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SEC Filings

10-Q
BRISTOW GROUP INC filed this Form 10-Q on 08/03/2017
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our earnings from our investment in Líder by $1.1 million. See further discussion about our investment in Líder and the Brazil market in “— Executive Overview — Market Outlook” included elsewhere in this Quarterly Report.
The decreases in operating income, operating margin, adjusted EBITDA and adjusted EBITDA margin were driven by the decrease in revenue discussed above and earnings from unconsolidated affiliates and an increase in rent expense of $1.4 million. During the Comparable Quarter, we recorded accelerated depreciation expense on aircraft exiting our fleet of $3.9 million. Additionally, we recorded severance expense related to organizational restructuring efforts of $0.2 million and $1.0 million for the Current Quarter and Comparable Quarter, respectively. Depreciation and amortization, including accelerated depreciation, and severance expense recorded during the Current Quarter and Comparable Quarter, were excluded from adjusted EBITDA and adjusted EBITDA margin.
Asia Pacific
 
 
 
Three Months Ended 
 June 30,
 
Favorable
(Unfavorable)
 
 
 
 
2017
 
2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands, except percentages)
 
 
Operating revenue
 
$
49,127

 
$
55,232

 
$
(6,105
)
 
(11.1
)%
 
 
Operating income
 
$
(12,530
)
 
$
(5,893
)
 
$
(6,637
)
 
(112.6
)%
 
 
Operating margin
 
(25.5
)%
 
(10.7
)%
 
(14.8
)%
 
(138.3
)%
 
 
Adjusted EBITDA
 
$
(5,720
)
 
$
(3,123
)
 
$
(2,597
)
 
(83.2
)%
 
 
Adjusted EBITDA margin
 
(11.6
)%
 
(5.7
)%
 
(5.9
)%
 
(103.5
)%
 
 
Rent expense
 
$
10,954

 
$
9,284

 
$
(1,670
)
 
(18.0
)%
 
The Asia Pacific region comprises all our operations and affiliates in Australia and Southeast Asia, including Malaysia, Sakhalin, and our fixed wing operations through Airnorth in Australia.
Operating revenue decreased in the Current Quarter by $9.3 million due to the ending of short-term contracts in Australia, partially offset by an increase of $1.5 million in Russia and an increase of $1.3 million from our fixed-wing operations. Airnorth contributed $21.0 million and $19.7 million in operating revenue and $0.9 million and $3.5 million in adjusted EBITDA for the Current Quarter and Comparable Quarter, respectively.
Operating income, operating margin, adjusted EBTIDA and adjusted EBITDA margin decreased primarily due to decreased revenue discussed above, an increase in rent expense of $1.7 million and increased maintenance expense of $2.4 million primarily due to timing of heavy maintenance for Airnorth, which was only partially offset by a decrease in salaries and benefits of $2.6 million. Additionally, in the Current Quarter operating income and operating margin were negatively impacted by an increase in depreciation and amortization expense of $1.6 million.
During the Current Quarter and Comparable Quarter, we recorded $0.7 million and $0.4 million in severance expense related to organizational restructuring efforts, respectively. The severance expense is not included in adjusted EBITDA or adjusted EBITDA margin for the Current Quarter and Comparable Quarter.

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