R
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For
the quarterly period ended December 31, 2008
|
|
OR
|
|
£
|
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)
|
None
|
(Former
name, former address and former fiscal year, if changed since last
report)
|
Large
accelerated filer R
|
Accelerated
filer £
|
Non-accelerated
filer £
|
Smaller
reporting company £
|
(Do
not check if a smaller
reporting
company)
|
Page
|
|||
PART
I
|
|||
Item
1.
|
2
|
||
Item
2.
|
36
|
||
Item
3.
|
63
|
||
Item
4.
|
64
|
||
PART
II
|
|||
Item
1.
|
64
|
||
Item
1A.
|
64
|
||
Item
6.
|
65
|
||
66
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
|||||||||||||||
2007
|
2008
|
2007
|
2008
|
|||||||||||||
(Unaudited)
(In
thousands, except per share amounts)
|
||||||||||||||||
Gross
revenue:
|
||||||||||||||||
Operating
revenue from non-affiliates
|
$
|
222,831
|
$
|
236,491
|
$
|
642,598
|
$
|
726,151
|
||||||||
Operating
revenue from affiliates
|
13,633
|
16,792
|
38,588
|
52,492
|
||||||||||||
Reimbursable
revenue from non-affiliates
|
23,439
|
28,617
|
66,075
|
76,196
|
||||||||||||
Reimbursable
revenue from affiliates
|
1,617
|
1,087
|
5,218
|
3,959
|
||||||||||||
261,520
|
282,987
|
752,479
|
858,798
|
|||||||||||||
Operating
expense:
|
||||||||||||||||
Direct
cost
|
169,704
|
176,038
|
475,416
|
551,404
|
||||||||||||
Reimbursable
expense
|
24,344
|
28,689
|
68,587
|
79,437
|
||||||||||||
Depreciation
and amortization
|
12,445
|
16,663
|
36,127
|
47,103
|
||||||||||||
General
and administrative
|
22,373
|
25,586
|
61,018
|
78,776
|
||||||||||||
Gain
on GOM Asset Sale
|
—
|
(37,780
|
)
|
—
|
(37,780
|
)
|
||||||||||
(Gain)
loss on disposal of other assets
|
(4,094
|
)
|
102
|
(3,921
|
)
|
(5,865
|
)
|
|||||||||
224,772
|
209,298
|
637,227
|
713,075
|
|||||||||||||
Operating
income
|
36,748
|
73,689
|
115,252
|
145,723
|
||||||||||||
Earnings
from unconsolidated affiliates, net of losses
|
3,725
|
(1,417
|
)
|
11,233
|
8,277
|
|||||||||||
Interest
income
|
3,697
|
1,087
|
9,781
|
5,739
|
||||||||||||
Interest
expense
|
(6,684
|
)
|
(7,603
|
)
|
(16,135
|
)
|
(24,500
|
)
|
||||||||
Other
income (expense), net
|
989
|
(1,522
|
)
|
1,775
|
2,240
|
|||||||||||
Income
from continuing operations before provision for income
taxes
and minority interest
|
38,475
|
64,234
|
121,906
|
137,479
|
||||||||||||
Provision
for income taxes
|
(12,302
|
)
|
(16,106
|
)
|
(40,035
|
)
|
(37,020
|
)
|
||||||||
Minority
interest
|
61
|
(535
|
)
|
(392
|
)
|
(2,190
|
)
|
|||||||||
Income
from continuing operations
|
26,234
|
47,593
|
81,479
|
98,269
|
||||||||||||
Discontinued
operations:
|
||||||||||||||||
Income
(loss) from discontinued operations before provision
for
income taxes
|
(1,429
|
)
|
—
|
690
|
(379
|
)
|
||||||||||
(Provision) benefit for income taxes on discontinued operations | (4,657 |
)
|
—
|
(5,399 | ) | 133 | ||||||||||
Loss
from discontinued operations
|
(6,086
|
)
|
—
|
(4,709
|
)
|
(246
|
)
|
|||||||||
Net
income
|
20,148
|
47,593
|
76,770
|
98,023
|
||||||||||||
Preferred
stock dividends
|
(3,162
|
)
|
(3,162
|
)
|
(9,487
|
)
|
(9,487
|
)
|
||||||||
Net
income available to common stockholders
|
$
|
16,986
|
$
|
44,431
|
$
|
67,283
|
$
|
88,536
|
||||||||
Basic
earnings per common share:
|
||||||||||||||||
Earnings
from continuing operations
|
$
|
0.97
|
$
|
1.53
|
$
|
3.03
|
$
|
3.21
|
||||||||
Loss
from discontinued operations
|
(0.26
|
)
|
—
|
(0.19
|
)
|
(0.01
|
)
|
|||||||||
Net
earnings
|
$
|
0.71
|
$
|
1.53
|
$
|
2.84
|
$
|
3.20
|
||||||||
Diluted
earnings per common share:
|
||||||||||||||||
Earnings
from continuing operations
|
$
|
0.86
|
$
|
1.34
|
$
|
2.68
|
$
|
2.87
|
||||||||
Loss
from discontinued operations
|
(0.20
|
)
|
—
|
(0.16
|
)
|
(0.01
|
)
|
|||||||||
Net
earnings
|
$
|
0.66
|
$
|
1.34
|
$
|
2.52
|
$
|
2.86
|
March
31,
|
December
31,
|
||||||||||
2008
|
2008
|
||||||||||
(Unaudited)
|
|||||||||||
(In
thousands)
|
|||||||||||
ASSETS
|
|||||||||||
Current
assets:
|
|||||||||||
Cash
and cash equivalents
|
$
|
290,050
|
$
|
364,653
|
|||||||
Accounts
receivable from non-affiliates, net of allowance for doubtful accounts of
$1.8
million
and $1.7 million, respectively
|
204,599
|
182,061
|
|||||||||
Accounts
receivable from affiliates, net of allowance for doubtful accounts of
$4.0
million
and $2.2 million, respectively
|
11,316
|
29,151
|
|||||||||
Inventories
|
176,239
|
158,340
|
|||||||||
Prepaid
expenses and other
|
24,177
|
18,813
|
|||||||||
Total
current assets
|
706,381
|
753,018
|
|||||||||
Investment
in unconsolidated affiliates
|
52,467
|
18,927
|
|||||||||
Property
and equipment – at cost:
|
|||||||||||
Land
and buildings
|
60,056
|
60,539
|
|||||||||
Aircraft
and equipment
|
1,428,996
|
1,744,990
|
|||||||||
1,489,052
|
1,805,529
|
||||||||||
Less
– Accumulated depreciation and amortization
|
(316,514
|
)
|
(300,413
|
)
|
|||||||
1,172,538
|
1,505,116
|
||||||||||
Goodwill
|
15,676
|
37,138
|
|||||||||
Other
assets
|
30,293
|
29,452
|
|||||||||
$
|
1,977,355
|
$
|
2,343,651
|
||||||||
LIABILITIES
AND STOCKHOLDERS’ INVESTMENT
|
|||||||||||
Current
liabilities:
|
|||||||||||
Accounts
payable
|
$
|
49,650
|
$
|
52,352
|
|||||||
Accrued
wages, benefits and related taxes
|
35,523
|
39,357
|
|||||||||
Income
taxes payable
|
5,862
|
13,740
|
|||||||||
Other
accrued taxes
|
1,589
|
2,194
|
|||||||||
Deferred
revenues
|
15,415
|
17,736
|
|||||||||
Accrued
maintenance and repairs
|
13,250
|
14,613
|
|||||||||
Accrued
interest
|
5,656
|
8,614
|
|||||||||
Other
accrued liabilities
|
22,235
|
19,945
|
|||||||||
Deferred
taxes
|
9,238
|
7,236
|
|||||||||
Short-term
borrowings and current maturities of long-term debt
|
6,541
|
6,014
|
|||||||||
Total
current liabilities
|
164,959
|
181,801
|
|||||||||
Long-term
debt, less current maturities
|
599,677
|
741,301
|
|||||||||
Accrued
pension liabilities
|
134,156
|
94,421
|
|||||||||
Other
liabilities and deferred credits
|
14,805
|
14,830
|
|||||||||
Deferred
taxes
|
91,747
|
106,208
|
|||||||||
Minority
interest
|
4,570
|
11,098
|
|||||||||
Commitments
and contingencies (Note 7)
|
|||||||||||
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
|
222,554
|
|||||||||
Common
stock, $.01 par value, authorized 90,000,000 shares; outstanding:
23,923,685 as
of
March 31 and 29,104,408 as of December 31 (exclusive of 1,281,050 treasury
shares)
|
239
|
291
|
|||||||||
Additional
paid-in capital
|
186,390
|
418,852
|
|||||||||
Retained
earnings
|
606,931
|
696,722
|
|||||||||
Accumulated
other comprehensive loss
|
(48,673
|
)
|
(144,427
|
)
|
|||||||
967,441
|
1,193,992
|
||||||||||
$
|
1,977,355
|
$
|
2,343,651
|
Nine
Months Ended
December
31,
|
||||||||
2007
|
2008
|
|||||||
(Unaudited)
|
||||||||
(In
thousands)
|
||||||||
Cash
flows from operating activities:
|
||||||||
Net
income
|
$
|
76,770
|
$
|
98,023
|
||||
Adjustments
to reconcile net income to net cash (used in) provided by operating
activities:
|
||||||||
Depreciation
and amortization
|
36,228
|
47,103
|
||||||
Deferred
income taxes
|
19,952
|
14,328
|
||||||
(Gain)
loss on disposal of discontinued operations
|
(476
|
)
|
379
|
|||||
Gain
on asset dispositions
|
(3,924
|
)
|
(5,865
|
)
|
||||
Gain
on GOM Asset Sale
|
—
|
(37,780
|
)
|
|||||
Gain
on Heliservicio investment sale
|
—
|
(1,438
|
)
|
|||||
Stock-based
compensation expense
|
7,176
|
7,697
|
||||||
Equity
in earnings from unconsolidated affiliates below (in excess of) dividends
received
|
(4,774
|
)
|
7,910
|
|||||
Minority
interest in earnings
|
392
|
2,190
|
||||||
Tax
benefit related to stock-based compensation
|
(2,008
|
)
|
(242
|
)
|
||||
Increase
(decrease) in cash resulting from changes in:
|
||||||||
Accounts
receivable
|
(40,778
|
)
|
(9,342
|
)
|
||||
Inventories
|
(17,231
|
)
|
(16,600
|
)
|
||||
Prepaid
expenses and other
|
(8,204
|
)
|
(22,826
|
)
|
||||
Accounts
payable
|
(4,714
|
)
|
5,657
|
|||||
Accrued
liabilities
|
9,685
|
20,855
|
||||||
Other
liabilities and deferred credits
|
(10,335
|
)
|
(6,177
|
)
|
||||
Net
cash provided by operating activities
|
57,759
|
103,872
|
||||||
Cash
flows from investing activities:
|
||||||||
Capital
expenditures
|
(288,847
|
)
|
(388,007
|
)
|
||||
Proceeds
from asset dispositions
|
23,007
|
86,681
|
||||||
Acquisitions,
net of cash received
|
(14,622
|
)
|
(15,590
|
)
|
||||
Net
proceeds from sale of discontinued operations
|
21,958
|
—
|
||||||
Note
issued to unconsolidated affiliate
|
(4,141
|
)
|
—
|
|||||
Investment
in unconsolidated affiliate
|
(1,960
|
)
|
—
|
|||||
Net
cash used in investing activities
|
(264,605
|
)
|
(316,916
|
)
|
||||
Cash
flows from financing activities:
|
||||||||
Proceeds
from borrowings
|
350,622
|
115,000
|
||||||
Debt
issuance costs
|
(5,806
|
)
|
(3,768
|
)
|
||||
Repayment
of debt and debt redemption premiums
|
(8,175
|
)
|
(20,996
|
)
|
||||
Partial
prepayment of put/call obligation
|
(120
|
)
|
(184
|
)
|
||||
Preferred
Stock dividends paid
|
(9,487
|
)
|
(9,487
|
)
|
||||
Issuance
of common stock
|
5,226
|
225,260
|
||||||
Tax
benefit related to stock-based compensation
|
2,008
|
242
|
||||||
Net
cash provided by financing activities
|
334,268
|
306,067
|
||||||
Effect
of exchange rate changes on cash and cash equivalents
|
3,655
|
(18,420
|
)
|
|||||
Net
increase in cash and cash equivalents
|
131,077
|
74,603
|
||||||
Cash
and cash equivalents at beginning of period
|
184,188
|
290,050
|
||||||
Cash
and cash equivalents at end of period
|
$
|
315,265
|
$
|
364,653
|
||||
Supplemental
disclosure of cash flow information:
|
||||||||
Cash
paid during the period for:
|
||||||||
Interest
|
$
|
20,441
|
$
|
30,446
|
||||
Income
taxes
|
$
|
21,321
|
$
|
17,109
|
||||
Non-cash
investing activities:
|
||||||||
Contribution
of note receivable and aircraft to RLR
|
$
|
—
|
$
|
(6,551
|
)
|
|||
Aircraft
received for investment in Heliservicio
|
$
|
—
|
$
|
2,410
|
March
31,
2008
|
December
31,
2008
|
|||||
West
Africa
|
$
|
6,731
|
$
|
6,423
|
||
Bristow Academy
|
8,946
|
10,157
|
||||
Europe
|
—
|
19,981
|
||||
Latin
America
|
—
|
576
|
||||
$
|
15,677
|
$
|
37,137
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
||||||||||||||
2007
|
2008
|
2007
|
2008
|
||||||||||||
One
British pound sterling into U.S. dollars
|
|||||||||||||||
High
|
2.11
|
1.78
|
2.11
|
2.01
|
|||||||||||
Average
|
2.05
|
1.57
|
2.02
|
1.81
|
|||||||||||
Low
|
1.98
|
1.44
|
1.97
|
1.44
|
|||||||||||
At
period-end
|
1.99
|
1.44
|
1.99
|
1.44
|
|||||||||||
One
euro into U.S. dollars
|
|||||||||||||||
High
|
1.49
|
1.45
|
1.49
|
1.60
|
|||||||||||
Average
|
1.45
|
1.32
|
1.39
|
1.46
|
|||||||||||
Low
|
1.41
|
1.24
|
1.33
|
1.24
|
|||||||||||
At
period-end
|
1.46
|
1.39
|
1.46
|
1.39
|
|||||||||||
One
Australian dollar into U.S. dollars
|
|||||||||||||||
High
|
0.94
|
0.79
|
0.94
|
0.98
|
|||||||||||
Average
|
0.89
|
0.67
|
0.86
|
0.83
|
|||||||||||
Low
|
0.86
|
0.61
|
0.78
|
0.61
|
|||||||||||
At
period-end
|
0.88
|
0.70
|
0.88
|
0.70
|
Three
Months Ended
December
31, 2008
|
Nine
Months Ended
December
31, 2008
|
||||||
Revenue
|
$
|
(33,589
|
)
|
$
|
(31,756
|
)
|
|
Operating
expense
|
31,297
|
25,803
|
|||||
Non-operating
expense
|
(1,009
|
)
|
2,508
|
||||
Income
from continuing operations before provision for
income
taxes and minority interest
|
(3,301
|
)
|
(3,445
|
)
|
|||
Provision
for income taxes
|
842
|
982
|
|||||
Net
income
|
(2,459
|
)
|
(2,463
|
)
|
|||
Cumulative
translation adjustment
|
(47,640
|
)
|
(91,258
|
)
|
|||
Total
stockholders’ investment
|
$
|
(50,099
|
)
|
$
|
(93,721
|
)
|
Sale
price
|
$
|
65,000
|
||
Net
assets sold
|
(23,311
|
)
|
||
Transaction
expenses
|
(3,909
|
)
|
||
Pre-tax
gain on sale
|
37,780
|
|||
Provision
for income taxes
|
(13,363
|
)
|
||
After-tax
gain on GOM Asset Sale
|
$
|
24,417
|
||
Diluted
earnings per share:
|
||||
Three
months ended December 31, 2008
|
$
|
0.69
|
||
Nine
months ended December 31, 2008
|
$
|
0.71
|
Current
assets
|
$
|
44,333
|
||
Property
and equipment
|
35,587
|
|||
Other
assets
|
32,714
|
|||
Total
assets
|
112,634
|
|||
Current
liabilities, including debt
|
(49,784
|
)
|
||
Long-term
debt, less current maturities
|
(18,598
|
)
|
||
Other
long-term liabilities
|
(1,156
|
)
|
||
Total
liabilities
|
(69,538
|
)
|
||
Net
assets
|
$
|
43,096
|
Current
assets
|
$
|
7,404
|
||
Property
and equipment
|
35,811
|
|||
Other
assets
|
584
|
|||
Total
assets acquired
|
43,799
|
|||
Current
liabilities, including debt
|
(8,062
|
)
|
||
Long-term
debt, less current maturities
|
(17,231
|
)
|
||
Total
liabilities assumed
|
(25,293
|
)
|
||
Net
assets acquired
|
$
|
18,506
|
Recognition
of previously reserved billings: (1)
|
||||
Revenue
from affiliates and operating income
|
$
|
782
|
||
Earnings
from unconsolidated affiliates, net of losses (2)
|
3,647
|
|||
Gain
on Heliservicio investment sale
|
1,438
|
|||
Income
from continuing operations before provision for income taxes and minority
interest
|
5,867
|
|||
Tax
effect
|
(2,167
|
)
|
||
Income
from continuing operations
|
$
|
3,700
|
||
Diluted
earnings per share for the nine months ended
December
31, 2008
|
$
|
0.11
|
(1)
|
From
April 1, 2005 to March 31, 2008 because of uncertainties as to
collectibility, lease revenue from Heliservicio and Hemisco Helicopters
International, Inc. (“Hemisco”) (collectively, “HC”) were recognized as
collected. As a result of the collection of past due
receivables and the improved financial condition of HC, revenues from HC
have been recognized on an accrual basis since April 1,
2008.
|
(2)
|
Represents
the impact of earnings from unconsolidated affiliates for previously
unrecognized lease revenue from HC prior to April 1, 2008.
|
March
31,
2008
|
December
31,
2008
|
|||||
7
½% Senior Notes due 2017, including $0.6 million of unamortized
premium
|
$
|
350,601
|
$
|
350,553
|
||
6
⅛% Senior Notes due 2013
|
230,000
|
230,000
|
||||
3%
Convertible Senior Notes due 2038
|
—
|
115,000
|
||||
Norsk
debt
|
—
|
18,806
|
||||
RLR
Note
|
—
|
17,490
|
||||
Term
loan
|
16,683
|
14,957
|
||||
Hemisco
Note
|
4,380
|
—
|
||||
Other
debt
|
4,554
|
509
|
||||
Total
debt
|
606,218
|
747,315
|
||||
Less
short-term borrowings and current maturities of long-term
debt
|
(6,541
|
)
|
(6,014
|
)
|
||
Total
long-term debt
|
$
|
599,677
|
$
|
741,301
|
·
|
Level
1 - inputs to the valuation methodology are quoted prices (unadjusted) for
identical assets or liabilities in active
markets.
|
·
|
Level
2 - inputs to the valuation methodology include quoted prices for similar
assets and liabilities in active markets, and inputs are observable for
the asset or liability, either directly or indirectly, for substantially
the full term of the financial
instrument.
|
·
|
Level
3 - inputs to the valuation methodology are unobservable and significant
to the fair value measurement.
|
Quoted
Prices in Active Markets for Identical Assets
(Level
1)
|
Significant
Other Observable Inputs
(Level
2)
|
Significant
Unobservable Inputs
(Level
3)
|
Balance
as of
December
31, 2008
|
|||||||||||||
Derivative
financial instrument liabilities, net
|
$
|
—
|
$
|
5,119
|
$
|
—
|
$
|
5,119
|
Three
Months
Ending March 31,
|
Fiscal
Year Ending March 31,
|
|||||||||||||||||||||
2009
|
2010
|
2011
|
2012
|
2013
|
Total
|
|||||||||||||||||
Commitments
as of December 31, 2008:
|
||||||||||||||||||||||
Number
of aircraft:
|
||||||||||||||||||||||
Small
|
—
|
1
|
—
|
—
|
—
|
1
|
||||||||||||||||
Medium
|
—
|
8
|
3
|
—
|
—
|
11
|
||||||||||||||||
Large
|
2
|
11
|
—
|
—
|
—
|
13
|
||||||||||||||||
Training
|
6
|
—
|
—
|
—
|
—
|
6
|
||||||||||||||||
8
|
(1)
|
20
|
(2)
|
3
|
—
|
—
|
31
|
|||||||||||||||
Related
expenditures (in thousands) (3)
|
$
|
62,474
|
$
|
224,365
|
$
|
11,548
|
$
|
—
|
$
|
—
|
$
|
298,387
|
||||||||||
Options
as of December 31, 2008:
|
||||||||||||||||||||||
Number
of aircraft:
|
||||||||||||||||||||||
Small
|
—
|
1
|
—
|
—
|
—
|
1
|
||||||||||||||||
Medium
|
—
|
—
|
3
|
11
|
13
|
27
|
||||||||||||||||
Large
|
—
|
—
|
10
|
5
|
4
|
19
|
||||||||||||||||
—
|
1
|
13
|
16
|
17
|
47
|
|||||||||||||||||
Related
expenditures (in thousands) (3)
|
$
|
4,637
|
$
|
104,993
|
$
|
258,974
|
$
|
245,429
|
$
|
189,070
|
$
|
803,103
|
(1)
|
Signed
customer contracts are currently in place for one of these two
non-training aircraft.
|
(2)
|
Signed
customer contracts are currently in place for 4 of these 20 aircraft.
|
(3)
|
Includes
progress payments on aircraft scheduled to be delivered in future
periods.
|
Three
Months Ended
|
||||||||||||||||||||||
June
30, 2008
|
September
30, 2008
|
December
31, 2008
|
||||||||||||||||||||
Orders
|
Options
|
Orders
|
Options
|
Orders
|
Options
|
|||||||||||||||||
Beginning
of quarter
|
35
|
50
|
39
|
51
|
42
|
47
|
||||||||||||||||
Aircraft
delivered
|
(7
|
)
|
—
|
(10
|
)
|
—
|
(11
|
)
|
—
|
|||||||||||||
Aircraft
ordered
|
11
|
(8
|
)
|
13
|
(4
|
)
|
—
|
—
|
||||||||||||||
New
options
|
—
|
9
|
—
|
—
|
—
|
—
|
||||||||||||||||
End
of quarter
|
39
|
51
|
42
|
47
|
31
|
47
|
Amount
of Commitment Expiration Per Period
|
|||||||||||||||||
Total
|
Remainder
of Fiscal Year 2009
|
Fiscal
Years 2010-2011
|
Fiscal
Years 2012-2013
|
Fiscal
Year 2014 and Thereafter
|
|||||||||||||
(In
thousands)
|
|||||||||||||||||
$
|
44,698
|
$
|
177
|
$
|
4,704
|
$
|
16,457
|
$
|
23,360
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
||||||||||||||
2007
|
2008
|
2007
|
2008
|
||||||||||||
(In
thousands)
|
|||||||||||||||
Service
cost for benefits earned during the period
|
$
|
73
|
$
|
57
|
$
|
215
|
$
|
197
|
|||||||
Interest
cost on pension benefit obligation
|
6,756
|
6,145
|
19,990
|
21,267
|
|||||||||||
Expected
return on assets
|
(6,994
|
)
|
(5,551
|
)
|
(20,694
|
)
|
(19,212
|
)
|
|||||||
Amortization
of unrecognized losses
|
1,055
|
1,022
|
3,121
|
3,537
|
|||||||||||
Net
periodic pension cost
|
$
|
890
|
$
|
1,673
|
$
|
2,632
|
$
|
5,789
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
|||||||||||
2007
|
2008
|
2007
|
2008
|
|||||||||
Earnings
(in thousands):
|
||||||||||||
Continuing
operations:
|
||||||||||||
Income
available to common stockholders – basic
|
$
|
23,072
|
$
|
44,431
|
$
|
71,992
|
$
|
88,782
|
||||
Preferred
Stock dividends
|
3,162
|
3,162
|
9,487
|
9,487
|
||||||||
Interest
expense on assumed conversion of 3% Convertible Senior Notes, net of tax
(1)
|
—
|
—
|
—
|
—
|
||||||||
Income
available to common stockholders – diluted
|
$
|
26,234
|
$
|
47,593
|
$
|
81,479
|
$
|
98,269
|
||||
Discontinued
operations:
|
||||||||||||
Loss
available to common stockholders – basic and diluted
|
$
|
(6,086
|
)
|
$
|
—
|
$
|
(4,709
|
)
|
$
|
(246)
|
||
Net
earnings:
|
||||||||||||
Income
available to common stockholders – basic
|
$
|
16,986
|
$
|
44,431
|
$
|
67,283
|
$
|
88,536
|
||||
Preferred
Stock dividends
|
3,162
|
3,162
|
9,487
|
9,487
|
||||||||
Interest
expense on assumed conversion of 3% Convertible Senior Notes, net of tax
(1)
|
—
|
—
|
—
|
—
|
||||||||
Income
available to common stockholders – diluted
|
$
|
20,148
|
$
|
47,593
|
$
|
76,770
|
$
|
98,023
|
||||
Shares:
|
||||||||||||
Weighted
average number of common shares outstanding – basic
|
23,811,848
|
29,101,198
|
23,727,522
|
27,634,829
|
||||||||
Assumed
conversion of Preferred Stock outstanding during the period (2)
|
6,522,800
|
6,522,800
|
6,522,800
|
6,522,800
|
||||||||
Assumed
conversion of 3% Convertible Senior Notes outstanding during the period
(1)
|
—
|
—
|
—
|
—
|
||||||||
Net
effect of dilutive stock options and restricted stock units based on the
treasury stock method
|
192,610
|
4,237
|
199,702
|
27,604
|
||||||||
Weighted
average number of common shares outstanding – diluted
|
30,527,258
|
35,628,235
|
30,450,024
|
34,185,233
|
||||||||
Basic
earnings per common share:
|
||||||||||||
Earnings
from continuing operations
|
$
|
0.97
|
$
|
1.53
|
$
|
3.03
|
$
|
3.21
|
||||
Loss from
discontinued operations
|
(0.26
|
)
|
—
|
(0.19
|
)
|
(0.01
|
)
|
|||||
Net
earnings
|
$
|
0.71
|
$
|
1.53
|
$
|
2.84
|
$
|
3.20
|
||||
Diluted
earnings per common share:
|
||||||||||||
Earnings
from continuing operations
|
$
|
0.86
|
$
|
1.34
|
$
|
2.68
|
$
|
2.87
|
||||
Loss
from discontinued operations
|
(0.20
|
)
|
—
|
(0.16
|
)
|
(0.01
|
)
|
|||||
Net
earnings
|
$
|
0.66
|
$
|
1.34
|
$
|
2.52
|
$
|
2.86
|
(1)
|
Diluted
earnings per common share for the three and nine months ended December 31,
2008 excludes approximately 1.5 million potentially dilutive shares
initially issuable upon the conversion of our 3% Convertible Senior
Notes. The 3% Convertible Senior Notes will be convertible,
under certain circumstances, using a net share settlement process, into a
combination of cash and our common stock. The initial base
conversion price of the notes is approximately $77.34 (subject to
adjustment in certain circumstances), based on the initial base conversion
rate of 12.9307 shares of common stock per $1,000 principal amount of
convertible notes. In general, upon conversion of a note, the
holder will receive cash equal to the principal amount of the note and
common stock to the extent of the note's conversion value in excess of
such principal amount. In addition, if at the time of
conversion the applicable price of our common stock exceeds the base
conversion price, holders will receive up to an additional 8.4049 shares
of our common stock per $1,000 principal amount of notes, as determined
pursuant to a specified formula. Such shares did not impact our
calculation of diluted earnings per share for the three and nine months
ended December 31, 2008 as our stock price did not meet or exceed $77.34
per share. These notes were issued in June 2008 and, therefore,
did not impact the calculation of diluted earnings per share for the three
and nine months ended December 31, 2007.
|
(2)
|
Diluted
earnings per common share included weighted average shares resulting from
the assumed conversion of our Preferred Stock at the conversion rate that
results in the most dilution: 1.4180 shares of common stock for
each share of Preferred Stock. If the average of the closing
price per share of our common stock on each of the 20 consecutive trading
days ending on the third day immediately preceding the mandatory
conversion date of September 15, 2009 is greater than $35.26 per share,
then the Preferred Stock will convert into fewer shares than assumed for
diluted earnings per common share. If such average is $43.19
per share or more, then the Preferred Stock will convert into 1,197,840
fewer shares than assumed for diluted earnings per common
share.
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
|||||||||||||||
2007
|
2008
|
2007
|
2008
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Segment
gross revenue from external customers:
|
||||||||||||||||
U.S. Gulf
of Mexico
|
$
|
53,259
|
$
|
53,695
|
$
|
164,586
|
$
|
177,695
|
||||||||
Arctic
|
2,570
|
3,005
|
12,217
|
14,088
|
||||||||||||
Latin
America
|
16,476
|
20,707
|
49,463
|
59,964
|
||||||||||||
WH
Centralized Operations
|
217
|
2,584
|
1,088
|
6,317
|
||||||||||||
Europe
|
94,384
|
102,388
|
270,259
|
295,639
|
||||||||||||
West
Africa
|
46,287
|
50,478
|
125,369
|
140,788
|
||||||||||||
Southeast
Asia
|
29,918
|
28,851
|
76,268
|
99,112
|
||||||||||||
Other
International
|
11,615
|
13,182
|
34,862
|
39,645
|
||||||||||||
EH
Centralized Operations
|
2,788
|
2,598
|
8,114
|
8,300
|
||||||||||||
Bristow Academy
|
3,969
|
5,499
|
10,216
|
17,222
|
||||||||||||
Corporate
|
37
|
—
|
37
|
28
|
||||||||||||
Total
segment gross revenue
|
$
|
261,520
|
$
|
282,987
|
$
|
752,479
|
$
|
858,798
|
Intrasegment
gross revenue:
|
||||||||||||||||
U.S. Gulf
of Mexico
|
$
|
—
|
$
|
—
|
$
|
49
|
$
|
—
|
||||||||
Arctic
|
—
|
—
|
—
|
—
|
||||||||||||
Latin
America
|
—
|
—
|
—
|
—
|
||||||||||||
WH
Centralized Operations
|
1,221
|
550
|
2,325
|
1,986
|
||||||||||||
Europe
|
716
|
89
|
1,657
|
571
|
||||||||||||
West
Africa
|
—
|
—
|
—
|
—
|
||||||||||||
Southeast
Asia
|
—
|
31
|
—
|
31
|
||||||||||||
Other
International
|
259
|
41
|
513
|
814
|
||||||||||||
EH
Centralized Operations
|
2,451
|
5,027
|
9,261
|
16,290
|
||||||||||||
Bristow Academy
|
—
|
64
|
—
|
64
|
||||||||||||
Total
intrasegment gross revenue
|
$
|
4,647
|
$
|
5,802
|
$
|
13,805
|
$
|
19,756
|
Consolidated
gross revenue reconciliation:
|
||||||||||||||||
U.S. Gulf
of Mexico
|
$
|
53,259
|
$
|
53,695
|
$
|
164,635
|
$
|
177,695
|
||||||||
Arctic
|
2,570
|
3,005
|
12,217
|
14,088
|
||||||||||||
Latin
America
|
16,476
|
20,707
|
49,463
|
59,964
|
||||||||||||
WH
Centralized Operations
|
1,438
|
3,134
|
3,413
|
8,303
|
||||||||||||
Europe
|
95,100
|
102,477
|
271,916
|
296,210
|
||||||||||||
West
Africa
|
46,287
|
50,478
|
125,369
|
140,788
|
||||||||||||
Southeast
Asia
|
29,918
|
28,882
|
76,268
|
99,143
|
||||||||||||
Other
International
|
11,874
|
13,223
|
35,375
|
40,459
|
||||||||||||
EH
Centralized Operations
|
5,239
|
7,625
|
17,375
|
24,590
|
||||||||||||
Bristow Academy
|
3,969
|
5,563
|
10,216
|
17,286
|
||||||||||||
Intrasegment
eliminations
|
(4,647
|
)
|
(5,802
|
)
|
(13,805
|
)
|
(19,756
|
)
|
||||||||
Corporate
|
37
|
—
|
37
|
28
|
||||||||||||
Total
consolidated gross revenue
|
$
|
261,520
|
$
|
282,987
|
$
|
752,479
|
$
|
858,798
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
|||||||||||||||
2007
|
2008
|
2007
|
2008
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Consolidated
operating income reconciliation:
|
||||||||||||||||
U.S. Gulf
of Mexico
|
$
|
8,122
|
$
|
8,721
|
$
|
26,901
|
$
|
24,973
|
||||||||
Arctic
|
(72
|
)
|
184
|
2,043
|
2,603
|
|||||||||||
Latin
America
|
3,828
|
6,141
|
11,413
|
17,169
|
||||||||||||
WH
Centralized Operations
|
(871
|
)
|
(2,509
|
)
|
491
|
(2,281
|
)
|
|||||||||
Europe
|
20,695
|
16,340
|
57,165
|
55,785
|
||||||||||||
West
Africa
|
7,019
|
13,167
|
25,308
|
27,707
|
||||||||||||
Southeast
Asia
|
6,476
|
5,094
|
15,710
|
10,344
|
||||||||||||
Other
International
|
712
|
3,135
|
4,758
|
5,910
|
||||||||||||
EH
Centralized Operations
|
(6,404
|
)
|
(6,461
|
)
|
(13,930
|
)
|
(18,849
|
)
|
||||||||
Bristow Academy
|
(130
|
)
|
(168
|
)
|
(612
|
)
|
219
|
|||||||||
Gain
on GOM Asset Sale
|
—
|
37,780
|
—
|
37,780
|
||||||||||||
Gain
(loss) on disposal of other assets
|
4,094
|
(102
|
)
|
3,921
|
5,865
|
|||||||||||
Corporate
|
(6,721
|
)
|
(7,633
|
)
|
(17,916
|
)
|
(21,502
|
)
|
||||||||
Total
consolidated operating income
|
$
|
36,748
|
$
|
73,689
|
$
|
115,252
|
$
|
145,723
|
March
31,
|
December
31,
|
|||||||
2008
|
2008
|
|||||||
(In
thousands)
|
||||||||
Identifiable assets:
|
||||||||
U.S. Gulf
of Mexico
|
$
|
256,927
|
$
|
325,760
|
||||
Arctic
|
17,233
|
16,218
|
||||||
Latin
America
|
157,916
|
258,096
|
||||||
WH
Centralized Operations
|
1,456
|
1,728
|
||||||
Europe
|
509,413
|
648,921
|
||||||
West
Africa
|
252,458
|
250,431
|
||||||
Southeast
Asia
|
165,431
|
172,765
|
||||||
Other
International
|
99,185
|
82,077
|
||||||
EH
Centralized Operations
|
51,291
|
32,654
|
||||||
Bristow Academy
|
33,966
|
33,940
|
||||||
Corporate
(1)
|
432,079
|
521,061
|
||||||
Total
identifiable assets
|
$
|
1,977,355
|
$
|
2,343,651
|
(1)
|
Includes
$182.9 million and $322.2 million, respectively, of construction in
progress within property and equipment on our condensed consolidated
balance sheets as of March 31 and December 31, 2008, respectively, which
primarily represents progress payments on aircraft to be delivered in
future periods.
|
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||||
December
31,
|
December
31,
|
||||||||||||||
2007
|
2008
|
2007
|
2008
|
||||||||||||
(In
thousands)
|
|||||||||||||||
Net
income
|
$
|
20,148
|
$
|
47,593
|
$
|
76,770
|
$
|
98,023
|
|||||||
Other
comprehensive income:
|
|||||||||||||||
Currency
translation adjustments
|
(8,980
|
)
|
(47,640
|
)
|
6,357
|
(91,258
|
)
|
||||||||
Income
tax effect attributable to pension liability adjustment as a result of
internal reorganization (see Note 8)
|
—
|
—
|
—
|
(9,371
|
)
|
||||||||||
Change
of interest gain - Norsk (see Note 3)
|
—
|
12,300
|
—
|
12,300
|
|||||||||||
Unrealized
loss on cash flow hedges (net of income tax effect of $0.1 million for the
three and nine months ended December 31, 2007 and $(0.2) million and $4.0
million for the three and nine months ended December 31, 2008,
respectively)
|
(130
|
)
|
283
|
(130
|
)
|
(7,425
|
)
|
||||||||
Comprehensive
income
|
$
|
11,038
|
$
|
12,536
|
$
|
82,997
|
$
|
2,269
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Gross
revenue
|
$
|
39
|
$
|
73,788
|
$
|
187,693
|
$
|
—
|
$
|
261,520
|
||||||||||
Intercompany
revenue
|
—
|
5,421
|
4,491
|
(9,912
|
)
|
—
|
||||||||||||||
39
|
79,209
|
192,184
|
(9,912
|
)
|
261,520
|
|||||||||||||||
Operating
expense:
|
||||||||||||||||||||
Direct
cost
|
75
|
51,022
|
142,951
|
—
|
194,048
|
|||||||||||||||
Intercompany
expenses
|
—
|
4,495
|
5,417
|
(9,912
|
)
|
—
|
||||||||||||||
Depreciation
and amortization
|
71
|
5,423
|
6,951
|
—
|
12,445
|
|||||||||||||||
General
and administrative
|
8,625
|
1,571
|
12,177
|
—
|
22,373
|
|||||||||||||||
Gain
on disposal of other assets
|
—
|
(2,481
|
)
|
(1,613
|
)
|
—
|
(4,094
|
)
|
||||||||||||
8,771
|
60,030
|
165,883
|
(9,912
|
)
|
224,772
|
|||||||||||||||
Operating
income (loss)
|
(8,732
|
)
|
19,179
|
26,301
|
—
|
36,748
|
||||||||||||||
Earnings
from unconsolidated affiliates,
net
|
16,141
|
2
|
3,723
|
(16,141
|
)
|
3,725
|
||||||||||||||
Interest
income
|
22,965
|
93
|
501
|
(19,862
|
)
|
3,697
|
||||||||||||||
Interest
expense
|
(6,682
|
)
|
1
|
(19,865
|
)
|
19,862
|
(6,684
|
)
|
||||||||||||
Other
income (expense), net
|
550
|
(478
|
)
|
917
|
—
|
989
|
||||||||||||||
Income
from continuing operations before
provision
for income taxes and minority
interest
|
24,242
|
18,797
|
11,577
|
(16,141
|
)
|
38,475
|
||||||||||||||
Allocation
of consolidated income taxes
|
(4,042
|
)
|
3,372
|
(11,632
|
)
|
—
|
(12,302
|
)
|
||||||||||||
Minority
interest
|
(52
|
)
|
—
|
113
|
—
|
61
|
||||||||||||||
Income
from continuing operations
|
20,148
|
22,169
|
58
|
(16,141
|
)
|
26,234
|
||||||||||||||
Discontinued
operations:
|
||||||||||||||||||||
Loss
from discontinued operations before
provision
for income taxes
|
—
|
(1,429
|
)
|
—
|
—
|
(1,429
|
)
|
|||||||||||||
Provision
for income taxes on discontinued
operations
|
—
|
(4,657
|
)
|
—
|
—
|
(4,657
|
)
|
|||||||||||||
Loss
from discontinued operations
|
—
|
(6,086
|
)
|
—
|
—
|
(6,086
|
)
|
|||||||||||||
Net
income
|
$
|
20,148
|
$
|
16,083
|
$
|
58
|
$
|
(16,141
|
)
|
$
|
20,148
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Gross
revenue
|
$
|
39
|
$
|
227,072
|
$
|
525,368
|
$
|
—
|
$
|
752,479
|
||||||||||
Intercompany
revenue
|
—
|
14,575
|
13,988
|
(28,563
|
)
|
—
|
||||||||||||||
39
|
241,647
|
539,356
|
(28,563
|
)
|
752,479
|
|||||||||||||||
Operating
expense:
|
||||||||||||||||||||
Direct
cost
|
75
|
150,851
|
393,077
|
—
|
544,003
|
|||||||||||||||
Intercompany
expenses
|
—
|
14,114
|
14,449
|
(28,563
|
)
|
—
|
||||||||||||||
Depreciation
and amortization
|
213
|
15,876
|
20,038
|
—
|
36,127
|
|||||||||||||||
General
and administrative
|
19,625
|
8,048
|
33,345
|
—
|
61,018
|
|||||||||||||||
Gain
on disposal of other assets
|
—
|
(2,458
|
)
|
(1,463
|
)
|
—
|
(3,921
|
)
|
||||||||||||
19,913
|
186,431
|
459,446
|
(28,563
|
)
|
637,227
|
|||||||||||||||
Operating
income (loss)
|
(19,874
|
)
|
55,216
|
79,910
|
—
|
115,252
|
||||||||||||||
Earnings
from unconsolidated affiliates,
net
|
60,022
|
315
|
10,918
|
(60,022
|
)
|
11,233
|
||||||||||||||
Interest
income
|
65,344
|
137
|
1,669
|
(57,369
|
)
|
9,781
|
||||||||||||||
Interest
expense
|
(17,743
|
)
|
1
|
(55,762
|
)
|
57,369
|
(16,135
|
)
|
||||||||||||
Other
income (expense), net
|
510
|
(575
|
)
|
1,840
|
—
|
1,775
|
||||||||||||||
Income
from continuing operations before
provision
for income taxes and minority
interest
|
88,259
|
55,094
|
38,575
|
(60,022
|
)
|
121,906
|
||||||||||||||
Allocation
of consolidated income taxes
|
(11,339
|
)
|
854
|
(29,550
|
)
|
—
|
(40,035
|
)
|
||||||||||||
Minority
interest
|
(150
|
)
|
—
|
(242
|
)
|
—
|
(392
|
)
|
||||||||||||
Income
from continuing operations
|
76,770
|
55,948
|
8,783
|
(60,022
|
)
|
81,479
|
||||||||||||||
Discontinued
operations:
|
||||||||||||||||||||
Income
from discontinued operations before
provision
for income taxes
|
—
|
690
|
—
|
—
|
690
|
|||||||||||||||
Provision
for income taxes on discontinued
operations
|
—
|
(5,399
|
)
|
—
|
—
|
(5,399
|
)
|
|||||||||||||
Loss
from discontinued operations
|
—
|
(4,709
|
)
|
—
|
—
|
(4,709
|
)
|
|||||||||||||
Net
income
|
$
|
76,770
|
$
|
51,239
|
$
|
8,783
|
$
|
(60,022
|
)
|
$
|
76,770
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Gross
revenue
|
$
|
93
|
$
|
82,609
|
$
|
200,285
|
$
|
—
|
$
|
282,987
|
||||||||||
Intercompany
revenue
|
—
|
7,407
|
5,288
|
(12,695
|
)
|
—
|
||||||||||||||
93
|
90,016
|
205,573
|
(12,695
|
)
|
282,987
|
|||||||||||||||
Operating
expense:
|
||||||||||||||||||||
Direct
cost
|
(105
|
)
|
52,731
|
152,101
|
—
|
204,727
|
||||||||||||||
Intercompany
expenses
|
—
|
5,418
|
7,277
|
(12,695
|
)
|
—
|
||||||||||||||
Depreciation
and amortization
|
179
|
6,058
|
10,426
|
—
|
16,663
|
|||||||||||||||
General
and administrative
|
9,191
|
3,371
|
13,024
|
—
|
25,586
|
|||||||||||||||
(Gain)
loss on GOM Asset Sale
|
3,354
|
(41,134
|
)
|
—
|
—
|
(37,780
|
)
|
|||||||||||||
(Gain)
loss on disposal of other assets
|
—
|
(126
|
)
|
228
|
—
|
102
|
||||||||||||||
12,619
|
26,318
|
183,056
|
(12,695
|
)
|
209,298
|
|||||||||||||||
Operating
income (loss)
|
(12,526
|
)
|
63,698
|
22,517
|
—
|
73,689
|
||||||||||||||
Earnings
(losses) from unconsolidated affiliates,
net
|
59,586
|
—
|
(832
|
)
|
(60,171
|
)
|
(1,417
|
)
|
||||||||||||
Interest
income
|
17,507
|
16
|
917
|
(17,353
|
)
|
1,087
|
||||||||||||||
Interest
expense
|
(8,190
|
)
|
—
|
(16,766
|
)
|
17,353
|
(7,603
|
)
|
||||||||||||
Other
income (expense), net
|
604
|
509
|
(2,635
|
)
|
—
|
(1,522
|
)
|
|||||||||||||
Income
from continuing operations before
provision
for income taxes and minority
interest
|
56,981
|
64,223
|
3,201
|
(60,171
|
)
|
64,234
|
||||||||||||||
Allocation
of consolidated income taxes
|
(9,146
|
)
|
(2,551
|
)
|
(4,409)
|
—
|
(16,106
|
)
|
||||||||||||
Minority
interest
|
(242
|
)
|
—
|
(293)
|
—
|
(535
|
)
|
|||||||||||||
Income
from continuing operations
|
47,593
|
61,672
|
(1,501
|
)
|
(60,171
|
)
|
47,593
|
|||||||||||||
Discontinued
operations:
|
||||||||||||||||||||
Income
from discontinued operations before
benefit
for income taxes
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Provision
for income taxes on discontinued
operations
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Income
from discontinued operations
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Net
income
|
$
|
47,593
|
$
|
61,672
|
$
|
(1,501
|
)
|
$
|
(60,171
|
)
|
$
|
47,593
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Gross
revenue
|
$
|
166
|
$
|
263,466
|
$
|
595,166
|
$
|
—
|
$
|
858,798
|
||||||||||
Intercompany
revenue
|
—
|
19,996
|
17,094
|
(37,090
|
)
|
—
|
||||||||||||||
166
|
283,462
|
612,260
|
(37,090
|
)
|
858,798
|
|||||||||||||||
Operating
expense:
|
||||||||||||||||||||
Direct
cost
|
491
|
167,945
|
462,405
|
—
|
630,841
|
|||||||||||||||
Intercompany
expenses
|
—
|
17,361
|
19,729
|
(37,090
|
)
|
—
|
||||||||||||||
Depreciation
and amortization
|
352
|
17,464
|
29,287
|
—
|
47,103
|
|||||||||||||||
General
and administrative
|
21,695
|
12,298
|
44,783
|
—
|
78,776
|
|||||||||||||||
(Gain)
loss on GOM Asset Sale
|
3,354
|
(41,134
|
)
|
—
|
—
|
(37,780
|
)
|
|||||||||||||
(Gain)
loss on disposal of other assets
|
—
|
(1,658
|
)
|
(22,551
|
)
|
18,344
|
(5,865
|
)
|
||||||||||||
25,892
|
172,276
|
533,653
|
(18,746
|
)
|
713,075
|
|||||||||||||||
Operating
income (loss)
|
(25,726
|
)
|
111,186
|
78,607
|
(18,344
|
)
|
145,723
|
|||||||||||||
Earnings
from unconsolidated affiliates,
net
|
155,357
|
3,454
|
6,269
|
(156,803
|
)
|
8,277
|
||||||||||||||
Interest
income
|
60,427
|
106
|
2,079
|
(56,873
|
)
|
5,739
|
||||||||||||||
Interest
expense
|
(25,602
|
)
|
—
|
(55,771
|
)
|
56,873
|
(24,500
|
)
|
||||||||||||
Other
income (expense), net
|
3,860
|
778
|
(2,398
|
)
|
—
|
2,240
|
||||||||||||||
Income
from continuing operations before
provision
for income taxes and minority
interest
|
168,316
|
115,524
|
28,786
|
(175,147
|
)
|
137,479
|
||||||||||||||
Allocation
of consolidated income taxes
|
(69,599
|
)
|
(10,091
|
)
|
42,670
|
—
|
(37,020
|
)
|
||||||||||||
Minority
interest
|
(694
|
)
|
—
|
(1,496
|
)
|
—
|
(2,190
|
)
|
||||||||||||
Income
from continuing operations
|
98,023
|
105,433
|
69,960
|
(175,147
|
)
|
98,269
|
||||||||||||||
Discontinued
operations:
|
||||||||||||||||||||
Loss
from discontinued operations before
benefit
for income taxes
|
—
|
(379
|
)
|
—
|
—
|
(379
|
)
|
|||||||||||||
Benefit
for income taxes on discontinued
operations
|
—
|
133
|
—
|
—
|
133
|
|||||||||||||||
Loss
from discontinued operations
|
—
|
(246
|
)
|
—
|
—
|
(246
|
)
|
|||||||||||||
Net
income
|
$
|
98,023
|
$
|
105,187
|
$
|
69,960
|
$
|
(175,147
|
)
|
$
|
98,023
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
ASSETS
|
||||||||||||||||||||
Current
assets:
|
||||||||||||||||||||
Cash
and cash equivalents
|
$
|
226,494
|
$
|
361
|
$
|
63,195
|
$
|
—
|
$
|
290,050
|
||||||||||
Accounts
receivable
|
34,679
|
73,023
|
155,232
|
(47,019
|
)
|
215,915
|
||||||||||||||
Inventories
|
—
|
76,706
|
99,533
|
—
|
176,239
|
|||||||||||||||
Prepaid
expenses and other
|
1,145
|
2,856
|
20,176
|
—
|
24,177
|
|||||||||||||||
Total
current assets
|
262,318
|
152,946
|
338,136
|
(47,019
|
)
|
706,381
|
||||||||||||||
Intercompany
investment
|
602,282
|
1,047
|
16,990
|
(620,319
|
)
|
—
|
||||||||||||||
Investment
in unconsolidated affiliates
|
4,433
|
3,639
|
44,395
|
—
|
52,467
|
|||||||||||||||
Intercompany
notes receivable
|
875,856
|
—
|
(15,145
|
)
|
(860,711
|
)
|
—
|
|||||||||||||
Property
and equipment – at cost:
|
||||||||||||||||||||
Land
and buildings
|
212
|
44,230
|
15,614
|
—
|
60,056
|
|||||||||||||||
Aircraft
and equipment
|
2,957
|
552,429
|
873,610
|
—
|
1,428,996
|
|||||||||||||||
3,169
|
596,659
|
889,224
|
—
|
1,489,052
|
||||||||||||||||
Less: Accumulated
depreciation and amortization
|
(1,146
|
)
|
(139,100
|
)
|
(176,268
|
)
|
—
|
(316,514
|
)
|
|||||||||||
2,023
|
457,559
|
712,956
|
—
|
1,172,538
|
||||||||||||||||
Goodwill
|
—
|
4,755
|
10,921
|
—
|
15,676
|
|||||||||||||||
Other
assets
|
14,183
|
4,457
|
11,653
|
—
|
30,293
|
|||||||||||||||
$
|
1,761,095
|
$
|
624,403
|
$
|
1,119,906
|
$
|
(1,528,049
|
)
|
$
|
1,977,355
|
||||||||||
LIABILITIES
AND STOCKHOLDERS’ INVESTMENT
|
||||||||||||||||||||
Current
liabilities:
|
||||||||||||||||||||
Accounts
payable
|
$
|
686
|
$
|
14,486
|
$
|
47,986
|
$
|
(13,508
|
)
|
$
|
49,650
|
|||||||||
Accrued
liabilities
|
10,893
|
15,780
|
106,368
|
(33,511
|
)
|
99,530
|
||||||||||||||
Deferred
taxes
|
(1,909
|
)
|
—
|
11,147
|
—
|
9,238
|
||||||||||||||
Short-term
borrowings and current maturities
of
long-term debt
|
—
|
—
|
6,541
|
—
|
6,541
|
|||||||||||||||
Total
current liabilities
|
9,670
|
30,266
|
172,042
|
(47,019
|
)
|
164,959
|
||||||||||||||
Long-term
debt, less current maturities
|
584,981
|
—
|
14,696
|
—
|
599,677
|
|||||||||||||||
Intercompany
notes payable
|
—
|
190,498
|
670,213
|
(860,711
|
)
|
—
|
||||||||||||||
Accrued
pension liabilities
|
—
|
—
|
134,156
|
—
|
134,156
|
|||||||||||||||
Other
liabilities and deferred credits
|
3,834
|
9,379
|
1,592
|
—
|
14,805
|
|||||||||||||||
Deferred
taxes
|
52,190
|
3,669
|
35,888
|
—
|
91,747
|
|||||||||||||||
Minority
interest
|
2,072
|
—
|
2,498
|
—
|
4,570
|
|||||||||||||||
Stockholders’
investment:
|
||||||||||||||||||||
Preferred
stock
|
222,554
|
—
|
—
|
—
|
222,554
|
|||||||||||||||
Common
stock
|
239
|
4,996
|
68,986
|
(73,982
|
)
|
239
|
||||||||||||||
Additional
paid-in-capital
|
186,390
|
23,100
|
242,983
|
(266,083
|
)
|
186,390
|
||||||||||||||
Retained
earnings
|
606,931
|
362,495
|
(60,086
|
)
|
(302,409
|
)
|
606,931
|
|||||||||||||
Accumulated
other comprehensive income
(loss)
|
92,234
|
—
|
(163,062
|
)
|
22,155
|
(48,673
|
)
|
|||||||||||||
1,108,348
|
390,591
|
88,821
|
(620,319
|
)
|
967,441
|
|||||||||||||||
$
|
1,761,095
|
$
|
624,403
|
$
|
1,119,906
|
$
|
(1,528,049
|
)
|
$
|
1,977,355
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
ASSETS
|
||||||||||||||||||||
Current
assets:
|
||||||||||||||||||||
Cash
and cash equivalents
|
$
|
266,706
|
$
|
11,854
|
$
|
86,093
|
$
|
—
|
$
|
364,653
|
||||||||||
Accounts
receivable
|
10,121
|
80,178
|
160,096
|
(39,183
|
)
|
211,212
|
||||||||||||||
Inventories
|
—
|
76,411
|
81,929
|
—
|
158,340
|
|||||||||||||||
Prepaid
expenses and other
|
293
|
4,628
|
42,392
|
(28,500
|
)
|
18,813
|
||||||||||||||
Total
current assets
|
277,120
|
173,071
|
370,510
|
(67,683
|
)
|
753,018
|
||||||||||||||
Intercompany
investment
|
862,119
|
1,824
|
254,147
|
(1,118,090
|
)
|
—
|
||||||||||||||
Investment
in unconsolidated affiliates
|
1,608
|
150
|
17,169
|
—
|
18,927
|
|||||||||||||||
Intercompany
notes receivable
|
841,267
|
—
|
(51,813
|
)
|
(789,454
|
)
|
—
|
|||||||||||||
Property
and equipment – at cost:
|
||||||||||||||||||||
Land
and buildings
|
212
|
46,066
|
14,261
|
—
|
60,539
|
|||||||||||||||
Aircraft
and equipment
|
6,847
|
780,255
|
957,888
|
—
|
1,744,990
|
|||||||||||||||
7,059
|
826,321
|
972,149
|
—
|
1,805,529
|
||||||||||||||||
Less: Accumulated
depreciation and amortization
|
(1,374
|
)
|
(128,300
|
)
|
(170,739
|
)
|
—
|
(300,413
|
)
|
|||||||||||
5,685
|
698,021
|
801,410
|
—
|
1,505,116
|
||||||||||||||||
Goodwill
|
—
|
4,755
|
32,383
|
—
|
37,138
|
|||||||||||||||
Other
assets
|
114,696
|
1,148
|
190,336
|
(276,728
|
)
|
29,452
|
||||||||||||||
$
|
2,102,495
|
$
|
878,969
|
$
|
1,614,142
|
$
|
(2,251,955
|
)
|
$
|
2,343,651
|
||||||||||
LIABILITIES
AND STOCKHOLDERS’ INVESTMENT
|
||||||||||||||||||||
Current
liabilities:
|
||||||||||||||||||||
Accounts
payable
|
$
|
821
|
$
|
29,821
|
$
|
52,446
|
$
|
(30,736
|
)
|
$
|
52,352
|
|||||||||
Accrued
liabilities
|
29,717
|
23,530
|
103,662
|
(40,710
|
)
|
116,199
|
||||||||||||||
Deferred
taxes
|
(2,793
|
)
|
—
|
10,029
|
—
|
7,236
|
||||||||||||||
Short-term
borrowings and current
maturities
of long-term debt
|
64
|
—
|
5,950
|
—
|
6,014
|
|||||||||||||||
Total
current liabilities
|
27,809
|
53,351
|
172,087
|
(71,446
|
)
|
181,801
|
||||||||||||||
Long-term
debt, less current maturities
|
695,489
|
—
|
45,812
|
—
|
741,301
|
|||||||||||||||
Intercompany
notes payable
|
—
|
325,970
|
564,052
|
(890,022
|
)
|
—
|
||||||||||||||
Accrued
pension liabilities
|
—
|
—
|
94,421
|
—
|
94,421
|
|||||||||||||||
Other
liabilities and deferred credits
|
2,683
|
8,980
|
180,297
|
(177,130
|
)
|
14,830
|
||||||||||||||
Deferred
taxes
|
83,171
|
6,100
|
16,937
|
—
|
106,208
|
|||||||||||||||
Minority
interest
|
7,022
|
—
|
4,076
|
—
|
11,098
|
|||||||||||||||
Stockholders’
investment:
|
||||||||||||||||||||
5.50%
mandatory convertible preferred
stock
|
222,554
|
—
|
—
|
—
|
222,554
|
|||||||||||||||
Common
stock
|
291
|
4,996
|
10,113
|
(15,109
|
)
|
291
|
||||||||||||||
Additional
paid-in-capital
|
418,852
|
11,890
|
568,482
|
(580,372
|
)
|
418,852
|
||||||||||||||
Retained
earnings (deficit)
|
696,722
|
467,682
|
(3,026
|
)
|
(464,656
|
)
|
696,722
|
|||||||||||||
Accumulated
other comprehensive income
(loss)
|
(52,098
|
)
|
—
|
(39,109
|
)
|
(53,220
|
)
|
(144,427
|
)
|
|||||||||||
1,286,321
|
484,568
|
536,460
|
(1,113,357
|
)
|
1,193,992
|
|||||||||||||||
$
|
2,102,495
|
$
|
878,969
|
$
|
1,614,142
|
$
|
(2,251,955
|
)
|
$
|
2,343,651
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Net
cash provided by (used in) operating activities
|
$
|
3,957
|
$
|
51,016
|
$
|
(2,150
|
)
|
$
|
4,936
|
$
|
57,759
|
|||||||||
Cash
flows from investing activities:
|
||||||||||||||||||||
Capital
expenditures
|
(6,942
|
)
|
(219,635
|
)
|
(62,270
|
)
|
—
|
(288,847
|
)
|
|||||||||||
Proceeds
from asset dispositions
|
—
|
11,505
|
11,502
|
—
|
23,007
|
|||||||||||||||
Acquisition,
net of cash received
|
(16,990
|
)
|
—
|
2,368
|
—
|
(14,622
|
)
|
|||||||||||||
Net
proceeds from sale of discontinued operations
|
21,958
|
—
|
—
|
—
|
21,958
|
|||||||||||||||
Note
issued to unconsolidated affiliate
|
—
|
(4,141
|
)
|
—
|
—
|
(4,141
|
)
|
|||||||||||||
Investment
in unconsolidated affiliate
|
—
|
(1,960
|
)
|
—
|
—
|
(1,960
|
)
|
|||||||||||||
Net
cash used in investing activities
|
(1,974
|
)
|
(214,231
|
)
|
(48,400
|
)
|
—
|
(264,605
|
)
|
|||||||||||
Cash
flows from financing activities:
|
||||||||||||||||||||
Proceeds
from borrowings
|
350,622
|
—
|
—
|
—
|
350,622
|
|||||||||||||||
Debt
issuance costs
|
(5,806
|
)
|
—
|
—
|
—
|
(5,806
|
)
|
|||||||||||||
Repayment
of debt and debt redemption premiums
|
—
|
—
|
(8,175
|
)
|
—
|
(8,175
|
)
|
|||||||||||||
Increases
(decreases) in cash related to
intercompany
advances and debt
|
(214,279
|
)
|
169,923
|
49,292
|
(4,936
|
)
|
—
|
|||||||||||||
Partial
prepayment of put/call obligation
|
(120
|
)
|
—
|
—
|
—
|
(120
|
)
|
|||||||||||||
Preferred
Stock dividends paid
|
(9,487
|
)
|
—
|
—
|
—
|
(9,487
|
)
|
|||||||||||||
Issuance
of common stock
|
5,226
|
—
|
—
|
—
|
5,226
|
|||||||||||||||
Tax
benefit related to stock-based compensation
|
2,008
|
—
|
—
|
—
|
2,008
|
|||||||||||||||
Net
cash provided by financing activities
|
128,164
|
169,923
|
41,117
|
(4,936
|
)
|
334,268
|
||||||||||||||
Effect
of exchange rate changes on cash and cash
equivalents
|
(272
|
)
|
—
|
3,927
|
—
|
3,655
|
||||||||||||||
Net
increase (decrease) in cash and cash
equivalents
|
129,875
|
6,708
|
(5,506
|
)
|
—
|
131,077
|
||||||||||||||
Cash
and cash equivalents at beginning of
period
|
133,010
|
3,434
|
47,744
|
—
|
184,188
|
|||||||||||||||
Cash
and cash equivalents at end of period
|
$
|
262,885
|
$
|
10,142
|
$
|
42,238
|
$
|
—
|
$
|
315,265
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Net
cash provided by (used in) operating activities
|
$
|
(110,090
|
)
|
$
|
(81,511
|
)
|
$
|
197,310
|
$
|
98,163
|
$
|
103,872
|
||||||||
Cash
flows from investing activities:
|
||||||||||||||||||||
Capital
expenditures
|
(1,241
|
)
|
(135,321
|
)
|
(251,445
|
)
|
—
|
(388,007
|
)
|
|||||||||||
Proceeds
from asset dispositions
|
—
|
72,434
|
14,247
|
—
|
86,681
|
|||||||||||||||
Acquisitions,
net of cash received
|
—
|
356
|
(15,946
|
)
|
—
|
(15,590
|
)
|
|||||||||||||
Net
cash used in investing activities
|
(1,241
|
)
|
(62,531
|
)
|
(253,144
|
)
|
—
|
(316,916
|
)
|
|||||||||||
Cash
flows from financing activities:
|
||||||||||||||||||||
Proceeds
from borrowings
|
115,000
|
—
|
—
|
—
|
115,000
|
|||||||||||||||
Debt
issuance costs
|
(3,768
|
)
|
—
|
—
|
—
|
(3,768
|
)
|
|||||||||||||
Repayment
of debt and debt redemption premiums
|
(1,725
|
)
|
—
|
(19,271
|
)
|
—
|
(20,996
|
)
|
||||||||||||
Increases
(decreases) in cash related to intercompany
advances
and debt
|
(190,325
|
)
|
155,535
|
132,953
|
(98,163
|
)
|
—
|
|||||||||||||
Partial
prepayment of put/call obligation
|
(184
|
)
|
—
|
—
|
—
|
(184
|
)
|
|||||||||||||
Dividends
paid
|
12,900
|
—
|
(12,900
|
)
|
—
|
—
|
||||||||||||||
Preferred
Stock dividends paid
|
(9,487
|
)
|
—
|
—
|
—
|
(9,487
|
)
|
|||||||||||||
Issuance
of common stock
|
225,260
|
—
|
—
|
—
|
225,260
|
|||||||||||||||
Tax
benefit related to stock-based compensation
|
242
|
—
|
—
|
—
|
242
|
|||||||||||||||
Net
cash provided by financing activities
|
147,913
|
155,535
|
100,782
|
(98,163
|
)
|
306,067
|
||||||||||||||
Effect
of exchange rate changes on cash and cash
equivalents
|
3,630
|
—
|
(22,050
|
)
|
—
|
(18,420
|
)
|
|||||||||||||
Net
increase in cash and cash
equivalents
|
40,212
|
11,493
|
22,898
|
—
|
74,603
|
|||||||||||||||
Cash
and cash equivalents at beginning of
period
|
226,494
|
361
|
63,195
|
—
|
290,050
|
|||||||||||||||
Cash
and cash equivalents at end of period
|
$
|
266,706
|
$
|
11,854
|
$
|
86,093
|
$
|
—
|
$
|
364,653
|
·
|
the
risks and uncertainties described under “Item 1A. Risk Factors” in the
fiscal year 2008 Annual Report and elsewhere in this Quarterly
Report;
|
·
|
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 unable to acquire additional aircraft due to limited availability or
unable to exercise aircraft purchase
options;
|
·
|
we
are unable to obtain financing;
|
·
|
we
are not able to re-deploy our aircraft to regions with greater
demand;
|
·
|
we
do not achieve the anticipated benefit of our fleet capacity expansion
program;
|
·
|
the
outcome of the U. S. Department of Justice (“DOJ”) investigation relating
to the Internal Review, which is ongoing, has a greater than anticipated
financial or business impact; and
|
·
|
the
outcome of the DOJ antitrust investigation, which is ongoing, has a
greater than anticipated financial or business
impact.
|
·
|
Western
Hemisphere
|
−
|
U.S. Gulf
of Mexico
|
−
|
Arctic
|
−
|
Latin
America
|
−
|
Western
Hemisphere (“WH”) Centralized
Operations
|
·
|
Eastern
Hemisphere
|
−
|
Europe
|
−
|
West
Africa
|
−
|
Southeast
Asia
|
−
|
Other
International
|
−
|
Eastern
Hemisphere (“EH”) Centralized
Operations
|
·
|
Global
Training
|
−
|
Bristow Academy
|
Percentage
of Current Period Revenue
|
Aircraft
in Consolidated Fleet
|
||||||||||||||||||
Helicopters
|
|||||||||||||||||||
Small
|
Medium
|
Large
|
Training
|
Fixed Wing
|
Total
|
(1)
|
Unconsolidated Affiliates
(2)
|
Total
|
|||||||||||
U.S. Gulf
of Mexico
|
20
|
%
|
56
|
27
|
6
|
—
|
—
|
89
|
—
|
89
|
|||||||||
Arctic
|
2
|
%
|
13
|
2
|
—
|
—
|
1
|
16
|
—
|
16
|
|||||||||
Latin
America
|
7
|
%
|
5
|
41
|
1
|
—
|
—
|
47
|
17
|
64
|
|||||||||
WH
Centralized Operations
|
1
|
%
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||
Europe
|
34
|
%
|
—
|
11
|
41
|
—
|
—
|
52
|
—
|
52
|
|||||||||
West
Africa
|
16
|
%
|
12
|
29
|
4
|
—
|
4
|
49
|
—
|
49
|
|||||||||
Southeast
Asia
|
12
|
%
|
2
|
12
|
15
|
—
|
—
|
29
|
—
|
29
|
|||||||||
Other
International
|
5
|
%
|
—
|
13
|
11
|
—
|
—
|
24
|
41
|
65
|
|||||||||
EH
Centralized Operations
|
1
|
%
|
—
|
—
|
—
|
—
|
—
|
—
|
57
|
57
|
|||||||||
Bristow Academy
|
2
|
%
|
—
|
—
|
—
|
68
|
1
|
69
|
—
|
69
|
|||||||||
Total
|
100
|
%
|
88
|
135
|
78
|
68
|
6
|
375
|
115
|
490
|
|||||||||
Aircraft
not currently in fleet: (3)
|
|||||||||||||||||||
On
order
|
1
|
11
|
13
|
6
|
—
|
31
|
|||||||||||||
Under
option
|
1
|
27
|
19
|
—
|
—
|
47
|
(1)
|
Includes
four aircraft held for sale. On October 30, 2008, we sold 53
aircraft and related assets operating in the U.S. Gulf of
Mexico. See Note 2 in the “Notes to the Condensed Consolidated
Financial Statements” included elsewhere in this Quarterly
Report.
|
(2)
|
The
115 aircraft operated by our unconsolidated affiliates are in addition to
those aircraft leased from us.
|
(3)
|
This
table does not reflect aircraft which our unconsolidated affiliates may
have on order or under
option.
|
·
|
Grow our
business. We plan to continue to grow our business
globally and increase our revenue, profitability and fleet
capacity. We have a footprint in most major oil and gas
producing regions of the world, and we have the opportunity to expand and
deepen our presence in many of these markets. We anticipate
this growth will 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. Through our
relationships with our existing customers, we are aware of future business
opportunities in a broad range of the markets we currently serve that
would allow us to grow. 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.
|
·
|
Be 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 safe and high-quality
service. We focus on maintaining relationships with our
customers’ field operations and corporate management. We
believe that this focus helps us better anticipate customer needs and
provide our customers with the right aircraft in the right place at the
right time, which in turn allows us to better manage our existing fleet
and capital investment program. 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
seek 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 aircraft availability, customer service, safety and
reliability, and not just price.
|
·
|
Integrate our global
operations. We are an integrated global operator, and we
intend to continue to identify and implement further opportunities to
integrate our global organization. We have changed our senior
management team, integrated our operations among previously independently
managed businesses, created a global flight and maintenance standards
group, improved our global asset allocation and made other changes in our
corporate operations.
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
|||||||||||
2007
|
2008
|
2007
|
2008
|
|||||||||
(Unaudited)
|
||||||||||||
(In
thousands)
|
||||||||||||
Gross
revenue:
|
||||||||||||
Operating
revenue
|
$
|
236,464
|
$
|
253,283
|
$
|
681,186
|
$
|
778,643
|
||||
Reimbursable
revenue
|
25,056
|
29,704
|
71,293
|
80,155
|
||||||||
Total
gross revenue
|
261,520
|
282,987
|
752,479
|
858,798
|
||||||||
Operating
expense:
|
||||||||||||
Direct
cost
|
169,704
|
176,038
|
475,416
|
551,404
|
||||||||
Reimbursable
expense
|
24,344
|
28,689
|
68,587
|
79,437
|
||||||||
Depreciation
and amortization
|
12,445
|
16,663
|
36,127
|
47,103
|
||||||||
General
and administrative
|
22,373
|
25,586
|
61,018
|
78,776
|
||||||||
Gain
on GOM Asset Sale
|
—
|
(37,780
|
)
|
—
|
(37,780
|
)
|
||||||
(Gain)
loss on disposal of other assets
|
(4,094
|
)
|
102
|
(3,921
|
)
|
(5,865
|
)
|
|||||
Total
operating expense
|
224,772
|
209,298
|
637,227
|
713,075
|
||||||||
Operating
income
|
36,748
|
73,689
|
115,252
|
145,723
|
||||||||
Earnings
from unconsolidated affiliates, net of losses
|
3,725
|
(1,417
|
)
|
11,233
|
8,277
|
|||||||
Interest
expense, net
|
(2,987
|
)
|
(6,516
|
)
|
(6,354
|
)
|
(18,761
|
)
|
||||
Other
income (expense), net
|
989
|
(1,522
|
)
|
1,775
|
2,240
|
|||||||
Income
before provision for income taxes and minority interest
|
38,475
|
64,234
|
121,906
|
137,479
|
||||||||
Provision
for income taxes
|
(12,302
|
)
|
(16,106
|
)
|
(40,035
|
)
|
(37,020
|
)
|
||||
Minority
interest
|
61
|
(535
|
)
|
(392
|
)
|
(2,190
|
)
|
|||||
Income
from continuing operations
|
26,234
|
47,593
|
81,479
|
98,269
|
||||||||
Loss
from discontinued operations
|
(6,086
|
)
|
—
|
(4,709
|
)
|
(246
|
)
|
|||||
Net
income
|
$
|
20,148
|
$
|
47,593
|
$
|
76,770
|
$
|
98,023
|
·
|
The
gain on the sale of 53 small aircraft, related inventory, spare parts and
offshore fuel equipment in the U.S. Gulf of Mexico (the “GOM Asset Sale”)
on October 30, 2008, which increased operating income by $37.8 million,
income from continuing operations by $24.4 million and diluted earnings
per share by $0.69.
|
·
|
The
strengthening U.S. dollar and resulting changes in foreign currency
exchange rates during the Current Quarter, which decreased operating
income by $2.3 million, income from continuing operations by $2.5 million
and diluted earnings per share by
$0.07.
|
·
|
A
decrease in our overall effective tax rate resulting from a $2.6 million
benefit related to tax elections filed in the Current Quarter as part
of an internal reorganization and the resolution of $1.4 million
in uncertain tax positions, which increased income from continuing
operations by $4.0 million and diluted earnings per share by
$0.11.
|
·
|
The
gain on GOM Asset Sale, which increased operating income by $37.8 million,
income from continuing operations by $24.4 million and diluted earnings
per share by $0.71.
|
·
|
The
strengthening U.S. dollar and resulting changes in foreign currency
exchange rates during the Current Period, which decreased operating income
by $6.0 million, income from continuing operations by $2.5 million and
diluted earnings per share by
$0.07.
|
·
|
Hurricanes
in the U.S. Gulf of Mexico during the Current Period, which resulted in a
decrease in flight activity and an increase in costs, reducing operating
income by $2.1 million, income from continuing operations by $1.8 million
and diluted earnings per share by
$0.05.
|
·
|
Expense
recognized in the Current Period for a bad debt provision of $1.3 million
in Europe and revenue recognized in the Current Period related to
contractual rate escalations and retroactive rate adjustments applicable
to services performed in prior periods in Europe of $3.4 million and
Russia, a part of our Other International business unit, of $1.2
million. Combined, these items increased operating income by $3.3
million, income from continuing operations by $2.3 million and diluted
earnings per share by $0.07.
|
·
|
Decreases
in operating results in Australia, part of our Southeast Asia business
unit, which resulted in a reduction in operating income by $10.4 million,
income from continuing operations by $7.4 million and diluted earnings per
share by $0.22.
|
·
|
The
restructuring of our ownership interests in affiliates in Mexico, part of
our Latin America business unit, which resulted in several changes
effective April 1, 2008, which increased operating income by $0.8 million,
income from continuing operations by $3.7 million and diluted earnings per
share by $0.11.
|
·
|
A
decrease in our overall effective tax rate resulting from a $2.6 million
benefit related to tax elections filed in the Current Quarter as part of
an internal reorganization and the resolution of $2.1 million in uncertain
tax positions, which increased income from continuing operations by $4.7
million and diluted earnings per share by
$0.14.
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2007
|
2008
|
2007
|
2008
|
|||||||||||||
Flight
hours (excludes Bristow Academy and unconsolidated
affiliates):
|
||||||||||||||||
U.S. Gulf
of Mexico
|
33,431
|
25,553
|
107,920
|
98,083
|
||||||||||||
Arctic
|
1,227
|
1,279
|
6,632
|
7,411
|
||||||||||||
Latin
America
|
10,417
|
15,228
|
32,594
|
36,758
|
||||||||||||
Europe
|
11,625
|
13,241
|
33,940
|
33,812
|
||||||||||||
West
Africa
|
9,824
|
9,884
|
28,609
|
29,129
|
||||||||||||
Southeast
Asia
|
4,590
|
4,500
|
11,578
|
14,223
|
||||||||||||
Other
International
|
2,120
|
1,942
|
6,844
|
5,818
|
||||||||||||
Consolidated
total
|
73,234
|
71,627
|
228,117
|
225,234
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2007
|
2008
|
2007
|
2008
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Gross
revenue:
|
||||||||||||||||
U.S. Gulf
of Mexico
|
$
|
53,259
|
$
|
53,695
|
$
|
164,635
|
$
|
177,695
|
||||||||
Arctic
|
2,570
|
3,005
|
12,217
|
14,088
|
||||||||||||
Latin
America
|
16,476
|
20,707
|
49,463
|
59,964
|
||||||||||||
WH
Centralized Operations
|
1,438
|
3,134
|
3,413
|
8,303
|
||||||||||||
Europe
|
95,100
|
102,477
|
271,916
|
296,210
|
||||||||||||
West
Africa
|
46,287
|
50,478
|
125,369
|
140,788
|
||||||||||||
Southeast
Asia
|
29,918
|
28,882
|
76,268
|
99,143
|
||||||||||||
Other
International
|
11,874
|
13,223
|
35,375
|
40,459
|
||||||||||||
EH
Centralized Operations
|
5,239
|
7,625
|
17,375
|
24,590
|
||||||||||||
Bristow Academy
|
3,969
|
5,563
|
10,216
|
17,286
|
||||||||||||
Intrasegment
eliminations
|
(4,647
|
)
|
(5,802
|
)
|
(13,805
|
)
|
(19,756
|
)
|
||||||||
Corporate
|
37
|
—
|
37
|
28
|
||||||||||||
Consolidated
total
|
$
|
261,520
|
$
|
282,987
|
$
|
752,479
|
$
|
858,798
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2007
|
2008
|
2007
|
2008
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Operating
expense: (1)
|
||||||||||||||||
U.S. Gulf
of Mexico
|
$
|
45,137
|
$
|
44,974
|
$
|
137,734
|
$
|
152,722
|
||||||||
Arctic
|
2,642
|
2,821
|
10,174
|
11,485
|
||||||||||||
Latin
America
|
12,648
|
14,566
|
38,050
|
42,795
|
||||||||||||
WH
Centralized Operations
|
2,309
|
5,643
|
2,922
|
10,584
|
||||||||||||
Europe
|
74,405
|
86,137
|
214,751
|
240,425
|
||||||||||||
West
Africa
|
39,268
|
37,311
|
100,061
|
113,081
|
||||||||||||
Southeast
Asia
|
23,442
|
23,788
|
60,558
|
88,799
|
||||||||||||
Other
International
|
11,162
|
10,088
|
30,617
|
34,549
|
||||||||||||
EH
Centralized Operations
|
11,643
|
14,086
|
31,305
|
43,439
|
||||||||||||
Bristow Academy
|
4,099
|
5,731
|
10,828
|
17,067
|
||||||||||||
Intrasegment
eliminations
|
(4,647
|
)
|
(5,802
|
)
|
(13,805
|
)
|
(19,756
|
)
|
||||||||
Gain
on GOM Asset Sale
|
—
|
(37,780
|
)
|
—
|
(37,780
|
)
|
||||||||||
(Gain)
loss on disposal of other assets
|
(4,094
|
)
|
102
|
(3,921
|
)
|
(5,865
|
)
|
|||||||||
Corporate
|
6,758
|
7,633
|
17,953
|
21,530
|
||||||||||||
Consolidated
total
|
$
|
224,772
|
$
|
209,298
|
$
|
637,227
|
$
|
713,075
|
Operating
income:
|
||||||||||||||||
U.S. Gulf
of Mexico
|
$
|
8,122
|
$
|
8,721
|
$
|
26,901
|
$
|
24,973
|
||||||||
Arctic
|
(72
|
)
|
184
|
2,043
|
2,603
|
|||||||||||
Latin
America
|
3,828
|
6,141
|
11,413
|
17,169
|
||||||||||||
WH
Centralized Operations
|
(871
|
)
|
(2,509
|
)
|
491
|
(2,281
|
)
|
|||||||||
Europe
|
20,695
|
16,340
|
57,165
|
55,785
|
||||||||||||
West
Africa
|
7,019
|
13,167
|
25,308
|
27,707
|
||||||||||||
Southeast
Asia
|
6,476
|
5,094
|
15,710
|
10,344
|
||||||||||||
Other
International
|
712
|
3,135
|
4,758
|
5,910
|
||||||||||||
EH
Centralized Operations
|
(6,404
|
)
|
(6,461
|
)
|
(13,930
|
)
|
(18,849
|
)
|
||||||||
Bristow Academy
|
(130
|
)
|
(168
|
)
|
(612
|
)
|
219
|
|||||||||
Gain
on GOM Asset Sale
|
—
|
37,780
|
—
|
37,780
|
||||||||||||
Gain
(loss) on disposal of other assets
|
4,094
|
(102
|
)
|
3,921
|
5,865
|
|||||||||||
Corporate
|
(6,721
|
)
|
(7,633
|
)
|
(17,916
|
)
|
(21,502
|
)
|
||||||||
Consolidated
operating income
|
36,748
|
73,689
|
115,252
|
145,723
|
||||||||||||
Earnings
from unconsolidated affiliates
|
3,725
|
(1,417
|
)
|
11,233
|
8,277
|
|||||||||||
Interest
income
|
3,697
|
1,087
|
9,781
|
5,739
|
||||||||||||
Interest
expense
|
(6,684
|
)
|
(7,603
|
)
|
(16,135
|
)
|
(24,500
|
)
|
||||||||
Other
income (expense), net
|
989
|
(1,522
|
)
|
1,775
|
2,240
|
|||||||||||
Income
from continuing operations before provision
for
income taxes and minority interest
|
38,475
|
64,234
|
121,906
|
137,479
|
||||||||||||
Provision
for income taxes
|
(12,302
|
)
|
(16,106
|
)
|
(40,035
|
)
|
(37,020
|
)
|
||||||||
Minority
interest
|
61
|
(535
|
)
|
(392
|
)
|
(2,190
|
)
|
|||||||||
Income
from continuing operations
|
$
|
26,234
|
$
|
47,593
|
$
|
81,479
|
$
|
98,269
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||
December
31,
|
December
31,
|
|||||||||||
2007
|
2008
|
2007
|
2008
|
|||||||||
Operating
margin: (2)
|
||||||||||||
U.S. Gulf
of Mexico
|
15.3
|
%
|
16.2
|
%
|
16.3
|
%
|
14.1
|
%
|
||||
Arctic
|
(2.8
|
)%
|
6.1
|
%
|
16.7
|
%
|
18.5
|
%
|
||||
Latin
America
|
23.2
|
%
|
29.7
|
%
|
23.1
|
%
|
28.6
|
%
|
||||
Europe
|
21.8
|
%
|
15.9
|
%
|
21.0
|
%
|
18.8
|
%
|
||||
West
Africa
|
15.2
|
%
|
26.1
|
%
|
20.2
|
%
|
19.7
|
%
|
||||
Southeast
Asia
|
21.6
|
%
|
17.6
|
%
|
20.6
|
%
|
10.4
|
%
|
||||
Other
International
|
6.0
|
%
|
23.7
|
%
|
13.5
|
%
|
14.6
|
%
|
||||
Bristow Academy
|
(3.3
|
)%
|
(3.0
|
)%
|
(6.0
|
)%
|
1.3
|
%
|
||||
Consolidated
total
|
14.1
|
%
|
26.0
|
%
|
15.3
|
%
|
17.0
|
%
|
(1)
|
Operating
expenses include depreciation and amortization in the following amounts
for the periods presented:
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2007
|
2008
|
2007
|
2008
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
U.S. Gulf
of
Mexico
|
$
|
2,782
|
$
|
3,050
|
$
|
8,189
|
$
|
8,952
|
||||||||
Arctic
|
162
|
190
|
489
|
616
|
||||||||||||
Latin
America
|
977
|
2,264
|
2,891
|
6,218
|
||||||||||||
WH
Centralized
Operations
|
137
|
169
|
409
|
418
|
||||||||||||
Europe
|
4,403
|
5,899
|
12,020
|
15,799
|
||||||||||||
West
Africa
|
1,591
|
2,056
|
5,179
|
6,112
|
||||||||||||
Southeast
Asia
|
1,209
|
1,587
|
2,880
|
4,715
|
||||||||||||
Other
International
|
797
|
678
|
2,293
|
2,075
|
||||||||||||
EH
Centralized
Operations
|
(18
|
)
|
133
|
590
|
435
|
|||||||||||
Bristow Academy
|
334
|
563
|
974
|
1,492
|
||||||||||||
Corporate
|
71
|
74
|
213
|
271
|
||||||||||||
Consolidated
total
|
$
|
12,445
|
$
|
16,663
|
$
|
36,127
|
$
|
47,103
|
(2)
|
Operating
margin is calculated as gross revenues less operating expenses divided by
gross revenues.
|
·
|
Salary,
maintenance and other costs incurred on aircraft that were not fully
operational during the Current Period as a result of delays in planned
contracts, unscheduled maintenance and re-positioning of
aircraft.
|
·
|
Increased
compensation costs resulting from the completion of negotiations on the
collective bargaining agreement with the pilot’s union in Australia in
April 2008.
|
·
|
Increased
fuel prices.
|
·
|
$2.2
million of expense related to additional employee and expatriate taxes
related to prior periods resulting from clarification of tax regulations
in certain jurisdictions.
|
Nine
Months Ended December 31,
|
||||||
2007
|
2008
|
|||||
Number
of aircraft delivered:
|
||||||
Small
|
3
|
4
|
||||
Medium
|
14
|
11
|
||||
Large
|
6
|
9
|
||||
Fixed
wing
|
1
|
—
|
||||
Training
|
5
|
4
|
||||
Total
aircraft
|
29
|
28
|
||||
Capital
expenditures (in thousands):
|
||||||
Aircraft
and related
equipment
|
$
|
278,715
|
$
|
383,351
|
||
Other
|
10,132
|
4,656
|
||||
Total
capital
expenditures
|
$
|
288,847
|
$
|
388,007
|
Payments
Due by Period
|
||||||||||||||||||||||||
Three
Months
Ending
|
Fiscal
Year Ending March 31,
|
|||||||||||||||||||||||
Total
|
March
31,
2009
|
2010
–
2011
|
2012
–
2013
|
2014
and
beyond
|
Other
|
|||||||||||||||||||
(In
thousands)
|
||||||||||||||||||||||||
Contractual
obligations:
|
||||||||||||||||||||||||
Long-term
debt and short-term
borrowings:
|
||||||||||||||||||||||||
Principal (1)
|
$
|
746,763
|
$
|
1,660
|
$
|
21,953
|
$
|
8,613
|
$
|
714,537
|
$
|
—
|
||||||||||||
Interest
|
412,328
|
13,777
|
91,849
|
90,218
|
216,484
|
—
|
||||||||||||||||||
Aircraft
operating leases (2)
|
75,561
|
3,169
|
16,263
|
9,345
|
46,784
|
—
|
||||||||||||||||||
Other
operating leases (3)
|
43,869
|
1,079
|
9,436
|
8,353
|
25,001
|
—
|
||||||||||||||||||
Pension
obligations (4)
|
138,587
|
3,321
|
26,565
|
22,032
|
86,669
|
—
|
||||||||||||||||||
Aircraft
purchase obligations (5)
|
298,387
|
62,474
|
235,913
|
—
|
—
|
—
|
||||||||||||||||||
Other
purchase obligations (6)
|
34,567
|
32,527
|
2,040
|
—
|
—
|
—
|
||||||||||||||||||
Tax
reserves (7)
|
3,453
|
—
|
—
|
—
|
—
|
3,453
|
||||||||||||||||||
Total
contractual cash obligations
|
$
|
1,753,515
|
$
|
118,007
|
$
|
404,019
|
$
|
138,561
|
$
|
1,089,475
|
$
|
3,453
|
||||||||||||
Other
commercial commitments:
|
||||||||||||||||||||||||
Debt
guarantees (8)
|
$
|
14,376
|
$
|
—
|
$
|
—
|
$
|
14,376
|
$
|
—
|
$
|
—
|
||||||||||||
Other
guarantees (9)
|
30,322
|
177
|
4,704
|
2,081
|
23,360
|
—
|
||||||||||||||||||
Letters
of credit
|
1,361
|
1,155
|
206
|
—
|
—
|
—
|
||||||||||||||||||
Other
commitments (10)
|
100,328
|
—
|
30,505
|
19,000
|
50,823
|
—
|
||||||||||||||||||
Total
commercial commitments
|
$
|
146,387
|
$
|
1,332
|
$
|
35,415
|
$
|
35,457
|
$
|
74,183
|
$
|
—
|
(1)
|
Excludes
unamortized premium on the 7½% Senior Notes of $0.6
million.
|
(2)
|
Primarily
represents separate operating leases for nine aircraft with a subsidiary
of General Electric Capital Corporation with terms of fifteen years
expiring in August 2023. See Note 7 in the “Notes to Condensed
Consolidated Financial Statements” included elsewhere in this Quarterly
Report.
|
(3)
|
Represents
minimum rental payments required under non-cancelable operating leases
that have initial lease terms in excess of one year.
|
(4)
|
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 10 years. As of December
31, 2008, we had recorded on our balance sheet a $94.4 million pension
liability associated with these obligations. Also, the timing
of the funding is dependent on actuarial valuations and resulting
negotiations with the plan trustees.
|
(5)
|
For
further details on our aircraft purchase obligations, see Note 7 in the
“Notes to Condensed Consolidated Financial Statements” included elsewhere
in this Quarterly Report. We have an aircraft order
cancellation right, which expires in March 2009, related to a large
aircraft representing $21 million of purchase commitment, which would result in
a $1.0 million cancellation
charge.
|
(6)
|
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
7 in the “Notes to Condensed Consolidated Financial Statements” included
elsewhere in this Quarterly
Report).
|
(7)
|
Represents
gross unrecognized tax benefits (see discussion in Note 7 in the “Notes to
Consolidated Financial Statements” included in the fiscal year 2008 Annual
Report) that may
result in cash payments being made to certain tax
authorities. We are not able to reasonably estimate in which
future periods this amount will ultimately be settled and
paid.
|
(8)
|
We
have guaranteed the repayment of up to £10 million ($14.4 million) of the
debt of FBS, an unconsolidated affiliate. This amount is not
included in the “Contractual Obligations” section of the table
above.
|
(9)
|
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 December 31, 2008, surety bonds denominated in
Mexican pesos with an aggregate value of 397.2 million Mexican pesos
($29.1 million) and surety bonds denominated in U.S. dollars with an
aggregate value of $1.2 million were outstanding. Furthermore,
we have received a counter guarantee from our partners in HC for 76% of
the surety bonds outstanding.
|
(10)
|
In
connection with the Norsk transaction (see “Business Unit Operating
Results — Current Quarter Compared to Comparable Quarter — Europe”
included elsewhere in this Quarterly Report), we granted the former
partner in this joint venture an option that if exercised would require us
to acquire up to five aircraft from them at fair value at the expiration
of the lease terms for these aircraft. Two of these aircraft
are not currently operated by Norsk, but our former partner has agreed to
purchase the aircraft and lease the aircraft to Norsk for an initial
period of five years, with three one-year options for extension, as soon
as practicable. The existing three aircraft leases expire in
June 2009, December 2009 and August 2011.
|
Three
Months Ended
December
31, 2008
|
Nine
Months Ended
December
31, 2008
|
||||||
Revenue
|
$
|
(33,589
|
)
|
$
|
(31,756
|
)
|
|
Operating
expense
|
31,297
|
25,803
|
|||||
Non-operating
expense
|
(1,009
|
)
|
2,508
|
||||
Income
from continuing operations before provision for
income
taxes and minority interest
|
(3,301
|
)
|
(3,445
|
)
|
|||
Provision
for income taxes
|
842
|
982
|
|||||
Net
income
|
(2,459
|
)
|
(2,463
|
)
|
|||
Cumulative
translation adjustment
|
(47,640
|
)
|
(91,258
|
)
|
|||
Total
stockholders’ investment
|
$
|
(50,099
|
)
|
$
|
(93,721
|
)
|
Euro
|
British
pound sterling
|
Australian
dollar
|
|||||||||
Revenue
|
0.4
|
%
|
2.5
|
%
|
0.9
|
%
|
|||||
Operating
expenses
|
0.8
|
%
|
2.8
|
%
|
0.8
|
%
|
|||||
Income
from continuing operations before provision
for
income taxes and
minority interest
|
1.7
|
%
|
1.2
|
%
|
1.7
|
%
|
Exhibit
Number
|
Description
of Exhibit
|
10.1†
|
2009 Amendment to Employment Agreement of Mr. Richard Burman. |
Letter
from KPMG LLP dated February 3, 2009, regarding unaudited interim
information.
|
|
Rule
13a-14(a) Certification by President and Chief Executive Officer of
Registrant.
|
|
Rule
13a-14(a) Certification by Executive Vice President and Chief Financial
Officer of Registrant.
|
|
Certification
of 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.
|
|
Certification
of 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.
|
*
|
Filed
herewith.
|
**
|
Furnished
herewith.
|
† | Compensatory plan or agreement |
|
INDEX
TO EXHIBITS
|
Exhibit
Number
|
Description
of Exhibit
|
Letter
from KPMG LLP dated February 3, 2009, regarding unaudited interim
information.
|
|
Rule
13a-14(a) Certification by President and Chief Executive Officer of
Registrant.
|
|
Rule
13a-14(a) Certification by Executive Vice President and Chief Financial
Officer of Registrant.
|
|
Certification
of 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.
|
|
Certification
of 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.
|
*
|
Filed
herewith.
|
**
|
Furnished
herewith.
|