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Heli-One (MRO):
-- Among notable contracts secured in the second quarter, AAR, a global aerospace and defense supplier, selected Heli-One to complete 20 engine overhauls.-- During the quarter the company delivered the first of three customized Super Puma aircraft commissioned by the Los Angeles County Sheriff's Department.-- Heli-One further broadened its range of services by adding four-year inspections of AW139s to capabilities at the Stavanger, Norway, operation.
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 division. The company is headquartered in Vancouver and operates more than 240 aircraft in about 30 countries around the world.
Segment Performance (Unaudited)(U.S.$ in thousands)----------------------------------------------------------------------------Segment Third Party Revenue For the three months ended For the six months ended October 31, October 31, ---------------------------------------------------- 2012 2011 2012 2011----------------------------------------------------------------------------Helicopter Services $ 402,617 $ 383,279 $ 792,521 $ 756,573MRO 42,488 38,409 67,034 73,297Corporate and Other 1,681 1,312 3,300 2,779 ---------------------------------------------------- Consolidated totals $ 446,786 $ 423,000 $ 862,855 $ 832,649 ---------------------------------------------------- ----------------------------------------------------EBITDAR and EBITDA Summary For the three months ended For the six months ended October 31, October 31, ---------------------------------------------------- 2012 2011 2012 2011 ----------------------------------------------------Helicopter Services $ 120,931 $ 107,000 $ 223,554 $ 202,688MRO 28,082 18,935 41,746 39,949Corporate and Other (22,916) (18,473) (38,304) (35,106) ----------------------------------------------------Consolidated EBITDAR(i) 126,097 107,462 226,996 207,531Less: aircraft lease and associated costs (48,797) (42,604) (97,227) (83,100) ----------------------------------------------------Consolidated EBITDA(i) $ 77,300 $ 64,858 $ 129,769 $ 124,431 ---------------------------------------------------- ----------------------------------------------------(i) See reconciliations to GAAP measures below.----------------------------------------------------------------------------Consolidated Statement of Earnings (Unaudited)(U.S.$ in thousands)---------------------------------------------------------------------------- For the three months For the six months ended ended ---------------------------------------------------- October 31, October 31, October 31, October 31, 2012 2011 2012 2011----------------------------------------------------------------------------Revenue $ 446,786 $ 423,000 $ 862,855 $ 832,649Operating ExpensesDirect costs (351,397) (343,346) (697,484) (679,987)Earnings from equity accounted investees 825 625 1,837 1,221General and administrative costs (18,914) (15,421) (37,439) (29,452)Amortization (27,635) (25,429) (55,945) (52,532)Restructuring costs (1,797) (7,080) (3,727) (11,884)Recovery (impairment) of receivables and funded residual value guarantees 143 63 (572) 47Impairment of intangible assets (6,339) (1,717) (5,818) (1,825)Impairment of assets held for sale (3,650) (4,251) (9,297) (11,632)Impairment of assets held for use - - (660) -Gain (loss) on disposal of assets (3,026) (316) (4,617) 3,741---------------------------------------------------------------------------- (411,790) (396,872) (813,722) (782,303)Operating income 34,996 26,128 49,133 50,346Interest on long-term debt (30,075) (29,516) (59,958) (60,186)Foreign exchange gain 10,562 2,446 3,161 2,639Other financing charges (3,449) (6,491) (11,603) (6,235)----------------------------------------------------------------------------Income (loss) from continuing operations before tax 12,034 (7,433) (19,267) (13,436)Income tax recovery (expense) (5,022) 8,638 (6,303) 12,485----------------------------------------------------------------------------Income (loss) from continuing operations 7,012 1,205 (25,570) (951)Earnings (loss) from discontinued operations, net of tax 467 (7,526) 812 (8,312)----------------------------------------------------------------------------Net earnings (loss) $ 7,479 $ (6,321) $ (24,758) $ (9,263)----------------------------------------------------------------------------Net earnings (loss) attributable to:Controlling interest $ 6,999 $ (11,420) $ (26,106) $ (19,793)Non-controlling interest 480 5,099 1,348 10,530----------------------------------------------------------------------------Net earnings (loss) $ 7,479 $ (6,321) $ (24,758) $ (9,263)----------------------------------------------------------------------------Consolidated Statement of Cash Flows(Expressed in thousands of United States dollars)---------------------------------------------------------------------------- For the three months ended For the six months ended ---------------------------------------------------- October 31, October 31, October 31, October 31, 2012 2011 2012 2011----------------------------------------------------------------------------Cash provided by (used in):Operating activities: Net earnings (loss) $ 7,479 $ (6,321) $ (24,758) $ (9,263) Less: earnings (loss) from discontinued operations, net of tax 467 (7,526) 812 (8,312)---------------------------------------------------------------------------- Earnings (loss) from continuing operations 7,012 1,205 (25,570) (951)Adjustments to reconcile net earnings (loss) to cash flows provided by (used in) operating activities: Amortization 27,635 25,429 55,945 52,532 Loss (gain) on disposal of assets 3,026 316 4,617 (3,741) Asset impairments 9,846 5,905 16,347 13,410 Non-cash leasing and financing costs (140) (492) (304) (1,306) Earnings from equity accounted investees (825) (625) (1,837) (1,221) Deferred income taxes (512) (6,356) (6,252) (13,953) Pension contributions, net of pension expense (5,690) (7,898) (17,436) (15,560) Increase to deferred lease financing costs (216) (2,774) (1,489) (7,488) Foreign exchange gain (loss) (19,893) 5,404 2,382 2,068 Other 2,816 (868) 5,319 (1,640)Increase (decrease) in cash resulting from changes in operating assets and liabilities (900) 34,657 (55,480) (32,226)----------------------------------------------------------------------------Cash provided by (used in) operating activities 22,159 53,903 (23,758) (10,076)----------------------------------------------------------------------------Financing activities: Sold interest in accounts receivable, net of collections 674 530 8,917 40,082 Proceeds from issuance of capital stock - 60,000 - 60,000 Proceeds from the issuance of senior secured notes 202,000 - 202,000 - Long-term debt proceeds 165,076 125,000 390,229 405,000 Long-term debt repayments (319,871) (116,826) (471,824) (390,539) Increase in deferred financing costs related to the revolver and notes (3,793) - (3,793) -----------------------------------------------------------------------------Cash provided by financing activities 44,086 68,704 125,529 114,543----------------------------------------------------------------------------Investing activities: Property and equipment additions (95,600) (121,964) (142,267) (164,751) Proceeds from disposal of property and equipment 46,188 43,117 93,413 91,120 Aircraft deposits, net of lease inception refunds (10,845) (34,429) (40,926) (36,115) Restricted cash 38 2,320 5,384 753 Distribution from equity investments - - - 936----------------------------------------------------------------------------Cash used in investing activities (60,219) (110,956) (84,396) (108,057)----------------------------------------------------------------------------Cash provided by (used in) continuing operations 6,026 11,651 17,375 (3,590)Cash flows provided by (used in) discontinued operations: Cash flows provided by (used in) operating activities 467 (1,019) 812 (1,488) Cash flows provided by (used in) financing activities (467) 1,019 (812) 1,488----------------------------------------------------------------------------Cash provided by (used in) discontinued operations - - - -Effect of exchange rate changes on cash and cash equivalents 5,677 (6,605) (4,144) (10,804)----------------------------------------------------------------------------Increase (decrease) in cash and cash equivalents during the period 11,703 5,046 13,231 (14,394)Cash and cash equivalents, beginning of period 57,075 49,481 55,547 68,921----------------------------------------------------------------------------Cash and cash equivalents, end of period $ 68,778 $ 54,527 $ 68,778 $ 54,527--------------------------------------------------------------------------------------------------------------------------------------------------------Consolidated Balance Sheets (Unaudited)(U.S.$ in thousands)---------------------------------------------------------------------------- October 31, 2012 April 30, 2012----------------------------------------------------------------------------AssetsCurrent Assets: Cash and cash equivalents $ 68,778 $ 55,547 Receivables, net of allowance for doubtful accounts 304,701 266,115 Income taxes receivable 25,078 20,747 Deferred income tax assets 9,361 8,542 Inventories 95,740 90,013 Prepaid expenses 20,069 21,183 Other assets 38,039 33,195---------------------------------------------------------------------------- 561,766 495,342Property and equipment, net 1,041,490 1,026,860Investments 25,466 24,226Intangible assets 205,493 217,890Goodwill 432,059 433,811Restricted cash 20,353 25,994Other assets 410,986 363,103Deferred income tax assets 49,020 48,943Assets held for sale 63,295 79,813---------------------------------------------------------------------------- $ 2,809,928 $ 2,715,982--------------------------------------------------------------------------------------------------------------------------------------------------------Liabilities and Shareholder's EquityCurrent Liabilities: Payables and accruals $ 356,519 $ 363,064 Deferred revenue 20,775 23,737 Income taxes payable 40,169 43,581 Deferred income tax liabilities 13,073 11,729 Current facility secured by accounts receivable 55,317 45,566 Other liabilities 20,155 23,648 Current portion of long-term debt 14,039 17,701---------------------------------------------------------------------------- 520,047 529,026Long-term debt 1,401,504 1,269,379Deferred revenue 50,221 43,517Other liabilities 189,820 191,521Deferred income tax liabilities 18,943 20,072----------------------------------------------------------------------------Total liabilities 2,180,535 2,053,515Redeemable non-controlling interests 4,489 1,675Capital stock: Par value 1 Euro; Authorized and issued: 1,228,377,770 and 1,228,377,770, respectively 1,607,101 1,607,101Contributed surplus 55,541 55,318Deficit (966,137) (940,031)Accumulated other comprehensive loss (71,601) (61,596)---------------------------------------------------------------------------- $ 2,809,928 $ 2,715,982--------------------------------------------------------------------------------------------------------------------------------------------------------
