þ
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE
SECURITIES EXCHANGE ACT OF 1934
|
|
For
the Fiscal Year Ended March 31, 2007
|
||
OR
|
||
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d)
OF
THE SECURITIES EXCHANGE ACT OF 1934
|
|
For
the transition period from
___________to______________
|
Delaware
|
72-0679819
|
(State
or other jurisdiction of
|
(IRS
Employer
|
incorporation
or organization)
|
Identification
Number)
|
2000
W. Sam Houston Pkwy. S.,
|
77042
|
Suite
1700
|
(Zip
Code)
|
Houston,
Texas
|
|
(Address
of principal executive offices)
|
Title
of each Class
|
Name
of each exchange on which registered
|
Common
Stock ($.01 par value)
|
New
York Stock Exchange
|
Preferred
Share Purchase Rights
|
New
York Stock Exchange
|
5.50% Mandatory Convertible Preferred Stock
|
New
York Stock Exchange
|
Large
accelerated filer þ
|
Accelerated
filer o
|
Non-accelerated
filer o
|
Page
|
|||
Introduction
|
1
|
||
Forward-Looking
Statements
|
1
|
||
PART
I
|
|||
Item
1.
|
Business
|
2
|
|
Item
1A.
|
Risk
Factors
|
13
|
|
Item
1B.
|
Unresolved
Staff
Comments
|
22
|
|
Item
2.
|
Properties
|
22
|
|
Item
3.
|
Legal
Proceedings
|
23
|
|
Item
4.
|
Submission
of Matters to a Vote
of Security Holders
|
25
|
|
PART
II
|
|||
Item
5.
|
Market
for the Registrant’s
Common Equity and Related Stockholder Matters
|
25
|
|
Item
6.
|
Selected
Financial
Data
|
26
|
|
Item
7.
|
Management’s
Discussion and
Analysis of Financial Condition and Results of
Operations
|
26
|
|
Item
7A.
|
Quantitative
and Qualitative
Disclosures about Market
Risk
|
56
|
|
Item
8.
|
Consolidated
Financial Statements
and Supplementary Data
|
59
|
|
Item
9.
|
Changes
In and Disagreements with
Accountants on Accounting and Financial Disclosure
|
111
|
|
Item
9A.
|
Controls
and
Procedures
|
111
|
|
Item
9B.
|
Other
Information
|
114
|
|
PART
III
|
|||
Item
10.
|
Directors,
Executive Officers and
Corporate
Governance
|
114
|
|
Item
11.
|
Executive
Compensation
|
114
|
|
Item
12.
|
Security
Ownership of Certain
Beneficial Owners and Management and Related Stockholder
Matters
|
114
|
|
Item
13.
|
Certain
Relationships and Related
Transactions, and Director
Independence
|
114
|
|
Item
14.
|
Principal
Accounting Fees and
Services
|
114
|
|
PART
IV
|
|||
Item
15.
|
Exhibits,
Financial Statement
Schedules
|
115
|
|
Signatures
|
119
|
·
|
the
risks and uncertainties described below under “Item 1A. Risk
Factors”;
|
·
|
the
level of activity in the oil and natural gas industry is lower than
anticipated;
|
·
|
production-related
activities become more sensitive to variances in commodity
prices;
|
·
|
the
major oil companies do not continue to expand
internationally;
|
·
|
market
conditions are weaker than
anticipated;
|
·
|
we
are not able to re-deploy our aircraft to regions with the greater
demand;
|
·
|
we
do not achieve the anticipated benefit of our fleet renewal
program;
|
·
|
the
outcome of the United States Securities and Exchange Commission (“SEC”)
investigation relating to the Foreign Corrupt Practices Act and other
matters, or the Internal Review, has a greater than anticipated financial
or business impact; and
|
·
|
the
outcome of the United States Department of Justice (“DOJ”) antitrust
investigation, which is ongoing, has a greater than anticipated financial
or business impact.
|
|
PART
I
|
·
|
Western
Hemisphere
|
−
|
North
America
|
−
|
South
and Central America
|
·
|
Eastern
Hemisphere
|
−
|
Europe
|
−
|
West
Africa
|
−
|
Southeast
Asia
|
−
|
Other
International
|
−
|
Eastern
Hemisphere Centralized Operations (“EH Centralized
Operations”)
|
·
|
Global
Training
|
−
|
Bristow
Academy
|
Number
of Aircraft
|
||||||||||||||||
In
Fleet
|
||||||||||||||||
Type
|
Unconsolidated
Affiliates
|
Consolidated
Affiliates
|
On
Order(1)
|
Under
Option(2)
|
Passenger
Capacity
|
Speed
(MPH)(3)
|
Engine
|
|||||||||
Small
Helicopters:
|
||||||||||||||||
Bell
206L Series
|
7
|
79
|
—
|
—
|
6
|
115
|
Turbine
|
|||||||||
Bell
206B Jet Ranger
|
4
|
23
|
—
|
—
|
4
|
100
|
Turbine
|
|||||||||
Bell
407
|
2
|
39
|
—
|
—
|
6
|
132
|
Turbine
|
|||||||||
Bell
427
|
—
|
1
|
—
|
—
|
7
|
145
|
Twin
Turbine
|
|||||||||
BK-117
|
—
|
2
|
—
|
—
|
7
|
160
|
Twin
Turbine
|
|||||||||
BO-105
|
—
|
2
|
—
|
—
|
4
|
125
|
Twin
Turbine
|
|||||||||
EC120
|
—
|
9
|
—
|
—
|
4
|
110
|
Turbine
|
|||||||||
EC135
|
3
|
—
|
2
|
—
|
6
|
143
|
Twin
Turbine
|
|||||||||
Augusta
109
|
2
|
—
|
—
|
—
|
8
|
177
|
Twin
Turbine
|
|||||||||
AS
350BB
|
35
|
—
|
—
|
—
|
4
|
161
|
Turbine
|
|||||||||
53
|
155
|
2
|
—
|
|||||||||||||
Medium
Helicopters:
|
||||||||||||||||
Bell
212
|
18
|
12
|
—
|
—
|
12
|
115
|
Twin
Turbine
|
|||||||||
Bell
412
|
31
|
36
|
1
|
—
|
13
|
125
|
Twin
Turbine
|
|||||||||
EC155
|
—
|
9
|
1
|
—
|
13
|
167
|
Twin
Turbine
|
|||||||||
Sikorsky
S-76
|
1
|
59
|
13
|
30
|
12
|
145
|
Twin
Turbine
|
|||||||||
EC
AS 365N
|
7
|
—
|
—
|
—
|
14
|
167
|
Twin
Turbine
|
|||||||||
Augusta
AW139
|
1
|
—
|
—
|
—
|
15
|
181
|
Twin
Turbine
|
|||||||||
58
|
116
|
15
|
30
|
|||||||||||||
Large
Helicopters:
|
||||||||||||||||
AS332L
Super Puma
|
5
|
31
|
—
|
—
|
18
|
144
|
Twin
Turbine
|
|||||||||
Bell
214ST
|
—
|
5
|
—
|
—
|
18
|
144
|
Twin
Turbine
|
|||||||||
Sikorsky
S-61
|
—
|
12
|
—
|
—
|
18
|
132
|
Twin
Turbine
|
|||||||||
Sikorsky
S-92
|
3
|
3
|
10
|
14
|
19
|
158
|
Twin
Turbine
|
|||||||||
Mil
Mi-8
|
—
|
7
|
—
|
—
|
20
|
138
|
Twin
Turbine
|
|||||||||
EC225
|
—
|
5
|
4
|
8
|
25
|
167
|
Twin
Turbine
|
|||||||||
8
|
63
|
14
|
22
|
|||||||||||||
Fixed
wing
|
24
|
11
|
—
|
—
|
||||||||||||
Total
(4)
|
143
|
345
|
(5)
|
31
|
52
|
(1)
|
Of
the aircraft on order, 22 are expected to be delivered during fiscal
year
2008. 12 of these aircraft have been dedicated to customers for
specific projects, including 11 under signed contracts. For
additional information, see Item 7. “Management’s Discussion and Analysis
of Financial Condition and Results of Operations — Liquidity — Future
Capital Requirements — Capital Commitments” included elsewhere in this
Annual Report.
|
(2)
|
Represents
aircraft which we have
the option to acquire. If the options are exercised, we
anticipate that the large aircraft would be delivered in fiscal years
2008
and 2009, while the medium aircraft would be delivered over fiscal
years
2008 through 2011, principally in the later portion of that
period. For additional information, see Item 7. “Management’s
Discussion and Analysis of Financial Condition and Results of Operations
—
Liquidity — Future Capital Requirements — Capital Commitments”
included elsewhere in this Annual
Report.
|
(3)
|
Represents
the approximate normal cruise speed flying at gross weight and at
sea
level under standard operating conditions.
|
||||||||||||||||||||
(4)
|
We
own 319 of the 345 aircraft reflected in the table above, hold 18
of the
remaining aircraft under operating leases and operate 8 of the aircraft
for one of our customers. 12 of the owned aircraft are held for
sale. Unconsolidated affiliates leased 18 of our 319 aircraft
in addition to the 143 aircraft they operate.
|
||||||||||||||||||||
(5)
|
On
April 2, 2007, we acquired all of the common equity of HAI. As
a result of this transaction, we added 48 piston-driven passenger
training
aircraft, 2 Bell 206B3 aircraft and 1 fixed-wing aircraft to our
fleet.
|
Type
|
North
America
|
South
&
Central
America
|
Europe
|
West
Africa
|
Southeast
Asia
|
Other
Intern’l
|
EH
Cent.
Ops.
|
Production
Mgmnt.
|
Total
|
||||||||||
Small
|
137
|
2
|
1
|
12
|
3
|
—
|
—
|
—
|
155
|
||||||||||
Medium
|
27
|
33
|
9
|
28
|
8
|
11
|
—
|
—
|
116
|
||||||||||
Large
|
4
|
1
|
37
|
2
|
9
|
10
|
—
|
—
|
63
|
||||||||||
Other
(includes fixed wing)
|
1
|
—
|
—
|
7
|
—
|
3
|
—
|
—
|
11
|
||||||||||
Total
consolidated
affiliates
|
169
|
36
|
47
|
49
|
20
|
24
|
—
|
—
|
345
|
||||||||||
Unconsolidated
affiliates
|
—
|
14
|
33
|
—
|
—
|
39
|
57
|
—
|
143
|
||||||||||
Total
|
169
|
50
|
80
|
49
|
20
|
63
|
57
|
—
|
488
|
||||||||||
Percentage
of consolidated revenue for fiscal year 2007
|
25
|
%
|
6
|
%
|
33
|
%
|
14
|
%
|
8
|
%
|
5
|
%
|
2
|
%
|
7
|
%
|
100
|
%
|
·
|
the
supply of and demand for oil and gas and market expectations for
such
supply and demand;
|
·
|
actions
of the Organization of Petroleum Exporting Countries (“OPEC”) and other
oil producing countries to control prices or change production
levels;
|
·
|
general
economic conditions, both worldwide and in particular
regions;
|
·
|
governmental
regulation;
|
·
|
the
price and availability of alternative
fuels;
|
·
|
weather
conditions, including the impact of hurricanes and other weather-related
phenomena;
|
·
|
advances
in exploration, development and production
technology;
|
·
|
the
policies of various governments regarding exploration and development
of
their oil and gas reserves; and
|
·
|
the
worldwide political environment, including the war in Iraq, uncertainty
or
instability resulting from an escalation or additional outbreak of
armed
hostilities or other crises in the Middle East or the other geographic
areas in which we operate (including, but not limited to, Nigeria),
or
further acts of terrorism in the U.S. or
elsewhere.
|
·
|
local
regulations restricting foreign ownership of helicopter
operators;
|
·
|
requirements
to award contracts to local operators;
and
|
·
|
the
number and location of new drilling concessions granted by foreign
sovereigns.
|
·
|
political,
social and economic instability, including risks of war, general
strikes
and civil disturbances;
|
·
|
physical
and economic retribution directed at U.S. companies and
personnel;
|
·
|
governmental
actions that restrict payments or the movement of funds or result
in the
deprivation of contract rights;
|
·
|
the
taking of property without fair
compensation; and
|
·
|
the
lack of well-developed legal systems in some countries which could
make it
difficult for us to enforce our contractual
rights.
|
·
|
issuance
of administrative, civil and criminal
penalties;
|
·
|
denial
or revocation of permits or other
authorizations;
|
·
|
imposition
of limitations on our operations;
and
|
·
|
performance
of site investigatory, remedial or other corrective
actions.
|
·
|
Approximately
21.5 acres of land at the Acadiana Regional Airport in New Iberia,
Louisiana, under a lease expiring in fiscal year 2029 (with options
to
extend through 2069). We have constructed on that site office,
training, parts facilities and helicopter maintenance facilities
comprising about 120,000 square feet of floor space, which is used by
our Western Hemisphere operations (primarily our North America business
unit). The property has access to the airport facilities, as
well as to a major highway. In January 2007, we commenced
building a new administration building at this location, which we
expect
to be completed by the end of fiscal year 2008 and will increase
such
facilities by 35,000 square feet of floor
space.
|
·
|
Approximately
77,000 square feet of facilities at Redhill Aerodrome near London,
England, including office and workshop space under a lease expiring
in
2075.
|
·
|
A
helicopter terminal, offices and hangar facilities totaling approximately
138,000 square feet located on approximately 15 acres of
property at Aberdeen Airport, Scotland, under a lease expiring in
2013
with an option to extend to 2023. We also maintain additional
hangar and office facilities at Aberdeen Airport under a lease expiring
in
2030.
|
·
|
Approximately
17,800 square feet of office space in a building in Houston, Texas,
under a lease expiring in 2011, which we use as our headquarters
and for
our Production Management Services
business.
|
Fiscal
Year Ended March 31,
|
||||||||||||
2007
|
2006
|
|||||||||||
High
|
Low
|
High
|
Low
|
|||||||||
First
Quarter
|
$
|
38.37
|
$
|
33.62
|
$
|
34.93
|
$
|
27.78
|
||||
Second
Quarter
|
38.52
|
32.21
|
37.00
|
32.10
|
||||||||
Third
Quarter
|
36.84
|
32.11
|
36.86
|
29.17
|
||||||||
Fourth
Quarter
|
38.45
|
33.51
|
36.50
|
27.67
|
·
|
any
applicable contractual restrictions limiting our ability to pay
dividends;
|
·
|
our
earnings and cash flows;
|
·
|
our
capital requirements;
|
·
|
our
financial condition; and
|
·
|
other
factors our board of directors deems
relevant.
|
Fiscal
Year Ended March 31,
|
||||||||||||||||
2007(1)
|
2006(1)
|
2005(1)
|
2004(1)(2)(3)
|
|
2003
|
|||||||||||
(In
thousands, except per share data)
|
||||||||||||||||
Statement
of Income Data: (4)
(5)
|
||||||||||||||||
Gross
revenue
|
$
|
897,861
|
$
|
768,940
|
$
|
673,646
|
$
|
617,001
|
$
|
601,550
|
||||||
Net
income
|
74,172
|
57,809
|
51,560
|
49,825
|
40,404
|
|||||||||||
Earnings
per common share: (4)
|
||||||||||||||||
Basic
|
2.87
|
2.48
|
2.24
|
2.21
|
1.80
|
|||||||||||
Diluted
|
2.74
|
2.45
|
2.21
|
2.15
|
1.67
|
|||||||||||
Preferred
dividends declared per common share
|
0.26
|
—
|
—
|
—
|
—
|
|||||||||||
March
31,
|
||||||||||||||||
2007
|
2006
|
2005
|
2004
|
2003
|
||||||||||||
(In
thousands)
|
||||||||||||||||
Balance
Sheet Data: (5)
|
||||||||||||||||
Total
assets
|
$
|
1,505,803
|
$
|
1,176,413
|
$
|
1,149,576
|
$
|
1,046,8281
|
$
|
906,031
|
||||||
Long-term
debt, including current maturities
|
259,082
|
265,296
|
262,080
|
255,534
|
232,818
|
(1)
|
Effective
July 1, 2003, we changed
the useful lives of certain of our aircraft to 15 years from a range
of
seven to ten years. The effect of this change for fiscal years
2007, 2006, 2005 and 2004 was a reduction in depreciation expense
(after
tax) of $2.4 million, $2.9 million, $2.9 million and $2.3 million,
respectively.
|
(2)
|
Results
for fiscal year 2004 include $21.7 million ($15.7 million, net of
tax) of
curtailment gain relating to the pension plan.
|
(3)
|
Results
for fiscal year 2004 include $6.2 million in loss on extinguishment
of
debt related to notes redeemed in that fiscal year.
|
(4)
|
See
a presentation of other items affecting the comparability of results
for
fiscal years 2007, 2006 and 2005 included in the table presented
under
Item 7. “Management’s Discussion and Analysis of Financial Condition and
Results of Operations — Executive
Overview — Overview
of Operating
Results” included elsewhere in this Annual Report.
|
(5)
|
Results
of operations and financial position of companies that we have acquired
have been included beginning on the respective dates of acquisition
and
include Aviashelf (July 2004) and Pan African Airlines (Nigeria)
Ltd.
(July 2002).
|
·
|
Western
Hemisphere
|
−
|
North
America
|
−
|
South
and Central America
|
·
|
Eastern
Hemisphere
|
−
|
Europe
|
−
|
West
Africa
|
−
|
Southeast
Asia
|
−
|
Other
International
|
−
|
EH
Centralized Operations
|
·
|
Global
Training
|
−
|
Bristow
Academy
|
Aircraft
in Fleet
|
Percentage
of
Fiscal
Year 2007
Revenues
|
||||||||||||||||
Helicopters
|
|||||||||||||||||
Small
|
Medium
|
Large
|
Fixed
Wing
|
Total
|
|||||||||||||
Helicopter
Services
|
|||||||||||||||||
North
America
|
137
|
27
|
4
|
1
|
169
|
25
|
%
|
||||||||||
South
and Central America
|
2
|
33
|
1
|
—
|
36
|
6
|
%
|
||||||||||
Europe
|
1
|
9
|
37
|
—
|
47
|
33
|
%
|
||||||||||
West
Africa
|
12
|
28
|
2
|
7
|
49
|
14
|
%
|
||||||||||
Southeast
Asia
|
3
|
8
|
9
|
—
|
20
|
8
|
%
|
||||||||||
Other
International
|
—
|
11
|
10
|
3
|
24
|
5
|
%
|
||||||||||
EH
Centralized Operations
|
—
|
—
|
—
|
—
|
—
|
2
|
%
|
||||||||||
Production
Management
|
—
|
—
|
—
|
—
|
—
|
7
|
%
|
||||||||||
Total
|
155
|
116
|
63
|
11
|
345
|
100
|
%
|
||||||||||
Aircraft
not currently in fleet:
|
|||||||||||||||||
On
order
|
2
|
15
|
14
|
—
|
31
|
||||||||||||
Under
option
|
—
|
30
|
22
|
—
|
52
|
Three
Months Ended
|
||||||||||||||||||||||||||||||||
June
30, 2006
|
September
30, 2006
|
December
31, 2006
|
March
31, 2007
|
|||||||||||||||||||||||||||||
Orders
|
Options
|
Orders
|
Options
|
Orders
|
Options
|
Orders
|
Options
|
|||||||||||||||||||||||||
Beginning
of quarter
|
53
|
37
|
51
|
37
|
47
|
37
|
42
|
35
|
||||||||||||||||||||||||
Aircraft
delivered
|
(2
|
)
|
—
|
(4
|
)
|
—
|
(10
|
)
|
—
|
(9
|
)
|
—
|
||||||||||||||||||||
Aircraft
ordered
|
—
|
—
|
—
|
—
|
8
|
(5
|
)
|
7
|
(4
|
)
|
||||||||||||||||||||||
New
options
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
18
|
||||||||||||||||||||||||
Orders
converted to options
|
—
|
—
|
—
|
—
|
(3
|
)
|
3
|
(9
|
)
|
9
|
||||||||||||||||||||||
Expired
options
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(6
|
)
|
|||||||||||||||||||||||
End
of quarter
|
51
|
37
|
47
|
37
|
42
|
35
|
31
|
52
|
·
|
Strategically
position our company as the preferred provider of helicopter
services. We position our company as the preferred provider of
helicopter services by maintaining strong relationships with our
customers
and providing high-quality service. We focus on maintaining
relationships with our customers’ local and corporate
management. We believe that this focus helps us to provide our
customers with the right aircraft in the right place at the right
time and
to better anticipate customer needs, which in turn allows us to better
manage our fleet. We also leverage our close relationships with
our customers to establish mutually beneficial operating practices
and
safety standards worldwide. By applying standard operating and
safety practices across our global operations, we are able to provide
our
customers with consistent, high-quality service in each of their
areas of
operation. By better understanding our customers’ needs and by
virtue of our global operations and safety standards, we have effectively
competed against other helicopter service providers based on customer
service, safety and reliability, and not just
price.
|
·
|
Integrate
our operations. In fiscal year 2006, we completed a number of
changes in our business to integrate our global organization, and
we
intend to continue to identify and implement further integration
opportunities. These changes include changes in our senior
management team, the integration of our operations among previously
independently managed businesses, improvements in global asset allocation
and other changes in our corporate operations. We anticipate
that these improvements will result in revenue growth, and may also
generate cost savings.
|
·
|
Grow
our business internationally. We plan to grow our business in
most of the markets in which we operate. We expect this growth
to be particularly strong in international markets outside our three
largest markets (U.S. Gulf of Mexico, North Sea and Nigeria), which
represented 65% of our fiscal year 2007 revenues. Although we
have a footprint in most major oil and gas producing regions of the
world,
we have the opportunity to expand and deepen our presence in many
of these
markets, for example Southeast Asia. We anticipate this growth
to result primarily from the deployment of new aircraft into markets
where
we expect they will be most profitably employed, as well as by executing
opportunistic acquisitions. Our acquisition-related growth may
include increasing our role and participation with existing unconsolidated
affiliates and may include increasing our position in existing markets
or
expanding into new markets.
|
Fiscal
Year Ended March 31,
|
||||||||||
2007
|
2006
|
2005
|
||||||||
(In
thousands)
|
||||||||||
Gross
revenue:
|
||||||||||
Operating revenue
|
$
|
801,914
|
$
|
688,719
|
$
|
608,922
|
||||
Reimbursable
revenue
|
95,947
|
80,221
|
64,724
|
|||||||
Total
gross revenue
|
897,861
|
768,940
|
673,646
|
|||||||
Operating
expense:
|
||||||||||
Direct
cost
|
586,506
|
512,518
|
454,836
|
|||||||
Reimbursable
expense
|
94,685
|
78,525
|
63,303
|
|||||||
Depreciation
and amortization
|
42,643
|
42,256
|
40,693
|
|||||||
General
and administrative
|
69,342
|
61,948
|
45,245
|
|||||||
Gain
on disposal of assets
|
(10,618
|
)
|
(102
|
)
|
(8,039
|
)
|
||||
Total
operating expense
|
782,558
|
695,145
|
596,038
|
|||||||
Operating
income
|
115,303
|
73,795
|
77,608
|
|||||||
Earnings
from unconsolidated affiliates, net of losses
|
11,423
|
6,758
|
9,600
|
|||||||
Interest
expense, net
|
(1,990
|
)
|
(10,530
|
)
|
(12,477
|
)
|
||||
Other
income (expense), net
|
(8,998
|
)
|
4,612
|
(1,126
|
)
|
|||||
Income
before provision for income taxes and minority interest
|
115,738
|
74,635
|
73,605
|
|||||||
Provision
for income taxes
|
(40,366
|
)
|
(16,607
|
)
|
(21,835
|
)
|
||||
Minority
interest
|
(1,200
|
)
|
(219
|
)
|
(210
|
)
|
||||
Net
income
|
$
|
74,172
|
$
|
57,809
|
$
|
51,560
|
|
Fiscal
Year Ended March 31,
|
||||||||||||||||||||||||||||||||
2007
|
2006
|
2005
|
||||||||||||||||||||||||||||||
Pre-tax
Earnings
|
Net
Income
|
Diluted
Earnings
Per
Share
|
Pre-tax
Earnings
|
Net
Income
|
Diluted
Earnings
Per
Share
|
Pre-tax
Earnings
|
Net
Income
|
Diluted
Earnings
Per
Share
|
||||||||||||||||||||||||
(In
thousands, except per share amounts)
|
||||||||||||||||||||||||||||||||
Investigations:
|
||||||||||||||||||||||||||||||||
SEC
(1)
|
$
|
(3,109
|
)
|
$
|
(2,021
|
)
|
$
|
(0.07
|
)
|
$
|
(10,492
|
)
|
$
|
(6,820
|
)
|
$
|
(0.29
|
)
|
$
|
(2,155
|
)
|
$
|
(1,401
|
)
|
$
|
(0.06
|
)
|
|||||
DOJ
(1)
|
(1,923
|
)
|
(1,250
|
)
|
(0.05
|
)
|
(2,583
|
)
|
(1,679
|
)
|
(0.07
|
)
|
—
|
—
|
—
|
|||||||||||||||||
Acquisitions
and divestitures:
|
||||||||||||||||||||||||||||||||
Brazilian
joint venture (2)
(3)
|
2,450
|
1,593
|
0.06
|
(1,040
|
)
|
(676
|
)
|
(0.03
|
)
|
—
|
—
|
—
|
||||||||||||||||||||
Expense
of previously deferred acquisition costs (2)
|
(1,889
|
)
|
(1,228
|
)
|
(0.05
|
)
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||
Turbo
asset sale (4)
|
120
|
(2,424
|
)
|
(0.09
|
)
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||
Resolution
of tax contingencies (5)
|
—
|
3,413
|
0.13
|
—
|
11,400
|
0.48
|
—
|
3,700
|
0.16
|
|||||||||||||||||||||||
Foreign
currency transaction gains (losses) (2)
|
(9,763
|
)
|
(6,346
|
)
|
(0.23
|
)
|
5,404
|
3,513
|
0.15
|
(1,339
|
)
|
(870
|
)
|
(0.04
|
)
|
|||||||||||||||||
Preferred
Stock
(6)
|
4,288
|
2,787
|
(0.30
|
)
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||
Total
|
$
|
(9,826
|
)
|
$
|
(5,476
|
)
|
$
|
(0.60
|
)
|
$
|
(8,711
|
)
|
$
|
5,738
|
$
|
0.24
|
$
|
(3,494
|
)
|
$
|
1,429
|
$
|
0.06
|
(1)
|
Included
in general & administrative costs in our consolidated statements of
income.
|
(2)
|
Included
in other income (expense), net in our consolidated statements of
income.
|
(3)
|
Represents
a gain recognized upon the sale of our 50% interest in a Brazilian
joint
venture during fiscal year 2007 and an impairment charge recorded
during
fiscal year 2006 to reduce the recorded value of this investment,
as we
expected at that time that our investment would not be
recoverable.
|
(4)
|
Included
in gain on disposal of assets in our consolidated statements of
income. $2.5 million is included as a direct increase in our
provision for income taxes (see Note 2).
|
(5)
|
Represents
a direct reduction in our provision for income taxes in our consolidated
statements of income.
|
(6)
|
Represents
the impact on diluted earnings per share of the inclusion of weighted
average shares resulting from the assumed conversion of Preferred
Stock,
partially offset by interest income earned on cash balances generated
through the Preferred Stock offering in September and October
2006. See Note 9 for a further discussion of the Preferred
Stock offering.
|
Fiscal
Year Ended March 31,
|
||||||||
2007
|
|
2006
|
2005
|
|||||
Flight
hours (excludes unconsolidated affiliates):
|
||||||||
Helicopter
Services:
|
||||||||
North
America (1)
|
152,803
|
150,240
|
124,386
|
|||||
South
and Central America
|
38,417
|
38,469
|
42,351
|
|||||
Europe
|
42,377
|
38,648
|
34,121
|
|||||
West
Africa
|
|
36,124
|
34,185
|
31,918
|
||||
Southeast
Asia
|
12,668
|
12,119
|
11,547
|
|||||
Other
International
|
9,318
|
6,711
|
3,389
|
|||||
Consolidated
total
|
291,707
|
280,372
|
247,712
|
Fiscal
Year Ended March 31,
|
|||||||||
2007
|
2006
|
2005
|
|||||||
(In
thousands)
|
|||||||||
Gross
revenue: (2)
|
|||||||||
Helicopter
Services:
|
|||||||||
North
America
|
$
|
239,978
|
$
|
216,482
|
$
|
168,482
|
|||
South
and Central America
|
52,820
|
42,869
|
52,598
|
||||||
Europe
|
297,934
|
245,294
|
223,837
|
||||||
West
Africa
|
131,141
|
107,411
|
94,433
|
||||||
Southeast
Asia
|
73,404
|
61,168
|
53,023
|
||||||
Other
International
|
46,005
|
35,339
|
21,344
|
||||||
EH
Centralized Operations
|
13,896
|
10,749
|
14,860
|
||||||
Intrasegment
eliminations
|
(12,058
|
)
|
(10,104
|
)
|
(7,624
|
)
|
|||
Total
Helicopter Services (3)
|
843,120
|
709,208
|
620,953
|
||||||
Production
Management Services (4)
|
64,814
|
68,170
|
58,982
|
||||||
Corporate
|
475
|
693
|
1,684
|
||||||
Intersegment
eliminations
|
(10,548
|
)
|
(9,131
|
)
|
(7,973
|
)
|
|||
Consolidated
total
|
$
|
897,861
|
$
|
768,940
|
$
|
673,646
|
Fiscal
Year Ended March 31,
|
|
||||||||
2007
|
2006
|
2005
|
|||||||
(In
thousands, except percentages)
|
|||||||||
Operating
expense:
(2) (5)
|
|||||||||
Helicopter
Services:
|
|||||||||
North
America
|
$
|
210,768
|
$
|
185,765
|
$
|
149,110
|
|||
South
and Central America
|
36,995
|
36,207
|
38,245
|
||||||
Europe
|
245,115
|
196,602
|
177,914
|
||||||
West
Africa
|
112,343
|
95,430
|
81,913
|
||||||
Southeast
Asia
|
60,034
|
51,317
|
42,732
|
||||||
Other
International
|
36,696
|
26,277
|
21,450
|
||||||
EH
Centralized Operations
|
27,476
|
35,761
|
41,448
|
||||||
Intrasegment
eliminations
|
(12,058
|
)
|
(10,104
|
)
|
(7,624
|
)
|
|||
Total
Helicopter Services
|
717,369
|
617,255
|
545,188
|
||||||
Production
Management Services
|
60,642
|
62,843
|
55,075
|
||||||
Gain
on disposal of assets
|
(10,618
|
)
|
(102
|
)
|
(8,039
|
)
|
|||
Corporate
(6)
|
25,713
|
24,280
|
|
11,787
|
|||||
Intersegment
eliminations
|
(10,548
|
)
|
(9,131
|
)
|
(7,973
|
)
|
|||
Consolidated
total
|
$
|
782,558
|
$
|
695,145
|
$
|
596,038
|
Operating
income: (2)
|
|||||||||
Helicopter
Services:
|
|||||||||
North
America
|
$
|
29,210
|
$
|
30,717
|
$
|
19,372
|
|||
South
and Central America
|
15,825
|
6,662
|
14,353
|
||||||
Europe
|
52,819
|
48,692
|
45,923
|
||||||
West
Africa
|
18,798
|
11,981
|
12,520
|
||||||
Southeast
Asia
|
13,370
|
9,851
|
10,291
|
||||||
Other
International
|
9,309
|
9,062
|
(106
|
)
|
|||||
EH
Centralized Operations
|
(13,580
|
)
|
(25,012
|
)
|
(26,588
|
)
|
|||
Total
Helicopter Services
|
125,751
|
91,953
|
75,765
|
||||||
Production
Management Services
|
4,172
|
5,327
|
3,907
|
||||||
Gain
on disposal of assets
|
10,618
|
102
|
8,039
|
||||||
Corporate
(6)
|
(25,238
|
)
|
(23,587
|
)
|
(10,103
|
)
|
|||
Consolidated
operating income
|
115,303
|
73,795
|
77,608
|
||||||
Earnings
from unconsolidated affiliates
|
11,423
|
6,758
|
9,600
|
||||||
Interest
income
|
8,950
|
4,159
|
3,188
|
||||||
Interest
expense
|
(10,940
|
)
|
(14,689
|
)
|
(15,665
|
)
|
|||
Other
income (expense), net
(7)
|
(8,998
|
)
|
4,612
|
(1,126
|
)
|
||||
Income
before provision for income taxes and minority interest
|
115,738
|
74,635
|
73,605
|
||||||
Provision
for income taxes
(8)
|
(40,366
|
)
|
(16,607
|
)
|
(21,835
|
)
|
|||
Minority
interest
|
(1,200
|
)
|
(219
|
)
|
(210
|
)
|
|||
Net
income
|
$
|
74,172
|
$
|
57,809
|
$
|
51,560
|
Operating
margin: (2)
(9)
|
|||||||||||
Helicopter
Services:
|
|||||||||||
North
America
|
12.2
|
%
|
14.2
|
%
|
11.5
|
|
%
|
||||
South
and Central America
|
30.0
|
%
|
15.5
|
%
|
27.3
|
|
%
|
||||
Europe
|
17.7
|
%
|
19.9
|
%
|
|
20.5
|
|
%
|
|||
West
Africa
|
14.3
|
%
|
11.2
|
%
|
13.3
|
|
%
|
||||
Southeast
Asia
|
18.2
|
%
|
16.1
|
%
|
19.4
|
|
%
|
||||
Other
International
|
20.2
|
%
|
25.6
|
%
|
(0.5
|
)
|
%
|
||||
Total
Helicopter Services
|
14.9
|
%
|
13.0
|
%
|
12.2
|
|
%
|
||||
Production
Management Services
|
6.4
|
%
|
7.8
|
%
|
6.6
|
|
%
|
||||
Consolidated
total
|
12.8
|
%
|
9.6
|
%
|
11.5
|
|
%
|
(1)
|
Our
presentation of flight hours for North America has been changed from
reports for fiscal years 2006 and 2005 to reflect total flight hours,
which is consistent with the presentation of flight hours for our
other
business units. North America flight hours in those prior
reports reflected only billed hours.
|
(2)
|
See
discussion of changes in the manner in which intercompany lease charges
and depreciation are presented within our segments in Note 10 in
the
“Notes to Consolidated Financial Statements” included elsewhere in this
Annual Report.
|
(3)
|
Includes
reimbursable revenue of $86.2 million, $62.9 million and $53.6 million
for
fiscal years 2007, 2006, and 2005, respectively.
|
(4)
|
Includes
reimbursable revenue of $9.7 million, $17.3 million and $11.1 million
for
fiscal years 2007, 2006, and 2005, respectively.
|
(5)
|
Operating
expenses include depreciation and amortization in the following amounts
for the periods presented:
|
Fiscal
Year Ended March 31,
|
||||||||||
2007
|
2006
|
2005
|
||||||||
(In
thousands)
|
||||||||||
Helicopter
Services:
|
||||||||||
North
America
|
$
|
11,553
|
$
|
12,436
|
$
|
11,460
|
||||
South
and Central America
|
3,891
|
3,661
|
4,281
|
|||||||
Europe
|
11,671
|
10,803
|
11,028
|
|||||||
West
Africa
|
6,601
|
5,741
|
5,049
|
|||||||
Southeast
Asia
|
3,497
|
3,681
|
3,198
|
|||||||
Other
International
|
3,511
|
3,031
|
2,607
|
|||||||
EH
Centralized Operations
|
1,510
|
2,612
|
2,768
|
|||||||
Total
Helicopter Services
|
42,234
|
41,965
|
40,391
|
|||||||
Production
Management Services
|
184
|
196
|
194
|
|||||||
Corporate
|
225
|
95
|
108
|
|||||||
Consolidated
total
|
$
|
42,643
|
$
|
42,256
|
$
|
40,693
|
(6)
|
Includes
professional fees in connection with the Internal Review of $3.1
million,
$10.5 million and $2.2 million for fiscal years 2007, 2006 and 2005,
respectively.
|
(7)
|
Includes
foreign currency transaction losses of $9.8 million and $1.3 million
for
fiscal years 2007 and 2005, respectively, and foreign currency transaction
gains of $5.4 million for fiscal year 2006.
|
(8)
|
Includes
$2.5 million in additional tax expense during the fiscal year 2007
recorded as a result of the sale of the assets of Turbo in December
2006
(See “Fiscal Year 2007 Compared to Fiscal Year 2006 — Helicopter Services
— North America” below).
|
(9)
|
Operating
margin is calculated as gross revenue less operating expense divided
by
gross revenue.
|
Fiscal
Year Ended March 31,
|
||||||||
2007
|
2006
|
2005
|
||||||
Number
of aircraft delivered:
|
||||||||
New:
|
||||||||
Small
|
3
|
10
|
7
|
|||||
Medium
|
17
|
9
|
4
|
|||||
Large
|
5
|
2
|
—
|
|||||
Total
new
aircraft
|
25
|
21
|
11
|
|||||
Used:
|
||||||||
Small
|
1
|
5
|
—
|
|||||
Medium
|
—
|
—
|
1
|
|||||
Large
|
—
|
—
|
6
|
|||||
Total
used
aircraft
|
1
|
5
|
7
|
|||||
Total
aircraft
|
26
|
26
|
18
|
|||||
Capital
expenditures (in thousands):
|
||||||||
Aircraft
and related equipment
(1)
|
$
|
294,444
|
$
|
141,166
|
$
|
86,145
|
||
Other
|
10,332
|
13,096
|
3,878
|
|||||
Total
capital
expenditures
|
$
|
304,776
|
$
|
154,262
|
$
|
90,023
|
(1)
|
Includes
expenditures financed with $3.2 million of short-term notes during
fiscal
year 2006.
|
Fiscal
Year ending March 31
|
||||
2008
|
$
|
4,852
|
||
2009
|
5,104
|
|||
2010
|
2,631
|
|||
2011
|
2,336
|
|||
2012
|
2,301
|
|||
Thereafter
|
241,858
|
|||
$
|
259,082
|
Fiscal
Year Ending March 31,
|
|||||||||||||||||||||||
2008
|
2009
|
2010
|
2011
|
2012-2013
|
Total
|
||||||||||||||||||
Commitments
as of March 31, 2007:
|
|||||||||||||||||||||||
Number
of aircraft:
|
|||||||||||||||||||||||
Small
|
2
|
—
|
—
|
—
|
—
|
2
|
|||||||||||||||||
Medium
|
12
|
3
|
—
|
—
|
—
|
15
|
|||||||||||||||||
Large
|
8
|
6
|
—
|
—
|
—
|
14
|
|||||||||||||||||
22
|
(1)
|
9
|
(2)
|
—
|
—
|
—
|
31
|
||||||||||||||||
Related
expenditures
(in
thousands)
(3)
|
$
|
242,306
|
$
|
89,330
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
331,636
|
|||||||||||
Options
as of March 31, 2007:
|
|||||||||||||||||||||||
Number
of aircraft:
|
|||||||||||||||||||||||
Medium
|
—
|
1
|
9
|
8
|
12
|
30
|
|||||||||||||||||
Large
|
—
|
5
|
11
|
6
|
—
|
22
|
|||||||||||||||||
—
|
6
|
20
|
14
|
12
|
52
|
||||||||||||||||||
Related
expenditures
(in
thousands)
(3)
|
$
|
46,107
|
$
|
191,063
|
$
|
288,075
|
$
|
131,811
|
$
|
82,605
|
$
|
739,661
|
(1)
|
Signed
customer contracts are currently in place for 11 of these 22
aircraft.
|
(2)
|
No
signed customer contracts are currently in place for these 9 aircraft.
|
(3)
|
Includes
progress payments on aircraft scheduled to be delivered in future
periods.
|
Three
Months Ended
|
||||||||||||||||||||||||||||||||
June
30, 2006
|
September
30, 2006
|
December
31, 2006
|
March
31, 2007
|
|||||||||||||||||||||||||||||
Orders
|
Options
|
Orders
|
Options
|
Orders
|
Options
|
Orders
|
Options
|
|||||||||||||||||||||||||
Beginning
of quarter
|
53
|
37
|
51
|
37
|
47
|
37
|
42
|
35
|
||||||||||||||||||||||||
Aircraft
delivered
|
(2
|
)
|
—
|
(4
|
)
|
—
|
(10
|
)
|
—
|
(9
|
)
|
—
|
||||||||||||||||||||
Aircraft
ordered
|
—
|
—
|
—
|
—
|
8
|
(5
|
)
|
7
|
(4
|
)
|
||||||||||||||||||||||
New
options
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
18
|
||||||||||||||||||||||||
Orders
converted to options
|
—
|
—
|
—
|
—
|
(3
|
)
|
3
|
(9
|
)
|
9
|
||||||||||||||||||||||
Expired
options
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(6
|
)
|
|||||||||||||||||||||||
End
of quarter
|
51
|
37
|
47
|
37
|
42
|
35
|
31
|
52
|
Payments
Due by Period
|
|||||||||||||||||||
Fiscal
Year Ending March 31,
|
|||||||||||||||||||
Total
|
2008
|
2009
- 2010
|
2011
- 2012
|
2013
and
beyond
|
|||||||||||||||
(In
thousands)
|
|||||||||||||||||||
Contractual
obligations:
|
|||||||||||||||||||
Long-term
debt and short-term borrowings:
|
|||||||||||||||||||
Principal
|
$
|
259,082
|
$
|
4,852
|
$
|
7,735
|
$
|
4,637
|
$
|
241,858
|
|||||||||
Interest
|
94,142
|
15,557
|
30,494
|
29,768
|
18,323
|
||||||||||||||
Aircraft
operating leases (1)
|
62,150
|
6,300
|
12,830
|
14,471
|
28,549
|
||||||||||||||
Other
operating leases (2)
|
15,078
|
3,080
|
4,272
|
3,579
|
4,147
|
||||||||||||||
Pension
obligations
(3)
|
176,720
|
14,370
|
28,741
|
28,741
|
104,868
|
||||||||||||||
Aircraft
purchase obligations
|
331,636
|
242,306
|
89,330
|
—
|
—
|
||||||||||||||
Other
purchase obligations
(4)
|
44,154
|
36,321
|
5,500
|
2,333
|
—
|
||||||||||||||
Total
contractual cash obligations
|
$
|
982,962
|
$
|
322,786
|
$
|
178,902
|
$
|
83,529
|
$
|
397,745
|
|||||||||
Other
commercial commitments:
|
|||||||||||||||||||
Debt
guarantees
(5)
|
$
|
31,346
|
$
|
—
|
$
|
11,716
|
$
|
19,630
|
$
|
—
|
|||||||||
Other
guarantees
(6)
|
5,247
|
3,508
|
1,739
|
—
|
—
|
||||||||||||||
Letters
of credit (7)
|
4,690
|
4,690
|
—
|
—
|
—
|
||||||||||||||
Total
other commercial commitments
|
$
|
41,283
|
$
|
8,198
|
$
|
13,455
|
$
|
19,630
|
$
|
—
|
(1)
|
Represents
nine aircraft that we sold on December 30, 2005 for $68.6 million
in
aggregate to a subsidiary of General Electric Capital Corporation
and then
leased back under separate operating leases with terms of ten years
expiring in January 2016. A deferred gain on the sale of the
aircraft was recorded in the amount of approximately $10.8 million
in
aggregate, which is being amortized over the lease
term.
|
(2)
|
Represents
minimum rental payments required under operating leases that have
initial
or remaining non-cancelable lease terms in excess of one
year.
|
(3)
|
Represents
expected funding for pension benefits in future periods. These
amounts are undiscounted and are based on the expectation that the
pension
will be fully funded in approximately 12 years. As of December
31, 2007, we had recorded on our balance sheet a $113.1 million pension
liability associated with this obligation. Also, the timing of
the funding is dependent on actuarial valuations and resulting
negotiations with the plan trustees.
|
(4)
|
Other
purchase obligations primarily represent unfilled purchase orders
for
aircraft parts, commitments associated with upgrading facilities
at our
bases and amounts committed under a supply agreement (See Note 2
in the
“Notes to Consolidated Financial Statements” included elsewhere in this
Annual Report).
|
(5)
|
We
have guaranteed the repayment of up to £10 million ($19.6 million) of the
debt of FBS and $11.7 million of the debt of RLR, both unconsolidated
affiliates. Additionally, the bank has an option to put to us
the remaining amount of the RLR debt of $12.2 million, which we have
guaranteed in the event of default of our partner in RLR. This
amount is not included in the table above.
|
(6)
|
Relates
to an indemnity agreement between us and Afianzadora Sofimex, S.A.
to
support issuance of surety bonds on behalf of HC from time to
time. As of March 31, 2007, surety bonds denominated in Mexican
pesos with an aggregate value of 38.7 million Mexican pesos ($3.5
million)
and surety bonds denominated in U.S. dollars with an aggregate value
of
$1.7 million were outstanding.
|
(7)
|
In
January 2006, a letter of credit was issued against the revolving
credit
facility for $2.5 million in conjunction with the additional collateral
for the sale and leaseback financing discussed in Note 6 in the “Notes to
Consolidated Financial Statements” included in the Annual
Report. The letter of credit expires January 27,
2008.
|
·
|
Cash
and cash equivalents held in U.S. dollar-denominated
accounts. Beginning in July 2006, we reduced a portion of
Bristow Aviation’s U.S. dollar-denominated cash
balances.
|
·
|
U.S.
dollar-denominated intercompany loans and U.S. dollar-denominated
receivables. On August 14, 2006, we entered into a derivative
contract to mitigate our exposure to exchange rate fluctuations on
our
U.S. dollar-denominated intercompany loans. This derivative
contract provided us with a call option on £12.9 million and a put option
on $24.5 million, with a strike price of 1.895 U.S. dollars per British
pound sterling, and was exercised by us prior to the scheduled expiration
on November 14, 2006, resulting in a net loss of $0.3
million. On November 14, 2006, we entered into another
derivative contract for the same amount and strike price that expired
on
May 14, 2007. The fair value of this contract, which totaled
$0.9 million as of March 31, 2007, is recorded as a derivative asset
within other assets on our balance sheet. The change in fair
value of this contract from November 14, 2006 to March 31, 2007 resulted
in a gain of $0.5 million, which served to offset a portion of the
foreign
currency transaction losses recorded during fiscal year
2007. This contract expired on May 14, 2007, resulting in a
cumulative gain of $0.6 million, of which $0.1 million related to
the
period subsequent to March 31, 2007. On April 2, 2007, primarily
as a
result of changes in the manner in which certain of our consolidated
subsidiaries create and manage intercompany balances, we changed
the
functional currency of two of our consolidated subsidiaries, Bristow
Helicopters (International) Ltd. and Caledonia Helicopters Ltd.,
from the
British pound sterling to the U.S. dollar. As a result of this change,
our
exposure to U.S. dollar-denominated intercompany loans and advances
across
our organization has been significantly
reduced.
|
·
|
Euro-
and Nigerian Naira-denominated intercompany loans. The economic
effect of the foreign currency transaction losses during fiscal
year 2007
was offset by a corresponding benefit during those periods reflected
as a
cumulative translation adjustment in stockholders’ investment on our
condensed consolidated balance sheet. Additionally, in April
2007 we significantly reduced our Euro-denominated intercompany
loans,
thereby reducing our exposure to fluctuations in exchange rates
for this
foreign currency. We are evaluating alternatives to further
mitigate these remaining foreign currency exchange
exposures.
|
Fiscal
Year Ended March 31,
|
|||||||||
2007
|
2006
|
2005
|
|||||||
High
|
$
|
1.99
|
$
|
1.92
|
$
|
1.95
|
|||
Average
|
1.89
|
1.79
|
1.85
|
||||||
Low
|
1.74
|
1.71
|
1.75
|
Fiscal
Year Ended March 31,
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
(In
thousands, except per share amounts)
|
||||||||||||
Gross
revenue:
|
||||||||||||
Operating
revenue from non-affiliates
|
$
|
753,744
|
$
|
636,887
|
$
|
545,233
|
||||||
Operating
revenue from affiliates
|
48,170
|
51,832
|
63,689
|
|||||||||
Reimbursable
revenue from non-affiliates
|
90,020
|
75,861
|
61,969
|
|||||||||
Reimbursable
revenue from affiliates
|
5,927
|
4,360
|
2,755
|
|||||||||
897,861
|
768,940
|
673,646
|
||||||||||
Operating
expense:
|
||||||||||||
Direct
cost
|
586,506
|
512,518
|
454,836
|
|||||||||
Reimbursable
expense
|
94,685
|
78,525
|
63,303
|
|||||||||
Depreciation
and amortization
|
42,643
|
42,256
|
40,693
|
|||||||||
General
and administrative
|
69,342
|
61,948
|
45,245
|
|||||||||
Gain
on disposal of assets
|
(10,618
|
)
|
(102
|
)
|
(8,039
|
)
|
||||||
782,558
|
695,145
|
596,038
|
||||||||||
Operating
income
|
115,303
|
73,795
|
77,608
|
|||||||||
Earnings
from unconsolidated affiliates, net of losses
|
11,423
|
6,758
|
9,600
|
|||||||||
Interest
income
|
8,950
|
4,159
|
3,188
|
|||||||||
Interest
expense
|
(10,940
|
)
|
(14,689
|
)
|
(15,665
|
)
|
||||||
Other
income (expense), net
|
(8,998
|
)
|
4,612
|
(1,126
|
)
|
|||||||
Income
before provision for income taxes and minority interest
|
115,738
|
74,635
|
73,605
|
|||||||||
Provision
for income taxes
|
(40,366
|
)
|
(16,607
|
)
|
(21,835
|
)
|
||||||
Minority
interest
|
(1,200
|
)
|
(219
|
)
|
(210
|
)
|
||||||
Net
income
|
74,172
|
57,809
|
51,560
|
|||||||||
Preferred
stock dividends
|
(6,633
|
)
|
—
|
—
|
||||||||
Net
income available to common stockholders
|
$
|
67,539
|
$
|
57,809
|
$
|
51,560
|
||||||
Earnings
per common share:
|
||||||||||||
Basic
|
$
|
2.87
|
$
|
2.48
|
$
|
2.24
|
||||||
Diluted
|
$
|
2.74
|
$
|
2.45
|
$
|
2.21
|
March
31,
|
|||||||||
2007
|
2006
|
||||||||
(In
thousands)
|
|||||||||
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
|
|||||||
Investment
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 liability
|
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 (Note 6)
|
|||||||||
Stockholders’
investment:
|
|||||||||
5.50%
mandatory convertible preferred stock, $.01 par value, authorized
and
outstanding 4,600,000 shares; entitled in liquidation to $230 million;
net
of offering costs of $7.4 million
|
222,554
|
—
|
|||||||
Common
stock, $.01 par value, authorized 35,000,000 shares: outstanding
23,585,370 as of March 31, 2007 and 23,385,473 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
|
Fiscal
Year Ended March 31,
|
|||||||||||
2007
|
2006
|
2005
|
|||||||||
(In
thousands)
|
|||||||||||
Cash
flows from operating activities:
|
|||||||||||
Net
income
|
$
|
74,172
|
$
|
57,809
|
$
|
51,560
|
|||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
|||||||||||
Depreciation
and amortization
|
42,643
|
42,256
|
40,693
|
||||||||
Deferred
income taxes
|
21,031
|
1,488
|
7,025
|
||||||||
Gain
on asset dispositions
|
(10,618
|
)
|
(102
|
)
|
(8,039
|
)
|
|||||
Stock-based
compensation expense
|
4,903
|
613
|
244
|
||||||||
Equity
in earnings from unconsolidated affiliates under (over) dividends
received
|
(3,754
|
)
|
(337
|
)
|
9,802
|
||||||
Minority
interest in earnings
|
1,200
|
219
|
210
|
||||||||
Tax
benefit related to exercise of stock options
|
(1,132
|
)
|
—
|
—
|
|||||||
Increase
(decrease) in cash resulting from changes in:
|
|||||||||||
Accounts
receivable
|
(1,428
|
)
|
(34,718
|
)
|
(8,612
|
)
|
|||||
Inventories
|
(10,225
|
)
|
(12,518
|
)
|
(5,127
|
)
|
|||||
Prepaid
expenses and other
|
(6,634
|
)
|
(5,925
|
)
|
(724
|
)
|
|||||
Accounts
payable
|
(10,688
|
)
|
15,944
|
6,889
|
|||||||
Accrued
liabilities
|
5,771
|
(35,397
|
)
|
11,090
|
|||||||
Other
liabilities and deferred credits
|
(811
|
)
|
9,933
|
(538
|
)
|
||||||
Net
cash provided by operating activities
|
104,430
|
39,265
|
104,473
|
||||||||
Cash
flows from investing activities:
|
|||||||||||
Capital
expenditures
|
(304,776
|
)
|
(139,572
|
)
|
(78,089
|
)
|
|||||
Proceeds
from asset dispositions
|
40,441
|
85,392
|
41,722
|
||||||||
Acquisition,
net of cash received
|
—
|
—
|
(1,986
|
)
|
|||||||
Investments
|
—
|
—
|
(8,186
|
)
|
|||||||
Net
cash used in investing
activities
|
(264,335
|
)
|
(54,180
|
)
|
(46,539
|
)
|
|||||
Cash
flows from financing activities:
|
|||||||||||
Issuance
of preferred stock
|
222,554
|
—
|
—
|
||||||||
Preferred
stock dividends paid
|
(6,107
|
)
|
—
|
—
|
|||||||
Repayment
of debt and debt redemption premiums
|
(5,716
|
)
|
(4,070
|
)
|
(2,427
|
)
|
|||||
Debt
issuance costs
|
—
|
(2,564
|
)
|
—
|
|||||||
Partial
prepayment of pull/call obligation
|
(130
|
)
|
(129
|
)
|
(86
|
)
|
|||||
Repurchase
of shares from minority interest
|
—
|
—
|
(7,389
|
)
|
|||||||
Issuance
of common stock
|
3,949
|
1,369
|
12,665
|
||||||||
Tax
benefit related to exercise of stock options
|
1,132
|
—
|
—
|
||||||||
Net
cash (used in) provided by financing activities
|
215,682
|
(5,394
|
)
|
2,763
|
|||||||
Effect
of exchange rate changes on cash and cash equivalents
|
5,929
|
(3,649
|
)
|
64
|
|||||||
Net
increase (decrease) in cash and cash equivalents
|
61,706
|
(23,958
|
)
|
60,761
|
|||||||
Cash
and cash equivalents at beginning of period
|
122,482
|
146,440
|
85,679
|
||||||||
Cash
and cash equivalents at end of period
|
$
|
184,188
|
$
|
122,482
|
$
|
146,440
|
|||||
Supplemental
disclosure of non-cash investing activities:
|
|||||||||||
Non-monetary
exchange of assets
|
$
|
—
|
$
|
11,511
|
$
|
11,934
|
|||||
Capital
expenditures funded by short-term notes
|
$
|
—
|
$
|
3,179
|
$
|
—
|
|||||
Recapitalization
of Hemisco funded by note payable
|
$
|
—
|
$
|
4,380
|
$
|
—
|
Fiscal
Year Ended March 31,
|
||||||||||
2007
|
2006
|
2005
|
||||||||
(In
thousands, except share amounts)
|
||||||||||
5.50%
mandatory convertible Preferred Stock (shares):
|
||||||||||
Balance
– beginning of fiscal year
|
—
|
—
|
—
|
|||||||
Preferred
Stock issued
|
4,600,000
|
—
|
—
|
|||||||
Balance
– end of fiscal year
|
4,600,000
|
—
|
—
|
|||||||
5.50%
mandatory convertible Preferred Stock ($.01 Par):
|
||||||||||
Balance
– beginning of fiscal year
|
$
|
—
|
$
|
—
|
$
|
—
|
||||
Preferred
Stock issued, net of offering costs of $7.4 million
|
222,554
|
—
|
—
|
|||||||
Balance
– end of fiscal year
|
$
|
222,554
|
$
|
—
|
$
|
—
|
||||
Common
stock (shares, exclusive of treasury shares):
|
||||||||||
Balance
– beginning of fiscal year
|
23,385,473
|
23,314,708
|
22,631,221
|
|||||||
Stock
options exercised
|
196,672
|
70,765
|
683,487
|
|||||||
Issuance
of common stock for restricted stock units which vested
|
2,892
|
—
|
—
|
|||||||
Balance
– end of fiscal year
|
23,585,037
|
23,385,473
|
23,314,708
|
|||||||
Common
stock ($.01 Par):
|
||||||||||
Balance
– beginning of fiscal year
|
$
|
234
|
$
|
233
|
$
|
226
|
||||
Stock
options exercised
|
2
|
1
|
7
|
|||||||
Balance
– end of fiscal year
|
$
|
236
|
$
|
234
|
$
|
233
|
||||
Additional
paid in capital:
|
||||||||||
Balance
– beginning of fiscal year
|
$
|
158,762
|
$
|
157,100
|
$
|
141,384
|
||||
Stock
options exercised
|
3,946
|
1,368
|
12,777
|
|||||||
Tax
benefit related to the exercise of employee stock options
|
1,131
|
294
|
2,939
|
|||||||
Stock-based
compensation expense
|
4,903
|
—
|
—
|
|||||||
Reclassified
prior year stock-based compensation liability
|
611
|
—
|
—
|
|||||||
Balance
– end of fiscal year
|
$
|
169,353
|
$
|
158,762
|
$
|
157,100
|
||||
Retained
earnings:
|
||||||||||
Balance
– beginning of fiscal year
|
$
|
447,524
|
$
|
389,715
|
$
|
338,155
|
||||
Net
income
|
74,172
|
57,809
|
51,560
|
|||||||
Preferred
stock dividends declared
|
(6,107
|
)
|
—
|
—
|
||||||
Balance
– end of fiscal year
|
$
|
515,589
|
$
|
447,524
|
$
|
389,715
|
||||
Accumulated
other comprehensive loss:
|
||||||||||
Balance
– beginning of fiscal year
|
$
|
(68,823
|
)
|
$
|
(54,055
|
)
|
$
|
(49,813
|
)
|
|
Other
comprehensive income (loss):
|
||||||||||
Translation
adjustments
|
27,084
|
(20,729
|
)
|
7,354
|
||||||
Pension
liability adjustment (1)
|
5,664
|
5,961
|
(11,596
|
)
|
||||||
Total
other comprehensive income (loss)
|
32,748
|
(14,768
|
)
|
(4,242
|
)
|
|||||
Balance
– end of fiscal year
|
$
|
(36,075
|
)
|
$
|
(68,823
|
)
|
$
|
(54,055
|
)
|
|
Comprehensive
income:
|
||||||||||
Net
income
|
$
|
74,172
|
$
|
57,809
|
$
|
51,560
|
||||
Other
comprehensive income (loss)
(1)
|
32,748
|
(14,768
|
)
|
(4,242
|
)
|
|||||
Total
comprehensive income
|
$
|
106,920
|
$
|
43,041
|
$
|
47,318
|
(1)
|
Net
of taxes of $(2.6) million, $(3.0) million and $4.8 million for
the fiscal
years ended March 31, 2007, 2006 and 2005,
respectively.
|
·
|
Taxes;
|
·
|
Property
and equipment;
|
·
|
Revenue
recognition;
|
·
|
Pension
and other postretirement benefits;
|
·
|
Allowance
for doubtful accounts;
|
·
|
Inventory
reserve;
|
·
|
Insurance;
|
·
|
Contingent
liabilities;
|
·
|
Goodwill
impairment; and
|
·
|
Stock
option and restricted stock unit
valuation.
|
·
|
Cash
and cash equivalents held in U.S. dollar-denominated
accounts. Beginning in July 2006, we reduced a portion of
Bristow Aviation’s U.S. dollar-denominated cash
balances.
|
·
|
U.S.
dollar-denominated intercompany loans and U.S. dollar-denominated
receivables. On August 14, 2006, we entered into a derivative
contract to mitigate our exposure to exchange rate fluctuations on
our
U.S. dollar-denominated intercompany loans. This derivative
contract provided us with a call option on £12.9 million and a put option
on $24.5 million, with a strike price of 1.895 U.S. dollars per British
pound sterling, and was exercised by us prior to the scheduled expiration
on November 14, 2006, resulting in a net loss of $0.3
million. On November 14, 2006, we entered into another
derivative contract for the same amount and strike price that expired
on
May 14, 2007. The fair value of this contract, which totaled
$0.9 million as of March 31, 2007, is recorded as a derivative asset
within other assets on our balance sheet. The change in fair
value of this contract from November 14, 2006 to March 31, 2007 resulted
in a gain of $0.5 million, which served to offset a portion of the
foreign
currency transaction losses recorded during fiscal year
2007. This contract expired on May 14, 2007, resulting in a
cumulative gain of $0.6 million, of which $0.1 million related to
the
period subsequent to March 31, 2007. On April 2, 2007,
primarily as a result of changes in the manner in which certain of
our
consolidated subsidiaries create and manage intercompany balances,
we
changed the functional currency of two of our consolidated subsidiaries,
Bristow Helicopters (International) Ltd. and Caledonia Helicopters
Ltd.,
from the British pound sterling to the U.S. dollar. As a result
of this change, our exposure to U.S. dollar denominated intercompany
loans
and advances across our organization has been significantly
reduced.
|
·
|
Euro-
and Nigerian Naira-denominated intercompany loans. The economic
effect of the foreign currency transaction losses during fiscal year
2007
was offset by a corresponding benefit during those periods reflected
as a
cumulative translation adjustment in stockholders’ investment on our
condensed consolidated balance sheet. Additionally, in April
2007 we significantly reduced our Euro-denominated intercompany loans,
thereby reducing our exposure to fluctuations in exchange rates for
this
foreign currency. We are evaluating alternatives to further
mitigate these remaining foreign currency exchange
exposures.
|
Fiscal
Year Ended March 31,
|
|||||||||||
2007
|
2006
|
2005
|
|||||||||
High
|
$
|
1.99
|
$
|
1.92
|
$
|
1.95
|
|||||
Average
|
1.89
|
1.79
|
1.85
|
||||||||
Low
|
1.74
|
1.71
|
1.75
|
July
15, 2004
|
||||
(In
thousands)
|
||||
Current
assets
|
$
|
2,565
|
||
Property
and equipment
|
11,932
|
|||
Other
assets
|
100
|
|||
Total
assets acquired
|
14,597
|
|||
Current
liabilities
|
(2,422
|
)
|
||
Long
term debt
|
(7,757
|
)
|
||
Minority
interest
|
(2,398
|
)
|
||
Total
liabilities assumed
|
(12,577
|
)
|
||
Net
assets acquired
|
$
|
2,020
|
Fiscal
Year Ended March 31,
|
|||||||||||||
2007
|
2006
|
2005
|
|||||||||||
(In
thousands)
|
|||||||||||||
Balance
– beginning of fiscal year
|
$
|
1,804
|
$
|
2,130
|
$
|
9,385
|
|||||||
Payments
to minority interest shareholders
|
(157
|
)
|
(156
|
)
|
(7,501
|
)
|
|||||||
Minority
interest expense
|
163
|
155
|
210
|
||||||||||
Currency
translation
|
232
|
(325
|
)
|
36
|
|||||||||
Balance
– end of fiscal year
|
$
|
2,042
|
$
|
1,804
|
$
|
2,130
|
Percentage
|
March
31,
|
|||||||||||
Ownership
|
2007
|
2006
|
||||||||||
Cost
Method:
|
||||||||||||
HC
|
49
|
%
|
$
|
7,017
|
$
|
7,017
|
||||||
PAS
|
25
|
%
|
6,286
|
6,286
|
||||||||
Aeroleo
|
50
|
%
|
(1)
|
—
|
—
|
|||||||
Other
|
1,046
|
725
|
||||||||||
Equity
Method:
|
||||||||||||
RLR
|
49
|
%
|
1,724
|
1,911
|
||||||||
HLA
|
50
|
%
|
150
|
150
|
||||||||
Norsk
|
49
|
%
|
10,323
|
7,948
|
||||||||
FB
Entities
|
50
|
%
|
20,011
|
15,542
|
||||||||
Other
|
271
|
333
|
||||||||||
Total
|
$
|
46,828
|
$
|
39,912
|
|
(1)
|
Includes
a 30% interest in non-voting equity. Our investment in the
entity was sold in March 2007.
|
Fiscal
Year Ended March 31,
|
|||||||||
2007
|
2006
|
2005
|
|||||||
HC
|
$
|
—
|
$
|
—
|
$
|
610
|
|||
PAS
|
2,500
|
2,500
|
2,500
|
||||||
Aeroleo
|
—
|
—
|
250
|
||||||
Other
|
137
|
180
|
—
|
||||||
$
|
2,637
|
$
|
2,680
|
$
|
3,360
|
March
31,
|
|||||||
2007
|
2006
|
||||||
(Unaudited)
|
(Unaudited)
|
||||||
Current
assets
|
$
|
129,428
|
$
|
95,570
|
|||
Non-current
assets
|
304,940
|
309,036
|
|||||
Total
assets
|
$
|
434,368
|
$
|
404,606
|
|||
Current
liabilities
|
$
|
80,191
|
$
|
68,604
|
|||
Non-current
liabilities
|
292,049
|
293,009
|
|||||
Equity
|
62,128
|
42,993
|
|||||
Total
liabilities and
equity
|
$
|
434,368
|
$
|
404,606
|
Fiscal
Year Ended March 31,
|
|||||||||||
2007
|
2006
|
2005
|
|||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||
Revenue
|
$
|
318,589
|
$
|
248,576
|
$
|
182,986
|
|||||
Gross
profit
|
$
|
45,906
|
$
|
31,590
|
$
|
37,320
|
|||||
Net
income
|
$
|
18,357
|
$
|
8,282
|
$
|
14,889
|
March
31,
|
||||||||
2007
|
2006
|
|||||||
6
1/8% Senior Notes
due
2013
|
$
|
230,000
|
$
|
230,000
|
||||
Limited
recourse term
loans
|
18,848
|
20,023
|
||||||
Hemisco
Helicopters
International, Inc. note
|
4,380
|
4,380
|
||||||
Short-term
advance from
customer
|
1,400
|
1,400
|
||||||
Note
to Sakhalin Aviation
Services Ltd.
|
389
|
647
|
||||||
Sakhalin
debt.
|
4,065
|
5,667
|
||||||
Short-term
notes
|
—
|
3,179
|
||||||
Total
debt
|
259,082
|
265,296
|
||||||
Less
short-term borrowings and current maturities
of long-term debt
|
(4,852
|
)
|
(17,634
|
)
|
||||
Total
long-term debt
|
$
|
254,230
|
$
|
247,662
|
Fiscal
Year ending March 31
|
||||
2008
|
$
|
4,852
|
||
2009
|
5,104
|
|||
2010
|
2,631
|
|||
2011
|
2,336
|
|||
2012
|
2,301
|
|||
Thereafter
|
241,858
|
|||
$
|
259,082
|
Fiscal
Year Ending March 31,
|
|||||||||||||||||||||||
2008
|
2009
|
2010
|
2011
|
2012-2013
|
Total
|
||||||||||||||||||
Commitments
as of March 31, 2007:
|
|||||||||||||||||||||||
Number
of aircraft:
|
|||||||||||||||||||||||
Small
|
2
|
—
|
—
|
—
|
—
|
2
|
|||||||||||||||||
Medium
|
12
|
3
|
—
|
—
|
—
|
15
|
|||||||||||||||||
Large
|
8
|
6
|
—
|
—
|
—
|
14
|
|||||||||||||||||
22
|
(1)
|
9
|
(2)
|
—
|
—
|
—
|
31
|
||||||||||||||||
Related
expenditures
(in
thousands)
(3)
|
$
|
242,306
|
$
|
89,330
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
331,636
|
|||||||||||
Options
as of March 31, 2007:
|
|||||||||||||||||||||||
Number
of aircraft:
|
|||||||||||||||||||||||
Medium
|
—
|
1
|
9
|
8
|
12
|
30
|
|||||||||||||||||
Large
|
—
|
5
|
11
|
6
|
—
|
22
|
|||||||||||||||||
—
|
6
|
20
|
14
|
12
|
52
|
||||||||||||||||||
Related
expenditures
(in
thousands)
(3)
|
$
|
46,107
|
$
|
191,063
|
$
|
288,075
|
$
|
131,811
|
$
|
82,605
|
$
|
739,661
|
(1)
|
Signed
customer contracts are currently in place for 11 of these 22
aircraft.
|
(2)
|
No
signed customer contracts are currently in place for these 9 aircraft.
|
(3)
|
Includes
progress payments on aircraft scheduled to be delivered in future
periods.
|
Three
Months Ended
|
||||||||||||||||||||||||||||||||
June
30, 2006
|
September
30, 2006
|
December
31, 2006
|
March
31, 2007
|
|||||||||||||||||||||||||||||
Orders
|
Options
|
Orders
|
Options
|
Orders
|
Options
|
Orders
|
Options
|
|||||||||||||||||||||||||
Beginning
of quarter
|
53
|
37
|
51
|
37
|
47
|
37
|
42
|
35
|
||||||||||||||||||||||||
Aircraft
delivered
|
(2
|
)
|
—
|
(4
|
)
|
—
|
(10
|
)
|
—
|
(9
|
)
|
—
|
||||||||||||||||||||
Aircraft
ordered
|
—
|
—
|
—
|
—
|
8
|
(5
|
)
|
7
|
(4
|
)
|
||||||||||||||||||||||
New
options
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
18
|
||||||||||||||||||||||||
Orders
converted to options
|
—
|
—
|
—
|
—
|
(3
|
)
|
3
|
(9
|
)
|
9
|
||||||||||||||||||||||
Expired
options
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(6
|
)
|
|||||||||||||||||||||||
End
of quarter
|
51
|
37
|
47
|
37
|
42
|
35
|
31
|
52
|
Fiscal
year ending March 31,
|
||||
2008
|
$
|
9,380
|
||
2009
|
8,556
|
|||
2010
|
8,546
|
|||
2011
|
8,717
|
|||
2012
|
9,333
|
|||
Thereafter
|
32,696
|
|||
$
|
77,228
|
Amount
of Commitment Expiration Per Period
|
|||||||||||||||||
Total
|
Fiscal
Year 2008
|
Fiscal
Years 2009-2010
|
Fiscal
Years 2011-2012
|
Fiscal
Year 2013 and Thereafter
|
|||||||||||||
(In
thousands)
|
|||||||||||||||||
$
|
36,036
|
$
|
4,690
|
$
|
11,716
|
$
|
19,630
|
$
|
—
|
March
31,
|
||||||||
2007
|
2006
|
|||||||
(In
thousands)
|
||||||||
Deferred
tax assets:
|
||||||||
Foreign
tax credits
|
$
|
35,910
|
$
|
39,010
|
||||
Accrued
pension liability
|
61,658
|
74,445
|
||||||
Maintenance
and repair
|
9,898
|
7,694
|
||||||
Deferred
revenues
|
3,028
|
3,990
|
||||||
Other
|
7,048
|
11,952
|
||||||
Valuation
allowance
|
(9,417
|
)
|
(13,380
|
)
|
||||
Total
deferred tax assets
|
108,125
|
123,711
|
||||||
Deferred
tax liabilities:
|
||||||||
Property
and equipment
|
(169,957
|
)
|
(153,859
|
)
|
||||
Inventories
|
(13,172
|
)
|
(10,559
|
)
|
||||
Prepaid
pension costs
|
—
|
(20,289
|
)
|
|||||
Investments
in unconsolidated affiliates
|
(14,889
|
)
|
(10,367
|
)
|
||||
Other
|
(3,807
|
)
|
(1,943
|
)
|
||||
Total
deferred tax liabilities
|
(201,825
|
)
|
(197,017
|
)
|
||||
Net
deferred tax liabilities
|
$
|
(93,700
|
)
|
$
|
(73,306
|
)
|
Fiscal
Year Generated
|
Amount
of Carryover
|
Expiration
Date
|
|||||
(In
thousands)
|
|||||||
2003
|
$
|
3,336
|
March
31, 2013
|
||||
2004
|
2,140
|
March
31, 2014
|
|||||
Total
carryover to fiscal year 2008
|
$
|
5,476
|
Fiscal
Year Ended March 31,
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
(In
thousands)
|
||||||||||||
Domestic
|
$
|
31,785
|
$
|
9,424
|
$
|
20,375
|
||||||
Foreign
|
83,953
|
65,211
|
53,230
|
|||||||||
Total
|
$
|
115,738
|
$
|
74,635
|
$
|
73,605
|
Fiscal
Year Ended March 31,
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
(In
thousands)
|
||||||||||||
Current:
|
||||||||||||
Domestic
|
$
|
(1,441
|
)
|
$
|
2,966
|
$
|
3,634
|
|||||
Foreign
|
21,824
|
12,225
|
16,361
|
|||||||||
20,383
|
15,191
|
19,995
|
||||||||||
Deferred:
|
||||||||||||
Domestic
|
18,614
|
(1,328
|
)
|
12,710
|
||||||||
Foreign
|
5,332
|
3,616
|
(10,870
|
)
|
||||||||
23,946
|
2,288
|
1,840
|
||||||||||
Increase
(decrease) in valuation allowance
|
(3,963
|
)
|
(872
|
)
|
—
|
|||||||
Total
|
$
|
40,366
|
$
|
16,607
|
$
|
21,835
|
Fiscal
Year Ended March 31,
|
|||||||||||||
2007
|
2006
|
2005
|
|||||||||||
Statutory
rate
|
35.0
|
%
|
35.0
|
%
|
35.0
|
%
|
|||||||
Foreign
earnings taxed at rates other than the U.S. rate
|
10.7
|
%
|
5.1
|
%
|
3.3
|
%
|
|||||||
Foreign
earnings indefinitely reinvested
abroad
|
(8.4
|
)
|
%
|
(22.7
|
)
|
%
|
(8.8
|
)
|
%
|
||||
Foreign
earnings repatriated at reduced U.S.
rate
|
—
|
%
|
5.3
|
%
|
—
|
%
|
|||||||
Change
in valuation
allowance
|
(3.4
|
)
|
%
|
(1.2
|
)
|
%
|
0.0
|
%
|
|||||
State
taxes
provided
|
0.3
|
%
|
1.7
|
%
|
0.4
|
%
|
|||||||
Taxes
related to goodwill recognized upon the disposition of
Turbo
(Note
2)
|
2.2
|
%
|
—
|
%
|
—
|
%
|
|||||||
Other,
net
|
(1.5
|
)
|
%
|
(0.9
|
)
|
%
|
(0.2
|
)
|
%
|
||||
Effective
tax
rate
|
34.9
|
%
|
22.3
|
%
|
29.7
|
%
|
Before
Application
of
SFAS No. 158
|
Adjustments
|
After
Application
of
SFAS No. 158
|
||||||||||
Prepaid
pension cost
|
$
|
50,027
|
$
|
(50,027
|
)
|
$
|
—
|
|||||
Minimum
liability for pension benefits
|
163,096
|
(50,027
|
)
|
113,069
|
||||||||
Accumulated
other comprehensive income
|
163,096
|
—
|
163,096
|
Fiscal
Year Ended
|
|||||||||
March
31,
|
|||||||||
2007
|
2006
|
||||||||
(In
thousands)
|
|||||||||
Change
in benefit obligation:
|
|||||||||
Projected
benefit obligation (PBO) at beginning of period
|
$
|
429,085
|
$
|
422,169
|
|||||
Service
cost
|
261
|
280
|
|||||||
Interest
cost
|
22,703
|
21,326
|
|||||||
Actuarial
loss
|
9,162
|
36,294
|
|||||||
Benefit
payments and
expenses
|
(17,547
|
)
|
(16,466
|
)
|
|||||
Effect
of exchange rate
changes
|
55,723
|
(34,518
|
)
|
||||||
Projected
benefit obligation (PBO) at end of
period
|
$
|
499,387
|
$
|
429,085
|
|||||
Change
in plan assets:
|
|||||||||
Market
value of assets at beginning of
period
|
$
|
329,771
|
$
|
300,713
|
|||||
Actual
return on
assets
|
20,347
|
61,220
|
|||||||
Employer
contributions
|
10,832
|
9,539
|
|||||||
Benefit
payments and
expenses
|
(17,547
|
)
|
(16,466
|
)
|
|||||
Effect
of exchange rate
changes
|
42,915
|
(25,235
|
)
|
||||||
Market
value of assets at end of period
|
$
|
386,318
|
$
|
329,771
|
|||||
Reconciliation
of funded status:
|
|||||||||
Accumulated
benefit obligation
(ABO)
|
$
|
499,387
|
$
|
429,085
|
|||||
Projected
benefit obligation
(PBO)
|
$
|
499,387
|
$
|
429,085
|
|||||
Fair
value of
assets
|
(386,318
|
)
|
(329,771
|
)
|
|||||
Net
recognized pension
liability
|
$
|
113,069
|
$
|
99,314
|
|||||
Amounts
recognized in accumulated other comprehensive income
|
$
|
163,096
|
$
|
136,521
|
Fiscal
Year Ended March 31,
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
(In
thousands)
|
||||||||||||
Components
of net periodic pension cost:
|
||||||||||||
Service
cost for benefits earned during the period
|
$
|
261
|
$
|
280
|
$
|
288
|
||||||
Interest
cost on PBO
|
22,703
|
21,326
|
20,721
|
|||||||||
Expected
return on assets
|
(23,490
|
)
|
(19,401
|
)
|
(19,243
|
)
|
||||||
Prior
service costs
|
—
|
—
|
340
|
|||||||||
Amortization
of unrecognized losses
|
3,641
|
3,649
|
3,403
|
|||||||||
Net
periodic pension (benefit) cost
|
$
|
3,115
|
$
|
5,854
|
$
|
5,509
|
Fiscal
Year Ended March 31,
|
|||||||
2007
|
2006
|
2005
|
|||||
Discount
rate
|
5.30%
|
4.95%
|
5.45%
|
||||
Expected
long-term rate of return on assets
|
6.60%
|
|
6.90%
|
7.00%
|
|||
Rate
of compensation increase
|
3.00%
|
2.70%
|
2.70%
|
|
(i)
|
to
ensure that sufficient assets are available to pay out members’ benefits
as and when they arise;
|
(ii)
|
to
ensure that, should the Scheme be discontinued at any point in
time, there
would be sufficient assets to meet the discontinued liabilities
(on
actuarial advice) at the cost of securing benefits for pensioners
with an
insurance company, and provide deferred members with the cash
equivalent
of their deferred benefits; and
|
Actual
Allocation
|
||||||||||
Target
|
as
of March 31,
|
|||||||||
Asset
Category
|
Allocation
|
2007
|
2006
|
|||||||
Equity
securities
|
66.0
|
%
|
67.8
|
%
|
66.6
|
%
|
||||
Debt
securities
|
34.0
|
%
|
31.7
|
%
|
33.3
|
%
|
||||
Other
assets
|
0.0
|
%
|
0.5
|
%
|
0.1
|
%
|
||||
Total
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
Projected
Benefit Payments by the Plan for Fiscal Years Ending March
31,
|
Payments
|
||||
|
|
(In
thousands)
|
|||
2008
|
$
|
20,612
|
|||
2009
|
20,808
|
||||
2010
|
21,200
|
||||
2011
|
21,593
|
||||
2012
|
22,575
|
||||
Aggregate
2013 – 2017
|
126,417
|
Fiscal
Year Ended
|
||||
March
31, 2007
|
||||
(In
thousands)
|
||||
Reduction
in income before provision for income taxes
and
minority interest
|
$
|
2,527
|
||
Reduction
in net income
|
1,643
|
Fiscal
Year Ended
|
||||
March
31, 2007
|
||||
As
reported:
|
||||
Basic
|
$
|
2.87
|
||
Diluted
|
2.74
|
|||
If
SFAS No. 123(R) were not adopted:
|
||||
Basic
|
$
|
2.94
|
||
Diluted
|
2.80
|
Weighted
Average
|
Number
|
|||||||
Exercise
Price
|
of
Shares
|
|||||||
Balance
as of March 31, 2004
|
$
|
18.48
|
1,112,000
|
|||||
Granted
|
26.25
|
409,500
|
||||||
Exercised
|
18.14
|
(683,487
|
)
|
|||||
Expired
or cancelled
|
19.82
|
(6,500
|
)
|
|||||
Balance
as of March 31, 2005
|
22.59
|
831,513
|
||||||
Granted
|
30.87
|
192,015
|
||||||
Exercised
|
19.35
|
(70,765
|
)
|
|||||
Expired
or cancelled
|
21.39
|
(139,000
|
)
|
|||||
Balance
as of March 31, 2006
|
24.90
|
813,763
|
||||||
Granted
|
34.78
|
196,000
|
||||||
Exercised
|
20.08
|
(196,672
|
)
|
|||||
Expired
or cancelled
|
29.08
|
(49,790
|
)
|
|||||
Balance
as of March 31, 2007
|
28.42
|
763,301
|
Options
Outstanding
|
Options
Exercisable
|
||||||||||||||||||||
Wgtd.
Avg.
|
Wgtd.
Avg.
|
Wgtd.
Avg.
|
|||||||||||||||||||
Range
of
|
Number
|
Remaining
|
Exercise
|
Number
|
Exercise
|
||||||||||||||||
Exercise
Prices
|
Outstanding
|
Contr.
Life
|
Price
|
Exercisable
|
Price
|
||||||||||||||||
$11.13
- $19.76
|
85,000
|
4.74
|
$18.20
|
85,000
|
$18.20
|
||||||||||||||||
$21.15
- $29.82
|
349,800
|
7.46
|
25.47
|
217,009
|
24.61
|
||||||||||||||||
$30.25
- $37.31
|
328,501
|
8.77
|
34.21
|
157,531
|
31.06
|
||||||||||||||||
763,301
|
7.72
|
28.42
|
459,540
|
26.54
|
Fiscal
Year
|
||||
Ended
March
31, 2007
|
||||
Risk
free interest rate
|
5.0%
- 5.2
|
%
|
||
Expected
life (years)
|
4
|
|||
Volatility
|
30%
- 34
|
%
|
||
Dividend
yield
|
—
|
Weighted
|
||||||||
Average
|
||||||||
Grant
|
||||||||
Date
Fair
|
||||||||
Value
|
||||||||
Units
|
Per
Unit
|
|||||||
Non-vested
as of March 31, 2006
|
198,200
|
$
|
24.32
|
|||||
Granted
|
200,480
|
35.08
|
||||||
Forfeited
|
(22,640
|
)
|
31.81
|
|||||
Vested
|
(4,100
|
)
|
34.25
|
|||||
Non-vested
as of March 31, 2007
|
371,940
|
32.20
|
Fiscal
Year Ended March 31,
|
||||||||
2006
|
2005
|
|||||||
(In
thousands,
except
per share amounts)
|
||||||||
Net
income, as reported
|
$
|
57,809
|
$
|
51,560
|
||||
Stock-based
employee compensation expense included
in
reported net income, net of tax
|
476
|
275
|
||||||
Stock-based
employee compensation expense, net of tax
|
(1,758
|
)
|
(2,442
|
)
|
||||
Pro
forma net income
|
$
|
56,527
|
$
|
49,393
|
||||
Basic
earnings per common share:
|
||||||||
Earnings
per common share, as reported
|
$
|
2.48
|
$
|
2.24
|
||||
Stock-based
employee compensation expense, net of tax
|
(0.06
|
)
|
(0.10
|
)
|
||||
Pro
forma basic earnings per common share
|
$
|
2.42
|
$
|
2.14
|
||||
Diluted
earnings per common share:
|
||||||||
Earnings
per common share, as reported
|
$
|
2.45
|
$
|
2.21
|
||||
Stock-based
employee compensation expense, net of tax
|
(0.06
|
)
|
(0.10
|
)
|
||||
Pro
forma diluted earnings per common share
|
$
|
2.39
|
$
|
2.11
|
Market
Value of
Common
Stock on
September
15, 2009
|
Number
of Shares of
Common
Stock Issued
for
Each Share of
Preferred
Stock
|
Total
Number of Shares of
Common
Stock Issued
for
4,600,000 Shares of
Preferred
Stock
|
|||
$35.26
or less
|
1.4180
|
6,522,800
|
|||
Between
$35.26 and $43.19
|
1.4180
to 1.1577
|
6,522,799
to 5,324,961
|
|||
$43.19
or greater
|
1.1576
|
5,324,960
|
Fiscal
Year Ended March 31,
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
Net
income (in thousands):
|
||||||||||||
Income
available to common stockholders - basic
|
$
|
67,539
|
$
|
57,809
|
$
|
51,560
|
||||||
Preferred
Stock dividends
|
6,633
|
—
|
—
|
|||||||||
Income
available to common stockholders - diluted
|
$
|
74,172
|
$
|
57,809
|
$
|
51,560
|
||||||
Shares:
|
||||||||||||
Weighted
average number of common shares
outstanding-basic
|
23,496,253
|
23,341,315
|
23,040,565
|
|||||||||
Assumed
conversion of Preferred Stock outstanding during the
period
|
3,420,621
|
—
|
—
|
|||||||||
Net
effect of dilutive stock options and restricted stock
units
based on treasury stock method
|
137,880
|
262,877
|
340,003
|
|||||||||
Weighted
average of common shares outstanding -
diluted
|
27,054,754
|
23,604,192
|
23,380,568
|
|||||||||
Basic
earnings per share
|
$
|
2.87
|
$
|
2.48
|
$
|
2.24
|
||||||
Diluted
earnings per share
|
$
|
2.74
|
$
|
2.45
|
$
|
2.21
|
Fiscal
Year Ended March 31,
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
(In
thousands)
|
||||||||||||
Segment
gross revenue from external customers:
|
||||||||||||
Helicopter
Services:
|
||||||||||||
North
America
|
$
|
224,705
|
$
|
202,415
|
$
|
156,223
|
||||||
South
and Central America
|
52,820
|
42,869
|
52,598
|
|||||||||
Europe
|
292,705
|
241,750
|
221,400
|
|||||||||
West
Africa
|
131,141
|
107,411
|
94,430
|
|||||||||
Southeast
Asia
|
73,404
|
61,168
|
53,023
|
|||||||||
Other
International
|
45,876
|
33,934
|
21,244
|
|||||||||
EH
Centralized Operations
|
11,996
|
10,607
|
14,129
|
|||||||||
Total
Helicopter Services
|
832,647
|
700,154
|
613,047
|
|||||||||
Production
Management Services
|
64,739
|
68,093
|
58,915
|
|||||||||
Corporate
|
475
|
693
|
1,684
|
|||||||||
Total
segment gross revenue
|
$
|
897,861
|
$
|
768,940
|
$
|
673,646
|
Intersegment
and intrasegment gross revenue:
|
||||||||||||
Helicopter
Services:
|
||||||||||||
North
America
|
$
|
15,273
|
$
|
14,067
|
$
|
12,259
|
||||||
South
and Central America
|
—
|
—
|
—
|
|||||||||
Europe
|
5,229
|
3,544
|
2,437
|
|||||||||
West
Africa
|
—
|
—
|
3
|
|||||||||
Southeast
Asia
|
—
|
—
|
—
|
|||||||||
Other
International
|
129
|
1,405
|
100
|
|||||||||
EH
Centralized Operations
|
1,900
|
|
142
|
|
731
|
|||||||
Total
Helicopter Services
|
22,531
|
19,158
|
15,530
|
|||||||||
Production
Management Services
|
75
|
77
|
67
|
|||||||||
Total
intersegment and intrasegment gross revenue
|
$
|
22,606
|
$
|
19,235
|
$
|
15,597
|
Consolidated
gross revenue reconciliation:
|
||||||||||||
Helicopter
Services:
|
||||||||||||
North
America
|
$
|
239,978
|
$
|
216,482
|
$
|
168,482
|
||||||
South
and Central America
|
52,820
|
42,869
|
52,598
|
|||||||||
Europe
|
297,934
|
245,294
|
223,837
|
|||||||||
West
Africa
|
131,141
|
107,411
|
94,433
|
|||||||||
Southeast
Asia
|
73,404
|
61,168
|
53,023
|
|||||||||
Other
International
|
46,005
|
35,339
|
21,344
|
|||||||||
EH
Centralized Operations
|
13,896
|
10,749
|
14,860
|
|||||||||
Intrasegment
eliminations
|
(12,058
|
)
|
(10,104
|
)
|
(7,624
|
)
|
||||||
Total
Helicopter Services
(1)
|
843,120
|
709,208
|
620,953
|
|||||||||
Production
Management Services
(2)
|
64,814
|
68,170
|
58,982
|
|||||||||
Corporate
|
475
|
693
|
1,684
|
|||||||||
Intersegment
eliminations
|
(10,548
|
)
|
(9,131
|
)
|
(7,973
|
)
|
||||||
Total
consolidated gross revenue
|
$
|
897,861
|
$
|
768,940
|
$
|
673,646
|
Fiscal
Year Ended March 31,
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
(In
thousands)
|
||||||||||||
Consolidated
operating income (loss) reconciliation:
|
||||||||||||
Helicopter
Services:
|
||||||||||||
North
America
|
$
|
29,210
|
$
|
30,717
|
$
|
19,372
|
||||||
South
and Central America
|
15,825
|
6,662
|
14,353
|
|||||||||
Europe
|
52,819
|
48,692
|
45,923
|
|||||||||
West
Africa
|
18,798
|
11,981
|
12,520
|
|||||||||
Southeast
Asia
|
13,370
|
9,851
|
10,291
|
|||||||||
Other
International
|
9,309
|
9,062
|
(106
|
)
|
||||||||
EH
Centralized Operations
|
(13,580
|
)
|
(25,012
|
)
|
(26,588
|
)
|
||||||
Total
Helicopter Services
|
125,751
|
91,953
|
75,765
|
|||||||||
Production
Management Services
|
4,172
|
5,327
|
3,907
|
|||||||||
Gain
on disposal of assets
|
10,618
|
102
|
8,039
|
|||||||||
Corporate
|
(25,238
|
)
|
(23,587
|
)
|
(10,103
|
)
|
||||||
Total
consolidated operating income
|
$
|
115,303
|
$
|
73,795
|
$
|
77,608
|
Capital
expenditures:
|
||||||||||||
Helicopter
Services:
|
||||||||||||
North
America
|
$
|
52,398
|
$
|
33,087
|
$
|
58,374
|
||||||
South
and Central America
|
37,262
|
4,731
|
978
|
|||||||||
Europe
|
148,404
|
55,206
|
19,253
|
|||||||||
West
Africa
|
21,219
|
58,251
|
9,111
|
|||||||||
Southeast
Asia
|
21,178
|
1,349
|
355
|
|||||||||
Other
International
|
23,439
|
1,007
|
1,284
|
|||||||||
EH
Centralized Operations
|
63
|
4
|
396
|
|||||||||
Total
Helicopter Services
|
303,963
|
153,635
|
89,751
|
|||||||||
Production
Management Services
|
170
|
107
|
168
|
|||||||||
Corporate
|
643
|
520
|
104
|
|||||||||
Total
capital expenditures
|
$
|
304,776
|
$
|
154,262
|
$
|
90,023
|
Depreciation
and amortization:
|
||||||||||||
Helicopter
Services:
|
||||||||||||
North
America
|
$
|
11,553
|
$
|
12,436
|
$
|
11,460
|
||||||
South
and Central America
|
3,891
|
3,661
|
4,281
|
|||||||||
Europe
|
11,671
|
10,803
|
11,028
|
|||||||||
West
Africa
|
6,601
|
5,741
|
5,049
|
|||||||||
Southeast
Asia
|
3,497
|
3,681
|
3,198
|
|||||||||
Other
International
|
3,511
|
3,031
|
2,607
|
|||||||||
EH
Centralized Operations
|
1,510
|
2,612
|
2,768
|
|||||||||
Total
Helicopter Services
|
42,234
|
41,965
|
40,391
|
|||||||||
Production
Management Services
|
184
|
196
|
194
|
|||||||||
Corporate
|
225
|
95
|
108
|
|||||||||
Total
depreciation and amortization
|
$
|
42,643
|
$
|
42,256
|
$
|
40,693
|
March
31,
|
||||||||
2007
|
2006
|
|||||||
(In
thousands)
|
||||||||
Identifiable
assets:
|
||||||||
North
America
|
$
|
183,069
|
$
|
204,829
|
||||
South
and Central America
|
158,129
|
150,684
|
||||||
Europe
|
391,356
|
275,862
|
||||||
West
Africa
|
134,725
|
99,598
|
||||||
Southeast
Asia
|
42,458
|
26,471
|
||||||
Other
International
|
71,679
|
77,034
|
||||||
EH
Centralized Operations
|
157,565
|
193,714
|
||||||
Total
Helicopter Services
|
1,138,981
|
1,028,192
|
||||||
Production
Management Services
|
33,722
|
34,013
|
||||||
Corporate
|
333,100
|
114,208
|
||||||
Total
identifiable assets
|
$
|
1,505,803
|
$
|
1,176,413
|
(1)
|
Includes
reimbursable revenue of $86.2 million, $62.9 million and $53.6 million
for
fiscal years 2007, 2006 and 2005, respectively.
|
(2)
|
Includes
reimbursable revenue of $9.7 million, $17.3 million and $11.1 million
for
fiscal years 2007, 2006, and 2005,
respectively.
|
Fiscal
Year Ended March 31,
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
(In
thousands)
|
||||||||||||
Gross
revenue:
|
||||||||||||
United
States
|
$
|
240,453
|
$
|
217,174
|
$
|
170,167
|
||||||
United
Kingdom
|
304,669
|
250,304
|
232,304
|
|||||||||
Nigeria
|
131,141
|
107,411
|
94,432
|
|||||||||
Australia
|
66,679
|
52,382
|
43,143
|
|||||||||
Trinidad
|
30,355
|
24,659
|
19,250
|
|||||||||
Mexico
|
14,021
|
10,849
|
24,553
|
|||||||||
Other
countries
|
110,543
|
106,161
|
89,797
|
|||||||||
$
|
897,861
|
$
|
768,940
|
$
|
673,646
|
March
31,
|
||||||||
2007
|
2006
|
|||||||
(In
thousands)
|
||||||||
Long-lived
assets
|
||||||||
United
States
|
$
|
28,851
|
$
|
54,899
|
||||
United
Kingdom
|
335,451
|
182,358
|
||||||
Nigeria
|
236,493
|
193,363
|
||||||
Australia
|
88,225
|
44,755
|
||||||
Trinidad
|
84,546
|
25,971
|
||||||
Mexico
|
26,875
|
31,782
|
||||||
Other
countries
|
91,467
|
82,786
|
||||||
$
|
891,908
|
$
|
615,914
|
Fiscal
Quarter Ended
|
||||||||||||||||
June
30
|
September
30 (1)
|
December
31
(1)(2)(3)(4)
|
March
31
(1)(5)(6)
|
|||||||||||||
(In
thousands, except per share amounts)
|
||||||||||||||||
2007
|
||||||||||||||||
Gross
revenue
|
$
|
221,062
|
$
|
224,209
|
$
|
223,842
|
$
|
228,748
|
||||||||
Operating
income(7)
|
31,060
|
30,861
|
20,979
|
32,403
|
||||||||||||
Net
income(7) (8)
(9)
|
17,229
|
19,075
|
10,451
|
27,417
|
||||||||||||
Basic
earnings per
share
|
0.74
|
0.80
|
0.31
|
1.03
|
||||||||||||
Diluted
earnings per share
|
0.73
|
0.79
|
0.31
|
0.91
|
||||||||||||
2006
|
||||||||||||||||
Gross
revenue
|
$
|
180,937
|
$
|
194,405
|
$
|
192,267
|
$
|
201,331
|
||||||||
Operating
income(7)
|
15,045
|
22,095
|
17,732
|
18,923
|
||||||||||||
Net
income(7) (8)
(9)
|
11,972
|
14,632
|
13,400
|
17,805
|
||||||||||||
Basic
earnings per
share
|
0.51
|
0.63
|
0.57
|
0.76
|
||||||||||||
Diluted
earnings per share
|
0.51
|
0.62
|
0.57
|
0.75
|
(1)
|
Net
income for the fiscal quarters ended September 30 and December 31,
2006
and March 31, 2007 included $0.2 million, $1.6 million and $1.1 million,
respectively, in additional interest income associated with cash
proceeds
generated from the Preferred Stock offering completed in September
and
October 2006, net of taxes. Basic earnings per share
for the fiscal quarters ended September 30 and December 31,
2006 and March 31, 2007 was reduced by $0.01, $0.07 and $0.09,
respectively, as a result of a reduction in income available to common
stockholders in those quarters resulting from dividends accrued on
the
Preferred Stock, partially offset by higher interest
income. Diluted earnings per share for the fiscal quarters
ended September 30 and December 31, 2006 and March 31, 2007 was reduced
by
$0.02, $0.07 and $0.20, respectively, as a result of the impact of
the
assumed conversion of Preferred Stock outstanding into Common Stock
during
the fiscal quarters ended September 30, 2006 and March 31, 2007 and
a
reduction in income available to common stockholders resulting from
dividends accrued on the Preferred Stock during the fiscal quarter
ended
December 31, 2006, partially offset by higher interest
income. See discussion of the Preferred Stock offering in Note
9.
|
(2)
|
Net
income for the fiscal quarter ended December 31, 2006 included expense
of
$1.2 million, net of taxes, for acquisition costs previously deferred
in
connection with an acquisition we were evaluating as we determined
that
the acquisition is no longer probable.
|
(3)
|
Net
income for the fiscal quarter ended December 31, 2006 included additional
tax expense of $2.5 million related to the sale of certain assets
of Turbo
completed in November 2006. See discussion of the Turbo asset
sale in Note 2.
|
(4)
|
Net
income for the fiscal quarter ended December 31, 2005 included an
impairment charge of $0.7 million, net of taxes, to reduce the recorded
value of our investment in Aeroleo, as we expected at that time that
our
investment would not be recoverable. See discussion in Note
3.
|
(5)
|
Net
income for the fiscal quarter ended March 31, 2007 included an after-tax
gain on the sale of our investment in Aeroleo of $1.6 million on
March 30,
2007. See discussion in Note 3.
|
(6)
|
Net
income for the fourth quarters of fiscal years 2007 and 2006 includes
dividend income received from an unconsolidated affiliate, net of
taxes,
of $1.7 million.
|
(7)
|
Operating
income and net income included legal and professional costs in connection
with the Internal Review and DOJ investigation totaling $0.7 million
and
$0.5 million, respectively, for the fiscal quarter ended June 30,
2006; $0.3 million and $0.2 million, respectively, for the
fiscal quarter ended September 30, 2006; $3.7 million and $2.4 million,
respectively, for the fiscal quarter ended December 31, 2006; and
$0.4
million and $0.3 million, respectively, for the fiscal quarter ended
March
31, 2007. Operating income and net income included legal and
professional costs in connection with the Internal Review and DOJ
investigation totaling $3.2 million and $2.1 million, respectively,
for
the fiscal quarter ended June 30, 2005; $5.0 million and $3.3
million, respectively, for the fiscal quarter ended September 30,
2005;
$3.4 million and $2.2 million, respectively, for the fiscal quarter
ended
December 31, 2005; and $1.5 million and $1.0 million, respectively,
for
the fiscal quarter ended March 31, 2006. Net income amounts are
presented on an after-tax basis.
|
(8)
|
Net
income for the fiscal quarters ended June 30, September 30 and December
31, 2006 and March 31, 2007 included $3.1 million, $0.9 million,
$2.2
million and $0.1 million, respectively, of foreign currency transaction
losses. Net income for fiscal quarters ended June 30, September
30 and December 31, 2005 and March 31, 2006 included $1.8 million,
$0.2
million, $1.5 million, and $0.1 million, respectively, of foreign
currency
transaction gains, net of taxes.
|
(9)
|
Net
income for the fiscal quarters ended June 30, September 30 and December
31, 2006 and March 31, 2007 included $0.7 million, $2.4 million,
$0.7
million and $3.2 million, respectively, in gains on disposal of assets,
net of taxes. Net income for the fiscal quarters ended June 30,
September 30 and December 31, 2005 and March 31, 2006 included $0.4
million, $(1.0) million, $(0.2) million and $0.9 million, respectively,
in
gains (losses) on disposal of assets, net of
taxes.
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Gross
revenue
|
$
|
475
|
$
|
329,872
|
$
|
567,514
|
$
|
—
|
$
|
897,861
|
||||||||||
Intercompany
revenue
|
—
|
15,705
|
12,173
|
(27,878
|
)
|
—
|
||||||||||||||
475
|
345,577
|
579,687
|
(27,878
|
)
|
897,861
|
|||||||||||||||
Operating
expense:
|
||||||||||||||||||||
Direct
cost
|
9
|
243,809
|
437,373
|
—
|
681,191
|
|||||||||||||||
Intercompany
expenses
|
—
|
12,161
|
15,667
|
(27,828
|
)
|
—
|
||||||||||||||
Depreciation
and amortization
|
225
|
18,619
|
23,799
|
—
|
42,643
|
|||||||||||||||
General
and administrative
|
25,480
|
16,485
|
27,427
|
(50
|
)
|
69,342
|
||||||||||||||
Gain
on disposal of assets
|
—
|
(1,113
|
)
|
(9,505
|
)
|
—
|
(10,618
|
)
|
||||||||||||
25,714
|
289,961
|
494,761
|
(27,878
|
)
|
782,558
|
|||||||||||||||
Operating
income (loss)
|
(25,239
|
)
|
55,616
|
84,926
|
—
|
115,303
|
||||||||||||||
Earnings
from unconsolidated affiliates, net
|
37,626
|
25
|
11,613
|
(37,841
|
)
|
11,423
|
||||||||||||||
Interest
income
|
70,711
|
349
|
3,957
|
(66,067
|
)
|
8,950
|
||||||||||||||
Interest
expense
|
(11,652
|
)
|
—
|
(65,355
|
)
|
66,067
|
(10,940
|
)
|
||||||||||||
Other
expense, net
|
(1,927
|
)
|
(111
|
)
|
(6,960
|
)
|
—
|
(8,998
|
)
|
|||||||||||
Income
before provision for income taxes and minority interest
|
69,519
|
55,879
|
28,181
|
(37,841
|
)
|
115,738
|
||||||||||||||
Allocation
of consolidated income taxes
|
4,816
|
(6,824
|
)
|
(38,358
|
)
|
—
|
(40,366
|
)
|
||||||||||||
Minority
interest
|
(163
|
)
|
—
|
(1,037
|
)
|
—
|
(1,200
|
)
|
||||||||||||
Net
income (loss)
|
$
|
74,172
|
$
|
49,055
|
$
|
(11,214
|
)
|
$
|
(37,841
|
)
|
$
|
74,172
|
Parent
|
Non-
|
|||||||||||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||||||||||
(In
thousands)
|
||||||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||||||
Current
assets:
|
||||||||||||||||||||||||||||
Cash
and cash equivalents
|
$
|
133,010
|
$
|
3,434
|
$
|
47,744
|
$
|
—
|
$
|
184,188
|
||||||||||||||||||
Accounts
receivable
|
32,103
|
62,493
|
123,453
|
(42,080
|
)
|
175,969
|
||||||||||||||||||||||
Inventories
|
—
|
72,834
|
85,036
|
—
|
157,870
|
|||||||||||||||||||||||
Prepaid
expenses and other
|
830
|
9,951
|
7,166
|
17,947
|
||||||||||||||||||||||||
Total
current assets
|
165,943
|
148,712
|
263,399
|
(42,080
|
)
|
535,974
|
||||||||||||||||||||||
Intercompany
investment
|
297,113
|
1,046
|
—
|
(298,159
|
)
|
—
|
||||||||||||||||||||||
Investment
in unconsolidated affiliates
|
4,643
|
1,611
|
40,574
|
—
|
46,828
|
|||||||||||||||||||||||
Intercompany
notes receivable
|
825,203
|
—
|
11,980
|
(837,183
|
)
|
—
|
||||||||||||||||||||||
Property
and equipment – at cost:
|
||||||||||||||||||||||||||||
Land
and buildings
|
263
|
36,689
|
14,898
|
—
|
51,850
|
|||||||||||||||||||||||
Aircraft
and equipment
|
2,259
|
550,611
|
588,708
|
—
|
1,141,578
|
|||||||||||||||||||||||
2,522
|
587,300
|
603,606
|
—
|
1,193,428
|
||||||||||||||||||||||||
Less: Accumulated
depreciation and amortization
|
(1,471
|
)
|
(123,367
|
)
|
(176,682
|
)
|
—
|
(301,520
|
)
|
|||||||||||||||||||
1,051
|
463,933
|
426,924
|
—
|
891,908
|
||||||||||||||||||||||||
Goodwill
|
—
|
18,483
|
1,774
|
111
|
20,368
|
|||||||||||||||||||||||
Other
assets
|
9,348
|
224
|
1,153
|
—
|
10,725
|
|||||||||||||||||||||||
$
|
1,303,301
|
$
|
634,009
|
$
|
745,804
|
$
|
(1,177,311
|
)
|
$
|
1,505,803
|
LIABILITIES
AND STOCKHOLDERS’ INVESTMENT
|
||||||||||||||||||||
Current
liabilities:
|
||||||||||||||||||||
Accounts
payable
|
$
|
1,043
|
$
|
16,628
|
$
|
36,028
|
$
|
(11,356
|
)
|
$
|
42,343
|
|||||||||
Accrued
liabilities
|
10,736
|
20,009
|
103,141
|
(30,724
|
)
|
103,162
|
||||||||||||||
Deferred
taxes
|
217
|
—
|
17,394
|
—
|
17,611
|
|||||||||||||||
Current
maturities of long-term debt
|
—
|
—
|
4,852
|
—
|
4,852
|
|||||||||||||||
Total
current liabilities
|
11,996
|
36,637
|
161,415
|
(42,080
|
)
|
167,968
|
||||||||||||||
Long-term
debt, less current maturities
|
234,379
|
—
|
19,851
|
—
|
254,230
|
|||||||||||||||
Intercompany
notes payable
|
14,569
|
230,773
|
591,841
|
(837,183
|
)
|
—
|
||||||||||||||
Other
liabilities and deferred credits
|
4,529
|
9,644
|
116,241
|
—
|
130,414
|
|||||||||||||||
Deferred
taxes
|
42,655
|
2,295
|
31,139
|
—
|
76,089
|
|||||||||||||||
Minority
interest
|
2,042
|
—
|
3,403
|
—
|
5,445
|
|||||||||||||||
Stockholders’
investment:
|
||||||||||||||||||||
5.50%
mandatory convertible preferred stock
|
222,554
|
—
|
—
|
—
|
222,554
|
|||||||||||||||
Common
stock
|
236
|
4,062
|
35,426
|
(39,488
|
)
|
236
|
||||||||||||||
Additional
paid-in-capital
|
169,353
|
51,170
|
8,015
|
(59,185
|
)
|
169,353
|
||||||||||||||
Retained
earnings
|
515,589
|
299,428
|
(82,414
|
)
|
(217,014
|
)
|
515,589
|
|||||||||||||
Accumulated
other comprehensive income
(loss)
|
85,399
|
—
|
(139,113
|
)
|
17,639
|
(36,075
|
)
|
|||||||||||||
993,131
|
354,660
|
(178,086
|
)
|
(298,048
|
)
|
871,657
|
||||||||||||||
$
|
1,303,301
|
$
|
634,009
|
$
|
745,804
|
$
|
(1,177,311
|
)
|
$
|
1,505,803
|
Parent
|
Non-
|
||||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
|||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||||
(In
thousands)
|
|||||||||||||||||||||
Net
cash provided by (used in) operating
activities
|
$
|
(15,795
|
)
|
$
|
52,987
|
$
|
76,739
|
$
|
(9,501
|
)
|
$
|
104,430
|
|||||||||
Cash
flows from investing activities:
|
|||||||||||||||||||||
Capital
expenditures
|
(643
|
)
|
(215,728
|
)
|
(88,405
|
)
|
—
|
(304,776
|
)
|
||||||||||||
Proceeds
from asset dispositions
|
14,241
|
3,872
|
22,328
|
—
|
40,441
|
||||||||||||||||
Net
cash provided by (used in) investing activities
|
13,598
|
(211,856
|
)
|
(66,077
|
)
|
—
|
(264,335
|
)
|
|||||||||||||
Cash
flows from financing activities:
|
|||||||||||||||||||||
Issuance
of preferred stock
|
222,554
|
—
|
—
|
—
|
222,554
|
||||||||||||||||
Preferred
stock dividends paid
|
(6,107
|
)
|
—
|
—
|
—
|
(6,107
|
)
|
||||||||||||||
Repayment
of debt and debt redemption premiums
|
—
|
—
|
(5,716
|
)
|
—
|
(5,716
|
)
|
||||||||||||||
Increases
(decreases) in cash related to
intercompany
advances and debt
|
(160,940
|
)
|
160,940
|
(2,760
|
)
|
2,760
|
—
|
||||||||||||||
Partial
prepayment of put/call obligation
|
(130
|
)
|
—
|
—
|
—
|
(130
|
)
|
||||||||||||||
Dividends
paid
|
—
|
—
|
(6,741
|
)
|
6,741
|
—
|
|||||||||||||||
Issuance
of common stock
|
3,949
|
—
|
—
|
—
|
3,949
|
||||||||||||||||
Tax
benefit related to exercise of stock options
|
1,132
|
—
|
—
|
—
|
1,132
|
||||||||||||||||
Net
cash provided by (used in) financing activities
|
60,458
|
160,940
|
(15,217
|
)
|
9,501
|
215,682
|
|||||||||||||||
Effect
of exchange rate changes in cash and
cash
equivalents
|
148
|
|
—
|
5,781
|
—
|
5,929
|
|||||||||||||||
Net
increase in cash and cash equivalents
|
58,409
|
2,071
|
1,226
|
—
|
61,706
|
||||||||||||||||
Cash
and cash equivalents at
beginning of period
|
74,601
|
1,363
|
46,518
|
—
|
122,482
|
||||||||||||||||
Cash
and cash equivalents at
end of period
|
$
|
133,010
|
$
|
3,434
|
$
|
47,744
|
$
|
—
|
$
|
184,188
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Gross
revenue
|
$
|
692
|
$
|
295,582
|
$
|
472,666
|
$
|
—
|
$
|
768,940
|
||||||||||
Intercompany
revenue
|
—
|
8,263
|
8,831
|
(17,094
|
)
|
—
|
||||||||||||||
692
|
303,845
|
481,497
|
(17,094
|
)
|
768,940
|
|||||||||||||||
Operating
expense:
|
||||||||||||||||||||
Direct
cost
|
16
|
222,780
|
368,247
|
—
|
591,043
|
|||||||||||||||
Intercompany
expenses
|
—
|
8,831
|
7,823
|
(16,654
|
)
|
—
|
||||||||||||||
Depreciation
and amortization
|
95
|
17,755
|
24,406
|
—
|
42,256
|
|||||||||||||||
General
and administrative
|
24,168
|
15,027
|
23,193
|
(440
|
)
|
61,948
|
||||||||||||||
Loss
(gain) on disposal of assets
|
4
|
(588
|
)
|
482
|
−
|
(102
|
)
|
|||||||||||||
24,283
|
263,805
|
424,151
|
(17,094
|
)
|
695,145
|
|||||||||||||||
Operating
income (loss)
|
(23,591
|
)
|
40,040
|
57,346
|
—
|
73,795
|
||||||||||||||
Earnings
(losses) from unconsolidated affiliates, net
|
35,737
|
(2,534
|
)
|
9,500
|
(35,945
|
)
|
6,758
|
|||||||||||||
Interest
income
|
54,920
|
203
|
4,244
|
(55,208
|
)
|
4,159
|
||||||||||||||
Interest
expense
|
(14,597
|
)
|
(11
|
)
|
(55,289
|
)
|
55,208
|
(14,689
|
)
|
|||||||||||
Other
income (expense), net
|
(515
|
)
|
7
|
5,120
|
—
|
4,612
|
||||||||||||||
Income
before provision for income taxes and minority interest
|
51,954
|
37,705
|
20,921
|
(35,945
|
)
|
74,635
|
||||||||||||||
Allocation
of consolidated income taxes
|
6,010
|
(2,397
|
)
|
(20,220
|
)
|
—
|
(16,607
|
)
|
||||||||||||
Minority
interest
|
(155
|
)
|
—
|
(64
|
)
|
—
|
(219
|
)
|
||||||||||||
Net
income
|
$
|
57,809
|
$
|
35,308
|
$
|
637
|
$
|
(35,945
|
)
|
$57,809
|
Parent
|
Non-
|
|||||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||||
(In
thousands)
|
||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||
Current
assets:
|
||||||||||||||||||||||
Cash
and cash equivalents
|
$
|
74,601
|
$
|
1,363
|
$
|
46,518
|
$
|
—
|
$
|
122,482
|
||||||||||||
Accounts
receivable
|
23,627
|
57,332
|
112,277
|
(32,831
|
)
|
160,405
|
||||||||||||||||
Inventories
|
—
|
71,061
|
76,799
|
—
|
147,860
|
|||||||||||||||||
Prepaid
expenses and other
|
1,146
|
4,080
|
11,293
|
—
|
16,519
|
|||||||||||||||||
Total
current assets
|
99,374
|
133,836
|
246,887
|
(32,831
|
)
|
447,266
|
||||||||||||||||
Intercompany
investment
|
266,510
|
1,046
|
—
|
(267,556
|
)
|
—
|
||||||||||||||||
Investment
in unconsolidated affiliates
|
4,854
|
1,587
|
33,471
|
—
|
39,912
|
|||||||||||||||||
Intercompany
notes receivable
|
547,552
|
—
|
13,954
|
(561,506
|
)
|
—
|
||||||||||||||||
Property
and equipment – at cost:
|
||||||||||||||||||||||
Land
and buildings
|
171
|
29,251
|
11,250
|
—
|
40,672
|
|||||||||||||||||
Aircraft
and equipment
|
1,695
|
357,051
|
479,568
|
—
|
838,314
|
|||||||||||||||||
1,866
|
386,302
|
490,818
|
—
|
878,986
|
||||||||||||||||||
Less: Accumulated
depreciation and amortization
|
(1,349
|
)
|
(109,963
|
)
|
(151,760
|
)
|
—
|
(263,072
|
)
|
|||||||||||||
517
|
276,339
|
339,058
|
—
|
615,914
|
||||||||||||||||||
Goodwill
|
—
|
18,593
|
8,133
|
111
|
26,837
|
|||||||||||||||||
Other
assets
|
8,808
|
176
|
37,500
|
—
|
46,484
|
|||||||||||||||||
$
|
927,615
|
$
|
431,577
|
$
|
679,003
|
$
|
(861,782
|
)
|
$
|
1,176,413
|
LIABILITIES
AND STOCKHOLDERS’ INVESTMENT
|
||||||||||||||||||||
Current
liabilities:
|
||||||||||||||||||||
Accounts
payable
|
$
|
920
|
$
|
19,225
|
$
|
39,006
|
$
|
(9,437
|
)
|
$
|
49,714
|
|||||||||
Accrued
liabilities
|
14,696
|
20,399
|
79,855
|
(23,394
|
)
|
91,556
|
||||||||||||||
Deferred
taxes
|
(6,060
|
)
|
—
|
11,085
|
—
|
5,025
|
||||||||||||||
Short-term
borrowings and current maturities of long-term debt
|
—
|
—
|
17,634
|
—
|
17,634
|
|||||||||||||||
Total
current liabilities
|
9,556
|
39,624
|
147,580
|
(32,831
|
)
|
163,929
|
||||||||||||||
Long-term
debt, less current maturities
|
234,381
|
—
|
13,281
|
—
|
247,662
|
|||||||||||||||
Intercompany
notes payable
|
14,658
|
74,525
|
472,323
|
(561,506
|
)
|
−
|
||||||||||||||
Other
liabilities and deferred credits
|
4,658
|
10,175
|
139,704
|
—
|
154,537
|
|||||||||||||||
Deferred
taxes
|
34,361
|
1,648
|
32,272
|
—
|
68,281
|
|||||||||||||||
Minority
interest
|
1,804
|
—
|
2,503
|
—
|
4,307
|
|||||||||||||||
Stockholders’
investment:
|
||||||||||||||||||||
Common
stock
|
234
|
4,062
|
23,578
|
(27,640
|
)
|
234
|
||||||||||||||
Additional
paid-in-capital
|
158,761
|
51,170
|
13,477
|
(64,646
|
)
|
158,762
|
||||||||||||||
Retained
earnings
|
447,524
|
250,373
|
(69,417
|
)
|
(180,956
|
)
|
447,524
|
|||||||||||||
Accumulated
other comprehensive income
(loss)
|
21,678
|
—
|
(96,298
|
)
|
5,797
|
(68,823
|
)
|
|||||||||||||
628,197
|
305,605
|
(128,660
|
)
|
(267,445
|
)
|
537,697
|
||||||||||||||
$
|
927,615
|
$
|
431,577
|
$
|
679,003
|
$
|
(861,782
|
)
|
$
|
1,176,413
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Net
cash provided by operating activities
|
$
|
42,235
|
$
|
48,593
|
$
|
16,797
|
$
|
(68,360
|
)
|
$
|
39,265
|
|||||||||
Cash
flows from investing activities:
|
||||||||||||||||||||
Capital
expenditures
|
(520
|
)
|
(109,618
|
)
|
(29,434
|
)
|
—
|
(139,572
|
)
|
|||||||||||
Proceeds
from asset dispositions
|
73
|
61,581
|
23,738
|
—
|
85,392
|
|||||||||||||||
Acquisitions,
net of cash received
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Investments
|
—
|
2,000
|
(2,000
|
)
|
—
|
—
|
||||||||||||||
Net
cash used in investing activities
|
(447
|
)
|
(46,037
|
)
|
(7,696
|
)
|
—
|
(54,180
|
)
|
|||||||||||
Cash
flows from financing activities:
|
||||||||||||||||||||
Proceeds
from borrowings
|
20,691
|
—
|
—
|
(20,691
|
)
|
—
|
||||||||||||||
Repayment
of debt and debt redemption premiums
|
—
|
—
|
(4,070
|
)
|
—
|
(4,070
|
)
|
|||||||||||||
Repayment
of intercompany debt
|
(10,501
|
)
|
(4,600
|
)
|
(6,804
|
)
|
21,905
|
−
|
||||||||||||
Debt
issuance cost
|
(2,564
|
)
|
—
|
—
|
—
|
(2,564
|
)
|
|||||||||||||
Partial
prepayment of put/call obligation
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Dividends
paid
|
—
|
(4,500
|
)
|
(62,646
|
)
|
67,146
|
—
|
|||||||||||||
Repurchase
of shares from minority interest
|
(129
|
)
|
—
|
—
|
—
|
(129
|
)
|
|||||||||||||
Issuance
of common stock
|
1,369
|
—
|
—
|
—
|
1,369
|
|||||||||||||||
Net
cash provided by (used in) financing activities
|
8,866
|
(9,100
|
)
|
(73,520
|
)
|
68,360
|
(5,394
|
)
|
||||||||||||
Effect
of exchange rate changes in cash and cash
equivalents
|
—
|
—
|
(3,649
|
)
|
—
|
(3,649
|
)
|
|||||||||||||
Net
increase (decrease) in cash and cash
equivalents
|
50,654
|
(6,544
|
)
|
(68,068
|
)
|
—
|
(23,958
|
)
|
||||||||||||
Cash
and cash equivalents at
beginning of period
|
23,947
|
7,907
|
114,586
|
—
|
146,440
|
|||||||||||||||
Cash
and cash equivalents at
end of period
|
$
|
74,601
|
$
|
1,363
|
$
|
46,518
|
$
|
—
|
$
|
122,482
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Gross
revenue
|
$
|
1,685
|
$
|
249,116
|
$
|
422,845
|
$
|
—
|
$
|
673,646
|
||||||||||
Intercompany
revenue
|
—
|
6,185
|
4,301
|
(10,486
|
)
|
—
|
||||||||||||||
1,685
|
255,301
|
427,146
|
(10,486
|
)
|
673,646
|
|||||||||||||||
Operating
expense:
|
||||||||||||||||||||
Direct
cost
|
50
|
188,969
|
329,120
|
—
|
518,139
|
|||||||||||||||
Intercompany
expenses
|
—
|
4,301
|
5,720
|
(10,021
|
)
|
—
|
||||||||||||||
Depreciation
and amortization
|
108
|
15,357
|
25,228
|
−
|
40,693
|
|||||||||||||||
General
and administrative
|
11,628
|
12,239
|
21,843
|
(465
|
)
|
45,245
|
||||||||||||||
Gain
on disposal of assets
|
—
|
(956
|
)
|
(7,083
|
)
|
—
|
(8,039
|
)
|
||||||||||||
11,786
|
219,910
|
374,828
|
(10,486
|
)
|
596,038
|
|||||||||||||||
Operating
income (loss)
|
(10,101
|
)
|
35,391
|
52,318
|
—
|
77,608
|
||||||||||||||
Earnings
from unconsolidated affiliates, net
|
23,794
|
2,356
|
7,453
|
(24,003
|
)
|
9,600
|
||||||||||||||
Interest
income
|
50,682
|
109
|
3,749
|
(51,352
|
)
|
3,188
|
||||||||||||||
Interest
expense
|
(14,890
|
)
|
(241
|
)
|
(51,886
|
)
|
51,352
|
(15,665
|
)
|
|||||||||||
Other
income (expense), net
|
(29
|
)
|
9
|
(1,106
|
)
|
—
|
(1,126
|
)
|
||||||||||||
Income
before provision for income taxes and minority interest
|
49,456
|
37,624
|
10,528
|
(24,003
|
)
|
73,605
|
||||||||||||||
Allocation
of consolidated income taxes
|
2,314
|
(5,518
|
)
|
(18,631
|
)
|
—
|
(21,835
|
)
|
||||||||||||
Minority
interest
|
(210
|
)
|
—
|
—
|
—
|
(210
|
)
|
|||||||||||||
Net
income (loss)
|
$
|
51,560
|
$
|
32,106
|
$
|
(8,103
|
)
|
$
|
(24,003
|
)
|
$
|
51,560
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Net
cash provided by (used in) operating activities
|
$
|
(2,863
|
)
|
$
|
49,935
|
$
|
78,662
|
$
|
(21,261
|
)
|
$
|
104,473
|
||||||||
Cash
flows from investing activities:
|
||||||||||||||||||||
Capital
expenditures
|
(104
|
)
|
(52,196
|
)
|
(27,967
|
)
|
2,178
|
(78,089
|
)
|
|||||||||||
Proceeds
from asset dispositions
|
8,034
|
12,826
|
23,040
|
(2,178
|
)
|
41,722
|
||||||||||||||
Acquisitions,
net of cash received
|
—
|
—
|
(1,986
|
)
|
—
|
(1,986
|
)
|
|||||||||||||
Investments
|
1,000
|
(1,150
|
)
|
(8,036
|
)
|
—
|
(8,186
|
)
|
||||||||||||
Net
cash provided by (used in) investing
activities
|
8,930
|
(40,520
|
)
|
(14,949
|
)
|
—
|
(46,539
|
)
|
||||||||||||
Cash
flows from financing activities:
|
||||||||||||||||||||
Proceeds
from borrowings
|
—
|
—
|
7,087
|
(7,087
|
)
|
—
|
||||||||||||||
Repayment
of debt and debt redemption premiums
|
−
|
−
|
(2,427
|
)
|
—
|
(2,427
|
)
|
|||||||||||||
Repayment
of intercompany debt
|
(18,416
|
)
|
(9,400
|
)
|
(532
|
)
|
28,348
|
—
|
||||||||||||
Partial
prepayment of put/call obligation
|
(86
|
)
|
—
|
—
|
—
|
(86
|
)
|
|||||||||||||
Repurchase
of shares from minority interest
|
(7,389
|
)
|
—
|
—
|
—
|
(7,389
|
)
|
|||||||||||||
Issuance
of common stock
|
12,665
|
—
|
—
|
—
|
12,665
|
|||||||||||||||
Net
cash provided by (used in) financing activities
|
(13,226
|
)
|
(9,400
|
)
|
4,128
|
21,261
|
2,763
|
|||||||||||||
Effect
of exchange rate changes in cash and
cash
equivalents
|
—
|
—
|
64
|
—
|
64
|
|||||||||||||||
Net
increase (decrease) in cash and cash equivalents
|
(7,159
|
)
|
15
|
67,905
|
—
|
60,761
|
||||||||||||||
Cash
and cash equivalents at beginning of period
|
31,106
|
7,892
|
46,681
|
—
|
85,679
|
|||||||||||||||
Cash
and cash equivalents at end of period
|
$
|
23,947
|
$
|
7,907
|
$
|
114,586
|
$
|
—
|
$
|
146,440
|
·
|
Pertain
to the maintenance of records that in reasonable detail accurately
and
fairly reflect the transactions and dispositions of the assets of
the
Company;
|
·
|
Provide
reasonable assurance that transactions are recorded as necessary
to permit
preparation of financial statements in accordance with generally
accepted
accounting principles, and that receipts and expenditures of the
Company
are being made only in accordance with authorizations of management
and
directors of the Company; and
|
·
|
Provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of the Company’s assets that
could have a material effect on the financial
statements.
|
|
(a)
(1) Financial Statements —
|
|
Consolidated
Statement of Income for fiscal years 2007, 2006 and
2005.
|
|
Consolidated
Balance Sheet — As
of March 31, 2007 and 2006
|
|
Consolidated
Statement of Cash Flows for fiscal years 2007, 2006 and
2005.
|
|
Consolidated
Statement of Stockholders’ Investment for fiscal years 2007, 2006 and
2005.
|
|
Notes
to Consolidated Financial
Statements.
|
|
(a)
(2) Financial Statement
Schedules
|
|
(a)
(3) Exhibits
|
Incorporated
by Reference to
|
|||||
Exhibits
|
Registration
or File Number
|
Form
or Report
|
Date
|
Exhibit
Number
|
|
(3)
|
Articles
of Incorporation and By-laws
|
||||
(1)
Delaware Certificate of Incorporation dated December 2,
1987
|
001-31617
|
10-Q
|
June
2005
|
3(1)
|
|
(2)
Agreement and Plan of Merger dated December
29, 1987
|
0-5232
|
10-K
|
June
1990
|
3(11)
|
|
(3)
Certificate of Merger dated December 2, 1987
|
0-5232
|
10-K
|
June
1990
|
3(3)
|
|
(4)
Certificate of Correction of Certificate of Merger dated January
20,
1988
|
0-5232
|
10-K
|
June
1990
|
3(4)
|
|
(5)
Certificate of Amendment of Certificate of Incorporation dated November
30, 1989
|
001-31617
|
10-Q
|
June
2005
|
3(2)
|
|
(6)
Certificate of Amendment of Certificate of Incorporation dated December
9,
1992
|
001-31617
|
10-Q
|
June
2005
|
3(3)
|
|
(7)
Rights
Agreement and Form of Rights Certificate
|
0-5232
|
8-A
|
February
1996
|
4
|
|
(8) Amended
and Restated By-laws
|
001-31617
|
10-Q
|
June
2005
|
3(4)
|
|
(9)
Certificate
of Designation of Series A Junior Participating Preferred
Stock
|
001-31617
|
10-Q
|
June
2005
|
3(5)
|
|
(10) First
Amendment to Rights Agreement
|
0-5232
|
8-A/A
|
May
1997
|
5
|
|
(11) Second
Amendment to Rights Agreement
|
0-5232
|
8-A/A
|
January
2003
|
4.3
|
|
(12) Certificate
of Ownership and Merger Merging OL Sub, Inc. into Offshore Logistics,
Inc., effective February 1, 2006
|
001-31617
|
8-K
|
February
6, 2003
|
3.1
|
|
(13) Third
Amendment to Rights Agreement, dated as of February 28, 2006, between
Bristow Group Inc. and Mellon Investor Services LLC
|
000-05232
|
8-A/A
|
March
2, 2006
|
4.2
|
|
(14)
Certificate of Designation of 5.50% Mandatory Convertible Preferred
Stock
of Bristow Group Inc.
|
001-31617
|
8-A12B
|
September
15, 2006
|
14(1)
|
|
(4)
|
Instruments
defining the rights of security holders, including
indentures
|
||||
(1)
Registration Rights Agreement dated December 19, 1996, between the
Company
and Caledonia Industrial and Services Limited
|
0-5232
|
10-Q
|
December
1996
|
4(3)
|
|
(2)
Indenture, dated as of June 20, 2003, among the Company, the Guarantors
named therein and U.S. Bank National Association, as
Trustee
|
333-107148
|
S-4
|
July
18, 2003
|
4.1
|
Incorporated
by Reference to
|
|||||
Exhibits
|
Registration
or File Number
|
Form
or Report
|
Date
|
Exhibit
Number
|
|
(3)
Registration Rights Agreement, dated as of June 20, 2003, among
the
Company and Credit Suisse First Boston LLC, Deutsche Bank Securities
Inc.,
Robert W. Baird & Co. Incorporated, Howard Weil, A Division of Legg
Mason Wood Walker, Inc., Jefferies & Company, Inc., and Johnson Rice
& Company L.L.C.
|
333-107148
|
S-4
|
July
18, 2003
|
4.2
|
|
(4)
Form of 144A Global Note representing $228,170,000 Principal
Amount of
6 1/8% Senior
Notes due 2013.
|
333-107148
|
S-4
|
July
18, 2003
|
4.3
|
|
(5)
Form of Regulation S Global Note representing $1,830,000 Principal
Amount
of 6 1/8% Senior
Notes due 2013.
|
333-107148
|
S-4
|
July
18, 2003
|
4.4
|
|
(6)
Indenture, dated as of June 30, 2004, among the Company, the
Guarantors
named therein and U.S. Bank National Association as
Trustee.
|
001-31617
|
10-Q
|
June
2004
|
4.1
|
|
(7)
Supplemental Indenture dated as of August 16, 2005, among the
Company, as
issuer, the Guarantors listed on the signature page, as guarantors,
and
U.S. Bank National Association as Trustee relating to the Company's
6 1/8%
Senior Notes due 2013.
|
001-31617
|
8-K
|
August
22, 2005
|
4(1)
|
|
(10)
|
Material
Contracts
|
||||
(1)
Executive
Welfare Benefit Agreement, similar agreement omitted pursuant
to
Instruction 2 to Item 601 of Regulation S-K.*
|
33-9596
|
S-4
|
December
1986
|
10(ww)
|
|
(2)
Executive
Welfare Benefit Agreement, similar agreements are omitted pursuant
to
Instruction 2 to Item 601 of Regulation S-K.*
|
33-9596
|
S-4
|
December
1986
|
10(xx)
|
|
(3)
Offshore
Logistics, Inc. 1994 Long-Term Management Incentive Plan *
|
33-87450
|
S-8
|
December
1994
|
84
|
|
(4)
Indemnity
Agreement, similar agreements with other directors of the Company
are
omitted pursuant to Instruction 2 to Item 601 of Regulation
S-K.
|
0-5232
|
10-K
|
March
1997
|
10(14)
|
|
(5)
Master
Agreement dated December 12, 1996.
|
0-5232
|
8-K
|
December
1996
|
2(1)
|
|
(6)
Supplemental
Letter Agreement dated December 19, 1996 to the Master
Agreement.
|
5-34191
|
13-D
|
April
1997
|
2
|
|
(7)
Offshore
Logistics, Inc. 1994 Long-Term Management Incentive Plan, as
amended.
*
|
0-5232
|
10-K
|
March
1999
|
10(15)
|
|
(8)
Offshore
Logistics, Inc. 1991 Non-qualified Stock Option Plan for Non-employee
Directors, as amended.*
|
33-50946
|
S-8
|
August
1992
|
4.1
|
|
(9)
Offshore
Logistics, Inc. 1994 Long-Term Management Incentive Plan, as
amended.*
|
333-100017
|
S-8
|
September
2002
|
4.12
|
|
(10) Offshore
Logistics, Inc. Deferred Compensation Plan. *
|
001-31617
|
10-K
|
March
2004
|
10(18)
|
|
(11)
Offshore
Logistics, Inc. 2003 Nonqualified Stock Option Plan for Non-employee
Directors. *
|
333-115473
|
S-8
|
May
13, 2004
|
4(12)
|
|
(12) Offshore
Logistics, Inc. 2004 Stock Incentive Plan.*
|
001-31617
|
10-Q
|
September
2004
|
10(1)
|
|
(13)
Employment
Agreement with Richard Burman dated October 15, 2004. *
|
001-31617
|
10-K
|
March
2005
|
10(27)
|
Incorporated
by Reference to
|
||||||
Exhibits
|
Registration
or File Number
|
Form
or Report
|
Date
|
Exhibit
Number
|
||
(14) Agreement
between Pilots Represented by Office and Professional Employees
International Union, AFL-CIO and Offshore Logistics, Inc.
*
|
001-31617
|
10-K
|
March
2005
|
10(28)
|
||
(15) New
Helicopter Sales Agreement dated December 19, 2002 between the
Company and Sikorsky Aircraft Corporation (“Sikorsky Agreement”).
+
|
001-31617
|
10-Q
|
June
2005
|
10(1)
|
||
(16) Amendment
Number 1 to Sikorsky Agreement dated February 14, 2003. +
|
001-31617
|
10-Q
|
June
2005
|
10(2)
|
||
(17) Amendment
Number 2 to Sikorsky Agreement dated April 1, 2003. +
|
001-31617
|
10-Q
|
June
2005
|
10(3)
|
||
(18) Amendment
Number 3 to Sikorsky Agreement dated January 22,
2004. +
|
001-31617
|
10-Q
|
June
2005
|
10(4)
|
||
(19) Amendment
Number 4 to Sikorsky Agreement dated March 5,
2004. +
|
001-31617
|
10-Q
|
June
2005
|
10(5)
|
||
(20) Amendment
Number 5 to Sikorsky Agreement dated July 13,
2004. +
|
001-31617
|
10-Q
|
June
2005
|
10(6)
|
||
(21) Amendment
Number 6 to Sikorsky Agreement dated October 11,
2004. +
|
001-31617
|
10-Q
|
June
2005
|
10(7)
|
||
(22)
Amendment
Number 7 to Sikorsky Agreement dated January 5,
2005. +
|
001-31617
|
10-Q
|
June
2005
|
10(8)
|
||
(23)
Amendment
Number 8 to Sikorsky Agreement dated May 5,
2005. +
|
001-31617
|
10-Q
|
June
2005
|
10(9)
|
||
(24)
Amendment
Number 9 to Sikorsky Agreement dated June 14,
2005. +
|
001-31617
|
10-Q
|
June
2005
|
10(10)
|
||
(25) Employment
Agreement with Brian C. Voegele dated June 1, 2005. *
|
001-31617
|
8-K
|
July
12, 2005
|
10(1)
|
||
(26)
Form
of Stock Option Agreement. *
|
001-31617
|
8-K/A
|
February
2, 2006
|
10(2)
|
||
(27)
Form
of Restricted Stock Agreement. *
|
001-31617
|
8-K/A
|
February
2, 2006
|
10(3)
|
||
(28)
Employment
Agreement effective as of June 1, 2005 between the Company and
Michael R.
Suldo. *
|
001-31617
|
8-K
|
February
8, 2006
|
10(1)
|
||
(29)
Form
of Aircraft Lease agreement between CFS Air, LLC and Air Logistics,
L.L.C.
(a Schedule I has been filed as part of this exhibit setting forth
certain
terms omitted from the Form of Aircraft Lease Agreement).
|
001-31617
|
10-Q
|
December
2005
|
10(2)
|
||
(30)
Employment
Agreement with Perry L. Elders dated February 16, 2006. *
|
001-31617
|
8-K
|
February
17, 2006
|
10(1)
|
||
(31)
Amendment
to Employment Agreement between the Company and Michael R. Suldo
dated
March 8, 2006. *
|
001-31617
|
8-K
|
March
13, 2006
|
10(1)
|
||
(32)
Employment
Agreement with Randall A. Stafford dated May 22, 2006.*
|
001-31617
|
8-K
|
May
25, 2006
|
10(1)
|
||
(33)
Amended
and restated Employment Agreement between the Company and William
E.
Chiles dated June 6, 2006.*
|
001-31617
|
8-K
|
June
8, 2006
|
10(1)
|
||
(34)
Amended
and restated Employment Agreement between the Company and Mark
Duncan
dated June 6, 2006.*
|
001-31617
|
8-K
|
June
8, 2006
|
10(2)
|
||
(35)
Form
of Stock Option Agreement under 2003 Nonqualified Stock Option
Plan for
Non-employee Directors.*
|
001-31617
|
8-K
|
August
7, 2006
|
10(3)
|
||
(36)
S-92
New Helicopter Sales Agreement dated as of May 19, 2006 between
the
Company and Sikorsky Aircraft Corporation.+
|
001-31617
|
8-K
|
August
8, 2006
|
10(1)
|
Incorporated
by Reference to
|
|||||
Exhibits
|
Registration
or File Number
|
Form
or Report
|
Date
|
Exhibit
Number
|
|
(37)
Revolving
Credit Agreement dated August 3, 2006.
|
001-31617
|
8-K
|
August
9, 2006
|
10(1)
|
|
(38)
Letter
of Credit Facility dated August 3, 2006.
|
001-31617
|
8-K
|
August
9, 2006
|
10(2)
|
|
(39)
Bristow
Group Inc. Fiscal Year 2007 Annual Incentive Compensation
Plan.*
|
001-31617
|
8-K
|
August
17, 2006
|
10(1)
|
|
(40)
Bristow
Group Inc. Form of Severance Benefit Agreement.*
|
001-31617
|
8-K
|
February
22, 2007
|
10(1)
|
|
(41)
Consultancy
Agreement with Peter N. Buckley.*
|
001-31617
|
8-K
|
February
22, 2007
|
10(2)
|
|
(42)
Amendment
to Employment Agreement with Richard Burman.*
|
001-31617
|
8-K
|
April
26, 2007
|
10(1)
|
|
(43)
Bristow
Group Inc. Fiscal Year 2008 Annual Incentive Compensation Plan.
*
|
001-31617
|
8-K
|
May
8, 2007
|
10(1)
|
|
(44)
Bristow
Group Inc. 2007 Long Term Incentive Plan. *
|
001-31617
|
8-K
|
May
8, 2007
|
10(2)
|
|
(45)
William
E. Chiles Restricted Stock Award Documents. *
|
001-31617
|
8-K
|
May
8, 2007
|
10(3)
|
|
(21)†
|
Subsidiaries
of the Registrant
|
||||
(23)†
|
Consent
of Independent Registered Public Accounting Firm
|
||||
(24)†
|
Powers
of Attorney
|
||||
(31.1)†
|
Certification
by President and Chief Executive Officer
|
||||
(31.2)†
|
Certification
by Chief Financial Officer
|
||||
(32.1)†
|
Certification
of the Chief Executive Officer of Registrant pursuant to 18 U.S.C.
Section
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of
2002.
|
||||
(32.2)†
|
Certification
of the Chief Financial Officer of Registrant pursuant to 18 U.S.C.
Section
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of
2002.
|
/s/
William E. Chiles
|
President,
Chief Executive Officer
|
William
E. Chiles
|
and
Director
|
/s/
Perry L. Elders
|
Executive
Vice President and
|
Perry
L. Elders
|
Chief
Financial Officer
|
/s/
Elizabeth D. Brumley
|
Vice
President and
|
Elizabeth
D. Brumley
|
Chief
Accounting Officer
|
*
|
Director
|
Thomas
N. Amonett
|
|
*
|
Director
|
Charles
F. Bolden, Jr.
|
|
*
|
Director
|
Peter
N. Buckley
|
|
*
|
Director
|
Stephen
J. Cannon
|
|
*
|
Director
|
Jonathan
H. Cartwright
|
|
*
|
Director
|
Michael
A. Flick
|
|
*
|
Chairman
of the Board and Director
|
Thomas
C. Knudson
|
|
/s/
Ken C. Tamblyn
|
Director
|
Ken
C. Tamblyn
|
|
*
|
Director
|
Robert
W. Waldrup
|
|
/s/
Randall A. Stafford
|
|
*
By: Randall A. Stafford (Attorney-in-Fact)
|
|
Incorporated
by Reference to
|
|||||
Exhibits
|
Registration
or File Number
|
Form
or Report
|
Date
|
Exhibit
Number
|
|
(3)
|
Articles
of Incorporation and By-laws
|
||||
(1)
Delaware Certificate of Incorporation dated December 2,
1987
|
001-31617
|
10-Q
|
June
2005
|
3(1)
|
|
(2)
Agreement and Plan of Merger dated
December 29, 1987
|
0-5232
|
10-K
|
June
1990
|
3(11)
|
|
|
(3)
Certificate of Merger dated December 2, 1987
|
0-5232
|
10-K
|
June
1990
|
3(3)
|
(4)
Certificate of Correction of Certificate of Merger dated January
20,
1988
|
0-5232
|
10-K
|
June
1990
|
3(4)
|
|
(5) Certificate
of Amendment of Certificate of Incorporation dated November 30,
1989
|
001-31617
|
10-Q
|
June
2005
|
3(2)
|
|
(6) Certificate
of Amendment of Certificate of Incorporation dated December 9,
1992
|
001-31617
|
10-Q
|
June
2005
|
3(3)
|
|
(7)
Offshore Logistics, Inc. 1994 Long-Term Management Incentive
Plan, as
amended *
|
0-5232
|
10-K
|
March
1999
|
10(15)
|
|
(7)
Rights
Agreement and Form of Rights Certificate
|
0-5232
|
8-A
|
February
1996
|
4
|
|
(8)
Amended
and Restated By-laws
|
001-31617
|
10-Q
|
June
2005
|
3(4)
|
|
(9)
Certificate
of Designation of Series A Junior Participating Preferred
Stock
|
001-31617
|
10-Q
|
June
2005
|
3(5)
|
|
(10)
First Amendment to Rights Agreement
|
0-5232
|
8-A/A
|
May
1997
|
5
|
|
(11)
Second Amendment to Rights Agreement
|
0-5232
|
8-A/A
|
January
2003
|
4.3
|
|
(12)
Certificate of Ownership and Merger Merging OL Sub, Inc. into
Offshore
Logistics, Inc., effective February 1, 2006
|
001-31617
|
8-K
|
February
6, 2003
|
3.1
|
|
(13)
Third Amendment to Rights Agreement, dated as of February 28,
2006,
between Bristow Group Inc. and Mellon Investor Services
LLC
|
000-05232
|
8-A/A
|
March
2, 2006
|
4.2
|
|
(14)
Certificate of Designation of 5.50% Mandatory Convertible Preferred
Stock
of Bristow Group Inc.
|
001-31617
|
8-A12B
|
September
15, 2006
|
14(1)
|
|
(4)
|
Instruments
defining the rights of security holders, including
indentures
|
||||
(1)
Registration Rights Agreement dated December 19, 1996, between
the Company
and Caledonia Industrial and Services Limited
|
0-5232
|
10-Q
|
December
1996
|
4(3)
|
|
(2)
Indenture, dated as of June 20, 2003, among the Company, the
Guarantors
named therein and U.S. Bank National Association, as
Trustee
|
333-107148
|
S-4
|
July
18, 2003
|
4.1
|
|
(3)
Registration Rights Agreement, dated as of June 20, 2003, among
the
Company and Credit Suisse First Boston LLC, Deutsche Bank Securities
Inc.,
Robert W. Baird & Co. Incorporated, Howard Weil, A Division of Legg
Mason Wood Walker, Inc., Jefferies & Company, Inc., and Johnson Rice
& Company L.L.C.
|
333-107148
|
S-4
|
July
18, 2003
|
4.2
|
|
(4)
Form of 144A Global Note representing $228,170,000 Principal
Amount of
6 1/8% Senior
Notes due 2013
|
333-107148
|
S-4
|
July
18, 2003
|
4.3
|
|
(5)
Form of Regulation S Global Note representing $1,830,000 Principal
Amount
of 6 1/8% Senior
Notes due 2013
|
333-107148
|
S-4
|
July
18, 2003
|
4.4
|
|
(6)
Indenture, dated as of June 30, 2004, among the Company, the
Guarantors
named therein and U.S. Bank National Association as
Trustee
|
001-31617
|
10-Q
|
June
2004
|
4.1
|
Incorporated
by Reference to
|
|||||
Exhibits
|
Registration
or File Number
|
Form
or Report
|
Date
|
Exhibit
Number
|
|
(7)
Supplemental Indenture dated as of August 16, 2005, among the
Company, as
issuer, the Guarantors listed on the signature page, as guarantors,
and
U.S. Bank National Association as Trustee relating to the Company's
6 1/8%
Senior Notes due 2013.
|
001-31617
|
8-K
|
August
22, 2005
|
4(1)
|
|
(10)
|
Material
Contracts
|
||||
(1) Executive
Welfare Benefit Agreement, similar agreement omitted pursuant
to
Instruction 2 to Item 601 of Regulation S-K *
|
33-9596
|
S-4
|
December
1986
|
10(ww)
|
|
(2)
Executive
Welfare Benefit Agreement, similar agreements are omitted pursuant
to
Instruction 2 to Item 601 of Regulation S-K *
|
33-9596
|
S-4
|
December
1986
|
10(xx)
|
|
(3)
Offshore
Logistics, Inc. 1994 Long-Term Management Incentive Plan *
|
33-87450
|
S-8
|
December
1994
|
84
|
|
(4)
Indemnity
Agreement, similar agreements with other directors of the Company
are
omitted pursuant to Instruction 2 to Item 601 of Regulation
S-K.
|
0-5232
|
10-K
|
March
1997
|
10(14)
|
|
(5)
Master
Agreement dated December 12, 1996
|
0-5232
|
8-K
|
December
1996
|
2(1)
|
|
(6)
Supplemental
Letter Agreement dated December 19, 1996 to the Master
Agreement
|
5-34191
|
13-D
|
April
1997
|
2
|
|
(7)
Offshore
Logistics, Inc. 1994 Long-Term Management Incentive Plan, as
amended
*
|
0-5232
|
10-K
|
March
1999
|
10(15)
|
|
(8)
Offshore
Logistics, Inc. 1991 Non-qualified Stock Option Plan for Non-employee
Directors, as amended.*
|
33-50946
|
S-8
|
August
1992
|
4.1
|
|
(9)
Offshore
Logistics, Inc. 1994 Long-Term Management Incentive Plan, as
amended.*
|
333-100017
|
S-8
|
September
2002
|
4.12
|
|
(10)
Offshore
Logistics, Inc. Deferred Compensation Plan *
|
001-31617
|
10-K
|
March
2004
|
10(18)
|
|
(11)
Offshore
Logistics, Inc. 2003 Nonqualified Stock Option Plan for Non-employee
Directors *
|
333-115473
|
S-8
|
May
13, 2004
|
4(12)
|
|
|
(12)
Offshore
Logistics, Inc. 2004 Stock
Incentive Plan*
|
001-31617
|
10-Q
|
September
2004
|
10(1)
|
(13)
Employment
Agreement with Richard Burman dated October 15, 2004 *
|
001-31617
|
10-K
|
March
2005
|
10(27)
|
|
(14)
Agreement
between Pilots Represented by Office and Professional Employees
International Union, AFL-CIO and Offshore Logistics, Inc.
*
|
001-31617
|
10-K
|
March
2005
|
10(28)
|
|
(15)
New
Helicopter Sales Agreement dated
December 19, 2002 between
the Company and Sikorsky Aircraft Corporation (“Sikorsky Agreement”).
+
|
001-31617
|
10-Q
|
June
2005
|
10(1)
|
|
(16)
Amendment
Number 1 to Sikorsky Agreement dated February 14, 2003. +
|
001-31617
|
10-Q
|
June
2005
|
10(2)
|
|
(17)
Amendment
Number 2 to Sikorsky Agreement dated April 1, 2003. +
|
001-31617
|
10-Q
|
June
2005
|
10(3)
|
|
(18)
Amendment
Number 3 to Sikorsky Agreement dated January 22,
2004. +
|
001-31617
|
10-Q
|
June
2005
|
10(4)
|
|
(19)
Amendment
Number 4 to Sikorsky Agreement dated March 5,
2004. +
|
001-31617
|
10-Q
|
June
2005
|
10(5)
|
|
(20)
Amendment
Number 5 to Sikorsky Agreement dated July 13,
2004. +
|
001-31617
|
10-Q
|
June
2005
|
10(6)
|
|
(21)
Amendment
Number 6 to Sikorsky Agreement dated October 11,
2004. +
|
001-31617
|
10-Q
|
June
2005
|
10(7)
|
Incorporated
by Reference to
|
|||||
Exhibits
|
Registration
or File Number
|
Form
or Report
|
Date
|
Exhibit
Number
|
|
(22)
Amendment
Number 7 to Sikorsky Agreement dated January 5,
2005. +
|
001-31617
|
10-Q
|
June
2005
|
10(8)
|
|
(23)
Amendment
Number 8 to Sikorsky Agreement dated May 5,
2005. +
|
001-31617
|
10-Q
|
June
2005
|
10(9)
|
|
(24)
Amendment
Number 9 to Sikorsky Agreement dated June 14,
2005. +
|
001-31617
|
10-Q
|
June
2005
|
10(10)
|
|
(25)
Employment
Agreement with Brian C. Voegele dated June 1, 2005. *
|
001-31617
|
8-K
|
July
12, 2005
|
10(1)
|
|
(26)
Form
of Stock Option Agreement. *
|
001-31617
|
8-K/A
|
February
2, 2006
|
10(2)
|
|
(27)
Form
of Restricted Stock Agreement. *
|
001-31617
|
8-K/A
|
February
2, 2006
|
10(3)
|
|
(28)
Employment
Agreement effective as of June 1, 2005 between the Company and
Michael R.
Suldo. *
|
001-31617
|
8-K
|
February
8, 2006
|
10(1)
|
|
(29)
Form
of Aircraft Lease agreement between CFS Air, LLC and Air Logistics,
L.L.C.
(a Schedule I has been filed as part of this exhibit setting forth
certain
terms omitted from the Form of Aircraft Lease Agreement).
|
001-31617
|
10-Q
|
December
2005
|
10(2)
|
|
(30)
Employment
Agreement with Perry L. Elders dated February 16, 2006. *
|
001-31617
|
8-K
|
February
17, 2006
|
10(1)
|
|
(31)
Amendment
to Employment Agreement between the Company and Michael R. Suldo
dated
March 8, 2006. *
|
001-31617
|
8-K
|
March
13, 2006
|
10(1)
|
|
(32) Employment
Agreement with Randall A. Stafford dated May 22, 2006.*
|
001-31617
|
8-K
|
May
25, 2006
|
10(1)
|
|
(33)
Amended
and restated Employment Agreement between the Company and William
E.
Chiles dated June 6, 2006.*
|
001-31617
|
8-K
|
June
8, 2006
|
10(1)
|
|
(34)
Amended
and restated Employment Agreement between the Company and Mark
Duncan
dated June 6, 2006.*
|
001-31617
|
8-K
|
June
8, 2006
|
10(2)
|
|
(35)
Form
of Stock Option Agreement under 2003 Nonqualified Stock Option
Plan for
Non-employee Directors.*
|
001-31617
|
8-K
|
August
7, 2006
|
10(3)
|
|
(36)
S-92
New Helicopter Sales Agreement dated as of May 19, 2006 between
the
Company and Sikorsky Aircraft Corporation.+
|
001-31617
|
8-K
|
August
8, 2006
|
10(1)
|
|
(37)
Revolving
Credit Agreement dated August 3, 2006.
|
001-31617
|
8-K
|
August
9, 2006
|
10(1)
|
|
(38)
Letter
of Credit Facility dated August 3, 2006.
|
001-31617
|
8-K
|
August
9, 2006
|
10(2)
|
|
(39)
Bristow
Group Inc. Fiscal Year 2007 Annual Incentive Compensation
Plan.*
|
001-31617
|
8-K
|
August
17, 2006
|
10(1)
|
|
(40)
Bristow
Group Inc. Form of Severance Benefit Agreement.*
|
001-31617
|
8-K
|
February
22, 2007
|
10(1)
|
|
(41)
Consultancy
Agreement with Peter N. Buckley.*
|
001-31617
|
8-K
|
February
22, 2007
|
10(2)
|
|
(42)
Amendment
to Employment Agreement with Richard Burman.*
|
001-31617
|
8-K
|
April
26, 2007
|
10(1)
|
|
(43)
Bristow
Group Inc. Fiscal Year 2008 Annual Incentive Compensation
Plan.*
|
001-31617
|
8-K
|
May
8, 2007
|
10(1)
|
|
(44)
Bristow
Group Inc. 2007 Long Term Incentive Plan. *
|
001-31617
|
8-K
|
May
8, 2007
|
10(2)
|
|
(45)
William
E. Chiles Restricted Stock Award Documents. *
|
001-31617
|
8-K
|
May
8, 2007
|
10(3)
|
Incorporated
by Reference to
|
||||||
Exhibits
|
Registration
or File Number
|
Form
or Report
|
Date
|
Exhibit
Number
|
||
(21)†
|
Subsidiaries
of the Registrant
|
|||||
(23)†
|
Consent
of Independent Registered Public Accounting Firm
|
|||||
(24)†
|
Powers
of Attorney
|
|||||
(31.1)†
|
Certification
by President and Chief Executive Officer
|
|||||
(31.2)†
|
Certification
by Chief Financial Officer
|
|||||
(32.1)†
|
Certification
of the Chief Executive Officer of Registrant pursuant to 18 U.S.C.
Section
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of
2002.
|
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(32.2)†
|
Certification
of the Chief Financial Officer of Registrant pursuant to 18 U.S.C.
Section
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of
2002.
|