Bristow Group Inc (NYSE:BRS) isn’t a household name, but it’s a very profitable company that provides helicopter services to the offshore energy industry in Europe, West Africa, North America, Australia, and internationally. Its helicopters are used principally to transport personnel between onshore bases and offshore production platforms, drilling rigs, and other installations, as well as to transport time-sensitive equipment to these offshore locations. The company also offers helicopter flight training services to commercial pilots and flight instructors, as well as military training services through its Bristow Academy. In addition, it provides helicopter repair and production support services as well as search and rescue services to oil and gas companies. The company provides its helicopter services to integrated, national, and independent oil and gas companies. It has a fleet of about 500 aircraft.
The stock is up 100 percent in the last two years but has been flat year-to-date. But can the stock regain its footing? An analysis of the company’s recent performance is warranted.
Well the company still makes good money as its income for the March 2014 quarter was $30.3 million, or $0.83 per diluted share, compared to net income of $40.4 million, or $1.11 per diluted share, in the same period a year ago. Adjusted net income, which excludes special items and asset disposition effects, increased 33.7 percent to $49.1 million, or $1.35 per diluted share compared to $36.7 million, or $1.01 per diluted share in the March 2013 quarter.
The company’s operating revenue increased 15.4 percent to $404.6 million compared to $350.7 million in the same period a year ago. Now its adjusted was $122.9 million compared to $103.0 million in the same period a year ago, an increase of 19.3 percent. The increase in adjusted earnings, adjusted net income and revenues per share was primarily driven by increased operating revenue across most of Bristow’s business units, leading to LACE rate increases.