þ
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
For
the quarterly period ended December 31, 2006
|
|
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)
|
None
|
(Former
name, former address and former fiscal year, if changed since last
report)
|
|
Page
|
||
PART
I
|
|||
Item
1.
|
2
|
||
Item
2.
|
33
|
||
Item
3.
|
61
|
||
Item
4.
|
63
|
||
PART
II
|
|||
Item
1.
|
64
|
||
Item
1A.
|
64
|
||
Item
2.
|
66
|
||
Item
6.
|
67
|
||
68
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
||||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||||
(Unaudited)
|
|||||||||||||||
(In
thousands, except per share amounts)
|
|||||||||||||||
Gross
revenue:
|
|||||||||||||||
Operating
revenue from non-affiliates
|
$
|
191,301
|
$
|
155,864
|
$
|
564,426
|
$
|
470,531
|
|||||||
Operating
revenue from affiliates
|
10,701
|
13,715
|
34,411
|
37,994
|
|||||||||||
Reimbursable
revenue from non-affiliates
|
20,668
|
21,751
|
66,884
|
56,091
|
|||||||||||
Reimbursable
revenue from affiliates
|
1,172
|
937
|
3,392
|
2,993
|
|||||||||||
223,842
|
192,267
|
669,113
|
567,609
|
||||||||||||
Operating
expense:
|
|||||||||||||||
Direct
cost
|
151,193
|
126,120
|
438,534
|
375,182
|
|||||||||||
Reimbursable
expense
|
21,488
|
22,050
|
69,266
|
58,114
|
|||||||||||
Depreciation
and amortization
|
11,060
|
10,653
|
32,080
|
32,160
|
|||||||||||
General
and administrative
|
20,164
|
15,338
|
52,040
|
46,005
|
|||||||||||
Loss
(gain) on disposal of assets
|
(1,042
|
)
|
374
|
(5,707
|
)
|
1,276
|
|||||||||
202,863
|
174,535
|
586,213
|
512,737
|
||||||||||||
Operating
income
|
20,979
|
17,732
|
82,900
|
54,872
|
|||||||||||
Earnings
from unconsolidated affiliates, net of losses
|
2,106
|
1,351
|
5,393
|
1,770
|
|||||||||||
Interest
income
|
3,841
|
898
|
6,200
|
2,879
|
|||||||||||
Interest
expense
|
(2,539
|
)
|
(3,903
|
)
|
(8,646
|
)
|
(11,288
|
)
|
|||||||
Other
income (expense), net
|
(5,226
|
)
|
2,296
|
(11,319
|
)
|
4,308
|
|||||||||
Income
before provision for income taxes and minority interest
|
19,161
|
18,374
|
74,528
|
52,541
|
|||||||||||
Provision
for income taxes
|
(8,453
|
)
|
(4,984
|
)
|
(26,724
|
)
|
(12,453
|
)
|
|||||||
Minority
interest
|
(257
|
)
|
10
|
(1,049
|
)
|
(84
|
)
|
||||||||
Net
income
|
10,451
|
13,400
|
46,755
|
40,004
|
|||||||||||
Preferred
stock dividends
|
(3,150
|
)
|
—
|
(3,471
|
)
|
—
|
|||||||||
Net
income available to common stockholders
|
$
|
7,301
|
$
|
13,400
|
$
|
43,284
|
$
|
40,004
|
|||||||
Earnings
per common share:
|
|||||||||||||||
Basic
|
$
|
0.31
|
$
|
0.57
|
$
|
1.85
|
$
|
1.71
|
|||||||
Diluted
|
$
|
0.31
|
$
|
0.57
|
$
|
1.80
|
$
|
1.70
|
|||||||
Preferred
dividends declared per common share
|
$
|
0.13
|
$
|
—
|
$
|
0.13
|
$
|
—
|
December
31, 2006
|
March
31,
2006
|
||||||||
(Unaudited)
|
|||||||||
(In
thousands)
|
|||||||||
ASSETS
|
|||||||||
Current
assets:
|
|||||||||
Cash
and cash equivalents
|
$
|
219,699
|
$
|
122,482
|
|||||
Accounts
receivable from non-affiliates, net of allowance for doubtful accounts
of
$3.1
million
and $4.6 million, respectively
|
163,361
|
144,521
|
|||||||
Accounts
receivable from affiliates, net of allowance for doubtful accounts
of $4.1
million
and $4.6 million, respectively
|
16,887
|
15,884
|
|||||||
Inventories
|
161,067
|
147,860
|
|||||||
Prepaid
expenses and other
|
12,701
|
16,519
|
|||||||
Total
current assets
|
573,715
|
447,266
|
|||||||
Investment
in unconsolidated affiliates
|
42,969
|
39,912
|
|||||||
Property
and equipment - at cost:
|
|||||||||
Land
and buildings
|
48,918
|
40,672
|
|||||||
Aircraft
and equipment
|
1,079,273
|
838,314
|
|||||||
1,128,191
|
878,986
|
||||||||
Less
- Accumulated depreciation and amortization
|
(302,877
|
)
|
(263,072
|
)
|
|||||
825,314
|
615,914
|
||||||||
Goodwill
|
20,478
|
26,837
|
|||||||
Prepaid
pension costs
|
45,125
|
37,207
|
|||||||
Other
assets
|
10,163
|
9,277
|
|||||||
$
|
1,517,764
|
$
|
1,176,413
|
||||||
LIABILITIES
AND STOCKHOLDERS’ INVESTMENT
|
|||||||||
Current
liabilities:
|
|||||||||
Accounts
payable
|
$
|
36,466
|
$
|
41,227
|
|||||
Accrued
wages, benefits and related taxes
|
43,126
|
45,958
|
|||||||
Income
taxes payable
|
457
|
6,537
|
|||||||
Other
accrued taxes
|
8,647
|
6,471
|
|||||||
Deferred
revenues
|
14,127
|
9,994
|
|||||||
Other
accrued liabilities
|
37,149
|
31,083
|
|||||||
Deferred
taxes
|
10,892
|
5,025
|
|||||||
Short-term
borrowings and current maturities of long-term debt
|
22,198
|
17,634
|
|||||||
Total
current liabilities
|
173,062
|
163,929
|
|||||||
Long-term
debt, less current maturities
|
237,749
|
247,662
|
|||||||
Accrued
pension liabilities
|
153,609
|
136,521
|
|||||||
Other
liabilities and deferred credits
|
17,485
|
18,016
|
|||||||
Deferred
taxes
|
81,494
|
68,281
|
|||||||
Minority
interest
|
5,292
|
4,307
|
|||||||
Commitments
and contingencies (Note 5)
|
|||||||||
Stockholders’
investment:
|
|||||||||
5.50%
mandatory convertible preferred stock, $.01 par value, authorized
and
outstanding 4,600,000 shares; entitled on 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:
23,534,536 as
of
December 31 and 23,385,473 as of March 31 (exclusive of 1,281,050
treasury
shares)
|
235
|
234
|
|||||||
Additional
paid-in capital
|
166,559
|
158,762
|
|||||||
Retained
earnings
|
491,335
|
447,524
|
|||||||
Accumulated
other comprehensive loss
|
(31,610
|
)
|
(68,823
|
)
|
|||||
849,073
|
537,697
|
||||||||
$
|
1,517,764
|
$
|
1,176,413
|
Nine
Months Ended
|
||||||||
December
31,
|
||||||||
2006
|
2005
|
|||||||
(Unaudited)
|
||||||||
(In
thousands)
|
||||||||
Cash
flows from operating activities:
|
||||||||
Net
income
|
$
|
46,755
|
$
|
40,004
|
||||
Adjustments
to reconcile net income to net cash provided by (used
in) operating
activities:
|
||||||||
Depreciation
and amortization
|
32,080
|
32,160
|
||||||
Deferred
income taxes
|
17,177
|
(12,350
|
)
|
|||||
Loss
(gain) on asset dispositions
|
(5,707
|
)
|
1,276
|
|||||
Stock-based
compensation expense
|
3,465
|
—
|
||||||
Equity
in earnings from unconsolidated affiliates over
dividends received
|
(430
|
)
|
(689
|
)
|
||||
Minority
interest in earnings
|
1,049
|
84
|
||||||
Tax
benefit related to exercise of stock options
|
(837
|
)
|
—
|
|||||
Increase
(decrease) in cash resulting from changes in:
|
||||||||
Accounts
receivable
|
(4,380
|
)
|
(28,565
|
)
|
||||
Inventories
|
(10,706
|
)
|
(15,386
|
)
|
||||
Prepaid
expenses and other
|
(206
|
)
|
(4,817
|
)
|
||||
Accounts
payable
|
(15,991
|
)
|
8,246
|
|||||
Accrued
liabilities
|
6,303
|
1,282
|
||||||
Other
liabilities and deferred credits
|
(707
|
)
|
10,104
|
|||||
Net
cash provided by operating activities
|
67,865
|
31,349
|
||||||
Cash
flows from investing activities:
|
||||||||
Capital
expenditures
|
(216,246
|
)
|
(102,307
|
)
|
||||
Proceeds
from asset dispositions
|
24,005
|
72,620
|
||||||
Net
cash used in investing activities
|
(192,241
|
)
|
(29,687
|
)
|
||||
Cash
flows from financing activities:
|
||||||||
Issuance
of preferred stock
|
223,550
|
—
|
||||||
Preferred
stock issuance costs
|
(994
|
)
|
—
|
|||||
Preferred
stock dividends paid
|
(2,944
|
)
|
—
|
|||||
Cash
collateral provided under operating leases
|
—
|
(10,285
|
)
|
|||||
Repayment
of debt and debt redemption premiums
|
(5,570
|
)
|
(3,160
|
)
|
||||
Partial
prepayment of put/call obligation
|
(96
|
)
|
(66
|
)
|
||||
Issuance
of common stock
|
2,926
|
602
|
||||||
Tax
benefit related to exercise of stock options
|
837
|
—
|
||||||
Net
cash provided by (used in) financing activities
|
217,709
|
(12,909
|
)
|
|||||
Effect
of exchange rate changes on cash and cash equivalents
|
3,884
|
(6,140
|
)
|
|||||
Net
increase (decrease) in cash and cash equivalents
|
97,217
|
(17,387
|
)
|
|||||
Cash
and cash equivalents at beginning of period
|
122,482
|
146,440
|
||||||
Cash
and cash equivalents at end of period
|
$
|
219,699
|
$
|
129,053
|
||||
Supplemental
disclosure of cash flow information:
|
||||||||
Cash
paid during the period for:
|
||||||||
Interest,
net of interest capitalized
|
$
|
10,914
|
$
|
13,639
|
||||
Income
taxes
|
$
|
15,676
|
$
|
13,241
|
||||
Non-cash
investing activities:
|
||||||||
Capital
expenditures funded by accounts payable and short-term
notes,
net
|
$
|
—
|
$
|
14,746
|
· |
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. 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 expires on May 14, 2007. The fair
value
of this contract, which totaled $0.9 million as of December 31,2006,
is
recorded as a derivative asset within other assets on our balance
sheet. The change in fair value of this contract from November 14 to
December 31, 2006 resulted in a gain of $0.5 million, which served
to
offset a portion of the foreign currency transaction losses recorded
for
the three and nine months ended December 31,
2006.
|
· |
Euro-
and Nigerian Naira-denominated intercompany loans and U.S.
dollar-denominated receivables. The economic effect of the foreign
currency transaction losses during the three and nine months ended
December 31, 2006 was offset by a corresponding benefit during those
periods reflected as a cumulative translation adjustment in
stockholders’ investment on our condensed consolidated balance sheet.
We are evaluating alternatives to further mitigate these remaining
foreign
currency exchange exposures.
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
|||||||||||||||
2006
|
2005
|
2006
|
2005
|
|||||||||||||
High
|
$
|
1.98
|
$
|
1.79
|
$
|
1.98
|
$
|
1.92
|
||||||||
Average
|
1.91
|
1.75
|
1.87
|
1.80
|
||||||||||||
Low
|
1.86
|
1.71
|
1.74
|
1.71
|
December
31,
|
March
31,
|
||||||
2006
|
2006
|
||||||
6
1/8%
Senior
Notes due 2013
|
$
|
230,000
|
$
|
230,000
|
|||
Limited
recourse term loans
|
19,155
|
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.
|
417
|
647
|
|||||
Sakhalin
debt
|
4,595
|
5,667
|
|||||
Short-term
notes
|
—
|
3,179
|
|||||
Total
debt
|
259,947
|
265,296
|
|||||
Less
short-term borrowings and current maturities of long-term
debt
|
(22,198
|
)
|
(17,634
|
)
|
|||
Total
long-term debt
|
$
|
237,749
|
$
|
247,662
|
Three
Months Ending
March
31,
|
Fiscal
Year Ending March 31,
|
||||||||||||||||||||||
2007
|
2008
|
2009
|
2010
|
2011-2013
|
Total
|
||||||||||||||||||
Commitments
as of December 31, 2006:
|
|||||||||||||||||||||||
Number
of aircraft:
|
|||||||||||||||||||||||
Small
|
1
|
2
|
—
|
—
|
—
|
3
|
|||||||||||||||||
Medium
|
6
|
12
|
3
|
3
|
6
|
30
|
|||||||||||||||||
Large
|
4
|
5
|
—
|
—
|
—
|
9
|
|||||||||||||||||
11
|
(1)
|
19
|
(2)
|
3
|
3
|
6
|
42
|
||||||||||||||||
Related
expenditures (in thousands)
|
$
|
84,067
|
$
|
162,522
|
$
|
23,051
|
$
|
24,285
|
$
|
37,053
|
$
|
330,978
|
|||||||||||
Options
as of December 31, 2006:
|
|||||||||||||||||||||||
Number
of aircraft:
|
|||||||||||||||||||||||
Medium
(3)
|
—
|
1
|
6
|
6
|
14
|
27
|
|||||||||||||||||
Large
|
—
|
2
|
6
|
—
|
—
|
8
|
|||||||||||||||||
—
|
3
|
12
|
6
|
14
|
35
|
||||||||||||||||||
Related
expenditures (in thousands)
|
$
|
8,220
|
$
|
119,494
|
$
|
102,600
|
$
|
48,292
|
$
|
107,624
|
$
|
386,230
|
(1)
|
Signed
customer contracts are currently in place for nine of these 11
aircraft.
|
(2)
|
Signed
customer contracts are currently in place for eight of these 19
aircraft.
|
(3)
|
As
of December 31, 2006, options with respect to six of these aircraft
were
“subject to availability,” which means that the delivery time for the
aircraft subject to these options will depend upon the number of
manufacturing slots available at the time the options are exercised.
As a
result, the delivery time for these aircraft may be extended beyond
those
specified in the purchase agreement with the manufacturer, and these
medium aircraft were included in the 2011-2013 period in the table
above.
However, we can accelerate the delivery of these aircraft at our
option to
as early as January 1, 2008, subject to the manufacturer’s availability to
fill customer orders at the time an option is exercised.
|
Three
Months Ended
|
|||||||||||||||||||||||
June
30, 2006
|
September
30, 2006
|
December
31, 2006
|
|||||||||||||||||||||
Orders
|
Options
|
Orders
|
Options
|
Orders
|
Options
|
||||||||||||||||||
Beginning
of quarter
|
53
|
37
|
51
|
37
|
47
|
37
|
|||||||||||||||||
Aircraft
delivered
|
(2
|
)
|
—
|
(4
|
)
|
—
|
(10
|
)
|
—
|
||||||||||||||
Aircraft
ordered
|
—
|
—
|
—
|
—
|
8
|
(5
|
)
|
||||||||||||||||
Orders
converted to options
|
—
|
—
|
—
|
—
|
(3
|
)
|
3
|
||||||||||||||||
End
of quarter
|
51
|
37
|
47
|
37
|
42
|
35
|
Amount
of Commitment Expiration Per Period
|
||||||||||||||||||||
Total
|
Remainder
of Fiscal Year 2007
|
Fiscal
Years
2008-2009
|
Fiscal
Years
2010-2011
|
Fiscal
Year 2012 and Thereafter
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
$
|
34,395
|
$
|
3,108
|
$
|
11,716
|
$
|
—
|
$
|
19,570
|
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
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
|||||||||||||||
2006
|
2005
|
2006
|
2005
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Service
cost for benefits earned during the period
|
$
|
66
|
$
|
69
|
$
|
194
|
$
|
212
|
||||||||
Interest
cost on pension benefit obligation
|
5,742
|
5,220
|
16,847
|
16,094
|
||||||||||||
Expected
return on assets
|
(5,941
|
)
|
(4,749
|
)
|
(17,431
|
)
|
(14,641
|
)
|
||||||||
Amortization
of unrecognized experience losses
|
921
|
893
|
2,702
|
2,754
|
||||||||||||
Net
periodic pension cost
|
$
|
788
|
$
|
1,433
|
$
|
2,312
|
$
|
4,419
|
Three
Months Ended
|
Nine
Months Ended
|
||||||
December
31, 2006
|
December
31, 2006
|
||||||
(In
thousands)
|
|||||||
Reduction
in income before provision for income taxes and minority
interest
|
$
|
616
|
$
|
1,799
|
|||
Reduction
in net income
|
400
|
1,169
|
Three
Months Ended
|
Nine
Months Ended
|
||||||
December
31, 2006
|
December
31, 2006
|
||||||
As
reported:
|
|||||||
Basic
|
$
|
0.31
|
$
|
1.85
|
|||
Diluted
|
0.31
|
1.80
|
|||||
If
SFAS No. 123(R) were not adopted:
|
|||||||
Basic
|
$
|
0.33
|
$
|
1.90
|
|||
Diluted
|
0.33
|
1.85
|
Three
Months
|
Nine
Months
|
||||||
Ended
December
31,
|
Ended
December
31,
|
||||||
2006
|
2006
|
||||||
Risk
free interest rate
|
5.0-5.2
|
%
|
5.0-5.2
|
%
|
|||
Expected
life (years)
|
4
|
4
|
|||||
Volatility
|
30-34
|
%
|
30-34
|
%
|
|||
Dividend
yield
|
—
|
—
|
Weighted
|
|||||||||||||
Weighted
|
Average
|
||||||||||||
Average
|
Remaining
|
Aggregate
|
|||||||||||
Exercise
|
Contractual
|
Intrinsic
|
|||||||||||
Shares
|
Price
|
Life
(Years)
|
Value
|
||||||||||
(In
thousands)
|
|||||||||||||
Balance
as of March 31, 2006
|
813,763
|
$
|
24.90
|
7.83
|
$
|
9,033
|
|||||||
Granted
|
196,000
|
34.78
|
|||||||||||
Exercised
|
(146,171
|
)
|
20.20
|
||||||||||
Forfeited
|
(45,518
|
)
|
28.88
|
||||||||||
Balance
as of December 31, 2006
|
818,074
|
27.91
|
7.83
|
$
|
6,688
|
||||||||
Exercisable
as of December 31, 2006
|
502,373
|
25.82
|
7.21
|
$
|
5,161
|
Weighted
|
||||||
Average
|
||||||
Grant
|
||||||
Date
Fair
|
||||||
Value
|
||||||
Units
|
Per
Unit
|
|||||
Non-vested
as of March 31, 2006
|
198,200
|
$
|
29.32
|
|||
Granted
|
200,180
|
35.08
|
||||
Forfeited
|
(18,640
|
)
|
32.07
|
|||
Vested
|
(4,100
|
)
|
34.25
|
|||
Non-vested
as of December 31, 2006
|
375,640
|
32.20
|
Three
Months
|
Nine
Months
|
|||||||
Ended
|
Ended
|
|||||||
December
31,
2005
|
December
31,
2005
|
|||||||
(In
thousands,
except
per share amounts)
|
||||||||
Net
income, as reported
|
$
|
13,400
|
$
|
40,004
|
||||
Stock-based
employee compensation expense included
in
reported net income, net of tax
|
185
|
280
|
||||||
Stock-based
employee compensation expense, net of tax
|
(457
|
)
|
(1,586
|
)
|
||||
Pro
forma net income
|
$
|
13,128
|
$
|
38,698
|
||||
Basic
earnings per common share:
|
||||||||
Earnings
per common share, as reported
|
$
|
0.57
|
$
|
1.71
|
||||
Stock-based
employee compensation expense, net of tax
|
(0.01
|
)
|
(0.05
|
)
|
||||
Pro
forma basic earnings per common share
|
$
|
0.56
|
$
|
1.66
|
||||
Diluted
earnings per common share:
|
||||||||
Earnings
per common share, as reported
|
$
|
0.57
|
$
|
1.70
|
||||
Stock-based
employee compensation expense, net of tax
|
(0.01
|
)
|
(0.06
|
)
|
||||
Pro
forma diluted earnings per common share
|
$
|
0.56
|
$
|
1.64
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
|||||||||||
2006
|
2005
|
2006
|
2005
|
|||||||||
Earnings
(in thousands):
|
||||||||||||
Income
available to common stockholders - basic
|
$
|
7,301
|
$
|
13,400
|
$
|
43,284
|
$
|
40,004
|
||||
Preferred
Stock dividends
|
—
|
—
|
3,471
|
—
|
||||||||
Income
available to common stockholders - diluted
|
$
|
7,301
|
$
|
13,400
|
$
|
46,755
|
$
|
40,004
|
||||
Shares:
|
||||||||||||
Weighted
average number of common shares outstanding - basic
|
23,506,295
|
23,343,465
|
23,428,374
|
23,334,939
|
||||||||
Assumed
conversion of Preferred Stock outstanding during the
period
|
—
|
—
|
2,386,504
|
—
|
||||||||
Net
effect of dilutive stock options and restricted stock units based
on the
treasury stock method
|
134,417
|
254,280
|
152,437
|
265,850
|
||||||||
Weighted
average number of common shares outstanding - diluted
|
23,640,712
|
23,597,745
|
25,967,315
|
23,600,789
|
||||||||
Basic
earnings per common share
|
$
|
0.31
|
$
|
0.57
|
$
|
1.85
|
$
|
1.71
|
||||
Diluted
earnings per common share
|
$
|
0.31
|
$
|
0.57
|
$
|
1.80
|
$
|
1.70
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2006
|
2005
|
2006
|
2005
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Segment
gross revenue from external customers:
|
||||||||||||||||
Helicopter
Services:
|
||||||||||||||||
North
America
|
$
|
55,024
|
$
|
50,290
|
$
|
172,066
|
$
|
151,466
|
||||||||
South
and Central America
|
13,173
|
10,977
|
39,321
|
30,461
|
||||||||||||
Europe
|
71,890
|
59,108
|
212,816
|
179,246
|
||||||||||||
West
Africa
|
35,062
|
27,427
|
98,009
|
79,876
|
||||||||||||
Southeast
Asia
|
18,181
|
15,789
|
52,848
|
44,285
|
||||||||||||
Other
International
|
11,462
|
8,743
|
32,580
|
23,696
|
||||||||||||
EH
Centralized Operations
|
3,939
|
3,690
|
10,957
|
8,434
|
||||||||||||
Total
Helicopter Services
|
208,731
|
176,024
|
618,597
|
517,464
|
||||||||||||
Production
Management Services
|
15,111
|
16,235
|
50,542
|
50,105
|
||||||||||||
Corporate
|
—
|
8
|
(26
|
)
|
40
|
|||||||||||
Total
segment gross revenue
|
$
|
223,842
|
$
|
192,267
|
$
|
669,113
|
$
|
567,609
|
Intersegment
and intrasegment gross revenue:
|
||||||||||||||||
Helicopter
Services:
|
||||||||||||||||
North
America
|
$
|
7,734
|
$
|
6,579
|
$
|
23,797
|
$
|
19,105
|
||||||||
South
and Central America
|
315
|
450
|
809
|
1,350
|
||||||||||||
Europe
|
1,366
|
890
|
3,951
|
2,657
|
||||||||||||
West
Africa
|
—
|
—
|
—
|
—
|
||||||||||||
Southeast
Asia
|
—
|
—
|
—
|
—
|
||||||||||||
Other
International
|
—
|
344
|
19
|
1,060
|
||||||||||||
EH
Centralized Operations
|
11,979
|
10,987
|
34,092
|
31,170
|
||||||||||||
Total
Helicopter Services
|
21,394
|
19,250
|
62,668
|
55,342
|
||||||||||||
Production
Management Services
|
19
|
18
|
57
|
58
|
||||||||||||
Total
intersegment and intrasegment gross revenue
|
$
|
21,413
|
$
|
19,268
|
$
|
62,725
|
$
|
55,400
|
Consolidated
gross revenue reconciliation:
|
||||||||||||||||
Helicopter
Services:
|
||||||||||||||||
North
America
|
$
|
62,758
|
$
|
56,869
|
$
|
195,863
|
$
|
170,571
|
||||||||
South
and Central America
|
13,488
|
11,427
|
40,130
|
31,811
|
||||||||||||
Europe
|
73,256
|
59,998
|
216,767
|
181,903
|
||||||||||||
West
Africa
|
35,062
|
27,427
|
98,009
|
79,876
|
||||||||||||
Southeast
Asia
|
18,181
|
15,789
|
52,848
|
44,285
|
||||||||||||
Other
International
|
11,462
|
9,087
|
32,599
|
24,756
|
||||||||||||
EH
Centralized Operations
|
15,918
|
14,677
|
45,049
|
39,604
|
||||||||||||
Intrasegment
eliminations
|
(19,116
|
)
|
(16,676
|
)
|
(54,321
|
)
|
(48,811
|
)
|
||||||||
Total
Helicopter Services (1)
|
211,009
|
178,598
|
626,944
|
523,995
|
||||||||||||
Production
Management Services (2)
|
15,130
|
16,253
|
50,599
|
50,163
|
||||||||||||
Corporate
|
—
|
8
|
(26
|
)
|
40
|
|||||||||||
Intersegment
eliminations
|
(2,297
|
)
|
(2,592
|
)
|
(8,404
|
)
|
(6,589
|
)
|
||||||||
Total
consolidated gross revenue
|
$
|
223,842
|
$
|
192,267
|
$
|
669,113
|
$
|
567,609
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2006
|
2005
|
2006
|
2005
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Consolidated
operating income (loss) reconciliation:
|
||||||||||||||||
Helicopter
Services:
|
||||||||||||||||
North
America
|
$
|
9,078
|
$
|
8,785
|
$
|
29,341
|
$
|
33,159
|
||||||||
South
and Central America
|
2,993
|
1,391
|
9,904
|
2,006
|
||||||||||||
Europe
|
3,803
|
3,628
|
21,278
|
20,553
|
||||||||||||
West
Africa
|
3,153
|
1,806
|
6,381
|
5,911
|
||||||||||||
Southeast
Asia
|
1,956
|
1,701
|
5,056
|
2,786
|
||||||||||||
Other
International
|
905
|
2,192
|
5,340
|
4,376
|
||||||||||||
EH
Centralized Operations
|
5,565
|
3,302
|
15,472
|
2,601
|
||||||||||||
Total
Helicopter Services
|
27,453
|
22,805
|
92,772
|
71,392
|
||||||||||||
Production
Management Services
|
739
|
1,117
|
3,546
|
3,675
|
||||||||||||
Gain
(loss) on disposal of assets
|
1,042
|
(373
|
)
|
5,707
|
(1,276
|
)
|
||||||||||
Corporate
|
(8,255
|
)
|
(5,817
|
)
|
(19,125
|
)
|
(18,919
|
)
|
||||||||
Total
consolidated operating income
|
$
|
20,979
|
$
|
17,732
|
$
|
82,900
|
$
|
54,872
|
December
31,
2006
|
March
31,
2006
|
||||||||
(In
thousands)
|
|||||||||
Identifiable
assets:
(3)
|
|||||||||
Helicopter
Services:
|
|||||||||
North
America
|
$
|
429,313
|
$
|
415,045
|
|||||
South
and Central America
|
13,438
|
10,042
|
|||||||
Europe
|
32,329
|
31,515
|
|||||||
West
Africa
|
3,209
|
8,918
|
|||||||
Southeast
Asia
|
14,562
|
13,657
|
|||||||
Other
International
|
17,397
|
28,125
|
|||||||
EH
Centralized Operations
|
590,442
|
520,524
|
|||||||
Total
Helicopter Services
|
1,100,690
|
1,027,826
|
|||||||
Production
Management Services
|
34,617
|
34,013
|
|||||||
Corporate
|
382,457
|
114,574
|
|||||||
Total
consolidated identifiable assets
|
$
|
1,517,764
|
$
|
1,176,413
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2006
|
2005
|
2006
|
2005
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Net
income
|
$
|
10,451
|
$
|
13,400
|
$
|
46,755
|
$
|
40,004
|
||||||||
Other
comprehensive income (loss):
|
||||||||||||||||
Currency
translation adjustments
|
15,892
|
(8,027
|
)
|
37,213
|
(25,144
|
)
|
||||||||||
Comprehensive
income
|
$
|
26,343
|
$
|
5,373
|
$
|
83,968
|
$
|
14,860
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Gross
revenue
|
$
|
(1
|
)
|
$
|
81,951
|
$
|
141,892
|
$
|
—
|
$
|
223,842
|
|||||||||
Intercompany
revenue
|
—
|
3,954
|
2,807
|
(6,761
|
)
|
—
|
||||||||||||||
(1
|
)
|
85,905
|
144,699
|
(6,761
|
)
|
223,842
|
||||||||||||||
Operating
expense:
|
||||||||||||||||||||
Direct
cost
|
(187
|
)
|
59,682
|
113,186
|
—
|
172,681
|
||||||||||||||
Intercompany
expenses
|
—
|
2,808
|
3,953
|
(6,761
|
)
|
—
|
||||||||||||||
Depreciation
and amortization
|
71
|
4,856
|
6,133
|
—
|
11,060
|
|||||||||||||||
General
and administrative
|
8,370
|
4,555
|
7,239
|
—
|
20,164
|
|||||||||||||||
Gain
on disposal of assets
|
—
|
(976
|
)
|
(66
|
)
|
—
|
(1,042
|
)
|
||||||||||||
8,254
|
70,925
|
130,445
|
(6,761
|
)
|
202,863
|
|||||||||||||||
Operating
income (loss)
|
(8,255
|
)
|
14,980
|
14,254
|
—
|
20,979
|
||||||||||||||
Earnings
(losses) from unconsolidated affiliates,
net
|
2,055
|
(184
|
)
|
2,341
|
(2,106
|
)
|
2,106
|
|||||||||||||
Interest
income
|
21,496
|
97
|
1,029
|
(18,781
|
)
|
3,841
|
||||||||||||||
Interest
expense
|
(2,826
|
)
|
—
|
(18,494
|
)
|
18,781
|
(2,539
|
)
|
||||||||||||
Other
expense, net
|
(1,908
|
)
|
(36
|
)
|
(3,282
|
)
|
—
|
(5,226
|
)
|
|||||||||||
Income
(loss) before provision for income taxes
and minority interest
|
10,562
|
14,857
|
(4,152
|
)
|
(2,106
|
)
|
19,161
|
|||||||||||||
Allocation
of consolidated income taxes
|
(74
|
)
|
(1,880
|
)
|
(6,499
|
)
|
—
|
(8,453
|
)
|
|||||||||||
Minority
interest
|
(37
|
)
|
—
|
(220
|
)
|
—
|
(257
|
)
|
||||||||||||
Net
income (loss)
|
$
|
10,451
|
$
|
12,977
|
$
|
(10,871
|
)
|
$
|
(2,106
|
)
|
$
|
10,451
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Gross
revenue
|
$
|
(26
|
)
|
$
|
250,267
|
$
|
418,872
|
$
|
—
|
$
|
669,113
|
|||||||||
Intercompany
revenue
|
—
|
10,634
|
8,528
|
(19,162
|
)
|
—
|
||||||||||||||
(26
|
)
|
260,901
|
427,400
|
(19,162
|
)
|
669,113
|
||||||||||||||
Operating
expense:
|
||||||||||||||||||||
Direct
cost
|
7
|
186,777
|
321,016
|
—
|
507,800
|
|||||||||||||||
Intercompany
expenses
|
—
|
8,529
|
10,583
|
(19,112
|
)
|
—
|
||||||||||||||
Depreciation
and amortization
|
153
|
13,632
|
18,295
|
—
|
32,080
|
|||||||||||||||
General
and administrative
|
18,936
|
13,033
|
20,121
|
(50
|
)
|
52,040
|
||||||||||||||
Gain
on disposal of assets
|
—
|
(1,170
|
)
|
(4,537
|
)
|
—
|
(5,707
|
)
|
||||||||||||
19,096
|
220,801
|
365,478
|
(19,162
|
)
|
586,213
|
|||||||||||||||
Operating
income (loss)
|
(19,122
|
)
|
40,100
|
61,922
|
—
|
82,900
|
||||||||||||||
Earnings
(losses) from unconsolidated affiliates,
net
|
26,715
|
(809
|
)
|
6,358
|
(26,871
|
)
|
5,393
|
|||||||||||||
Interest
income
|
51,457
|
230
|
3,092
|
(48,579
|
)
|
6,200
|
||||||||||||||
Interest
expense
|
(9,292
|
)
|
—
|
(47,933
|
)
|
48,579
|
(8,646
|
)
|
||||||||||||
Other
expense, net
|
(2,002
|
)
|
(130
|
)
|
(9,187
|
)
|
—
|
(11,319
|
)
|
|||||||||||
Income
before provision for income taxes
and minority interest
|
47,756
|
39,391
|
14,252
|
(26,871
|
)
|
74,528
|
||||||||||||||
Allocation
of consolidated income taxes
|
(883
|
)
|
(4,606
|
)
|
(21,235
|
)
|
—
|
(26,724
|
)
|
|||||||||||
Minority
interest
|
(118
|
)
|
—
|
(931
|
)
|
—
|
(1,049
|
)
|
||||||||||||
Net
income (loss)
|
$
|
46,755
|
$
|
34,785
|
$
|
(7,914
|
)
|
$
|
(26,871
|
)
|
$
|
46,755
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Gross
revenue
|
$
|
7
|
$
|
73,374
|
$
|
118,886
|
$
|
—
|
$
|
192,267
|
||||||||||
Intercompany
revenue
|
—
|
1,934
|
2,693
|
(4,627
|
)
|
—
|
||||||||||||||
7
|
75,308
|
121,579
|
(4,627
|
)
|
192,267
|
|||||||||||||||
Operating
expense:
|
||||||||||||||||||||
Direct
cost
|
1,041
|
53,592
|
93,537
|
—
|
148,170
|
|||||||||||||||
Intercompany
expenses
|
—
|
2,695
|
1,823
|
(4,518
|
)
|
—
|
||||||||||||||
Depreciation
and amortization
|
37
|
4,564
|
6,052
|
—
|
10,653
|
|||||||||||||||
General
and administrative
|
4,747
|
5,048
|
5,652
|
(109
|
)
|
15,338
|
||||||||||||||
Loss
on disposal of assets
|
—
|
1
|
373
|
—
|
374
|
|||||||||||||||
5,825
|
65,900
|
107,437
|
(4,627
|
)
|
174,535
|
|||||||||||||||
Operating
income (loss)
|
(5,818
|
)
|
9,408
|
14,142
|
—
|
17,732
|
||||||||||||||
Earnings
(losses) from unconsolidated affiliates,
net
|
31,258
|
(922
|
)
|
2,325
|
(31,310
|
)
|
1,351
|
|||||||||||||
Interest
income
|
13,733
|
50
|
985
|
(13,870
|
)
|
898
|
||||||||||||||
Interest
expense
|
(3,708
|
)
|
(3
|
)
|
(14,062
|
)
|
13,870
|
(3,903
|
)
|
|||||||||||
Other
income (expense), net
|
(261
|
)
|
60
|
2,497
|
—
|
2,296
|
||||||||||||||
Income
before provision for income taxes
and minority interest
|
35,204
|
8,593
|
5,887
|
(31,310
|
)
|
18,374
|
||||||||||||||
Allocation
of consolidated income taxes
|
(21,766
|
)
|
(172
|
)
|
16,954
|
—
|
(4,984
|
)
|
||||||||||||
Minority
interest
|
(38
|
)
|
—
|
48
|
—
|
10
|
||||||||||||||
Net
income
|
$
|
13,400
|
$
|
8,421
|
$
|
22,889
|
$
|
(31,310
|
)
|
$
|
13,400
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Gross
revenue
|
$
|
39
|
$
|
223,702
|
$
|
343,868
|
$
|
—
|
$
|
567,609
|
||||||||||
Intercompany
revenue
|
—
|
5,566
|
6,534
|
(12,100
|
)
|
—
|
||||||||||||||
39
|
229,268
|
350,402
|
(12,100
|
)
|
567,609
|
|||||||||||||||
Operating
expense:
|
||||||||||||||||||||
Direct
cost
|
17
|
161,271
|
272,008
|
—
|
433,296
|
|||||||||||||||
Intercompany
expenses
|
—
|
6,535
|
5,236
|
(11,771
|
)
|
—
|
||||||||||||||
Depreciation
and amortization
|
69
|
13,642
|
18,449
|
—
|
32,160
|
|||||||||||||||
General
and administrative
|
18,873
|
11,396
|
16,065
|
(329
|
)
|
46,005
|
||||||||||||||
Loss
(gain) on disposal of assets
|
4
|
(142
|
)
|
1,414
|
—
|
1,276
|
||||||||||||||
18,963
|
192,702
|
313,172
|
(12,100
|
)
|
512,737
|
|||||||||||||||
Operating
income (loss)
|
(18,924
|
)
|
36,566
|
37,230
|
—
|
54,872
|
||||||||||||||
Earnings
(losses) from unconsolidated affiliates,
net
|
48,248
|
(2,959
|
)
|
4,886
|
(48,405
|
)
|
1,770
|
|||||||||||||
Interest
income
|
40,938
|
138
|
3,160
|
(41,357
|
)
|
2,879
|
||||||||||||||
Interest
expense
|
(10,895
|
)
|
(10
|
)
|
(41,740
|
)
|
41,357
|
(11,288
|
)
|
|||||||||||
Other
income (expense), net
|
(717
|
)
|
59
|
4,966
|
—
|
4,308
|
||||||||||||||
Income
before provision for income taxes
and minority interest
|
58,650
|
33,794
|
8,502
|
(48,405
|
)
|
52,541
|
||||||||||||||
Allocation
of consolidated income taxes
|
(18,529
|
)
|
(2,512
|
)
|
8,588
|
—
|
(12,453
|
)
|
||||||||||||
Minority
interest
|
(117
|
)
|
—
|
33
|
—
|
(84
|
)
|
|||||||||||||
Net
income
|
$
|
40,004
|
$
|
31,282
|
$
|
17,123
|
$
|
(48,405
|
)
|
$
|
40,004
|
Parent
|
Non-
|
||||||||||||||||||||||
Company
|
Guarantor
|
||||||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||||||
(In
thousands)
|
|||||||||||||||||||||||
ASSETS
|
|||||||||||||||||||||||
Current
assets:
|
|||||||||||||||||||||||
Cash
and cash equivalents
|
$
|
181,516
|
$
|
3,623
|
$
|
34,560
|
$
|
—
|
$
|
219,699
|
|||||||||||||
Accounts
receivable
|
33,988
|
69,846
|
119,233
|
(42,819
|
)
|
180,248
|
|||||||||||||||||
Inventories
|
—
|
74,512
|
86,555
|
—
|
161,067
|
||||||||||||||||||
Prepaid
expenses and other
|
(163
|
)
|
1,322
|
11,542
|
—
|
12,701
|
|||||||||||||||||
Total
current assets
|
215,341
|
149,303
|
251,890
|
(42,819
|
)
|
573,715
|
|||||||||||||||||
Intercompany
investment
|
286,127
|
1,046
|
—
|
(287,173
|
)
|
—
|
|||||||||||||||||
Investment
in unconsolidated affiliates
|
4,696
|
779
|
37,494
|
—
|
42,969
|
||||||||||||||||||
Intercompany
notes receivable
|
770,460
|
—
|
25,352
|
(795,812
|
)
|
—
|
|||||||||||||||||
Property
and equipment - at cost:
|
|||||||||||||||||||||||
Land
and buildings
|
262
|
34,571
|
14,085
|
—
|
48,918
|
||||||||||||||||||
Aircraft
and equipment
|
2,130
|
500,817
|
576,326
|
—
|
1,079,273
|
||||||||||||||||||
2,392
|
535,388
|
590,411
|
—
|
1,128,191
|
|||||||||||||||||||
Less:
Accumulated depreciation and amortization
|
(1,428
|
)
|
(121,803
|
)
|
(179,646
|
)
|
—
|
(302,877
|
)
|
||||||||||||||
|
964
|
413,585
|
410,765
|
—
|
825,314
|
||||||||||||||||||
Goodwill
|
—
|
18,594
|
1,773
|
111
|
20,478
|
||||||||||||||||||
Other
assets
|
8,889
|
77
|
46,322
|
—
|
55,288
|
||||||||||||||||||
$
|
1,286,477
|
$
|
583,384
|
$
|
773,596
|
$
|
(1,125,693
|
)
|
$
|
1,517,764
|
|||||||||||||
LIABILITIES
AND STOCKHOLDERS’ INVESTMENT
|
|||||||||||||||||||||||
Current
liabilities:
|
|||||||||||||||||||||||
Accounts
payable
|
$
|
1,418
|
$
|
11,552
|
$
|
34,247
|
$
|
(10,751
|
)
|
$
|
36,466
|
||||||||||||
Accrued
liabilities
|
7,706
|
24,827
|
103,043
|
(32,070
|
)
|
103,506
|
|||||||||||||||||
Deferred
taxes
|
(3,771
|
)
|
—
|
14,663
|
—
|
10,892
|
|||||||||||||||||
Short-term
borrowings and current maturities
of long-term debt
|
—
|
—
|
22,198
|
—
|
22,198
|
||||||||||||||||||
Total
current liabilities
|
5,353
|
36,379
|
174,151
|
(42,821
|
)
|
173,062
|
|||||||||||||||||
Long-term
debt, less current maturities
|
234,380
|
—
|
3,369
|
—
|
237,749
|
||||||||||||||||||
Intercompany
notes payable
|
25,212
|
195,054
|
575,545
|
(795,811
|
)
|
—
|
|||||||||||||||||
Other
liabilities and deferred credits
|
4,262
|
9,720
|
157,112
|
—
|
171,094
|
||||||||||||||||||
Deferred
taxes
|
50,776
|
1,841
|
28,877
|
—
|
81,494
|
||||||||||||||||||
Minority
interest
|
2,036
|
—
|
3,256
|
—
|
5,292
|
||||||||||||||||||
Stockholders’
investment:
|
|||||||||||||||||||||||
5.50%
mandatory convertible preferred stock
|
222,554
|
—
|
—
|
—
|
222,554
|
||||||||||||||||||
Common
stock
|
235
|
4,062
|
34,803
|
(38,865
|
)
|
235
|
|||||||||||||||||
Additional
paid-in-capital
|
166,559
|
51,170
|
8,014
|
(59,184
|
)
|
166,559
|
|||||||||||||||||
Retained
earnings
|
491,335
|
285,158
|
(79,114
|
)
|
(206,044
|
)
|
491,335
|
||||||||||||||||
Accumulated
other comprehensive income
(loss)
|
83,775
|
—
|
(132,417
|
)
|
17,032
|
(31,610
|
)
|
||||||||||||||||
|
964,458
|
340,390
|
(168,714
|
)
|
(287,061
|
)
|
849,073
|
||||||||||||||||
$
|
1,286,477
|
$
|
583,384
|
$
|
773,596
|
$
|
(1,125,693
|
)
|
$
|
1,517,764
|
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
|
$
|
30,519
|
$
|
(9,437
|
)
|
$
|
41,227
|
|||||||||||
Accrued
liabilities
|
14,696
|
20,399
|
88,342
|
(23,394
|
)
|
100,043
|
||||||||||||||||
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
|
158,762
|
51,170
|
13,477
|
(64,647
|
)
|
158,762
|
||||||||||||||||
Retained
earnings
|
447,524
|
250,373
|
(69,418
|
)
|
(180,955
|
)
|
447,524
|
|||||||||||||||
Accumulated
other comprehensive income
(loss)
|
21,677
|
—
|
(96,297
|
)
|
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 (used in) operating activities
|
$
|
(17,569
|
)
|
$
|
28,583
|
$
|
36,910
|
$
|
19,941
|
$
|
67,865
|
|||||||||
Cash
flows from investing activities:
|
||||||||||||||||||||
Capital
expenditures
|
(527
|
)
|
(153,214
|
)
|
(62,505
|
)
|
—
|
(216,246
|
)
|
|||||||||||
Proceeds
from asset dispositions
|
13,200
|
3,843
|
6,962
|
—
|
24,005
|
|||||||||||||||
Net
cash used in investing activities
|
12,673
|
(149,371
|
)
|
(55,543
|
)
|
—
|
(192,241
|
)
|
||||||||||||
Cash
flows from financing activities:
|
||||||||||||||||||||
Issuance
of preferred stock
|
223,550
|
—
|
—
|
—
|
223,550
|
|||||||||||||||
Preferred
stock issuance costs
|
(994
|
)
|
—
|
—
|
—
|
(994
|
)
|
|||||||||||||
Preferred
stock dividends paid
|
(2,944
|
)
|
—
|
—
|
—
|
(2,944
|
)
|
|||||||||||||
Repayment
of debt and debt redemption premiums
|
—
|
—
|
(5,570
|
)
|
—
|
(5,570
|
)
|
|||||||||||||
Increases
(decreases) in cash related to intercompany
advances and debt
|
(111,640
|
)
|
123,048
|
8,533
|
(19,941
|
)
|
—
|
|||||||||||||
Partial
prepayment of put/call obligation
|
(96
|
)
|
—
|
—
|
—
|
(96
|
)
|
|||||||||||||
Issuance
of common stock
|
2,926
|
—
|
—
|
—
|
2,926
|
|||||||||||||||
Tax
benefit related to exercise of stock options
|
837
|
—
|
—
|
—
|
837
|
|||||||||||||||
Net
cash provided by (used in) financing activities
|
111,639
|
123,048
|
2,963
|
(19,941
|
)
|
217,709
|
||||||||||||||
Effect
of exchange rate changes on cash and cash
equivalents
|
172
|
—
|
3,712
|
—
|
3,884
|
|||||||||||||||
Net
increase (decrease) in cash and cash
equivalents
|
106,915
|
2,260
|
(11,958
|
)
|
—
|
97,217
|
||||||||||||||
Cash
and cash equivalents at beginning of
period
|
74,601
|
1,363
|
46,518
|
—
|
122,482
|
|||||||||||||||
Cash
and cash equivalents at end of period
|
$
|
181,516
|
$
|
3,623
|
$
|
34,560
|
$
|
—
|
$
|
219,699
|
Parent
|
Non-
|
|||||||||||||||||||
Company
|
Guarantor
|
Guarantor
|
||||||||||||||||||
Only
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Net
cash provided by (used in) operating activities
|
$
|
42,014
|
$
|
20,813
|
$
|
7,735
|
$
|
(39,213
|
)
|
$
|
31,349
|
|||||||||
Cash
flows from investing activities:
|
||||||||||||||||||||
Capital
expenditures
|
(331
|
)
|
(78,391
|
)
|
(23,585
|
)
|
—
|
(102,307
|
)
|
|||||||||||
Proceeds
from asset dispositions
|
73
|
70,373
|
2,174
|
—
|
72,620
|
|||||||||||||||
Net
cash used in investing activities
|
(258
|
)
|
(8,018
|
)
|
(21,411
|
)
|
—
|
(29,687
|
)
|
|||||||||||
Cash
flows from financing activities:
|
||||||||||||||||||||
Cash
collateral provided under operating leases
|
—
|
(10,285
|
)
|
—
|
—
|
(10,285
|
)
|
|||||||||||||
Repayment
of debt and debt redemption premiums
|
—
|
—
|
(3,160
|
)
|
—
|
(3,160
|
)
|
|||||||||||||
Repayment
of intercompany debt
|
(1
|
)
|
(4,600
|
)
|
(212
|
)
|
4,813
|
—
|
||||||||||||
Dividends
paid
|
—
|
(3,500
|
)
|
(30,900
|
)
|
34,400
|
—
|
|||||||||||||
Partial
prepayment of put/call obligation
|
(66
|
)
|
—
|
—
|
—
|
(66
|
)
|
|||||||||||||
Issuance
of common stock
|
602
|
—
|
—
|
—
|
602
|
|||||||||||||||
Net
cash provided by (used in) financing activities
|
535
|
(18,385
|
)
|
(34,272
|
)
|
39,213
|
(12,909
|
)
|
||||||||||||
Effect
of exchange rate changes on cash and cash
equivalents
|
—
|
—
|
(6,140
|
)
|
—
|
(6,140
|
)
|
|||||||||||||
Net
increase (decrease) in cash and cash equivalents
|
42,291
|
(5,590
|
)
|
(54,088
|
)
|
—
|
(17,387
|
)
|
||||||||||||
Cash
and cash equivalents at beginning of
period
|
23,947
|
7,907
|
114,586
|
—
|
146,440
|
|||||||||||||||
Cash
and cash equivalents at end of
period
|
$
|
66,238
|
$ |
2,317
|
$ |
60,498
|
$ |
—
|
$
|
129,053
|
· |
North
America;
|
· |
South
and Central America;
|
· |
Europe;
|
· |
West
Africa;
|
· |
Southeast
Asia;
|
· |
Other
International; and
|
· |
Eastern
Hemisphere (“EH”) Centralized
Operations.
|
Aircraft
in Fleet
|
Percentage
of
Current
Period
Revenues
|
|||||||||||||||||||
Helicopters
|
||||||||||||||||||||
Small
|
Medium
|
Large
|
Fixed
Wing
|
Total
|
||||||||||||||||
Helicopter
Services
|
||||||||||||||||||||
North
America
|
138
|
26
|
4
|
1
|
169
|
26
|
%
|
|||||||||||||
South
and Central America
|
2
|
33
|
1
|
—
|
36
|
6
|
%
|
|||||||||||||
Europe
|
1
|
8
|
31
|
—
|
40
|
32
|
%
|
|||||||||||||
West
Africa
|
11
|
29
|
2
|
6
|
48
|
14
|
%
|
|||||||||||||
Southeast
Asia
|
2
|
6
|
7
|
—
|
15
|
8
|
%
|
|||||||||||||
Other
International
|
—
|
11
|
10
|
3
|
24
|
5
|
%
|
|||||||||||||
EH
Centralized Operations
|
—
|
—
|
9
|
—
|
9
|
1
|
%
|
|||||||||||||
Production
Management
|
—
|
—
|
—
|
—
|
—
|
8
|
%
|
|||||||||||||
Total
|
154
|
113
|
64
|
10
|
341
|
100
|
%
|
|||||||||||||
Aircraft
not currently in fleet:
|
||||||||||||||||||||
On
order
|
3
|
30
|
9
|
—
|
42
|
|||||||||||||||
Under
option
|
—
|
27
|
8
|
—
|
35
|
Three
Months Ended
|
|||||||||||||||||||||||
June
30, 2006
|
September
30, 2006
|
December
31, 2006
|
|||||||||||||||||||||
Orders
|
Options
|
Orders
|
Options
|
Orders
|
Options
|
||||||||||||||||||
Beginning
of quarter
|
53
|
37
|
51
|
37
|
47
|
37
|
|||||||||||||||||
Aircraft
delivered
|
(2
|
)
|
—
|
(4
|
)
|
—
|
(10
|
)
|
—
|
||||||||||||||
Aircraft
ordered
|
—
|
—
|
—
|
—
|
8
|
(5
|
)
|
||||||||||||||||
Orders
converted to options
|
—
|
—
|
—
|
—
|
(3
|
)
|
3
|
||||||||||||||||
End
of quarter
|
51
|
37
|
47
|
37
|
42
|
35
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
|||||||||||
2006
|
2005
|
2006
|
2005
|
|||||||||
(Unaudited)
|
||||||||||||
(In
thousands)
|
||||||||||||
Gross
revenue:
|
||||||||||||
Operating
revenue
|
$
|
202,002
|
$
|
169,579
|
$
|
598,837
|
$
|
508,525
|
||||
Reimbursable
revenue
|
21,840
|
22,688
|
70,276
|
59,084
|
||||||||
Total
gross revenue
|
223,842
|
192,267
|
669,113
|
567,609
|
||||||||
Operating
expense:
|
||||||||||||
Direct
cost
|
151,193
|
126,120
|
438,534
|
375,182
|
||||||||
Reimbursable
expense
|
21,488
|
22,050
|
69,266
|
58,114
|
||||||||
Depreciation
and amortization
|
11,060
|
10,653
|
32,080
|
32,160
|
||||||||
General
and administrative
|
20,164
|
15,338
|
52,040
|
46,005
|
||||||||
Loss
(gain) on disposal of assets
|
(1,042
|
)
|
374
|
(5,707
|
)
|
1,276
|
||||||
Total
operating expense
|
202,863
|
174,535
|
586,213
|
512,737
|
||||||||
Operating
income
|
20,979
|
17,732
|
82,900
|
54,872
|
||||||||
Earnings
from unconsolidated affiliates, net of losses
|
2,106
|
1,351
|
5,393
|
1,770
|
||||||||
Interest
expense, net
|
1,302
|
(3,005
|
)
|
(2,446
|
)
|
(8,409
|
)
|
|||||
Other
income (expense), net
|
(5,226
|
)
|
2,296
|
(11,319
|
)
|
4,308
|
||||||
Income
before provision for income taxes and minority interest
|
19,161
|
18,374
|
74,528
|
52,541
|
||||||||
Provision
for income taxes
|
(8,453
|
)
|
(4,984
|
)
|
(26,724
|
)
|
(12,453
|
)
|
||||
Minority
interest
|
(257
|
)
|
10
|
(1,049
|
)
|
(84
|
)
|
|||||
Net
income
|
$
|
10,451
|
$
|
13,400
|
$
|
46,755
|
$
|
40,004
|
Three
Months Ended December 31,
|
Nine
Months Ended December 31,
|
|||||||||||||||||||||||
2006
|
2005
|
2006
|
2005
|
|||||||||||||||||||||
Net
Income
Impact
|
Diluted
Earnings
Per
Share
Impact
|
Net
Income
Impact
|
Diluted
Earnings
Per
Share
Impact
|
Net
Income
Impact
|
Diluted
Earnings
Per
Share
Impact
|
Net
Income
Impact
|
Diluted
Earnings
Per
Share
Impact
|
|||||||||||||||||
(In
thousands, except per share amounts)
|
||||||||||||||||||||||||
Investigations:
|
||||||||||||||||||||||||
SEC
(1)
|
$
|
(2,067
|
)
|
$
|
(0.09
|
)
|
$
|
(1,790
|
)
|
$
|
(0.08
|
)
|
$
|
(2,096
|
)
|
$
|
(0.08
|
)
|
$
|
(7,789
|
)
|
$
|
(0.33
|
)
|
DOJ
|
(462
|
)
|
(0.02
|
)
|
(712
|
)
|
(0.03
|
)
|
(1,041
|
)
|
(0.04
|
)
|
(1,064
|
)
|
(0.05
|
)
|
||||||||
Acquisitions
and divestitures:
|
||||||||||||||||||||||||
Impairment
of investment in Brazilian joint venture
|
—
|
—
|
(758
|
)
|
(0.03
|
)
|
—
|
—
|
(794
|
)
|
(0.03
|
)
|
||||||||||||
Expense
of previously deferred acquisition costs
|
(1,302
|
)
|
(0.06
|
)
|
—
|
—
|
(1,275
|
)
|
(0.05
|
)
|
—
|
—
|
||||||||||||
Turbo
asset sale
|
(2,419
|
)
|
(0.10
|
)
|
—
|
—
|
(2,421
|
)
|
(0.09
|
)
|
—
|
—
|
||||||||||||
Foreign
currency transaction gains (losses)
|
(2,352
|
)
|
(0.10
|
)
|
1,677
|
0.07
|
(6,450
|
)
|
(0.25
|
)
|
4,044
|
0.17
|
||||||||||||
Preferred
Stock
|
1,608
|
(0.07
|
)
|
—
|
—
|
1,758
|
(0.16
|
)
|
—
|
—
|
||||||||||||||
Total
|
$
|
(6,994
|
)
|
$
|
(0.44
|
)
|
$
|
(1,583
|
)
|
$
|
(0.07
|
)
|
$
|
(11,525
|
)
|
$
|
(0.67
|
)
|
$
|
(5,603
|
)
|
$
|
(0.24
|
)
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2006
|
2005
|
2006
|
2005
|
|||||||||||||
Flight
hours (excludes unconsolidated affiliates):
|
||||||||||||||||
Helicopter
Services:
|
||||||||||||||||
North
America (1)
|
34,742
|
38,131
|
118,353
|
115,516
|
||||||||||||
South
and Central America
|
9,973
|
9,569
|
28,889
|
29,198
|
||||||||||||
Europe
|
10,917
|
9,329
|
31,772
|
29,323
|
||||||||||||
West
Africa
|
9,733
|
8,867
|
27,795
|
25,836
|
||||||||||||
Southeast
Asia
|
3,059
|
3,117
|
9,328
|
8,844
|
||||||||||||
Other
International
|
2,641
|
1,728
|
7,119
|
5,020
|
||||||||||||
Consolidated
total
|
71,065
|
70,741
|
223,256
|
213,737
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2006
|
2005
|
2006
|
2005
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Gross
revenue:
|
||||||||||||||||
Helicopter
Services:
|
||||||||||||||||
North
America
|
$
|
62,758
|
$
|
56,869
|
$
|
195,863
|
$
|
170,571
|
||||||||
South
and Central America
|
13,488
|
11,427
|
40,130
|
31,811
|
||||||||||||
Europe
|
73,256
|
59,998
|
216,767
|
181,903
|
||||||||||||
West
Africa
|
35,062
|
27,427
|
98,009
|
79,876
|
||||||||||||
Southeast
Asia
|
18,181
|
15,789
|
52,848
|
44,285
|
||||||||||||
Other
International
|
11,462
|
9,087
|
32,599
|
24,756
|
||||||||||||
EH
Centralized Operations
|
15,918
|
14,677
|
45,049
|
39,604
|
||||||||||||
Intrasegment
eliminations
|
(19,116
|
)
|
(16,676
|
)
|
(54,321
|
)
|
(48,811
|
)
|
||||||||
Total
Helicopter Services (2)
|
211,009
|
178,598
|
626,944
|
523,995
|
||||||||||||
Production
Management Services (3)
|
15,130
|
16,253
|
50,599
|
50,163
|
||||||||||||
Corporate
|
—
|
8
|
(26
|
)
|
40
|
|||||||||||
Intersegment
eliminations
|
(2,297
|
)
|
(2,592
|
)
|
(8,404
|
)
|
(6,589
|
)
|
||||||||
Consolidated
total
|
$
|
223,842
|
$
|
192,267
|
$
|
669,113
|
$
|
567,609
|
Operating
expense: (4)
|
||||||||||||||||
Helicopter
Services:
|
||||||||||||||||
North
America
|
$
|
53,680
|
$
|
48,084
|
$
|
166,522
|
$
|
137,412
|
||||||||
South
and Central America
|
10,495
|
10,036
|
30,226
|
29,805
|
||||||||||||
Europe
|
69,453
|
56,370
|
195,489
|
161,350
|
||||||||||||
West
Africa
|
31,909
|
25,621
|
91,628
|
73,965
|
||||||||||||
Southeast
Asia
|
16,225
|
14,088
|
47,792
|
41,499
|
||||||||||||
Other
International
|
10,557
|
6,895
|
27,259
|
20,380
|
||||||||||||
EH
Centralized Operations
|
10,353
|
11,375
|
29,577
|
37,003
|
||||||||||||
Intrasegment
eliminations
|
(19,116
|
)
|
(16,676
|
)
|
(54,321
|
)
|
(48,811
|
)
|
||||||||
Total
Helicopter Services
|
183,556
|
155,793
|
534,172
|
452,603
|
||||||||||||
Production
Management Services
|
14,391
|
15,136
|
47,053
|
46,488
|
||||||||||||
Loss
(gain) on disposal of assets
|
(1,042
|
)
|
373
|
(5,707
|
)
|
1,276
|
||||||||||
Corporate
(5)
|
8,255
|
5,825
|
19,099
|
18,959
|
||||||||||||
Intersegment
eliminations
|
(2,297
|
)
|
(2,592
|
)
|
(8,404
|
)
|
(6,589
|
)
|
||||||||
Consolidated
total
|
$
|
202,863
|
$
|
174,535
|
$
|
586,213
|
$
|
512,737
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
2006
|
2005
|
2006
|
2005
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Operating
income:
|
||||||||||||||||
Helicopter
Services:
|
||||||||||||||||
North
America
|
$
|
9,078
|
$
|
8,785
|
$
|
29,341
|
$
|
33,159
|
||||||||
South
and Central America
|
2,993
|
1,391
|
9,904
|
2,006
|
||||||||||||
Europe
|
3,803
|
3,628
|
21,278
|
20,553
|
||||||||||||
West
Africa
|
3,153
|
1,806
|
6,381
|
5,911
|
||||||||||||
Southeast
Asia
|
1,956
|
1,701
|
5,056
|
2,786
|
||||||||||||
Other
International
|
905
|
2,192
|
5,340
|
4,376
|
||||||||||||
EH
Centralized Operations
|
5,565
|
3,302
|
15,472
|
2,601
|
||||||||||||
Total
Helicopter Services
|
27,453
|
22,805
|
92,772
|
71,392
|
||||||||||||
Production
Management Services
|
739
|
1,117
|
3,546
|
3,675
|
||||||||||||
Gain
(loss) on disposal of assets (6)
|
1,042
|
(373
|
)
|
5,707
|
(1,276
|
)
|
||||||||||
Corporate
(5)
|
(8,255
|
)
|
(5,817
|
)
|
(19,125
|
)
|
(18,919
|
)
|
||||||||
Consolidated
operating income
|
20,979
|
17,732
|
82,900
|
54,872
|
||||||||||||
Earnings
from unconsolidated affiliates
|
2,106
|
1,351
|
5,393
|
1,770
|
||||||||||||
Interest
income
|
3,841
|
898
|
6,200
|
2,879
|
||||||||||||
Interest
expense
|
(2,539
|
)
|
(3,903
|
)
|
(8,646
|
)
|
(11,288
|
)
|
||||||||
Other
income (expense), net (7)
|
(5,226
|
)
|
2,296
|
(11,319
|
)
|
4,308
|
||||||||||
Income
before provision for income taxes
and minority interest
|
19,161
|
18,374
|
74,528
|
52,541
|
||||||||||||
Provision
for income taxes (8)
|
(8,453
|
)
|
(4,984
|
)
|
(26,724
|
)
|
(12,453
|
)
|
||||||||
Minority
interest
|
(257
|
)
|
10
|
(1,049
|
)
|
(84
|
)
|
|||||||||
Net
income
|
$
|
10,451
|
$
|
13,400
|
$
|
46,755
|
$
|
40,004
|
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||
December
31,
|
December
31,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
Operating
margin: (9)
|
|||||||||||||
Helicopter
Services:
|
|||||||||||||
North
America
|
14.5
|
%
|
15.4
|
%
|
15.0
|
%
|
19.4
|
%
|
|||||
South
and Central America
|
22.2
|
%
|
12.2
|
%
|
24.7
|
%
|
6.3
|
%
|
|||||
Europe
|
5.2
|
%
|
6.0
|
%
|
9.8
|
%
|
11.3
|
%
|
|||||
West
Africa
|
9.0
|
%
|
6.6
|
%
|
6.5
|
%
|
7.4
|
%
|
|||||
Southeast
Asia
|
10.8
|
%
|
10.8
|
%
|
9.6
|
%
|
6.3
|
%
|
|||||
Other
International
|
7.9
|
%
|
24.1
|
%
|
16.4
|
%
|
17.7
|
%
|
|||||
EH
Centralized Operations
|
35.0
|
%
|
22.5
|
%
|
34.3
|
%
|
6.6
|
%
|
|||||
Total
Helicopter Services
|
13.0
|
%
|
12.8
|
%
|
14.8
|
%
|
13.6
|
%
|
|||||
Production
Management Services
|
4.9
|
%
|
6.9
|
%
|
7.0
|
%
|
7.3
|
%
|
|||||
Consolidated
total
|
9.4
|
%
|
9.2
|
%
|
12.4
|
%
|
9.7
|
%
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
December
31,
|
December
30,
|
|||||||||||||||
2006
|
2005
|
2006
|
2005
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Helicopter
Services:
|
||||||||||||||||
North
America
|
$
|
4,562
|
$
|
4,494
|
$
|
13,190
|
$
|
12,856
|
||||||||
South
and Central America
|
482
|
508
|
1,416
|
1,578
|
||||||||||||
Europe
|
320
|
115
|
651
|
377
|
||||||||||||
West
Africa
|
386
|
322
|
966
|
1,427
|
||||||||||||
Southeast
Asia
|
63
|
96
|
252
|
311
|
||||||||||||
Other
International
|
560
|
472
|
1,632
|
1,398
|
||||||||||||
EH
Centralized Operations
|
4,570
|
4,560
|
13,681
|
13,995
|
||||||||||||
Total
Helicopter Services
|
10,943
|
10,567
|
31,788
|
31,942
|
||||||||||||
Production
Management Services
|
45
|
49
|
138
|
148
|
||||||||||||
Corporate
|
72
|
37
|
154
|
70
|
||||||||||||
Consolidated
total
|
$
|
11,060
|
$
|
10,653
|
$
|
32,080
|
$
|
32,160
|
Nine
Months Ended
December
31,
|
||||||
2006
|
2005
|
|||||
Number
of aircraft delivered:
|
||||||
New:
|
||||||
Small
|
2
|
4
|
||||
Medium
|
11
|
8
|
||||
Large
|
3
|
2
|
||||
Total
new aircraft
|
16
|
14
|
||||
Used:
|
||||||
Small
|
1
|
5
|
||||
Total
used aircraft
|
1
|
5
|
||||
Total
aircraft
|
17
|
19
|
||||
Capital
expenditures (in thousands):
|
||||||
Aircraft
and related equipment
|
$
|
208,963
|
$
|
107,872
|
||
Other
|
7,283
|
9,181
|
||||
Total
capital expenditures
|
$
|
216,246
|
$
|
117,053
|
Three
Months Ending
March
31,
|
Fiscal
Year Ending March 31,
|
||||||||||||||||||||||
2007
|
2008
|
2009
|
2010
|
2011-2013
|
Total
|
||||||||||||||||||
Commitments
as of December 31, 2006:
|
|||||||||||||||||||||||
Number
of aircraft:
|
|||||||||||||||||||||||
Small
|
1
|
2
|
—
|
—
|
—
|
3
|
|||||||||||||||||
Medium
|
6
|
12
|
3
|
3
|
6
|
30
|
|||||||||||||||||
Large
|
4
|
5
|
—
|
—
|
—
|
9
|
|||||||||||||||||
11
|
(1)
|
19
|
(2)
|
3
|
3
|
6
|
42
|
||||||||||||||||
Related
expenditures (in thousands)
|
$
|
84,067
|
$
|
162,522
|
$
|
23,051
|
$
|
24,285
|
$
|
37,053
|
$
|
330,978
|
|||||||||||
Options
as of December 31, 2006:
|
|||||||||||||||||||||||
Number
of aircraft:
|
|||||||||||||||||||||||
Medium
(3)
|
—
|
1
|
6
|
6
|
14
|
27
|
|||||||||||||||||
Large
|
—
|
2
|
6
|
—
|
—
|
8
|
|||||||||||||||||
—
|
3
|
12
|
6
|
14
|
35
|
||||||||||||||||||
Related
expenditures (in thousands)
|
$
|
8,220
|
$
|
119,494
|
$
|
102,600
|
$
|
48,292
|
$
|
107,624
|
$
|
386,230
|
(1)
|
Signed
customer contracts are currently in place for nine of these 11
aircraft.
|
(2)
|
Signed
customer contracts are currently in place for eight of these 19
aircraft.
|
(3)
|
As
of December 31, 2006, options with respect to six of these aircraft
were
“subject to availability,” which means that the delivery time for the
aircraft subject to these options will depend upon the number of
manufacturing slots available at the time the options are exercised.
As a
result, the delivery time for these aircraft may be extended beyond
those
specified in the purchase agreement with the manufacturer, and these
medium aircraft were included in the 2011-2013 period in the table
above.
However, we can accelerate the delivery of these aircraft at our
option to
as early as January 1, 2008, subject to the manufacturer’s availability to
fill customer orders at the time an option is exercised.
|
Three
Months Ended
|
|||||||||||||||||||||||
June
30, 2006
|
September
30, 2006
|
December
31, 2006
|
|||||||||||||||||||||
Orders
|
Options
|
Orders
|
Options
|
Orders
|
Options
|
||||||||||||||||||
Beginning
of quarter
|
53
|
37
|
51
|
37
|
47
|
37
|
|||||||||||||||||
Aircraft
delivered
|
(2
|
)
|
—
|
(4
|
)
|
—
|
(10
|
)
|
—
|
||||||||||||||
Aircraft
ordered
|
—
|
—
|
—
|
—
|
8
|
(5
|
)
|
||||||||||||||||
Orders
converted to options
|
—
|
—
|
—
|
—
|
(3
|
)
|
3
|
||||||||||||||||
End
of quarter
|
51
|
37
|
47
|
37
|
42
|
35
|
Payments
Due by Period
|
||||||||||||||||||||
Three
Months
Ending
March
31,
2007
|
Fiscal
Year Ending March 31,
|
|||||||||||||||||||
Total
|
2008-2009
|
2010-2011
|
2012
and
beyond
|
|||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Contractual
cash obligations:
|
||||||||||||||||||||
Long-term
debt and short-term
borrowings:
|
||||||||||||||||||||
Principal
|
$
|
259,947
|
$
|
11,749
|
$
|
13,453
|
$
|
365
|
$
|
234,380
|
||||||||||
Interest
|
93,451
|
4,111
|
29,211
|
28,451
|
31,678
|
|||||||||||||||
Aircraft
operating leases (1) (2)
|
63,963
|
1,814
|
12,600
|
13,387
|
36,162
|
|||||||||||||||
Other
operating leases (1)
|
15,765
|
865
|
4,957
|
3,676
|
6,267
|
|||||||||||||||
Pension
obligations (3)
|
179,411
|
2,799
|
21,820
|
19,721
|
135,071
|
|||||||||||||||
Aircraft
purchase obligations
|
330,978
|
84,067
|
185,573
|
49,420
|
11,918
|
|||||||||||||||
Other
purchase obligations (4)
|
40,919
|
29,183
|
9,403
|
2,333
|
—
|
|||||||||||||||
Total
contractual cash obligations
|
$
|
984,434
|
$
|
134,588
|
$
|
277,017
|
$
|
117,353
|
$
|
455,476
|
||||||||||
Other
commercial commitments
|
||||||||||||||||||||
Debt
guarantees (5)
|
$
|
31,286
|
$
|
—
|
$
|
11,716
|
$
|
—
|
$
|
19,570
|
||||||||||
Other
guarantees (6)
|
3,108
|
3,108
|
—
|
—
|
—
|
|||||||||||||||
Letter
of credit (7)
|
4,682
|
4,682
|
—
|
—
|
—
|
|||||||||||||||
Total
other commercial commitments
|
$
|
39,076
|
$
|
7,790
|
$
|
11,716
|
$
|
—
|
$
|
19,570
|
· |
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. 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 expires on May 14, 2007. The fair
value of this contract, which totaled $0.9 million as of December
31,
2006, is recorded as a derivative asset within other assets on our
balance
sheet. The change in fair value of this contract from November 14 to
December 31, 2006 resulted in a gain of $0.5 million, which served
to
offset a portion of the foreign currency transaction losses recorded
for
the three and nine months ended December 31,
2006.
|
· |
Euro-
and Nigerian Naira-denominated intercompany loans and U.S.
dollar-denominated receivables. The economic effect of the foreign
currency transaction losses during the three and nine months ended
December 31, 2006 was offset by a corresponding benefit during those
periods reflected as a cumulative translation adjustment in
stockholders’ investment on our condensed consolidated balance sheet.
We are evaluating alternatives to further mitigate these remaining
foreign
currency exchange exposures.
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
|||||||||||||||
2006
|
2005
|
2006
|
2005
|
|||||||||||||
High
|
$
|
1.98
|
$
|
1.79
|
$
|
1.98
|
$
|
1.92
|
||||||||
Average
|
1.91
|
1.75
|
1.87
|
1.80
|
||||||||||||
Low
|
1.86
|
1.71
|
1.74
|
1.71
|
· |
We
did not have sufficient technical expertise to address or establish
adequate policies and procedures associated with accounting matters.
In
addition, we did not maintain policies and procedures to ensure adequate
management review of the information supporting the financial
statements.
|
· |
We
did not have sufficient technical tax expertise to establish and
maintain
adequate policies and procedures associated with the operation of
certain
complex tax structures. As a result, we failed to establish proper
procedures to ensure the actions required to enable us to realize
the
benefits of these structures as previously recognized in our financial
statements were performed.
|
· |
We
implemented a number of financial policies related to the application
of
accounting principles generally accepted in the United States of
America
and other accounting procedures, which were developed in prior
periods;
|
· |
We
continued the self-reporting process for underpaid payroll taxes
in
various jurisdictions; and
|
· |
We
continued to operate under and we enhanced the changes implemented
prior
to March 31, 2006.
|
Period
(1)
|
Total
Number of Shares Purchased
(2)
|
Average
Price Paid Per Share
|
Total
Number of Shares Purchased as Part of Publicly Announced
Program
|
Approximate
Dollar Value of Shares That May Yet Be Purchased Under the
Program
|
|||||||||
November
1, 2006 −
|
|||||||||||||
November
30, 2006
|
1,207
|
$
|
35.57
|
—
|
$
|
—
|
Exhibit
Number
|
Description
of Exhibit
|
15.1*
|
Letter
from KPMG LLP dated February 5, 2007, regarding unaudited interim
information.
|
31.1**
|
Rule
13a-14(a) Certification by President and Chief Executive Officer
of
Registrant.
|
31.2**
|
Rule
13a-14(a) Certification by Executive Vice President and Chief Financial
Officer of Registrant.
|
32.1**
|
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.
|
32.2**
|
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.
|
Exhibit
Number
|
Description
of Exhibit
|
Letter
from KPMG LLP dated February 5, 2007, 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.
|