With nine out of ten search-and-rescue bases now operational in the United Kingdom, revenues from SAR operations increased by $35.7 million for the quarter. Mark McEwan Photo
Bristow Group Inc. has reported the following results for the quarter ended December 31, 2015:
• Operating revenue of US$395.2 million;
• net income of $3.2 million (GAAP) and $23.5 million (adjusted);
• diluted earnings per share of $0.09 (GAAP) and $0.67 (adjusted); and
• adjusted EBITDAR of $116.9 million; margin of 29.6 percent.
The Company is reaffirming its adjusted earnings per share guidance for the full fiscal year 2016 of $1.80-$2.40. GAAP and adjusted results for its 2016 fiscal third quarter were net of charges for bad debt expense of $2.7 million ($2.3 million after-tax and $0.07 per share) and a $1.4 million benefit from changes in foreign currency exchange rates ($1.2 million after-tax and $0.03 per share), which compares to a negative impact from foreign exchange of $15.2 million in the December 2014 quarter ($12.1 million after-tax and $0.34 per share).
“Our third quarter results demonstrate the success of our diversified business development and economic restructuring efforts in the face of unprecedented challenges for our oil and gas clients,” said Jonathan Baliff, president and chief executive officer of Bristow Group. “These initiatives demonstrably improved our third quarter margins while improving our competitive position and financial flexibility.
“In oil and gas operations, and in light of recent aircraft accidents in Nigeria, Bristow remains committed to achieving Target Zero. We are proud of our culture of safety, but these recent accidents have been humbling and have strengthened our resolve.”
“Also on the operating front, United Kingdom search-and-rescue (SAR) startup is largely complete with nine out of ten bases now operational, strengthening our relationship with the United Kingdom Government as Bristow delivers a step change in SAR capability for its citizens,” he continued.
“The decline in oil prices is likely to further impact our clients’ capital spending in fiscal 2017. As a result, cash generation and financial flexibility will remain our top financial priorities during this downturn. In this challenging environment, the reduction in our dividend combined with previously announced cost reductions, capital expenditure deferrals and $200 million term loan, are intended to provide us with the critical cash and financial flexibility necessary.
“But the financial flexibility we create also allows for a deeper transformation of our business designed to improve safety, expand client relationships, and deliver best-in-class service,” he said.
“We need to position Bristow for select opportunities to serve clients better, in downturns or upturns. Our recent investment is Sky-Futures, a leading global unmanned aerial vehicle operator, continues Bristow’s historical commitment to new and growing applications in oil and gas while expanding into non-energy markets.”
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