OLG Offshore Logistic

Offshore Logistics, Inc. (NYSE:OLG) today summarized its financial results for the first half of fiscal 2006, which were reported in its Form 10-Q filing of Jan. 12, 2006. For the six months ended Sept. 30, 2005, net income was $26.6 million or $1.13 per diluted share on 23.6 million shares, compared to restated net income of $28.2 million or $1.22 per diluted share on 23.1 million shares for the six months ended Sept. 30, 2004. Revenues for the first half of fiscal 2006 totaled $375.3 million versus a restated $331.0 million for the same six-month period of fiscal 2005. Financial results for the six-month period ended Sept. 30, 2004 were affected by restatements that reflect adjustments to accrue for liabilities and expenses identified in connection with the Company's internal review, to properly report customer reimbursables as revenues rather than offsetting such amounts against the related expenses, and to properly record expenses for severance benefits and payroll taxes associated with certain foreign subsidiaries. These matters are more fully discussed in the Sept. 30, 2005 Form 10-Q. William E. Chiles, president and chief executive officer of Offshore Logistics, Inc., said, "During the first half of fiscal 2006, our Company delivered solid performance as we addressed and made substantial progress on a number of difficult legacy issues. We are optimistic, however, that the internal measures we have implemented are allowing us to once again dedicate all of our attention and resources to growing this business and delivering long-term value for our shareholders." At Sept. 30, 2005, the Company's consolidated balance sheet reflected $503.1 million in stockholders' investment, $94.3 million in cash and cash equivalents and $265.3 million of indebtedness. Conference Call Scheduled Management will conduct a conference call starting at 5:00 p.m. EST (4:00 p.m. CST) on Jan. 25, 2006, to review financial results for the six months ended Sept. 30, 2005. The conference call can be accessed as follows: Via Webcast: -- Visit Offshore Logistics' investor relations Web page at http://www.olog.com/page3.php -- Click on the link for "FY2006 Six-Months Conference Call" -- Approximately one hour after the call's completion, a Webcast replay will be available and will remain available for approximately 30 days Via Telephone within U.S.: -- Toll free (800) 299-9630, passcode: 60119486 -- A telephone replay will be available through Jan. 31, 2006 by dialing toll free (888) 286-8010, passcode: 70783999 Via Telephone outside the U.S.: -- Dial (617) 786-2904, passcode: 60119486 -- A telephone replay will be available through Feb. 8, 2006 by dialing (617) 801-6888, passcode: 70783999 About Offshore Logistics Offshore Logistics, Inc. is a major provider of helicopter transportation services to the oil and gas industry worldwide. Through its subsidiaries, affiliates and joint ventures, the Company provides transportation services in most oil and gas producing regions including the United States Gulf of Mexico and Alaska, the North Sea, Africa, Mexico, South America, Australia, Russia, Egypt and the Far East. Additionally, the Company is a leading provider of production management services for oil and gas production facilities in the Gulf of Mexico. The Company's Common Stock is traded on the New York Stock Exchange under the symbol OLG. 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. 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 From 10-K for the year ended March 31, 2005 and the Company's reports on Form 10-Q for the quarters ended June 30, 2005 and September 30, 2005. Offshore Logistics, 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. -0- *T OFFSHORE LOGISTICS, INC. AND SUBSIDIARIES SELECTED OPERATING DATA (In thousands, except percentages) (Unaudited) Three Months Ended Six Months Ended September 30, September 30, --------------------- --------------------- 2005 2004 2005 2004 ---------- ---------- ---------- ---------- (Restated) (Restated) Flight hours (excluding unconsolidated affiliates): Helicopter services: North America 37,454 32,606 73,232 64,424 South and Central America 10,113 11,868 19,629 23,747 Europe 10,263 11,685 19,994 22,442 West Africa 8,904 8,606 17,539 16,403 Southeast Asia 3,005 2,822 5,727 5,509 Other International 1,410 570 2,722 1,156 ---------- ---------- ---------- ---------- Total 71,149 68,157 138,843 133,681 ========== ========== ========== ========== Three Months Ended Six Months Ended September 30, September 30, --------------------- --------------------- 2005 2004 2005 2004 ---------- ---------- ---------- ---------- (Restated) (Restated) Operating revenue: Helicopter Services: North America $61,253 $46,287 $113,701 $91,478 South and Central America 10,315 14,030 20,221 28,090 Europe 67,764 66,138 132,057 125,720 West Africa 28,157 23,581 55,775 45,594 Southeast Asia 14,600 12,487 28,408 24,543 Other International 6,584 4,428 12,598 7,002 Intrasegment eliminations (9,848) (7,928) (18,606) (16,076) ---------- ---------- ---------- ---------- Total Helicopter Services 178,825 159,023 344,154 306,351 Production Management Services 16,942 14,630 33,911 28,321 Corporate 2,792 1,349 5,591 5,144 Intersegment eliminations (4,154) (4,375) (8,314) (8,788) ---------- ---------- ---------- ---------- Consolidated total $194,405 $170,627 $375,342 $331,028 ========== ========== ========== ========== Operating income: Helicopter Services: North America $14,592 $7,430 $24,375 $15,303 South and Central America 226 3,429 661 6,671 Europe 9,999 9,592 15,498 12,821 West Africa 2,076 2,684 4,445 5,041 Southeast Asia 377 963 1,084 2,066 Other International 889 (90) 1,796 (676) ---------- ---------- ---------- ---------- Total Helicopter Services 28,159 24,008 47,859 41,226 Production Management Services 1,238 1,002 2,558 1,767 Gain (loss) on disposal of assets (1,494) 3,558 (902) 6,156 Corporate (5,808) (3,416) (12,375) (4,646) ---------- ---------- ---------- ---------- Consolidated total $22,095 $25,152 $37,140 $44,503 ========== ========== ========== ========== Operating margin: Helicopter Services: North America 23.8% 16.1% 21.4% 16.7% South and Central America 2.2% 24.4% 3.3% 23.7% Europe 14.8% 14.5% 11.7% 10.2% West Africa 7.4% 11.4% 8.0% 11.1% Southeast Asia 2.6% 7.7% 3.8% 8.4% Other International 13.5% (2.0)% 14.3% (9.7)% Total Helicopter Services 15.7% 15.1% 13.9% 13.5% Production Management Services 7.3% 6.8% 7.5% 6.2% Consolidated total 11.4% 14.7% 9.9% 13.4% OFFSHORE LOGISTICS, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Income (In thousands, except per share amounts) (Unaudited) Three Months Ended Six Months Ended September 30, September 30, ------------------- ------------------- 2005 2004 2005 2004 -------- --------- -------- --------- (Restated) (Restated) Gross revenue: Operating revenue $194,405 $ 170,627 $375,342 $ 331,028 Operating expense: Direct cost 143,912 127,765 285,126 249,642 Depreciation and amortization 11,200 10,580 21,507 21,030 General and administrative 15,704 10,688 30,667 22,009 Loss (gain) on disposal of assets 1,494 (3,558) 902 (6,156) -------- --------- -------- --------- 172,310 145,475 338,202 286,525 -------- --------- -------- --------- Operating income 22,095 25,152 37,140 44,503 Earnings from unconsolidated affiliates, net of losses 373 2,401 419 3,921 Interest income 949 747 1,981 1,183 Interest expense (3,677) (3,985) (7,385) (7,914) Other income, net (769) 473 2,013 561 -------- --------- -------- --------- Income before provision for income taxes and minority interest 18,971 24,788 34,168 42,254 Provision for income taxes 4,293 7,988 7,469 13,778 Minority interest (44) (149) (94) (238) -------- --------- -------- --------- Net income $ 14,634 $ 16,651 $ 26,605 $ 28,238 ======== ========= ======== ========= Net income per common share: Basic $ 0.63 $ 0.73 $ 1.14 $ 1.24 ======== ========= ======== ========= Diluted $ 0.62 $ 0.71 $ 1.13 $ 1.22 ======== ========= ======== ========= Weighted average shares outstanding: Basic 23,342 22,933 23,331 22,794 ======== ========= ======== ========= Diluted 23,618 23,325 23,603 23,126 ======== ========= ======== ========= OFFSHORE LOGISTICS, INC AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) September 30, March 31, 2005 2005 ----------- ---------- (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 94,275 $ 146,440 Accounts receivable 173,893 133,839 Inventories 142,040 140,706 Prepaid expenses and other 10,478 11,459 ----------- ---------- Total current assets 420,686 432,444 Investments in unconsolidated affiliates 39,462 37,176 Property and equipment -- at cost: Land and buildings 33,211 32,543 Aircraft and equipment 852,144 827,031 ----------- ---------- 885,355 859,574 Less: accumulated depreciation and amortization (252,642) (250,512) ----------- ---------- 632,713 609,062 Goodwill 26,819 26,809 Other assets 44,401 44,085 ----------- ---------- $ 1,164,081 $1,149,576 =========== ========== LIABILITIES AND STOCKHOLDERS' INVESTMENT Current liabilities: Accounts payable $ 38,211 $ 35,640 Accrued liabilities 112,243 101,904 Deferred taxes 15,047 17,740 Current maturities of long-term debt 6,497 6,413 ----------- ---------- Total current liabilities 171,998 161,697 Long-term debt, less current maturities 258,790 255,667 Other liabilities and deferred credits 154,720 164,728 Deferred taxes 71,203 69,977 Minority interest 4,245 4,514 Commitments and contingencies (Note E) Stockholders' investment: Common Stock, $0.01 par value, authorized 35,000,000 shares; outstanding 23,341,508 shares and 23,314,708 shares at September 30 and March 31, respectively (exclusive of 1,281,050 treasury shares) 233 233 Additional paid-in capital 157,744 157,100 Retained earnings 416,320 389,715 Accumulated other comprehensive loss (71,172) (54,055) ----------- ---------- 503,125 492,993 ----------- ---------- $ 1,164,081 $1,149,576 =========== ========== *T