    
0.02
  
Acquisitions and divestitures:
                                    
Expense of previously deferred acquisition costs  (4)
  
(1,889
)
  
(1,302
)
  
(0.06
)
  
—
    
—
    
—
  
Turbo asset sale  (5)
  
(120
)
  
(2,419
)
  
(0.10
)
  
—
    
—
    
—
  
7 ½% Senior Notes due 2017 (6)
  
—
    
—
    
—
    
(3,024
)
  
(1,966
)
  
(0.06
)
Foreign currency transaction gains(losses) (7)
  
(3,413
)
  
(2,352
)
  
(0.10
)
  
963
    
626
    
0.02
  
Preferred Stock (8)
  
2,334
    
1,608
    
(0.07
)
  
—
    
—
    
(0.15
)
Total — continuing operations
  
(6,758
)
  
(6,194
)
  
(0.41
)
  
(2,357
)
  
(932
)
  
(0.18
)
Discontinued operations (9)
  
—
    
—
    
—
    
(1,555
)
  
(6,168
)
  
(0.20
)
Total
$
(6,758
)
$
(6,194
)
$
(0.41
)
$
(3,912
)
$
(7,100
)
$
(0.38
)

 
Nine Months Ended December 31,
  
 
2006
  
2007
  
 
Pre-tax
Earnings
  
Net
Income
  
Diluted
Earnings
Per
Share
  
Pre-tax
Earnings
  
Net
Income
  
Diluted
Earnings
Per
Share
  
Continuing operations:
                                    
Investigations:
                                    
SEC  (1)
$
(3,105
)
$
(2,096
)
$
(0.08
)
$
1,000
  
$
650
  
$
0.02
  
DOJ (2)
  
(1,542
)
  
(1,041
)
  
(0.04
)
  
(784
)
  
(510
)
  
(0.02
)
Tax contingency related items (3)
  
(2,800
)
  
410
    
0.02
    
5,396
    
4,907
    
0.16
  
Acquisitions and divestitures:
                                    
Expense of previously deferred acquisition costs  (4)
  
(1,889
)
  
(1,275
)
  
(0.05
)
  
—
    
—
    
—
  
Turbo asset sale  (5)
  
(120
)
  
(2,421
)
  
(0.09
)
  
—
    
—
    
—
  
7 ½% Senior Notes due 2017 (6)
  
—
    
—
    
—
    
(6,397
)
  
(4,158
)
  
(0.14
)
Foreign currency transaction gains(losses) (7)
  
(9,555
)
  
(6,450
)
  
(0.25
)
  
1,707
    
1,110
    
0.04
  
Preferred Stock (8)
  
2,605
    
1,758
    
(0.16
)
  
—
    
—
    
(0.66
)
Total — continuing operations
  
(16,406
)
  
(11,115
)
  
(0.65
)
  
922
    
1,999
    
(0.60
)
Discontinued operations (9)
  
—
    
—
    
—
    
(1,555
)
  
(6,168
)
  
(0.20
)
Total
$
(16,406
)
$
(11,115
)
$
(0.65
)
$
(633
)
$
(4,169
)
$
(0.80
)
______
 
(1)  
Represents a reversal of previously accrued costs incurred in conjunction with the SEC investigation regarding findings 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.  These costs were 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 Department of Justice (“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 $5.4 million in reversal of accrual for sales tax contingency during the nine months ended December 31, 2007 in Nigeria ($2.8 million of which was originally accrued during the nine months ended December 31, 2006) included in direct costs in our consolidated statements of income and a direct reduction in our provision for income taxes in our consolidated statements of income for income tax contingency items, which represents the remainder of the impact on net income and diluted earnings per share.

(4)  
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 was no longer probable.  This expense is included within other income (expense), net in our consolidated statements of income.

(5)  
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 for the three and nine months ended December 31, 2006.  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.

(6)  
Represents the effect on interest expense, net of interest income from invested proceeds, resulting from the issuance of 7 ½% Senior Notes due 2017 in June and November 2007.

(7)  
Represents foreign currency transaction gains and losses resulting from changes in exchange rates during the applicable periods.  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.

(8)  
Represents the effect of the preferred stock offering completed in September and October 2006.  The net income effect results from interest income earned on remaining cash proceeds generated from the offering.  Diluted earnings per share for the three and nine months ended December 31, 2007 and 2006 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.

(9)  
Represents the loss recorded, net of transaction costs and the tax impact of non-deductible goodwill, related to the Grasso disposition on November 2, 2007.


7



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

   
Three Months Ended
    
Nine Months Ended
  
   
December 31,
    
December 31,
  
   
2006
    
2007
    
2006
    
2007
  
Flight hours (excludes Bristow Academy  and unconsolidated affiliates):
                                
North America                                                          
   
34,742
      
34,658
      
118,499
      
114,552
  
South and Central America                                                          
   
9,973
      
10,417
      
28,889
      
32,594
  
Europe                                                          
   
10,917
      
11,625
      
31,772
      
33,940
  
West Africa                                                          
   
9,733
      
9,824
      
27,795
      
28,609
  
Southeast Asia                                                          
   
3,059
      
4,590
      
9,328
      
11,578
  
Other International                                                          
   
2,641
      
2,120
      
7,119
      
6,844
  
Consolidated total                                                    
   
71,065
      
73,234
      
223,402
      
228,117
  

Gross revenue:
                                
North America                                                          
 
$
57,795
    
$
57,267
    
$
183,667
    
$
180,265
  
South and Central America                                                          
   
13,173
      
16,476
      
39,322
      
49,463
  
Europe                                                          
   
73,879
      
95,100
      
218,566
      
271,996
  
West Africa                                                          
   
35,062
      
46,287
      
98,008
      
125,369
  
Southeast Asia                                                          
   
18,181
      
29,918
      
52,847
      
76,268
  
Other International                                                          
   
11,462
      
11,874
      
32,601
      
35,375
  
EH Centralized Operations                                                          
   
3,816
      
5,239
      
10,428
      
17,375
  
Bristow Academy                                                          
   
—
      
3,969
      
—
      
10,216
  
Intrasegment eliminations                                                          
   
(2,359
)
    
(4,647
)
    
(8,495
)
    
(13,887
)
Corporate                                                          
   
—
      
37
      
(26
)
    
39
  
Consolidated total                                                    
 
$
211,009
    
$
261,520
    
$
626,918
    
$
752,479
  

Operating income  (loss):
                                
North America                                                          
 
$
5,906
    
$
6,875
    
$
22,246
    
$
28,458
  
South and Central America                                                          
   
3,747
      
4,132
      
11,341
      
12,390
  
Europe                                                          
   
9,554
      
20,695
      
37,177
      
57,165
  
West Africa                                                          
   
5,838
      
7,019
      
13,019
      
25,308
  
Southeast Asia                                                          
   
3,030
      
6,476
      
8,675
      
15,710
  
Other International                                                          
   
1,642
      
712
      
6,929
      
4,758
  
EH Centralized Operations                                                          
   
(2,265
)
    
(6,404
)
    
(6,616
)
    
(13,930
)
Bristow Academy                                                          
   
—
      
(130
)
    
—
      
(612
)
Gain on disposal of assets                                                          
   
1,044
      
4,094
      
5,706
      
3,921
  
Corporate                                                          
   
(8,255
)
    
(6,721
)
    
(19,125
)
    
(17,916
)
Consolidated total                                                  
 
$
20,241
    
$
36,748
    
$
79,352
    
$
115,252
  
 
Operating margin:
                        
North America
  
10.2
%
  
12.0
%
  
12.1
%
  
15.8
%
South and Central America
  
28.4
%
  
25.1
%
  
28.8
%
  
25.1
%
Europe
  
12.9
%
  
21.8
%
  
17.0
%
  
21.0
%
West Africa
  
16.7
%
  
15.2
%
  
13.3
%
  
20.2
%
Southeast Asia
  
16.7
%
  
21.6
%
  
16.4
%
  
20.6
%
Other International
  
14.3
%
  
6.0
%
  
21.3
%
  
13.5
%
EH Centralized Operations
  
(59.4
)%
(122.2
)%
(63.4
)%
(80.2
)%
Bristow Academy
  
N/A
    
(3.3
)%
N/A
    
(6.0
)%
          Consolidated total
  
9.6
%
  
14.1
%
  
12.7
%
  
15.3
%

8



BRISTOW GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
 
Three Months Ended
  
 
June  30,
2006
  
Sept.  30,
2006
  
Dec.  31,
2006
  
March  31, 2007
  
June  30,
2007
  
Sept.  30,
2007
  
Dec.  31,
2007
  
Gross revenue:
                                          
Operating revenue from non-affiliates
$
170,886
  
$
179,094
  
$
180,343
  
$
178,931
  
$
199,909
  
$
219,858
  
$
222,831
  
Operating revenue from affiliates
  
12,079
    
11,631
    
10,701
    
13,759
    
11,097
    
13,858
    
13,633
  
Reimbursable revenue from non-affiliates
  
22,243
    
17,758
    
18,793
    
21,450
    
19,042
    
23,594
    
23,439
  
Reimbursable revenue from affiliates
  
1,072
    
1,146
    
1,172
    
2,537
    
1,103
    
2,498
    
1,617
  
   
206,280
    
209,629
    
211,009
    
216,677
    
231,151
    
259,808
    
261,520
  
Operating expense:
                                          
Direct cost
  
129,479
    
138,631
    
140,867
    
139,387
    
153,088
    
152,624
    
169,704
  
Reimbursable expense
  
23,314
    
18,802
    
20,575
    
23,247
    
20,145
    
24,098
    
24,344
  
Depreciation and amortization
  
10,236
    
10,691
    
11,015
    
10,517
    
11,331
    
12,351
    
12,445
  
General and administrative
  
14,602
    
15,705
    
19,355
    
16,659
    
18,385
    
20,260
    
22,373
  
Gain on disposal of assets
  
(992
)
  
(3,670
)
  
(1,044
)
  
(4,909
)
  
(584
)
  
757
    
(4,094
)
   
176,639
    
180,159
    
190,768
    
184,901
    
202,365
    
210,090
    
224,772
  
Operating income
  
29,641
    
29,470
    
20,241
    
31,776
    
28,786
    
49,718
    
36,748
  
Earnings from unconsolidated affiliates, net of losses
  
1,559
    
1,728
    
2,106
    
6,030
    
3,390
    
4,118
    
3,725
  
Interest income
  
1,248
    
1,012
    
3,767
    
2,689
    
2,124
    
3,960
    
3,697
  
Interest expense
  
(3,236
)
  
(2,871
)
  
(2,539
)
  
(2,294
)
  
(2,928
)
  
(6,523
)
  
(6,684
)
Other income (expense), net
  
(4,785
)
  
(1,308
)
  
(5,226
)
  
2,321
    
426
    
360
    
989
  
Income from continuing operations before provision for 
    income taxes and minority interest 
  
24,427
    
28,031
    
18,349
    
40,522
    
31,798
    
51,633
    
38,475
  
Provision for income taxes
  
(8,022
)
  
(9,210
)
  
(8,158
)
  
(13,391
)
  
(9,439
)
  
(18,294
)
  
(12,302
)
Minority interest
  
(116
)
  
(676
)
  
(257
)
  
(151
)
  
(449
)
  
(4
)
  
61
  
       Income from continuing operations
  
16,289
    
18,145
    
9,934
    
26,980
    
21,910
    
33,335
    
26,234
  
Discontinued operations:
                                          
Income (loss) from discontinued operations before provision for 
    income taxes
  
1,461
    
1,448
    
812
    
688
    
1,157
    
962
    
(1,429
)
Provision for income taxes on discontinued operations
  
(521
)
  
(518
)
  
(295
)
  
(251
)
  
(395
)
  
(347
)
  
(4,657
)
Income (loss) from discontinued operations
  
940
    
930
    
517
    
437
    
762
    
615
    
(6,086
)
Net income
  
17,229
    
19,075
    
10,451
    
27,417
    
22,672
    
33,950
    
20,148
  
Preferred stock dividends
  
—
    
(321
)
  
(3,150
)
  
(3,162
)
  
(3,162
)
  
(3,163
)
  
(3,162
)
Net income available to common stockholders
$
17,229
  
$
18,754
  
$
7,301
  
$
24,255
  
$
19,510
  
$
30,787
  
$
16,986
  
Basic earnings per common share:
                                          
Earnings from continuing operations
$
0.70
  
$
0.76
  
$
0.29
  
$
1.01
  
$
0.80
  
$
1.27
  
$
0.97
  
Earnings (loss) from discontinued operations
  
0.04
    
0.04
    
0.02
    
0.02
    
0.03
    
0.03
    
(0.26
)
Net earnings
$
0.74
  
$
0.80
  
$
0.31
  
$
1.03
  
$
0.83
  
$
1.30
  
$
0.71
  
Diluted earnings per common share:
                                          
Earnings from continuing operations
$
0.69
  
$
0.75
  
$
0.29
  
$
0.89
  
$
0.73
  
$
1.10
  
$
0.86
  
Earnings (loss) from discontinued operations
  
0.04
    
0.04
    
0.02
    
0.02
    
0.02
    
0.02
    
(0.20
)
Net earnings
$
0.73
  
$
0.79
  
$
0.31
  
$
0.91
  
$
0.75
  
$
1.12
  
$
0.66
  


9