EXHIBIT 99.1
 
                                                                                                       News Release

                Linda McNeill, Investor Relations
                (713) 267-7622
 

BRISTOW GROUP REPORTS FINANCIAL RESULTS
FOR THE FISCAL YEAR AND QUARTER ENDED MARCH 31, 2008
 
HOUSTON, May 21, 2008 – Bristow Group Inc. (NYSE: BRS) today reported financial results for its fiscal year and quarter ended March 31, 2008.
 
Highlights include:

For the fiscal year ended March 31, 2008:

§  
Bristow’s results were the best ever in the Company’s history for revenue, operating income, income from continuing operations, net income and earnings per share.

§  
Revenue increased 20% to $1.0 billion versus the fiscal year ended March 31, 2007.  Revenue gains occurred primarily in our Europe, West Africa, Southeast Asia and South and Central America business units.  The strong results were primarily driven by increases in rates for helicopter services, increased demand for helicopter services from our existing customers and the addition of new aircraft, as well as the contribution from Bristow Academy.

§  
Operating income increased 34% to $148.7 million from $111.1 million for the fiscal year ended March 31, 2007, and operating margin improved to 14.7% versus 13.2%.  Both operating income and margins benefited primarily from higher helicopter services rates in addition to the items discussed below.

§  
Net income increased 40% to $104.0 million from $74.2 million for the fiscal year ended March 31, 2007.  Included in net income for the fiscal year ended March 31, 2008 was the previously announced loss of $5.3 million ($0.17 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 34% to $3.53 from $2.64, while diluted earnings per share on net earnings increased to $3.41 from $2.74.

§  
Diluted earnings per share for the fiscal years ended March 31, 2008 and 2007 reflected the assumed conversion of the Company’s Mandatory Convertible Preferred Stock, which added approximately 6.5 million and 3.4 million shares, respectively, to our weighted-average diluted shares.

 
1
 

§  
The fiscal year ended March 31, 2008 included the following items:

o  
Costs in our Other International business unit related to a claim by a former agent whom we terminated in connection with the Internal Review, that decreased operating income by $5.0 million, income from continuing operations by $3.3 million and diluted earnings per share by $0.11.

o  
Retirement related expenses for two of our corporate officers that decreased operating income by $1.9 million ($1.1 million recorded in our North America business unit, $0.3 million in our South and Central America business unit and $0.5 million in our corporate results), income from continuing operations by $1.2 million and diluted earnings per share by $0.04.

o  
Tax items that increased operating income by $8.3 million, income from continuing operations by $11.4 million and diluted earnings per share by $0.37.  These tax items included:

-  
A reversal of accruals for sales tax contingency and employee taxes in West Africa of $5.4 million and $1.3 million, respectively, and a reversal of accruals for employee taxes in Europe of $1.6 million, which are included in direct cost in our consolidated statement of income.

-  
A $6.0 million reduction in our provision for income taxes resulting from a benefit of $2.5 million associated with the reduction in the corporate income tax rate in the U.K., and a benefit of $3.5 million associated with an internal reorganization completed during the fiscal year ended March 31, 2008.

 
For the March 2008 quarter:

§  
Revenue increased 20% to $260.3 million versus the March 2007 quarter.  Revenue gains occurred primarily in our Europe, West Africa and Southeast Asia business units, driven in large part by increases in rates for helicopter services, increased demand for helicopter services from our existing customers and the addition of new aircraft, as well as the contribution from Bristow Academy.

§  
Operating income increased 5% to $33.5 million from $31.8 million in the March 2007 quarter, but operating margin decreased to 12.9% versus 14.7%.  The decrease in operating margin was primarily the result of increased costs incurred in the March 2008 quarter associated with the items discussed below.

§  
Net income of $27.2 million was relatively unchanged from net income of $27.4 million for the March 2007 quarter.

§  
Diluted earnings per share from continuing operations decreased to $0.86 from $0.89, while diluted earnings per share on net earnings decreased to $0.89 from $0.91 for the March 2007 quarter.

§  
The March 2008 quarter included the following items:

o  
Costs in our Other International business unit related to a claim by a former agent whom we terminated in connection with the Internal Review, that decreased operating income by $4.5 million, net income by $2.9 million and diluted earnings per share by $0.10.

o  
A $4.5 million decrease in equity in earnings from Norsk, our unconsolidated affiliate in Norway, resulting from a decrease in operating results ($1.2 million) and the impact of changes in estimates in the March 2008 quarter ($3.3 million).  The changes in estimates related to compensation, maintenance, customer billing and tax items.  The lower level of equity earnings from Norsk decreased income from continuing operations by $2.9 million and diluted earnings per share by $0.10.

 
2
 


o  
Retirement related expenses for two of our corporate officers that decreased operating income by $1.9 million ($1.1 million recorded in our North America business unit, $0.3 million in our South and Central America business unit and $0.5 million in our corporate results), income from continuing operations by $1.2 million and diluted earnings per share by $0.04.

o  
Tax items that increased operating income by $2.9 million, net income by $7.9 million and diluted earnings per share by $0.26.  These tax items included:

-  
A reversal of accruals for employee taxes in West Africa of $1.3 million and Europe of $1.6 million, which are included in direct cost in our consolidated statement of income.

-  
A $6.0 million reduction in our provision for income taxes (see the discussion of the results for the fiscal year ended March 31, 2008 above).

Capital and Liquidity:

§  
The March 31, 2008 consolidated balance sheet reflected $967.4 million in stockholders’ investment and $606.2 million of indebtedness.

§  
At the end of fiscal 2008, we had $290.1 million in cash and an undrawn $100 million revolving credit facility.

§  
During the fiscal year ended March 31, 2008, we generated $87.6 million of cash from operating activities, $344.7 million in net proceeds from the issuance of 7 ½% senior notes, $26.6 million of cash from asset dispositions and $22.0 million in net cash from the sale of Grasso.

§  
We used $338.0 million for capital expenditures – primarily for aircraft – and $14.6 million for the Bristow Academy acquisitions (net of cash acquired).

§  
Aircraft purchase commitments totaled $349.3 million for 35 aircraft, with options totaling $802.4 million for 50 aircraft as of March 31, 2008.

“Fiscal 2008 was a year of tremendous achievement and progress for our Company,” said William E. Chiles, President and Chief Executive Officer of Bristow Group Inc.  “We surpassed the $1 billion mark in revenues for the first time in our history – up 20 percent from fiscal 2007.  Our operating income was up by a third, net income increased by 40 percent, and our total-Company operating margin expanded from 13.2% to 14.7% year over year.

“These results reflect continuing strong demand from our customers in the face of a tightening market for helicopter services.  They also reflect the healthy rate increases we were able to achieve throughout the year in West Africa, the North Sea and other important markets, which moves us closer to our goal of stronger revenues and margins across all our geographic regions.

“We continued to upgrade and expand our helicopter fleet during fiscal 2008 to meet the increased demand, with the delivery of 22 new medium and large helicopters.  We intend to continue growing our business in fiscal 2009, and our strong balance sheet provides us with the financial flexibility to execute our growth plans,” Chiles said.

 
3
 

CONFERENCE CALL

Management will conduct a conference call starting at 10:00 a.m. EDT (9:00 a.m. CDT) on Thursday, May 22, 2008, to review financial results for the fiscal year and quarter ended March 31, 2008.  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 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) 240-6709
§  
Replay: A telephone replay will be available through Saturday, June 7, by dialing toll free (800) 405-2236, passcode: 11113906#
 
Via Telephone outside the U.S.:
§  
Live: Dial (303) 262-2130
§  
Replay: A telephone replay will be available through Saturday, June 7, by dialing (303) 590-3000, passcode: 11113906#


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 most of the major offshore oil and gas producing regions of the world, including in the North Sea, the U.S. Gulf of Mexico, Nigeria and Australia.  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 revenue, margins 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 annual report on Form 10-K for the fiscal year ended March 31, 2008.  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
 


 
BRISTOW GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
 
Three Months Ended
March 31,
    
Twelve Months Ended
March 31,
  
 
2007
    
2008
    
2007
    
2008
  
Gross revenue:
                              
Operating revenue from non-affiliates
$
178,931
    
$
226,331
    
$
709,254
    
$
868,929
  
Operating revenue from affiliates
  
13,759
      
11,218
      
48,170
      
49,806
  
Reimbursable revenue from non-affiliates
  
21,450
      
21,250
      
80,244
      
87,325
  
Reimbursable revenue from affiliates
  
2,537
      
1,486
      
5,927
      
6,704
  
   
216,677
      
260,285
      
843,595
      
1,012,764
  
Operating expense:
                              
Direct cost
  
139,387
      
159,911
      
548,364
      
635,327
  
Reimbursable expense
  
23,247
      
22,519
      
85,938
      
91,106
  
Depreciation and amortization
  
10,517
      
18,013
      
42,459
      
54,140
  
General and administrative
  
16,659
      
31,815
      
66,321
      
92,833
  
Gain on disposal of assets
  
(4,909
)
    
(5,469
)
    
(10,615
)
    
(9,390
)
   
184,901
      
226,789
      
732,467
      
864,016
  
Operating income                                                                
  
31,776
      
33,496
      
111,128
      
148,748
  
Earnings from unconsolidated affiliates, net of losses
  
6,030
      
1,745
      
11,423
      
12,978
  
Interest income
  
2,689
      
2,944
      
8,716
      
12,725
  
Interest expense
  
(2,294
)
    
(7,644
)
    
(10,940
)
    
(23,779
)
Other income (expense), net
  
2,321
      
(190
)
    
(8,998
)
    
1,585
  
Income from continuing operations before provision for income taxes and minority interest
  
40,522
      
30,351
      
111,329
      
152,257
  
Provision for income taxes
  
(13,391
)
    
(4,491
)
    
(38,781
)
    
(44,526
)
Minority interest
  
(151
)
    
475
      
(1,200
)
    
83
  
Income from continuing operations                                                                
  
26,980
      
26,335
      
71,348
      
107,814
  
Discontinued operations:
                              
Income from discontinued operations before provision for income taxes
  
688
      
1,032
      
4,409
      
1,722
  
Provision for income taxes on discontinued
    operations                                                                
  
(251
)
    
(145
)
    
(1,585
)
    
(5,544
)
Income (loss) from discontinued operations
  
437
      
887
      
2,824
      
(3,822
)
Net income                                                                
  
27,417
      
27,222
      
74,172
      
103,992
  
Preferred stock dividends                                                                
  
(3,162
)
    
(3,163
)
    
(6,633
)
    
(12,650
)
Net income available to common stockholders
$
24,255
    
$
24,059
    
$
67,539
    
$
91,342
  
Basic earnings per common share:
                              
Earnings from continuing operations
$
1.01
    
$
0.97
    
$
2.75
    
$
4.00
  
Earnings (loss) from discontinued operations
  
0.02
      
0.04
      
0.12
      
(0.16
)
Net earnings
$
1.03
    
$
1.01
    
$
2.87
    
$
3.84
  
Diluted earnings per common share:
                              
Earnings from continuing operations
$
0.89
    
$
0.86
    
$
2.64
    
$
3.53
  
Earnings (loss) from discontinued operations
  
0.02
      
0.03
      
0.10
      
(0.12
)
Net earnings
$
0.91
    
$
0.89
    
$
2.74
    
$
3.41
  


 
5
 

BRISTOW GROUP INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)

 
   
March 31,
2007
  
March 31,
2008
  
           
ASSETS
Current assets:
              
 
Cash and cash equivalents                                                                                                       
  
$
184,188
  
$
290,050
  
 
Accounts receivable from non-affiliates                                                                                                       
    
147,608
    
204,599
  
 
Accounts receivable from affiliates                                                                                                       
    
17,199
    
11,316
  
 
Inventories                                                                                                       
    
157,563
    
176,239
  
 
Prepaid expenses and other                                                                                                       
    
17,387
    
24,177
  
 
Current assets from discontinued operations                                                                                                       
    
12,029
    
—
  
 
Total current assets                                                                                                   
    
535,974
    
706,381
  
Investment in unconsolidated affiliates                                                                                                             
    
46,828
    
52,467
  
Property and equipment – at cost:
              
 
Land and buildings                                                                                                       
    
51,785
    
60,056
  
 
Aircraft and equipment                                                                                                       
    
1,139,781
    
1,428,996
  
         
1,191,566
    
1,489,052
  
 
Less – Accumulated depreciation and amortization                                                                                                       
    
(300,045
)
  
(316,514
)
         
891,521
    
1,172,538
  
Goodwill                                                                                                             
    
6,630
    
15,676
  
Other assets                                                                                                             
    
10,725
    
30,293
  
Long-term assets from discontinued operations                                                                                                             
    
14,125
    
—
  
   
$
1,505,803
  
$
1,977,355
  
               
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
Current liabilities:
              
 
Accounts payable                                                                                                          
  
$
40,459
  
$
49,650
  
 
Accrued wages, benefits and related taxes                                                                                                          
    
36,390
    
35,523
  
 
Income taxes payable                                                                                                          
    
3,412
    
5,862
  
 
Other accrued taxes                                                                                                          
    
9,042
    
1,589
  
 
Deferred revenues                                                                                                          
    
16,283
    
15,415
  
 
Accrued maintenance and repairs                                                                                                          
    
12,309
    
13,250
  
 
Accrued interest                                                                                                          
    
4,511
    
5,656
  
 
Other accrued liabilities                                                                                                          
    
17,151
    
22,235
  
 
Deferred taxes                                                                                                          
    
17,611
    
9,238
  
 
Short-term borrowings and current maturities of long-term debt
    
4,852
    
6,541
  
 
Current liabilities from discontinued operations                                                                                                          
    
5,948
    
—
  
 
Total current liabilities                                                                                                      
    
167,968
    
164,959
  
Long-term debt, less current maturities                                                                                                               
    
254,230
    
599,677
  
Accrued pension liabilities                                                                                                               
    
113,069
    
134,156
  
Other liabilities and deferred credits                                                                                                               
    
17,345
    
14,805
  
Deferred taxes                                                                                                               
    
76,089
    
91,747
  
Minority interest                                                                                                               
    
5,445
    
4,570
  
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
    
186,390
  
 
Retained earnings                                                                                                          
    
515,589
    
606,931
  
 
Accumulated other comprehensive loss                                                                                                          
    
(36,075
)
  
(48,673
)
     
871,657
    
967,441
  
   
$
1,505,803
  
$
1,977,355
  


 
6
 



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

   
Three Months Ended
    
Twelve Months Ended
  
   
March 31,
    
March 31,
  
   
2007
    
2008
    
2007
    
2008
  
Flight hours (excludes Bristow Academy and unconsolidated affiliates):
                                
North America                                                          
    
34,304
      
33,250
      
152,803
      
147,802
  
South and Central America                                                          
    
9,528
      
7,845
      
38,417
      
40,439
  
Europe                                                          
    
10,605
      
10,403
      
42,377
      
44,343
  
West Africa                                                          
    
8,329
      
9,561
      
36,124
      
38,170
  
Southeast Asia                                                          
    
3,340
      
4,451
      
12,668
      
16,029
  
Other International                                                          
    
2,199
      
1,886
      
9,318
      
8,730
  
Consolidated total                                                    
    
68,305
      
67,396
      
291,707
      
295,513
  

Gross revenue:
                                
North America                                                          
  
$
56,311
    
$
57,393
    
$
239,978
    
$
237,658
  
South and Central America                                                          
    
13,498
      
14,400
      
52,820
      
63,863
  
Europe                                                          
    
79,368
      
89,828
      
297,934
      
361,744
  
West Africa                                                          
    
33,133
      
45,401
      
131,141
      
170,770
  
Southeast Asia                                                          
    
20,557
      
34,849
      
73,404
      
111,117
  
Other International                                                          
    
13,404
      
12,143
      
46,005
      
47,518
  
EH Centralized Operations                                                          
    
3,468
      
4,991
      
13,896
      
22,366
  
Bristow Academy                                                          
    
—
      
4,571
      
—
      
14,787
  
Intrasegment eliminations                                                          
    
(3,563
)
    
(3,390
)
    
(12,058
)
    
(17,195
)
Corporate                                                          
    
501
      
99
      
475
      
136
  
Consolidated total                                                    
  
$
216,677
    
$
260,285
    
$
843,595
    
$
1,012,764
  

Operating income (loss):
                                
North America                                                          
  
$
6,964
    
$
4,101
    
$
29,210
    
$
32,559
  
South and Central America                                                          
    
4,484
      
2,462
      
15,825
      
14,852
  
Europe                                                          
    
15,642
      
20,183
      
52,819
      
77,348
  
West Africa                                                          
    
5,779
      
6,633
      
18,798
      
31,941
  
Southeast Asia                                                          
    
4,695
      
8,044
      
13,370
      
23,754
  
Other International                                                          
    
2,380
      
(5,041
)
    
9,309
      
(283
)
EH Centralized Operations                                                          
    
(6,964
)
    
539
      
(13,580
)
    
(13,391
)
Bristow Academy                                                          
    
—
      
(197
)
    
—
      
(809
)
Gain on disposal of assets                                                          
    
4,909
      
5,469
      
10,615
      
9,390
  
Corporate                                                          
    
(6,113
)
    
(8,697
)
    
(25,238
)
    
(26,613
)
Consolidated total                                                  
  
$
31,776
    
$
33,496
    
$
111,128
    
$
148,748
  

Operating margin:
                        
North America                                                          
  
12.4
%
  
7.1
%
  
12.2
%
  
13.7
%
South and Central America                                                          
  
33.2
%
  
17.1
%
  
30.0
%
  
23.3
%
Europe                                                          
  
19.7
%
  
22.5
%
  
17.7
%
  
21.4
%
West Africa                                                          
  
17.4
%
  
14.6
%
  
14.3
%
  
18.7
%
Southeast Asia                                                          
  
22.8
%
  
23.1
%
  
18.2
%
  
21.4
%
Other International                                                          
  
17.8
%
  
(41.5
)%
  
20.2
%
  
(0.6
)%
Bristow Academy                                                          
  
N/A
    
(4.3
)%
  
N/A
    
(5.5
)%
Consolidated total                                                  
  
14.7
%
  
12.9
%
  
13.2
%
  
14.7
%



 
7