Attached files
| file | filename |
|---|---|
| 8-K - 8-K - CHC Group Ltd. | a8kfy15q1earningsrelease.htm |
CHC GROUP REPORTS FISCAL-2015 FIRST-QUARTER FINANCIAL RESULTS
• | Company Posts 11-Percent Revenue Growth; Adjusted EBITDAR Up 1 Percent |
Sept. 8, 2014 - Vancouver, British Columbia, Canada - Revenue was up solidly and adjusted EBITDAR also increased in the fiscal-2015 first quarter for CHC Group Ltd. (NYSE: HELI), the parent company of CHC Helicopter.
CHC’s revenue for the quarter, which ended July 31, was $461 million, up 11 percent year-over-year. The company reported a net loss of $34 million. Adjusted EBITDAR (earnings before interest, taxes, depreciation, amortization and aircraft rental costs), excluding special items1, was $112 million, up 1 percent.
(Periods ended July 31; US$ in millions, except margin, shares, EPS data) | Quarter | |||||||
FY14 | FY15 | % Change | ||||||
As reported: | ||||||||
Revenue | $ | 415 | $ | 461 | 11 | % | ||
Operating revenue2 | 373 | 421 | 13 | % | ||||
Operating income | 16 | 8 | (50) | % | ||||
Net earnings (loss) | (36 | ) | (34 | ) | 4 | % | ||
Controlling interest | (38 | ) | (42 | ) | (10 | )% | ||
Non-controlling interest | 3 | 8 | 194 | % | ||||
Net loss per ordinary share3 | $ | (0.82 | ) | $ | (0.52 | ) | 37 | % |
Weighted average number of ordinary stock outstanding - basic and diluted | 46,519,484 | 80,530,687 | 73 | % | ||||
Adjusted4: | ||||||||
EBITDAR excluding special items5 | 111 | 112 | 1 | % | ||||
Margin6 | 30 | % | 27 | % | -330bps | |||
Net loss7 | (32 | ) | (37 | ) | -16 | % | ||
Net loss per ordinary share8 | $ | (0.41 | ) | $ | (0.46 | ) | -12 | % |
Share count9 | 77,519,484 | 80,530,687 | — | |||||
1. | All references to EBITDAR in this release represent “adjusted EBITDAR excluding special items.” |
2. | Operating revenue is total revenue less reimbursable revenue which is costs reimbursed from customers. |
3. | Net loss per ordinary share is calculated by net loss attributable to controlling interest divided by weighted average number of ordinary stock outstanding - basic and diluted. |
4. | See a description of non-GAAP calculations and reconciliation to comparable GAAP measures on Pages 9, 10, 11, 12 and 13. |
5. | For the first quarter of fiscal 2015, the impact of items related to corporate transaction cost was excluded from adjusted EBITDAR. See a description of non-GAAP calculations and reconciliation to comparable GAAP measures on Pages 9, 10, 11, 12 and 13. |
6. | Adjusted EBITDAR margin is calculated as a percentage of operating revenue. All references to EBITDAR in this release represent “adjusted EBITDAR excluding special items.” |
7. | Net loss, which excludes corporate transaction costs, asset dispositions, asset impairments, the revaluation of our derivatives and foreign-exchange, and net income or loss attributable to non-controlling interests and debt extinguishment. |
8. | Net loss per share is calculated by dividing adjusted net loss by adjusted share count. |
9. | Adjusted share count is the number of ordinary shares outstanding at the IPO date for the prior year quarter and the weighted average for the current year quarter. |
1
The company’s first-quarter results reflect an internal realignment and the associated change in how CHC records intercompany revenue and costs for services performed by Heli-One, its helicopter maintenance, repair and overhaul (MRO) segment, on aircraft operated by the Helicopter Services segment. The change does not affect CHC’s consolidated results, but alters segment results to provide even better visibility, accountability and decision-making across both business units.
Higher adjusted EBITDAR was partly attributable to new, more favorable contracts for both CHC’s flying and MRO segments. Growth in EBITDAR was moderated by an incremental $3.5 million in expense for stock-based compensation, a cost that was not incurred in the year-ago quarter, when the company was still privately held.
As previously announced, during the quarter CHC repurchased $65 million of its senior secured notes.
William Amelio, CHC president and chief executive officer:
“The first quarter was a solid step toward achieving the superior, long-term financial performance that we expect for CHC. Expected long-term industry demand, especially for flying services to deepwater and ultra-deepwater locations, remains attractive, and we are positioning CHC to profitably meet the transportation needs of our customers.”
“The skills and accomplishments of our people, and CHC’s role in helping to lead the industry to higher levels of safety, are unmistakable. Customers and others recognize our high and increasing reliability and best-in-class aircraft availability.”
Joan Hooper, CHC chief financial officer:
“Our first-quarter results were in line with our expectations and we are pleased with our progress toward meeting the full-year targets we communicated in August. Every action we are taking is guided by our fundamental commitment to safety and our financial priorities: strengthening our balance sheet, expanding EBITDAR dollars and margin, and growing with discipline.”
BUSINESS SEGMENTS
HELICOPTER SERVICES (flying):
• | Quarterly revenue from Helicopter Services, which accounts for about 90 percent of company sales, was $424 million, up 9 percent. Increased flying revenue was attributable, in part, to new customer contracts, including greater demand for search-and-rescue services, in the West North Sea region. |
• | In July, Shell Australia launched a dedicated SAR helicopter service, operated by CHC, to support Shell’s offshore Prelude Floating LNG Project in Western Australia. The service, which is the first of its kind in the country, comprises highly trained pilots, paramedics, engineers and other crewmen. They operate a specially equipped EC225 helicopter - with a range of 300 nautical miles - based in Broome. |
2
HELI-ONE (MRO):
• | Heli-One external revenue increased 34 percent, to $37 million. Revenue growth was driven by increased modification and completion projects in the segment’s airframe shop. |
• | One area of emphasis for the MRO business is Asia, a region where Heli-One was selected for new business by customers in Japan and Malaysia. The five-year agreement with Sazma Aviation of Malaysia is to provide tip-to-tail, power-by-the-hour support for a Sikorsky S-76C++ helicopter. |
GUIDANCE
Due to legal and regulatory restrictions in connection with previous announcements, the company is not in a position to update our prior guidance.
ABOUT CHC
CHC Helicopter is a leader in enabling customers to go further, do more and come home safely, including oil and gas companies, government search-and-rescue agencies and organizations requiring helicopter maintenance, repair and overhaul services through the Heli-One segment. The company operates about 230 aircraft in approximately 30 countries around the world.
#####
3
Additional Information and Where to Find It
In connection with the transactions contemplated by definitive agreements with affiliates of Clayton, Dubilier & Rice Fund IX, L.P., or CD&R, the Company plans to file a proxy statement with the Securities and Exchange Commission (the “SEC”). INVESTORS AND SECURITY HOLDERS OF THE COMPANY ARE ADVISED TO READ THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE COMMISSION WHEN THEY BECOME AVAILABLE BECAUSE THOSE DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. The final proxy statement will be mailed or otherwise made available to shareholders of the Company. Investors and security holders may obtain a free copy of the proxy statement, when it becomes available, and other documents filed by the Company with the Commission at the Commission's website at http://www.sec.gov or at the Company’s website at http://www.chc.ca. Free copies of the proxy statement, when it becomes available, and the Company's other filings with the Commission may also be obtained from the Company by directing a written request to CHC Group Ltd. at 190 Elgin Avenue, George Town, Grand Cayman, KY1-9005, Cayman Islands, Attention: Investor Relations or by contacting the same at +1 (914) 485-1150.
The convertible preferred shares offered to the purchaser in the private placement will not be or have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Participants in the Solicitation
The Company and its directors, executive officers and certain other members of its management and employees may be deemed to be soliciting proxies from the Company's shareholders in favor of the transactions contemplated by the definitive agreements and the attached materials. Information regarding the Company's directors and executive officers is available in the Company's proxy statement for its 2014 annual general meeting of shareholders, which was filed with the Commission on July 30, 2014. Additional information regarding the interests of such potential participants will be included in the proxy statement to be filed in connection with these transactions and the other relevant documents filed with the Commission when they become available.
Cautionary Note on Forward-Looking Statements
This press release contains forward-looking statements and information within the meaning of certain securities laws, including the “safe harbor” provision of the United States Private Securities Litigation Reform Act of 1995, the United States Securities Act of 1933, as amended, the United States Securities Exchange Act of 1934, as amended and other applicable securities legislation. All statements, other than statements of historical fact included in this press release regarding the benefits of the transactions, as well as, our strategy, future operations, projections, conclusions, forecasts and other statements are “forward-looking statements”. While these forward-looking statements represent our best current judgment, actual results could differ materially from the conclusions, forecasts or projections contained in the forward-looking statements. Certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection in the forward-looking information contained herein. Such factors include: our ability to obtain the approval of previously announced transaction by our shareholders; the ability to obtain governmental approvals of the transaction or to satisfy other conditions to the transaction on the proposed terms and timeframe; the possibility that the transaction does not close when expected or at all, or that CHC may be required to modify aspects of the transaction to achieve regulatory approval; the ability to realize the expected reduction of debt and interest expense from the transaction in the amounts or in the timeframe anticipated, as well as, competition in the markets we serve, our ability to secure and maintain long-term support contracts, our ability to maintain standards of acceptable safety performance, political, economic, and regulatory uncertainty, problems with our non-wholly owned entities, including potential conflicts with the other owners of such entities, exposure to credit risks, our ability to continue funding our working capital requirements, risks inherent in the operation of helicopters, unanticipated costs or cost increases associated with our business operations, exchange rate fluctuations, trade industry exposure, inflation, ability to continue maintaining government issued licenses, necessary aircraft or insurance, loss of key personnel, work stoppages due to labor disputes, and future material acquisitions or dispositions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. The Company disclaims any intentions or obligations to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Please refer to our annual report on Form 10-K and quarterly reports on Form 10-Q, and our other filings, in particular any discussion of risk factors or forward-looking statements, which are filed with the SEC and available free of charge at the SEC’s website (www.sec.gov), for a full discussion of the risks and other factors that may impact any estimates or forward-looking statements made herein.
4
Contact Information
INVESTORS
Lynn Antipas Tyson
Vice President, Investor Relations
+1.914.485.1150
lynn.tyson@chc.ca
MEDIA
T.R. Reid
Vice President, Global Communications
+1.512.869.9094
t.r.reid@chc.ca
5
Consolidated Statements of Operations
(Expressed in thousands of United States dollars)
(Unaudited)
Three months ended | |||||||
July 31, 2013 | July 31, 2014 | ||||||
Operating revenue | $ | 373,059 | $ | 421,074 | |||
Reimbursable revenue | 41,872 | 39,574 | |||||
Revenue | 414,931 | 460,648 | |||||
Operating expenses: | |||||||
Direct costs | (343,106 | ) | (394,547 | ) | |||
Earnings from equity accounted investees | 2,391 | 2,677 | |||||
General and administration costs | (18,116 | ) | (21,662 | ) | |||
Depreciation | (32,057 | ) | (33,725 | ) | |||
Asset impairments | (7,324 | ) | (275 | ) | |||
Loss on disposal of assets | (1,122 | ) | (5,259 | ) | |||
(399,334 | ) | (452,791 | ) | ||||
Operating income | 15,597 | 7,857 | |||||
Interest on long-term debt | (38,708 | ) | (34,872 | ) | |||
Foreign exchange gain (loss) | (13,087 | ) | 4,908 | ||||
Other financing income (charges) | 5,823 | (4,325 | ) | ||||
Loss before income tax | (30,375 | ) | (26,432 | ) | |||
Income tax expense | (5,308 | ) | (7,887 | ) | |||
Net loss | $ | (35,683 | ) | $ | (34,319 | ) | |
Net earnings (loss) attributable to: | |||||||
Controlling interest | $ | (38,331 | ) | $ | (42,100 | ) | |
Non-controlling interests | 2,648 | 7,781 | |||||
Net loss | $ | (35,683 | ) | $ | (34,319 | ) | |
Net loss per ordinary share attributable to controlling interest - basic and diluted: | |||||||
Net loss per ordinary share(1) | $ | (0.82 | ) | $ | (0.52 | ) | |
Weighted average number of shares outstanding - basic and diluted: | 46,519,484 | 80,530,687 | |||||
(1) Net loss per ordinary share is calculated by net loss attributable to controlling interest divided by weighted average number of ordinary stock outstanding - basic and diluted.
5
Consolidated Balance Sheets
(Expressed in thousands of United States dollars)
(Unaudited)
April 30, 2014 | July 31, 2014 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 302,522 | $ | 119,928 | |||
Receivables, net of allowance for doubtful accounts of $2.3 million and $2.8 million, respectively | 292,339 | 292,109 | |||||
Income taxes receivable | 28,172 | 30,559 | |||||
Deferred income tax assets | 60 | 128 | |||||
Inventories | 130,891 | 133,611 | |||||
Prepaid expenses | 27,683 | 29,953 | |||||
Other assets | 49,209 | 48,444 | |||||
830,876 | 654,732 | ||||||
Property and equipment, net | 1,050,759 | 1,062,975 | |||||
Investments | 31,351 | 33,202 | |||||
Intangible assets | 177,863 | 175,984 | |||||
Goodwill | 432,376 | 426,410 | |||||
Restricted cash | 31,566 | 29,462 | |||||
Other assets | 519,306 | 518,944 | |||||
Deferred income tax assets | 3,381 | 2,925 | |||||
Assets held for sale | 26,849 | 28,866 | |||||
$ | 3,104,327 | $ | 2,933,500 | ||||
Liabilities and Shareholders' Equity | |||||||
Current liabilities: | |||||||
Payables and accruals | $ | 355,341 | $ | 341,197 | |||
Deferred revenue | 30,436 | 38,988 | |||||
Income taxes payable | 41,975 | 43,690 | |||||
Deferred income tax liabilities | 98 | 157 | |||||
Current facility secured by accounts receivable | 62,596 | 51,749 | |||||
Other liabilities | 55,170 | 54,507 | |||||
Current portion of long-term debt obligations | 4,107 | 3,654 | |||||
549,723 | 533,942 | ||||||
Long-term debt obligations | 1,546,155 | 1,480,604 | |||||
Deferred revenue | 81,485 | 79,863 | |||||
Other liabilities | 287,385 | 273,889 | |||||
Deferred income tax liabilities | 10,665 | 11,009 | |||||
Total liabilities | 2,475,413 | 2,379,307 | |||||
Redeemable non-controlling interests | (22,578 | ) | (15,216 | ) | |||
Capital stock: Par value $0.0001: | |||||||
Authorized: 2,000,000,000; Issued: 80,519,484 and 80,597,912 | 8 | 8 | |||||
Additional paid-in capital | 2,039,371 | 2,042,602 | |||||
Deficit | (1,265,103 | ) | (1,307,203 | ) | |||
Accumulated other comprehensive loss | (122,784 | ) | (165,998 | ) | |||
651,492 | 569,409 | ||||||
$ | 3,104,327 | $ | 2,933,500 | ||||
6
Consolidated Statements of Cash Flows
(Expressed in thousands of United States dollars)
(Unaudited)
Three months ended | |||||||
July 31, 2013 | July 31, 2014 | ||||||
Cash provided by (used in): | |||||||
Operating activities: | |||||||
Net loss | $ | (35,683 | ) | $ | (34,319 | ) | |
Adjustments to reconcile net loss to cash flows provided by (used) in operating activities: | |||||||
Depreciation | 32,057 | 33,725 | |||||
Loss on disposal of assets | 1,122 | 5,259 | |||||
Asset impairments | 7,324 | 275 | |||||
Earnings from equity accounted investees less dividends received | (2,391 | ) | (2,174 | ) | |||
Deferred income taxes | 1,613 | 1,065 | |||||
Non-cash stock-based compensation expense | 117 | 3,231 | |||||
Amortization of lease related fixed interest rate obligations | (547 | ) | (91 | ) | |||
Amortization of long-term debt and lease deferred financing costs and debt extinguishment | 2,595 | 10,017 | |||||
Non-cash accrued interest income on funded residual value guarantees | (1,712 | ) | (1,348 | ) | |||
Mark to market gain on derivative instruments | (14,764 | ) | (8,408 | ) | |||
Non-cash defined benefit pension expense (income) | 98 | (207 | ) | ||||
Defined benefit contributions and benefits paid | (17,686 | ) | (17,127 | ) | |||
Increase to deferred lease financing costs | (1,724 | ) | (1,278 | ) | |||
Unrealized loss (gain) on foreign currency exchange translation | 8,937 | (5,990 | ) | ||||
Other | 3,044 | 1,215 | |||||
Decrease in cash resulting from changes in operating assets and liabilities | (26,671 | ) | (15,090 | ) | |||
Cash used in operating activities | (44,271 | ) | (31,245 | ) | |||
Financing activities: | |||||||
Sold interest in accounts receivable, net of collections | (6,446 | ) | (9,146 | ) | |||
Proceeds from issuance of senior unsecured notes | 300,000 | — | |||||
Long-term debt proceeds | 100,000 | 70,000 | |||||
Long-term debt repayments | (225,948 | ) | (71,371 | ) | |||
Redemption of senior secured notes | — | (70,620 | ) | ||||
Increase in deferred financing costs | (5,902 | ) | — | ||||
Related party loans | (25,148 | ) | — | ||||
Cash provided by (used in) financing activities | 136,556 | (81,137 | ) | ||||
Investing activities: | |||||||
Property and equipment additions | (104,385 | ) | (125,879 | ) | |||
Proceeds from disposal of property and equipment | 46,163 | 69,198 | |||||
Aircraft deposits net of lease inception refunds | (27,947 | ) | (14,780 | ) | |||
Restricted cash | (4,852 | ) | 1,605 | ||||
Cash used in investing activities | (91,021 | ) | (69,856 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (10,410 | ) | (356 | ) | |||
Change in cash and cash equivalents during the period | (9,146 | ) | (182,594 | ) | |||
Cash and cash equivalents, beginning of period | 123,801 | 302,522 | |||||
Cash and cash equivalents, end of period | $ | 114,655 | $ | 119,928 | |||
7
Segment Performance
(Expressed in thousands of United States dollars)
(Unaudited)
Segment Third-party Revenue
Three months ended | |||||||
July 31, 2013 | July 31, 2014 | ||||||
Helicopter Services operating revenue | $ | 345,430 | $ | 384,137 | |||
Reimbursable revenue | 41,872 | 39,574 | |||||
Helicopter Services total external revenue | 387,302 | 423,711 | |||||
Heli-One external revenue | 27,629 | 36,937 | |||||
Consolidated external revenue | $ | 414,931 | $ | 460,648 | |||
EBITDAR Summary
Three months ended | |||||||
July 31, 2013 | July 31, 2014 | ||||||
Helicopter Services | $ | 126,067 | $ | 126,801 | |||
Heli-One | 4,196 | 5,276 | |||||
Corporate | (18,116 | ) | (21,662 | ) | |||
Eliminations | (768 | ) | (19 | ) | |||
Adjusted EBITDAR(1) | $ | 111,379 | $ | 110,396 | |||
(1) See a description of non-GAAP calculations and reconciliation to comparable GAAP measures below.
8
Non-GAAP Financial Measures:
This press release includes non-GAAP financial measures, including: adjusted net earnings (loss); earnings before interest, taxes, depreciation, amortization and aircraft lease rent and associated costs (“Adjusted EBITDAR”) referred to above as EBITDAR; adjusted net loss per ordinary share, which is calculated by dividing adjusted net loss by the number of ordinary shares outstanding at our IPO date for the prior year quarter, and the weighted average for the current quarter; free cash flow, which is calculated as net cash provided by operating activities less capital expenditures, that are not required by, or presented in accordance with U.S. generally accepted accounting principles (“GAAP”). Adjusted EBITDAR also excludes special items related to corporate transaction costs. These non-GAAP measures are not performance measures under GAAP and should not be considered as alternatives to net earnings (loss) or any other performance or liquidity measures derived in accordance with GAAP. In addition, these measures may not be comparable to similarly titled measures of other companies. CHC has provided a reconciliation of these non-GAAP measures to the most directly comparable GAAP measure below and above. CHC has chosen to include adjusted net earnings (loss) as we consider this to be a useful measure of our results before asset impairments, gain or loss on the disposal of assets and foreign exchange gains or losses. We have chosen to include Adjusted EBITDAR and Adjusted EBITDAR excluding special items, as we consider these to be significant indicators of our financial performance and we use these measures to assist us in allocating available capital resources. CHC has provided a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure below and has presented a detailed discussion of its reasons for including non-GAAP financial measures and the limitations associated with those measures as part of the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form 10-K. CHC encourages investors to review the reconciliation and the non-GAAP discussion in conjunction with our presentation of these non-GAAP financial measures.
9
EBITDAR - Non-GAAP Reconciliation
(Expressed in thousands of United States dollars)
(Unaudited)
Three months ended | |||||||
July 31, 2013 | July 31, 2014 | ||||||
Helicopter Services | $ | 126,067 | $ | 126,801 | |||
Heli-One | 4,196 | 5,276 | |||||
Corporate | (18,116 | ) | (21,662 | ) | |||
Eliminations | (768 | ) | (19 | ) | |||
Adjusted EBITDAR | 111,379 | 110,396 | |||||
Helicopter lease and associated costs | (55,279 | ) | (63,280 | ) | |||
Depreciation | (32,057 | ) | (33,725 | ) | |||
Asset impairments | (7,324 | ) | (275 | ) | |||
Loss on disposal of assets | (1,122 | ) | (5,259 | ) | |||
Operating income | 15,597 | 7,857 | |||||
Interest on long-term debt | (38,708 | ) | (34,872 | ) | |||
Foreign exchange gain (loss) | (13,087 | ) | 4,908 | ||||
Other financing charges | 5,823 | (4,325 | ) | ||||
Loss before income tax | (30,375 | ) | (26,432 | ) | |||
Income tax expense | (5,308 | ) | (7,887 | ) | |||
Net loss | $ | (35,683 | ) | $ | (34,319 | ) | |
Net earnings (loss) attributable to: | |||||||
Controlling interest | $ | (38,331 | ) | $ | (42,100 | ) | |
Non-controlling interests | 2,648 | 7,781 | |||||
Net loss | $ | (35,683 | ) | $ | (34,319 | ) | |
10
EBITDAR - Non-GAAP Reconciliation - Prior Period Segment Results
(Expressed in thousands of United States dollars)
(Unaudited)
Year ended | Three months ended | Year ended | |||||||||||||||||||||
Revenue: | April 30, 2013 | July 31, 2013 | October 31, 2013 | January 31, 2014 | April 30, 2014 | April 30, 2014 | |||||||||||||||||
Helicopter Services: | |||||||||||||||||||||||
Operating revenue | $ | 1,437,865 | $ | 345,430 | $ | 367,908 | $ | 375,343 | $ | 364,358 | $ | 1,453,039 | |||||||||||
Reimbursable revenue | 165,538 | 41,872 | 40,155 | 41,853 | 40,789 | 164,669 | |||||||||||||||||
Helicopter Services total revenue | 1,603,403 | 387,302 | 408,063 | 417,196 | 405,147 | 1,617,708 | |||||||||||||||||
Heli-One: | |||||||||||||||||||||||
External revenue | 140,444 | 27,629 | 35,309 | 36,698 | 47,635 | 147,271 | |||||||||||||||||
Internal revenue | 133,667 | 37,211 | 43,329 | 33,370 | 45,996 | 159,906 | |||||||||||||||||
Heli-One total revenue | 274,111 | 64,840 | 78,638 | 70,068 | 93,631 | 307,177 | |||||||||||||||||
Eliminations | (133,667 | ) | (37,211 | ) | (43,329 | ) | (33,370 | ) | (45,996 | ) | (159,906 | ) | |||||||||||
Consolidated external revenue | 1,743,847 | 414,931 | 443,372 | 453,894 | 452,782 | 1,764,979 | |||||||||||||||||
Adjusted EBITDAR: | |||||||||||||||||||||||
Helicopter Services | 546,827 | 126,067 | 120,495 | 127,785 | 139,644 | 513,991 | |||||||||||||||||
Heli-One | 14,524 | 4,196 | 8,402 | 6,385 | 10,235 | 29,218 | |||||||||||||||||
Corporate | (74,113 | ) | (18,116 | ) | (20,541 | ) | (39,182 | ) | (17,248 | ) | (95,087 | ) | |||||||||||
Eliminations | (2,887 | ) | (768 | ) | (626 | ) | (1 | ) | (1,739 | ) | (3,134 | ) | |||||||||||
Adjusted EBITDAR | 484,351 | 111,379 | 107,730 | 94,987 | 130,892 | 444,988 | |||||||||||||||||
Helicopter lease and associated costs | (201,736 | ) | (55,279 | ) | (55,166 | ) | (56,216 | ) | (61,232 | ) | (227,893 | ) | |||||||||||
Depreciation | (131,926 | ) | (32,057 | ) | (38,694 | ) | (35,407 | ) | (38,415 | ) | (144,573 | ) | |||||||||||
Restructuring costs | (10,976 | ) | — | — | — | — | — | ||||||||||||||||
Asset impairments | (29,981 | ) | (7,324 | ) | (15,690 | ) | 58 | (2,977 | ) | (25,933 | ) | ||||||||||||
Gain (loss) on disposal of assets | (15,483 | ) | (1,122 | ) | (3,299 | ) | 2,478 | (4,688 | ) | (6,631 | ) | ||||||||||||
Operating income (loss) | 94,249 | 15,597 | (5,119 | ) | 5,900 | 23,580 | 39,958 | ||||||||||||||||
Interest on long-term debt | (127,199 | ) | (38,708 | ) | (39,146 | ) | (39,782 | ) | (35,586 | ) | (153,222 | ) | |||||||||||
Foreign exchange gain (loss) | (11,383 | ) | (13,087 | ) | 184 | (11,573 | ) | 18,448 | (6,028 | ) | |||||||||||||
Other financing income (charges) | (18,729 | ) | 5,823 | (1,708 | ) | (5,730 | ) | (21,638 | ) | (23,253 | ) | ||||||||||||
Loss before income tax | (63,062 | ) | (30,375 | ) | (45,789 | ) | (51,185 | ) | (15,196 | ) | (142,545 | ) | |||||||||||
Income tax expense | (54,452 | ) | (5,308 | ) | (5,492 | ) | (6,689 | ) | (10,885 | ) | (28,374 | ) | |||||||||||
Loss from continuing operations | (117,514 | ) | (35,683 | ) | (51,281 | ) | (57,874 | ) | (26,081 | ) | (170,919 | ) | |||||||||||
Earnings from discontinued operations, net of tax | 1,025 | — | — | — | — | — | |||||||||||||||||
Net loss | $ | (116,489 | ) | $ | (35,683 | ) | $ | (51,281 | ) | $ | (57,874 | ) | $ | (26,081 | ) | $ | (170,919 | ) | |||||
11
EBITDAR excluding special items - Non-GAAP Reconciliation
(Expressed in thousands of United States dollars)
(Unaudited)
Three months ended | |||||||
July 31, 2013 | July 31, 2014 | ||||||
Adjusted EBITDAR | $ | 111,379 | $ | 110,396 | |||
Corporate transaction costs1 | — | 1,701 | |||||
Adjusted EBITDAR excluding special items | $ | 111,379 | $ | 112,097 | |||
Adjusted Net Loss - Non-GAAP Reconciliation
(Expressed in thousands of United States dollars)
(Unaudited)
Three months ended | |||||||
July 31, 2013 | July 31, 2014 | ||||||
Net loss attributable to controlling interest | $ | (38,331 | ) | $ | (42,100 | ) | |
Corporate transaction costs1 | — | 1,701 | |||||
Asset impairments | 7,324 | 275 | |||||
Loss on disposal of assets | 1,122 | 5,259 | |||||
Foreign exchange loss (gain) | 13,087 | (4,908 | ) | ||||
Loss on debt extinguishment2 | — | 7,444 | |||||
Unrealized gain on derivatives | (14,764 | ) | (4,343 | ) | |||
Adjusted net loss | $ | (31,562 | ) | $ | (36,672 | ) | |
(1) Corporate transaction costs include costs related to senior executive turnover, potential financing and other transactions.
(2) Loss on extinguishment incurred on the redemption of $65.0 million of our senior secured notes at premiums ranging from 8.00% to 9.13% of the principal.
12
Reconciliation of Adjusted EBITDAR excluding special items to Adjusted Net Loss
(Expressed in thousands of United States dollars, except share and per share amounts)
(Unaudited)
Three months ended | |||||||
July 31, 2013 | July 31, 2014 | ||||||
Adjusted EBITDAR excluding special items | $ | 111,379 | $ | 112,097 | |||
Helicopter lease and associated costs | (55,279 | ) | (63,280 | ) | |||
Depreciation | (32,057 | ) | (33,725 | ) | |||
Loss on debt extinguishment | — | 7,444 | |||||
Unrealized gain on derivatives | (14,764 | ) | (4,343 | ) | |||
Interest on long-term debt | (38,708 | ) | (34,872 | ) | |||
Other financing charges | 5,823 | (4,325 | ) | ||||
Income tax expense | (5,308 | ) | (7,887 | ) | |||
Earnings attributable to non-controlling interests | (2,648 | ) | (7,781 | ) | |||
Adjusted net loss | $ | (31,562 | ) | $ | (36,672 | ) | |
Adjusted share count | 77,519,484 | 80,530,687 | |||||
13