Offshore Logistics, Inc. Announces Earnings for the Second Fiscal Quarter Ended September 30, 1999
LAFAYETTE, La.--(BUSINESS WIRE)--Nov. 10, 1999--Offshore Logistics,
Inc., (Nasdaq:OLOG) today reported a net loss for the quarter ended
September 30, 1999 of $1.1 million, or $0.05 per diluted share, on
revenues of $105.5 million ($2.4 million net income, or $0.11 per
share before restructuring charges discussed below), compared to net
income of $10.0 million, or $0.43 per diluted share, on revenues of
$129.2 million for the quarter ended September 30, 1998.
Net income for the six months ended September 30, 1999 was $2.0
million, or $0.10 per share on revenues of $212.9 million, ($5.5
million net income, or $0.26 per share before severance charges
discussed below), compared to net income of $16.6 million, or $0.71
per diluted share, on revenues of $246.7 million for six months ended
September 30, 1998.
George Small, President of Offshore Logistics, said, "Our
activities and results for the second quarter of 2000 continue to be
affected by the worldwide slowdown in oil and gas industry activity.
The loss we reported this quarter is primarily the result of a
significant decline in Bristow's flight activity due to the previously
announced termination of contracts with two large customers in the
North Sea (effective August 1, 1999). Coupled with this drop in flight
revenue, we incurred restructuring costs to downsize the North Sea
operation. The previously announced charge of $5 million (pre tax)
primarily represents severance pay to terminated employees, from which
we expect to realize at least $7 million in annual salary cost
savings. Further cost reductions are being pursued as management works
to establish a more cost effective and competitive organization;
however it is likely that Bristow's results and operating margins will
be adversely affected for some time absent increased activity in the
North Sea market.
"Air Logistics' Gulf of Mexico flight activity increased during
the September quarter as flight hours increased 12.5% from the June
1999 quarter but was still considerably below the same quarter in the
prior year. This increase is reflective of the slight increase in the
Gulf of Mexico activity we have seen recently, however; oil companies
seem to be proceeding cautiously."
At September 30, 1999, the Company's consolidated balance sheet
reflected $291.5 million in shareholders' investment, $44.3 million in
cash and $240.2 million of indebtedness.
OLOG will conduct a telephonic conference to discuss its
second-quarter with analysts, investors and other interested parties
at 10 a.m. CST on Thursday, November 11, 1999. Those interested in
participating in that teleconference should dial 800/348-6433
(212/271-4737, if outside the US) just prior to the scheduled start
and reference the Offshore Logistics, Inc. conference call. A replay
will be available immediately following the teleconference. To access
that recording, dial 800/633-8284 (619/812-6440, if outside the US).
Enter reservation number 13522991. This replay will be available for
forty-eight hours following the conference call. |
