Time Out
11th Feb 2004, 18:17
Offshore Logistics, Inc. Announces Earnings for the Third Fiscal Quarter Ended December 31, 2003
LAFAYETTE, La.--(BUSINESS WIRE)--Feb. 10, 2004--Offshore Logistics, Inc. (NYSE: OLG) today reported net income for the third quarter ended December 31, 2003 of $2.8 million, or $0.12 per diluted share, on revenues of $139.1 million, compared to net income of $12.0 million, or $0.49 per diluted share, on revenues of $139.2 million for the third quarter ended December 31, 2002. Included in the net income reported for the third quarter ended December 31, 2003 is $3.0 million (pre-tax), or $0.09 per diluted share, of expenses related to the Company's restructuring of its United Kingdom operations.
Net income for the nine months ended December 31, 2003 was $19.6 million, or $0.86 per diluted share on revenues of $414.6 million, compared to net income of $34.0 million, or $1.39 per diluted share on revenues of $420.1 million for the nine months ended December 31, 2002. Included in the net income reported for the nine months ended December 31, 2003 is $3.0 million (pre-tax), or $0.09 per diluted share, of expenses related to the Company's restructuring of its United Kingdom operations and $6.2 million (pre-tax), or $0.19 per diluted share, of debt restructuring costs relating to the issuance of $230 million senior notes and related redemptions.
George Small, Chief Executive Officer and President of Offshore Logistics, Inc. said, " Our third quarter results were negatively impacted by reduced activity in the North Sea, higher costs in certain areas within our International division and foreign exchange losses due to the weakening of the U.S. dollar.
In the North Sea, flight activity decreased 15% during our third quarter compared to the similar period last year, resulting in slightly below breakeven operating income. Our previously announced United Kingdom restructuring plans are being executed, and based on progress made to date, we hope to achieve approximately $15.0 million in annual cost savings phased in over the next two quarters.
Our International margins declined during the quarter to 10.6% due primarily to higher costs in certain operating areas, despite some increases in flight hours and revenues. We are taking corrective action.
Operationally, North America was the bright spot for the quarter. Margins in this region improved to 17.9% from 15.0% in the similar quarter last year, in-spite of little change in flight activity for the quarter, as exploration and production activity remained relatively flat in the Gulf of Mexico. The increase in margin is attributed to rate increases made earlier this calendar year.
Finally, the weakening of the dollar against the euro and pound sterling resulted in a third quarter $3.8 million (pre-tax) or $0.12 per diluted share transaction loss from our U.K. based operations on the portion of its business denominated in dollars. These losses compare to $1.0 million (pre tax) or $0.02 per diluted share loss for the similar quarter in the prior year."
OLOG will conduct a telephonic conference to discuss its third quarter results with analysts, investors and other interested parties at 10:00 a.m. Central Time on Wednesday, February 11, 2004. Individuals wishing to access the conference call should dial 877-822-9020 for domestic callers and 706-679-7181 for international callers, approximately five to ten minutes prior to the start time. Please reference the Offshore Logistics, Inc. conference call hosted by George Small, Conference ID No. 5281909. A replay of the conference call will be available two hours after completion of the teleconference. To hear that recording, dial 800-642-1687 for domestic callers and 706-645-9291 for international callers, and enter Conference ID number 5281909. The replay will be available until 11:59 PM EST, Wednesday, February 18, 2004.
Offshore Logistics, Inc. is a major provider of helicopter transportation services to the oil and gas industry worldwide. Through its subsidiaries, affiliates and joint ventures, the Company provides transportation services in most oil and gas producing regions including the United States Gulf of Mexico and Alaska, the North Sea, Africa, Mexico, South America, Australia, Egypt and the Far East. The Company's Common Stock is traded on the New York Stock Exchange under the symbol OLG.
And if you are still keen to read on......The results for the periods ended December 31, 2003 and 2002, are as tabulated (amounts in thousands, except earnings per share) at this location (http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20040210005974&newsLang=en)
Heliport if you think this is not suitable for rotorheads, feel free to delete it. I posted it because some of our posters are keeping a pretty close watch on OLOG and may be interested.
edited to sort dratted typo
LAFAYETTE, La.--(BUSINESS WIRE)--Feb. 10, 2004--Offshore Logistics, Inc. (NYSE: OLG) today reported net income for the third quarter ended December 31, 2003 of $2.8 million, or $0.12 per diluted share, on revenues of $139.1 million, compared to net income of $12.0 million, or $0.49 per diluted share, on revenues of $139.2 million for the third quarter ended December 31, 2002. Included in the net income reported for the third quarter ended December 31, 2003 is $3.0 million (pre-tax), or $0.09 per diluted share, of expenses related to the Company's restructuring of its United Kingdom operations.
Net income for the nine months ended December 31, 2003 was $19.6 million, or $0.86 per diluted share on revenues of $414.6 million, compared to net income of $34.0 million, or $1.39 per diluted share on revenues of $420.1 million for the nine months ended December 31, 2002. Included in the net income reported for the nine months ended December 31, 2003 is $3.0 million (pre-tax), or $0.09 per diluted share, of expenses related to the Company's restructuring of its United Kingdom operations and $6.2 million (pre-tax), or $0.19 per diluted share, of debt restructuring costs relating to the issuance of $230 million senior notes and related redemptions.
George Small, Chief Executive Officer and President of Offshore Logistics, Inc. said, " Our third quarter results were negatively impacted by reduced activity in the North Sea, higher costs in certain areas within our International division and foreign exchange losses due to the weakening of the U.S. dollar.
In the North Sea, flight activity decreased 15% during our third quarter compared to the similar period last year, resulting in slightly below breakeven operating income. Our previously announced United Kingdom restructuring plans are being executed, and based on progress made to date, we hope to achieve approximately $15.0 million in annual cost savings phased in over the next two quarters.
Our International margins declined during the quarter to 10.6% due primarily to higher costs in certain operating areas, despite some increases in flight hours and revenues. We are taking corrective action.
Operationally, North America was the bright spot for the quarter. Margins in this region improved to 17.9% from 15.0% in the similar quarter last year, in-spite of little change in flight activity for the quarter, as exploration and production activity remained relatively flat in the Gulf of Mexico. The increase in margin is attributed to rate increases made earlier this calendar year.
Finally, the weakening of the dollar against the euro and pound sterling resulted in a third quarter $3.8 million (pre-tax) or $0.12 per diluted share transaction loss from our U.K. based operations on the portion of its business denominated in dollars. These losses compare to $1.0 million (pre tax) or $0.02 per diluted share loss for the similar quarter in the prior year."
OLOG will conduct a telephonic conference to discuss its third quarter results with analysts, investors and other interested parties at 10:00 a.m. Central Time on Wednesday, February 11, 2004. Individuals wishing to access the conference call should dial 877-822-9020 for domestic callers and 706-679-7181 for international callers, approximately five to ten minutes prior to the start time. Please reference the Offshore Logistics, Inc. conference call hosted by George Small, Conference ID No. 5281909. A replay of the conference call will be available two hours after completion of the teleconference. To hear that recording, dial 800-642-1687 for domestic callers and 706-645-9291 for international callers, and enter Conference ID number 5281909. The replay will be available until 11:59 PM EST, Wednesday, February 18, 2004.
Offshore Logistics, Inc. is a major provider of helicopter transportation services to the oil and gas industry worldwide. Through its subsidiaries, affiliates and joint ventures, the Company provides transportation services in most oil and gas producing regions including the United States Gulf of Mexico and Alaska, the North Sea, Africa, Mexico, South America, Australia, Egypt and the Far East. The Company's Common Stock is traded on the New York Stock Exchange under the symbol OLG.
And if you are still keen to read on......The results for the periods ended December 31, 2003 and 2002, are as tabulated (amounts in thousands, except earnings per share) at this location (http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20040210005974&newsLang=en)
Heliport if you think this is not suitable for rotorheads, feel free to delete it. I posted it because some of our posters are keeping a pretty close watch on OLOG and may be interested.
edited to sort dratted typo