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SEC Filings

10-Q
BRISTOW GROUP INC filed this Form 10-Q on 08/03/2017
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The following tables present region depreciation and amortization and rent expense for the three months ended June 30, 2017 and 2016:
 
 
Three Months Ended 
 June 30,
 
 
2017
 
2016
 
 
 
 
 
 
 
(In thousands)
Depreciation and amortization:
 
 
 
 
Europe Caspian
 
$
11,822

 
$
11,189

Africa
 
3,076

 
5,453

Americas
 
6,999

 
11,381

Asia Pacific
 
5,810

 
4,236

Corporate and other
 
3,349

 
2,435

Total depreciation and amortization
 
$
31,056

 
$
34,694

 
 
 
 
 
Rent expense:
 
 
 
 
Europe Caspian
 
$
36,453

 
$
32,288

Africa
 
2,200

 
2,268

Americas
 
6,994

 
5,562

Asia Pacific
 
10,954

 
9,284

Corporate and other
 
2,074

 
1,881

 Total rent expense
 
$
58,675

 
$
51,283

Current Quarter Compared to Comparable Quarter
Operating revenue from external clients by line of service was as follows:
 
Three Months Ended 
 June 30,
 
Favorable
(Unfavorable)
 
2017
 
2016
 
 
 
 
 
 
 
 
 
 
(In thousands, except percentages)
Oil and gas services
$
234,775

 
$
253,087

 
$
(18,312
)
 
(7.2
)%
Fixed wing services
50,677

 
50,617

 
60

 
0.1
 %
U.K. SAR services
52,587

 
49,549

 
3,038

 
6.1
 %
Corporate and other
1,690

 
2,931

 
(1,241
)
 
(42.3
)%
Total operating revenue
$
339,729

 
$
356,184

 
$
(16,455
)
 
(4.6
)%
The decrease in revenue in the Current Quarter was driven by an unfavorable impact from changes in foreign currency exchange rates compared to the Comparable Quarter of $18.8 million mostly related to the depreciation in the British pound sterling resulting from Brexit as discussed under “Recent Events” above. Additionally, as discussed under “Market Outlook” above, the oil and gas industry has experienced a significant downturn beginning in fiscal year 2015 primarily due to a decline in crude oil prices, which negatively impacted activity with our oil and gas clients. While this decline started in fiscal year 2015, activity and pricing declined further in fiscal years 2016 and 2017 and has continued in fiscal year 2018, resulting in a decrease in revenue for our oil and gas services year-over-year. The decline in oil and gas services revenue was offset by the increase in U.K. SAR services revenue due to additional bases coming online in fiscal years 2017 and 2018.
For the Current Quarter, we reported a net loss of $55.3 million and a diluted loss per share of $1.57 compared to a net loss of $40.8 million and a diluted loss per share of $1.17 for the Comparable Quarter. The year-over-year change in net loss and diluted loss per share was primarily driven by the decline in oil and gas revenue discussed above, higher income tax, rent and interest expense, lower earnings from unconsolidated affiliates and an inventory impairment charge recorded in the Current Quarter. These unfavorable changes were partially offset by higher impairment of asset charges recorded in the Comparable Quarter, a decrease in general and administrative expense and direct costs primarily from lower salaries and benefits in the Current Quarter and lower depreciation and amortization expense due to accelerated depreciation recorded in the Comparable Quarter. The year-over-year impact of changes in foreign currency exchange rates on revenue in the Current Quarter was offset by a positive impact on operating expenses and lower transaction losses compared to the Comparable Quarter.

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