Bristow Group Q4 Profit Down 25%, But Results Beat View, Hikes Dividend

(RTTNews) - Bristow Group, Inc. (BRS), a provider of helicopter services to the offshore energy industry, on Wednesday reported a 25 percent decline in profit for the fourth quarter from last year as double-digit revenue growth was more than offset by impairment charges. In addition, the prior-year quarter's results benefited from a hefty gain on disposal of assets.

However, both revenue and adjusted earnings per share for the quarter beat analysts' estimates and the company raised its quarterly dividend by 28 percent. Looking ahead, the company forecast earnings for fiscal 2015 below Street expectations.

The Houston, Texas-based company's net income for the fourth quarter was $30.32 million or $0.83 per share, down from $40.38 million or $1.11 per share in the same period last year.

The latest quarter's results include impairment of inventories of $10.54 million related to aircraft model types that the company has ceased ownership of, or plans to dispose of, over the next two years. A majority of this impairment relates to a medium aircraft type being replaced by new technology models, and an increase in insurance expense of $8.57 million due to a fire in a hangar in Nigeria.

Additionally, results were impacted by a gain on disposal of assets of assets of $0.1 million for the latest quarter, compared to a gain of $7.25 million in the previous-year quarter.

Excluding special items and asset disposition effects, adjusted net income for the quarter were $49.13 million or $1.35 per share, compared to $36.74 million or $1.01 per share in the year-ago period. On average, eight analysts polled by Thomson Reuters expected the company to earn $1.23 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew 13 percent to $440.93 million from $391.64 million in the year-ago period. Analysts had a consensus revenue estimate of $438.80 million.

The company recorded a $41.4 million increase in operating revenue at its Europe business unit, primarily driven by Bristow Helicopters' acquisition of Eastern Airways in February 2014 and Gap SAR, or Search and Rescue, contract beginning in June and July 2013.

For fiscal 2014, Bristow Group's net income rose to $186.74 million or $5.09 per share from $130.10 million or $3.57 per share in the previous year. Adjusted net income for the year was $163.18 million or $4.45 per share, compared to $137.85 million or $3.78 per share in the prior year.

Revenue for the year grew 11 percent to $1.67 billion from $1.51 billion last year.

Street expected the company to report earnings of $4.34 per share for the year on revenues of $1.63 billion.

Bristow Group's board of directors on May 16 raised the quarterly dividend by 28 percent to $0.32 per share, from $0.25 per share previously. The dividend will be be paid on June 19, 2014 to shareholders of record on June 5, 2014, and is more than double the first quarterly dividend paid in June 2011.

In February 2014, the board had approved an increase of the remaining repurchase amount of the company's common stock to up to $100 million through November 5, 2014. As of May 16, 2014, the company had $46.5 million of remaining repurchase authority.

Looking ahead to fiscal 2015, Bristow Group forecast adjusted earnings in a range of $4.70 to $5.20 per share. Analysts currently expect full-year earnings of $5.28 per share.

Jonathan Baliff, Senior Vice President and Chief Financial Officer of Bristow Group said, "The ability for Bristow to deliver on our annual financial guidance these past number of years and more than double our quarterly dividend in the face of industry challenges reinforces our confidence in the previously provided long term average adjusted earnings growth rate of 10-15% per year and the adjusted EPS guidance range for fiscal year 2015 of $4.70 to $5.20 that we are providing today."

BRS closed Wednesday's trading at $74.54, up $0.53 or 0.72 percent on a volume of 452,023 shares.