After principal and interest payments in the June 2018 quarter of $38.8 million, we had $341.8 million of total liquidity as of June 30, 2018, including $25.2 million of undrawn borrowing capacity on our new ABL Facility.
“We continue to operate in a short-cycle offshore market characterized this fiscal year by an uneven recovery both quarter to quarter and geographically. We have seen a stronger than expected recovery in the U.S. Gulf of Mexico and Africa as utilization on existing assets has improved. These markets reflect our overall lower cost structure and more responsive, regionally focused businesses,” said Jonathan Baliff. “Bristow’s previous refinancings have enhanced our liquidity profile and we are well-positioned to take advantage of the beginning of an offshore investment cycle as seismic activity has increased and more exploration rigs are going to work.”
Operating revenue from external customers by line of service was as follows:
Three Months Ended
(in thousands, except percentages)
Oil and gas services
U.K. SAR services
Fixed wing services
Corporate and other
Total operating revenue
The year-over-year increase in operating revenue was primarily driven by increases in U.K. SAR and fixed wing services revenue in our Europe Caspian and Africa regions. The increase in U.K. SAR services revenue included the one-time benefit of $7.6 million in OEM cost recoveries recognized in the June 2018 quarter. Additionally, revenue increased by $10.5 million compared to the June 2017 quarter due to changes in foreign currency exchange rates, primarily related to the strengthening of the British pound sterling versus the U.S. dollar.
The year-over-year change in GAAP net loss and diluted loss per share were primarily driven by higher revenue in the June 2018 quarter as discussed above, lower rent expense, lower general and administrative expense and a more favorable effective tax rate. These favorable changes were partially offset by higher interest expense and higher loss on unconsolidated affiliates in the June 2018 quarter.
The GAAP net loss and diluted loss per share for the June 2018 quarter included organizational restructuring costs of $1.7 million ($1.7 million net of tax), or $0.05 per share, included in direct cost and general and administrative expense, which resulted from separation programs across our global organization designed to increase efficiency and reduce costs.
Additionally, we had a loss on disposal of assets of $1.7 million ($1.3 million net of tax), or $0.04 per share, during the June 2018 quarter from the sale or disposal of aircraft and other equipment.
The June 2018 quarter results benefited from the impact of $12.2 million of OEM cost recoveries realized in the June 2018 quarter that resulted in the one-time benefit of $7.6 million in U.K. SAR operating revenue discussed above, a $3.5 million reduction in rent expense and a $1.1 million reduction in direct costs. The OEM cost recoveries described above are included within adjusted net income, adjusted earnings per share and adjusted EBITDA in the June 2018 quarter.
Adjusted EBITDA, adjusted net loss and adjusted diluted loss per share benefited from the increase in revenue, decrease in rent and general and administrative expense and favorable impact of changes in foreign currency exchange rates compared to the June 2017 quarter. These items were mostly offset by increased interest expense, resulting in no significant change in adjusted net loss and adjusted diluted loss per share year-over-year. The increase in revenue and decrease in rent expense includes the OEM cost recoveries described above.
The June 2017 quarter was also impacted by special items as reflected in the table at the end of this release.