I thought flexibility was the key to 'bendyness'?
I certainly agree with the analysis that CHC has proven to be inflexible.
The figures look awful because of the Asset Impairment charge (where they stopped putting a ridiculous financial value on their 'goodwill') However, even if you discount this then CHC still managed to lose 20 m USD a month in the last reported quarter to end of Jan 2015.
The CEO said exploration had been hit hard but it only accounted for 20% of their business. Assuming the CHC profit cross section is similar to the other large operators then exploration accounts for significantly more than 20% of their profits and their cash cow has stopped producing!
So 20m USD loses a month and you have cash reserves of 217m USD (excluding your credit line). Here is my question to rotorheads: How would you turn this company around in 10 months in todays market?