ex99-1w052108.htm

News Release

Linda McNeill, Investor Relations

(713) 267-7622

BRISTOW GROUP REPORTS FINANCIAL RESULTS

FOR THE FISCAL YEAR AND QUARTER ENDED MARCH 31, 2008

Record revenue for the fiscal year of over $1 billion
Record levels of operating income, income from continuing operations, net income and earnings per share

HOUSTON, May 21, 2008 – Bristow Group Inc. (NYSE: BRS) today reported financial results for its fiscal year and quarter ended March 31, 2008.

Highlights include:

For the fiscal year ended March 31, 2008:

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

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

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

Net income increased 40% to $104.0 million from $74.2 million for the fiscal year ended March 31, 2007. Included in net income for the fiscal year ended March 31, 2008 was the previously announced loss of $5.3 million ($0.17 per diluted share) on the sale of our Grasso business in November 2007, which is presented as discontinued operations.

§	Diluted earnings per share from continuing operations increased 34% to $3.53 from $2.64, while diluted earnings per share on net earnings increased to $3.41 from $2.74.

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

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

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

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

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

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

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

For the March 2008 quarter:

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

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

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

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

§	The March 2008 quarter included the following items:

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

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

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

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

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

Capital and Liquidity:

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

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

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

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

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

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

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

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

CONFERENCE CALL

Management will conduct a conference call starting at 10:00 a.m. EDT (9:00 a.m. CDT) on Thursday, May 22, 2008, to review financial results for the fiscal year and quarter ended March 31, 2008. The conference call can be accessed as follows:

Via Webcast:

§	Visit Bristow Group’s investor relations Web page at http://www.bristowgroup.com

§	Live: Click on the link for “Q4 2008 Bristow Group Inc. Earnings Conference Call”

§	Replay: A replay via webcast will be available approximately one hour after the call’s completion

Via Telephone within the U.S.:

§	Live: Dial toll free (800) 240-6709

§	Replay: A telephone replay will be available through Saturday, June 7, by dialing toll free (800) 405-2236, passcode: 11113906#

Via Telephone outside the U.S.:

§	Live: Dial (303) 262-2130

§	Replay: A telephone replay will be available through Saturday, June 7, by dialing (303) 590-3000, passcode: 11113906#

ABOUT BRISTOW GROUP INC.

Bristow Group Inc. is the leading provider of helicopter services to the worldwide offshore energy industry based on the number of aircraft operated. Through its subsidiaries, affiliates and joint ventures, the Company has major transportation operations in most of the major offshore oil and gas producing regions of the world, including in the North Sea, the U.S. Gulf of Mexico, Nigeria and Australia. For more information, visit the Company’s website at www.bristowgroup.com.

FORWARD-LOOKING STATEMENTS DISCLOSURE

Statements contained in this news release that state the Company’s or management’s intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. These forward-looking statements include statements regarding revenue, margins and the addition of new aircraft to our fleet. It is important to note that the Company’s actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company’s SEC filings, including but not limited to the Company’s annual report on Form 10-K for the fiscal year ended March 31, 2008. Bristow Group Inc. disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events or otherwise.

(financial tables follow)

BRISTOW GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts)

(Unaudited)

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

BRISTOW GROUP INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

		March 31, 2007			March 31, 2008

ASSETS
Current assets:
	Cash and cash equivalents	$	184,188		$	290,050
	Accounts receivable from non-affiliates		147,608			204,599
	Accounts receivable from affiliates		17,199			11,316
	Inventories		157,563			176,239
	Prepaid expenses and other		17,387			24,177
	Current assets from discontinued operations		12,029			—
	Total current assets		535,974			706,381
Investment in unconsolidated affiliates			46,828			52,467
Property and equipment – at cost:
	Land and buildings		51,785			60,056
	Aircraft and equipment		1,139,781			1,428,996
			1,191,566			1,489,052
	Less – Accumulated depreciation and amortization		(300,045	)		(316,514	)
			891,521			1,172,538
Goodwill			6,630			15,676
Other assets			10,725			30,293
Long-term assets from discontinued operations			14,125			—
		$	1,505,803		$	1,977,355

LIABILITIES AND STOCKHOLDERS’ INVESTMENT
Current liabilities:
	Accounts payable	$	40,459		$	49,650
	Accrued wages, benefits and related taxes		36,390			35,523
	Income taxes payable		3,412			5,862
	Other accrued taxes		9,042			1,589
	Deferred revenues		16,283			15,415
	Accrued maintenance and repairs		12,309			13,250
	Accrued interest		4,511			5,656
	Other accrued liabilities		17,151			22,235
	Deferred taxes		17,611			9,238
	Short-term borrowings and current maturities of long-term debt		4,852			6,541
	Current liabilities from discontinued operations		5,948			—
	Total current liabilities		167,968			164,959
Long-term debt, less current maturities			254,230			599,677
Accrued pension liabilities			113,069			134,156
Other liabilities and deferred credits			17,345			14,805
Deferred taxes			76,089			91,747
Minority interest			5,445			4,570
Commitments and contingencies
Stockholders’ investment:
	5.50% mandatory convertible preferred stock		222,554			222,554
	Common stock		236			239
	Additional paid-in capital		169,353			186,390
	Retained earnings		515,589			606,931
	Accumulated other comprehensive loss		(36,075	)		(48,673	)
			871,657			967,441
		$	1,505,803		$	1,977,355

BRISTOW GROUP INC. AND SUBSIDIARIES

SELECTED OPERATING DATA

(In thousands, except flight hours and percentages)

(Unaudited)

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

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

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

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