£
|
REGISTRATION
STATEMENT PURSUANT TO SECTION 12(b) OR 12(g)
|
OF
THE SECURITIES EXCHANGE ACT OF 1934
|
|
OR
|
|
S
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
|
SECURITIES
EXCHANGE ACT OF 1934
|
|
For
the fiscal year ended April 30, 2007
|
|
OR
|
|
£
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
|
SECURITIES
EXCHANGE ACT OF 1934
|
|
OR
|
|
£
|
SHELL
COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
|
SECURITIES
EXCHANGE ACT OF 1934
|
Yes
S
|
No
£
|
Yes
£
|
No
S
|
Yes
S
|
No
£
|
Large
Accelerated Filer S
|
Accelerated
Filer £
|
Non-Accelerated
Filer £
|
Item 17
S
|
Item 18
£
|
Yes
£
|
No
S
|
Yes
£
|
No
£
|
Item
|
Page
|
|
PART
I
|
5
|
|
ITEM
1.
|
IDENTITY
OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
|
5
|
ITEM
2.
|
OFFER
STATISTICS AND EXPECTED TIMETABLE
|
5
|
ITEM
3.
|
KEY
INFORMATION
|
5
|
ITEM
4.
|
INFORMATION
ON THE COMPANY
|
17
|
ITEM
5.
|
OPERATING
AND FINANCIAL REVIEW AND PROSPECTS
|
33
|
ITEM
6.
|
DIRECTORS,
SENIOR MANAGEMENT AND EMPLOYEES
|
72
|
ITEM
7.
|
MAJOR
SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
|
91
|
ITEM
8.
|
FINANCIAL
INFORMATION
|
93
|
ITEM
9.
|
THE
OFFER AND LISTING
|
93
|
ITEM
10.
|
ADDITIONAL
INFORMATION
|
95
|
ITEM
11.
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
97
|
ITEM
12.
|
DESCRIPTION
OF SECURITIES OTHER THAN EQUITY SECURITIES
|
98
|
PART
II
|
99
|
|
ITEM
13.
|
DEFAULTS,
DIVIDEND ARREARAGES AND DELINQUENCIES
|
99
|
ITEM
14.
|
MATERIAL
MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF
PROCEEDS
|
99
|
ITEM
15.
|
CONTROLS
AND PROCEDURES
|
99
|
ITEM
16A.
|
AUDIT
COMMITTEE FINANCIAL EXPERT
|
100
|
ITEM
16B.
|
CODE
OF ETHICS
|
100
|
ITEM
16C.
|
PRINCIPAL
ACCOUNTANT FEES AND SERVICES
|
100
|
ITEM
16D.
|
EXEMPTIONS
FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES
|
101
|
ITEM
16E.
|
PURCHASE
OF EQUITY SECURITIES BY ISSUER AND AFFILIATED PURCHASERS
|
101
|
PART
III
|
102
|
|
ITEM
17.
|
FINANCIAL
STATEMENTS
|
102
|
ITEM
18.
|
FINANCIAL
STATEMENTS
|
164
|
ITEM
19.
|
EXHIBITS
|
165
|
ITEM
1.
|
IDENTITY
OF DIRECTORS, SENIOR MANAGEMENT AND
ADVISERS
|
ITEM
2.
|
OFFER
STATISTICS AND EXPECTED TIMETABLE
|
ITEM
3.
|
KEY
INFORMATION
|
As
at and for the fiscal year
ended April 30,
|
||||||||||||||||||||
2007
|
2006
|
2005
|
2004
|
2003
|
||||||||||||||||
(i)
|
(i)
|
|||||||||||||||||||
(in millions
of Canadian dollars except per share amounts)
|
||||||||||||||||||||
Amounts
under Canadian
GAAP
|
||||||||||||||||||||
Operating
Data:
|
||||||||||||||||||||
Revenue
|
$ |
1,149.1
|
$ |
997.1
|
$ |
954.2
|
$ |
771.4
|
$ |
762.9
|
||||||||||
Direct
costs
|
(924.7 | ) | (788.5 | ) | (732.7 | ) | (620.3 | ) | (579.2 | ) | ||||||||||
General
and administration costs
|
(43.4 | ) | (27.9 | ) | (35.3 | ) | (18.6 | ) | (31.1 | ) | ||||||||||
Amortization
|
(65.3 | ) | (55.5 | ) | (50.1 | ) | (38.5 | ) | (32.1 | ) | ||||||||||
Restructuring
(costs) recovery
|
2.3
|
(16.1 | ) | (17.4 | ) | (9.2 | ) |
-
|
||||||||||||
Gain
(loss) on disposals of assets
|
(3.0 | ) |
-
|
4.1
|
3.3
|
2.4
|
||||||||||||||
Fair
value adjustment
|
-
|
-
|
(14.3 | ) |
-
|
(12.8 | ) | |||||||||||||
Operating
income
|
115.0
|
109.1
|
108.5
|
88.1
|
110.1
|
|||||||||||||||
Debt
settlement costs
|
-
|
-
|
(2.0 | ) | (19.7 | ) | (12.5 | ) | ||||||||||||
Financing
charges
|
||||||||||||||||||||
Interest
expense
|
(51.8 | ) | (43.5 | ) | (32.4 | ) | (30.6 | ) | (31.1 | ) | ||||||||||
Other
|
(6.5 | ) | (9.5 | ) | (5.0 | ) |
0.8
|
(4.5 | ) | |||||||||||
Earnings
from continuing operations before taxes and undernoted
items
|
56.7
|
56.1
|
69.1
|
38.6
|
62.0
|
|||||||||||||||
Gain
on sale of long-term investments
|
-
|
37.5
|
-
|
-
|
-
|
|||||||||||||||
Equity
in earnings of associated companies and non-controlling
interest
|
1.1
|
6.6
|
5.2
|
3.9
|
2.3
|
|||||||||||||||
Income
tax (provision) recovery
|
(16.8 | ) | (10.5 | ) | (27.4 | ) |
9.7
|
2.2
|
||||||||||||
Net
earnings from continuing
operations
|
41.0
|
89.7
|
46.9
|
52.2
|
66.5
|
|||||||||||||||
Net
earnings (loss) from discontinued operations
|
2.2
|
1.0
|
9.6
|
(0.3 | ) |
-
|
||||||||||||||
Extraordinary
item
|
0.8
|
-
|
-
|
-
|
-
|
|||||||||||||||
Net
earnings
|
$ |
44.0
|
$ |
90.7
|
$ |
56.5
|
$ |
51.9
|
$ |
66.5
|
||||||||||
Per
Share
Data:
|
||||||||||||||||||||
Basic
|
||||||||||||||||||||
Net
earnings from continuing operations
|
$ |
0.97
|
$ |
2.14
|
$ |
1.12
|
$ |
1.26
|
$ |
1.60
|
||||||||||
Net
earnings (loss) from discontinued operations
|
0.05
|
0.02
|
0.23
|
(0.01 | ) |
-
|
||||||||||||||
Extraordinary
item
|
0.02
|
-
|
-
|
-
|
-
|
|||||||||||||||
Net
earnings
|
1.04
|
2.16
|
1.35
|
1.25
|
1.60
|
|||||||||||||||
Diluted
|
||||||||||||||||||||
Net
earnings from continuing operations
|
0.90
|
1.95
|
1.03
|
1.16
|
1.48
|
|||||||||||||||
Net
earnings (loss) from discontinued operations
|
0.05
|
0.02
|
0.20
|
(0.01 | ) |
-
|
||||||||||||||
Extraordinary
item
|
0.02
|
-
|
-
|
-
|
-
|
|||||||||||||||
Net
earnings
|
0.97
|
1.97
|
1.23
|
1.15
|
1.48
|
|||||||||||||||
Dividends
per participating voting share
|
0.50
|
0.40
|
0.30
|
0.25
|
0.10
|
|||||||||||||||
Dividends
(in US $) per share (ii)
|
0.44
|
0.34
|
0.24
|
0.19
|
0.06
|
|||||||||||||||
Weighted
average shares outstanding in (000)
|
42,819
|
42,708
|
42,673
|
42,122
|
41,456
|
|||||||||||||||
Other
Financial Data (iii):
|
||||||||||||||||||||
Revenue
- 2007, 2006 and 2005
|
||||||||||||||||||||
Operating
segments
|
||||||||||||||||||||
Global
Operations
|
$ |
428.0
|
$ |
330.9
|
$ |
292.1
|
||||||||||||||
European
Operations
|
539.9
|
520.4
|
530.9
|
|||||||||||||||||
Heli-One
|
180.6
|
145.7
|
130.8
|
|||||||||||||||||
1,148.5
|
997.0
|
953.8
|
||||||||||||||||||
Corporate
and
other
|
0.6
|
0.1
|
0.4
|
|||||||||||||||||
Total
revenue
|
$ |
1,149.1
|
$ |
997.1
|
$ |
954.2
|
As
at and for the fiscal year
ended April 30,
|
||||||||||||||||||||
2007
|
2006
|
2005
|
2004
|
2003
|
||||||||||||||||
(i)
|
(i)
|
|||||||||||||||||||
(in millions
of Canadian dollars except per share amounts)
|
||||||||||||||||||||
Other
Financial Data (iii)
(cont’d):
|
||||||||||||||||||||
Revenue
- 2004 and 2003
|
||||||||||||||||||||
Helicopter
operations
|
||||||||||||||||||||
Europe
|
$ |
482.1
|
$ |
508.7
|
||||||||||||||||
International
|
191.8
|
184.8
|
||||||||||||||||||
Schreiner
(iv)
|
32.4
|
-
|
||||||||||||||||||
Composites
|
7.0
|
6.4
|
||||||||||||||||||
713.3
|
699.9
|
|||||||||||||||||||
Repair
and overhaul
|
58.1
|
63.0
|
||||||||||||||||||
Total
revenue
|
$ |
771.4
|
$ |
762.9
|
||||||||||||||||
Segment
EBITDAR - 2007, 2006 and 2005 (v)
|
||||||||||||||||||||
Operating
segments
|
||||||||||||||||||||
Global
Operations
|
$ |
135.1
|
$ |
90.9
|
$ |
87.3
|
||||||||||||||
European
Operations
|
95.3
|
107.5
|
110.8
|
|||||||||||||||||
Heli-One
|
273.2
|
229.5
|
231.0
|
|||||||||||||||||
503.6
|
427.9
|
429.1
|
||||||||||||||||||
Corporate
and other
|
(41.3 | ) | (27.7 | ) | (32.1 | ) | ||||||||||||||
Inter-segment eliminations | (180.8 | ) | (154.0 | ) | (153.2 | ) | ||||||||||||||
$ |
281.5
|
$ |
246.2
|
$ |
243.8
|
|||||||||||||||
Segment
EBITDA - 2004 and 2003 (vi)
|
||||||||||||||||||||
Helicopter
operations
|
||||||||||||||||||||
Europe
|
$ |
72.1
|
$ |
89.3
|
||||||||||||||||
International
|
23.4
|
35.3
|
||||||||||||||||||
Schreiner
|
3.4
|
-
|
||||||||||||||||||
Composites
|
(2.0 | ) | (3.2 | ) | ||||||||||||||||
96.9
|
121.4
|
|||||||||||||||||||
Repair
and overhaul
|
55.4
|
52.8
|
||||||||||||||||||
Corporate
and other
|
(19.7 | ) | (21.5 | ) | ||||||||||||||||
$ |
132.6
|
$ |
152.7
|
|||||||||||||||||
Total
property and equipment additions (vii)
|
$ |
423.3
|
$ |
304.3
|
$ |
250.3
|
$ |
170.6
|
$ |
58.1
|
||||||||||
Ratio
of earnings to fixed charges (viii)
|
1.5x
|
1.9x
|
1.9x
|
1.7x
|
1.9x
|
|||||||||||||||
Balance
Sheet
Data:
|
||||||||||||||||||||
Working
capital (ix)
|
$ |
210.3
|
$ |
147.1
|
$ |
110.2
|
$ |
127.7
|
$ |
131.6
|
||||||||||
Total
assets
|
2,102.2
|
1,686.1
|
1,686.7
|
1,527.6
|
1,106.7
|
|||||||||||||||
Total
debt
|
840.6
|
624.1
|
624.5
|
514.0
|
321.3
|
|||||||||||||||
Total
liabilities
|
1,550.9
|
1,195.4
|
1,226.6
|
1,108.3
|
726.3
|
|||||||||||||||
Capital
stock
|
252.5
|
240.2
|
239.5
|
238.4
|
237.0
|
|||||||||||||||
Shareholders’
equity
|
551.3
|
490.7
|
460.1
|
419.3
|
380.4
|
As
at and for the fiscal year
ended April 30,
|
||||||||||||||||||||
2007
(Restated)
|
2006
(Restated)
|
2005
(Restated)
|
2004
(Restated)
|
2003
|
||||||||||||||||
(i)
|
(i)
|
|||||||||||||||||||
(in millions
of Canadian
dollars except per share amounts)
|
||||||||||||||||||||
Amounts
under US
GAAP
|
||||||||||||||||||||
Operating
Data
(cont'd):
|
||||||||||||||||||||
Revenue
|
$ | 1,149.1 | $ | 997.1 | $ | 954.2 | $ | 771.4 | $ | 762.9 | ||||||||||
Direct
and general and
administrative costs
|
970.5 | 816.2 | 773.1 | 637.7 | 613.8 | |||||||||||||||
Amortization
|
65.1 | 55.2 | 50.1 | 38.5 | 32.1 | |||||||||||||||
Financing
charges
|
67.7 | 5.5 | 50.9 | 54.1 | 18.9 | |||||||||||||||
Net
earnings
|
34.7 | 130.1 | 42.9 | 33.4 | 87.6 | |||||||||||||||
Per
Share
Data:
|
||||||||||||||||||||
Basic
earnings per
share
|
$ | 0.82 | $ | 3.10 | $ | 1.02 | $ | 0.81 | $ | 2.11 | ||||||||||
Diluted
earnings per
share
|
0.75 | 2.82 | 0.93 | 0.74 | 1.95 | |||||||||||||||
Dividends
per participating voting
share
|
0.50 | 0.40 | 0.30 | 0.25 | 0.10 | |||||||||||||||
Dividends
(in US $) per share
(ii)
|
0.44 | 0.34 | 0.24 | 0.19 | 0.06 | |||||||||||||||
Weighted
average shares
outstanding in (000)
|
42,819 | 42,708 | 42,673 | 42,122 | 41,456 | |||||||||||||||
Balance
Sheet
Data:
|
||||||||||||||||||||
Working
capital (ix)
|
$ | 32.7 | $ | 148.9 | $ | 107.2 | $ | 128.8 | $ | 145.9 | ||||||||||
Total
assets
|
2,301.7 | 1,690.4 | 1,688.5 | 1,528.7 | 1,073.9 | |||||||||||||||
Total
debt
|
840.6 | 624.3 | 625.0 | 515.0 | 322.2 | |||||||||||||||
Total
liabilities
|
1,852.1 | 1,255.4 | 1,306.3 | 1,114.4 | 724.0 | |||||||||||||||
Capital
stock
|
251.7 | 240.2 | 239.5 | 238.4 | 237.0 | |||||||||||||||
Shareholders’
equity
|
449.6 | 435.0 | 382.2 | 414.3 | 349.9 |
(i)
|
See
Note 2 to our audited consolidated financial statements included
elsewhere in this Annual Report.
|
(ii)
|
Amounts
have been converted to US dollars at the average exchange rate for
the
period as provided below.
|
(iii)
|
Prior
to May 1, 2005, the Company reported under a different structure.
Segment information for the years ended April 30, 2004 and 2003 has
not been presented under the current organizational structure as
accurate
estimates to reflect certain lease, power-by-the-hour (“PBH”) and
associated transactions between the Company’s operating segments could not
be made.
|
(iv)
|
Schreiner
helicopter operations revenue includes some repair and overhaul
revenue.
|
(v)
|
Segment
EBITDAR is defined as segment EBITDA before aircraft leases and associated
costs.
|
(vi)
|
Segment
EBITDA is revenue less operating expenses allocated to each of our
segments. See Note 25 to our audited consolidated financial
statements included elsewhere in this Annual
Report.
|
(vii)
|
Total
property and equipment additions include all asset acquisitions,
including
aircraft, as well as helicopter major inspection and helicopter component
expenditures during the period.
|
(viii)
|
For
the purpose of this calculation "earnings" are defined as earnings
before
income taxes and undistributed earnings from equity investees. Fixed
charges consist of interest and an estimated portion of aircraft
lease
expense representative of the interest
factor.
|
(ix)
|
Working
capital consists of current assets less current liabilities, excluding
the
current portion of debt
obligations.
|
Year
ended
April 30,
|
||||||||||||||||||||
2007
US$
|
2006
US$
|
2005
US$
|
2004
US$
|
2003
US$
|
||||||||||||||||
Exchange
rate at the end of period
|
0.9035
|
0.8926
|
0.7957
|
0.7293
|
0.6975
|
|||||||||||||||
Average
exchange rate during period
|
0.8818
|
0.8499
|
0.7891
|
0.7445
|
0.6498
|
|||||||||||||||
High
exchange rate during period
|
0.9100
|
0.8926
|
0.8493
|
0.7880
|
0.6975
|
|||||||||||||||
Low
exchange rate during period
|
0.8437
|
0.7872
|
0.7158
|
0.7032
|
0.6264
|
Month
ended
|
||||||||||||||||||||||||
August
31,
2007
US$
|
July
31,
2007
US$
|
June
30,
2007
US$
|
May
31,
2007
US$
|
April
30,
2007
US$
|
March
31,
2007
US$
|
|||||||||||||||||||
High
|
0.9527
|
0.9641
|
0.9453
|
0.9345
|
0.9035
|
0.8673
|
||||||||||||||||||
Low
|
0.9470
|
0.9355
|
0.9322
|
0.8980
|
0.8633
|
0.8467
|
(i)
|
Loss
of license insurance for our pilots in Europe, Africa and
Australia.
|
(ii)
|
Death
and disability insurance for employees of our Norwegian
operations.
|
(iii)
|
Valuation
rate protection for the pension plan for employees of our Norwegian
operations.
|
(iv)
|
Benefit
plans of various operating
subsidiaries.
|
•
|
increasing
the equity in an amount sufficient to achieve such balance and to
ensure
that the equity of the subsidiary becomes adequate compared to the
risks
and the size of the subsidiary's business;
or
|
•
|
reducing
the share capital to pay off losses in an amount sufficient to achieve
such balance.
|
ITEM
4.
|
INFORMATION
ON THE COMPANY
|
•
|
an
established brand name;
|
•
|
a
strong track record of providing high quality, safe and reliable
service;
|
•
|
a
large, diversified fleet of helicopters to accommodate various customer
requirements;
|
•
|
a
highly skilled and dedicated team of pilots, engineers and support
staff;
|
•
|
a
cost structure that allows the provision of services at competitive
prices;
|
•
|
an
effective capital structure that permits financing of new
aircraft;
|
•
|
a
broad network of regional bases to cost-effectively bid for new contracts
in most areas of the world as opportunities arise;
and
|
•
|
familiarity
with a variety of local business practices and regulations around
the
world and established local joint venture partnerships and strategic
customer alliances.
|
Agip
|
ExxonMobil
|
Premier
|
Apache
|
Ireland
|
Royal
Dutch/Shell Group
|
Bp
|
Maersk
|
Statoil
|
Chevron
|
Marathon
|
TotalFinaElf
|
Commonwealth
of Australia
|
Nexen
|
Unocal
|
ConocoPhillips
|
Petrobras
|
Global
Coverage.
We currently
provide helicopter transportation services in over 30 countries and
on all
seven continents. This broad geographic coverage and an efficient
management structure enable us to respond quickly and cost effectively
to
customer needs and new business opportunities while adhering to local
market regulations and customs. Since new contract and base start-up
costs
can represent a significant portion of operating expenses, our global
network of bases allows us to reallocate equipment and crews efficiently
and bid on new contracts at competitive rates. Additionally, as
multinational oil and gas companies seek service providers that can
provide one standard of service in many locations around the world,
our
geographic coverage makes us one of only two global providers that
can
effectively compete for many of these
contracts.
|
Focus
on
Safety.
In over
60 years of operations, we have developed sophisticated safety and
training programs and practices that have resulted in a strong safety
record. We have implemented a single Safety Management System worldwide
and continue to meet or exceed the stringent safety and performance
audits
that are conducted by our customers. Our advanced flight training
facility
in Norway provides a wide variety of training services to our employees
as
well as third-party civil and military organizations around the world.
Providing and expanding these advanced training services in Aberdeen
and
Vancouver enhances our global reputation for leadership and excellence
in
helicopter services.
|
Low
Cost
Operator.
We believe
that we have significant cost advantages over our competitors with
respect
to our medium and heavy helicopter services, which increase our likelihood
of winning new contracts. We believe that our economies of scale,
lower
insurance costs related to our industry leading safety record and
in-house
R&O and training capabilities give us a cost advantage over
competitors who must incorporate higher third-party R&O costs into
their contract bids.
|
Long-Term
Customer
Relationships.
We have worked
successfully for many years with major oil and gas companies, some
of
which have been customers continuously for more than 20 years. As a
result of our established long-term customer relationships, our focus
on
safety and flight training, our crews’ experience and the quality of our
services, we consistently meet or exceed our customers’ standards and are
invited to bid on new projects. In addition to standard helicopter
transportation services, certain of our customers rely on us for
ancillary
services, including our computerized logistics systems for crew scheduling
and passenger handling services, all of which help strengthen customer
relationships.
|
Large,
Modern and Diversified
Fleet of Helicopters.
To meet the
diverse operational requirements of our customers, we operate a large
fleet that includes some of the most sophisticated helicopters in
the
world. We have led the industry in fleet renewal with aircraft sought
after by customers for their improved speed, range, passenger capacity,
comfort and general superior performance. As of April 30, 2007, we
operated 255 aircraft, comprised of 86 heavy helicopters,
146 medium helicopters, three light helicopters and
twenty fixed-wing aircraft. The helicopter fleet consists of more
than a dozen types of helicopters manufactured primarily by Eurocopter,
Sikorsky, AgustaWestland and Bell. During the year we added an additional
four Sikorsky S92 aircraft for a total of ten S92 aircraft to complement
our fleet of twenty Super Puma MkIIs. These two aircraft types represent
the most advanced civilian heavy helicopter types in service today.
In
addition, we have six AgustaWestland AW139 in our fleet. The
AgustaWestland AW139 is a new aircraft type, which we have added
to the
fleet along with the Sikorsky S92. During the year, we signed a contract
with Eurocopter for the purchase of 16 new EC225 helicopters to be
delivered between fiscal 2008 and fiscal 2012. The EC225 aircraft
is also
a new heavy aircraft type.
|
Retention
of Asset
Value.
Based on
independent appraisals as of April 30, 2007 the estimated fair market
value of our owned aircraft fleet was $628.2 million, exceeding our
net book value by approximately $33.1 million. Since a significant
portion of a helicopter’s value resides in its major components including
engines, gearboxes, transmissions and repairable parts, which are
replaced
or upgraded on a regular basis, older models of helicopters that
have been
upgraded are capable of meeting many of the same performance standards
as
newer aircraft. As a result, when helicopters are sold as part of
our
ongoing fleet management, we often receive prices in excess of net
book
value.
|
In-house
Repair and Overhaul
Business.
We believe
that our R&O activities reduce our costs, diversify our revenue
streams and help position us as a full-service, high-quality helicopter
operator. We are a market leader in R&O capability and have the only
licensed commercial engine and major component R&O facility in the
world for the Eurocopter Super Puma and EC225 helicopters, other
than the
original equipment manufacturers, and have the capability to support
several other helicopter types including Eurocopter Dauphin, Sikorsky
S61
and S76 and Bell 212/412. This capability allows us to control the
quality and cost of our helicopter maintenance, repair and refurbishment.
The development of the Boundary Bay R&O facility, acquisition of
Heli-Dyne and the expansion of in-house capabilities may result in
our
exit from third-party PBH maintenance programs in the
future.
|
Strengthen
Competitive
Position in Existing Markets.
We intend to
increase our ability to win new contracts, renew existing contracts,
strengthen our existing customer relationships and enhance our competitive
position by improving our focus on customer needs and reducing costs
while
maintaining high standards for safety and reliability. Our organizational
structure ideally positions us to service increased demand from existing
customers and new entrants to the
marketplace.
|
Growth
Through
Acquisition.
During the
year we acquired an equity position in BHS, one of the largest helicopter
operators in the Brazilian offshore sector. We also acquired Heli-Dyne,
a
helicopter completion and maintenance centre based in Hurst, Texas.
We
intend to seek out additional acquisition opportunities to further
strengthen our position in existing markets and expansion into new
markets.
|
Selectively
Expand
International Operations.
We intend to
capitalize on our broad geographic coverage, our long-term customer
relationships and our fleet capabilities to pursue new opportunities
in
Africa, Asia, Brazil and other developing oil and gas regions, which
are
expected to be the fastest growing markets for offshore helicopter
transportation services.
|
Expand
the Helicopter Support
Business with Heli-One.
We plan to
continue to expand our R&O business by further penetrating the
Eurocopter (Super Puma and EC225) major component and engine overhaul
market and pursuing new opportunities in heavy and medium aircraft
maintenance and military helicopter support through the development
of
facilities in North America, including the acquisition of Heli-Dyne
in fiscal 2007. During the year, we began construction of a
240,000 square foot R&O facility at Boundary Bay Airport in
Delta, BC, Canada, which is expected to be completed in the fourth
quarter
of fiscal 2008. Heli-One has the capability to support, on a nose-to-tail
basis, our entire fleet of over 150 Sikorsky S61 and S76 and Eurocopter
Super Puma aircraft and to compete for helicopter work for a worldwide
fleet of aircraft in this sector. In addition to repair and overhaul,
Heli-One provides the following services to the helicopter
industry:
|
|
-
|
Integrated
logistics support;
|
|
-
|
Aircraft
leasing;
|
|
-
|
Heavy
maintenance;
|
|
-
|
Design
and engineering;
|
|
-
|
Helicopter
parts and distribution; and
|
|
-
|
Inventory
management.
|
Pursue
Profitable New Business
Beyond the Oil and Gas Sector.
We believe
that we have a competitive advantage in the EMS/SAR sectors by virtue
of
our experience in servicing both the oil and gas and EMS/SAR industries.
We believe that this advantage stems from our ability to operate
sophisticated twin-engine medium and heavy helicopters with highly
trained
pilots in complex situations. Typically, EMS/SAR customers require
the
operator to meet stringent quality standards on a long-term
basis.
|
Continue
to Focus on Long-Term
Contracts.
We seek to
enter into long-term contracts with our major customers in order
to
maximize the stability of our revenue. Revenue from operations under
long-term contracts represented approximately 67% of our revenue
during
the year, compared to 66% in the prior
year.
|
Revenue
by Industry
Sector
|
2007
|
2006(i)
|
2005(i)
|
|||||||||||||||||||||
(in
millions)
|
%
|
(in
millions)
|
%
|
(in
millions)
|
%
|
|||||||||||||||||||
Oil
and Gas
|
803.4
|
69.9 | % |
696.7
|
69.9 | % |
667.6
|
70.0 | % | |||||||||||||||
Repair
and Overhaul
|
159.3
|
13.9 | % |
131.5
|
13.2 | % |
112.2
|
11.7 | % | |||||||||||||||
EMS/SAR
|
80.7
|
7.0 | % |
82.7
|
8.3 | % |
84.8
|
8.9 | % | |||||||||||||||
Other
|
73.3
|
6.4 | % |
61.4
|
6.1 | % |
57.5
|
6.0 | % | |||||||||||||||
Passenger
Transportation
|
26.8
|
2.3 | % |
18.0
|
1.8 | % |
24.7
|
2.6 | % | |||||||||||||||
Training
|
5.6
|
0.5 | % |
6.8
|
0.7 | % |
7.4
|
0.8 | % | |||||||||||||||
Total
|
$ |
1,149.1
|
100.0 | % | $ |
997.1
|
100.0 | % | $ |
954.2
|
100.0 | % |
Revenue
by Geographic
Area
|
2007
|
2006(i)
|
2005(i)
|
|||||||||||||||||||||
(in
millions)
|
%
|
(in
millions)
|
%
|
(in
millions)
|
%
|
|||||||||||||||||||
Canada
|
$ |
48.2
|
4.2 | % | $ |
32.9
|
3.3 | % | $ |
24.0
|
2.5 | % | ||||||||||||
United
Kingdom
|
248.8
|
21.7 | % |
209.4
|
21.0 | % |
237.7
|
24.9 | % | |||||||||||||||
Norway
|
202.0
|
17.6 | % |
206.7
|
20.7 | % |
182.9
|
19.2 | % | |||||||||||||||
Africa
|
189.9
|
16.5 | % |
150.1
|
15.1 | % |
124.3
|
13.0 | % | |||||||||||||||
Australia
|
74.6
|
6.5 | % |
64.5
|
6.5 | % |
62.2
|
6.5 | % | |||||||||||||||
Denmark
|
29.1
|
2.5 | % |
28.1
|
2.8 | % |
35.5
|
3.7 | % | |||||||||||||||
The
Netherlands
|
72.1
|
6.3 | % |
67.2
|
6.7 | % |
65.9
|
7.0 | % | |||||||||||||||
Other
Asian countries
|
68.1
|
5.9 | % |
52.7
|
5.3 | % |
88.5
|
9.3 | % | |||||||||||||||
Other
European countries
|
120.9
|
10.5 | % |
108.0
|
10.8 | % |
88.7
|
9.3 | % | |||||||||||||||
Other
countries
|
95.4
|
8.3 | % |
77.5
|
7.8 | % |
44.5
|
4.6 | % | |||||||||||||||
Consolidated
total
|
$ |
1,149.1
|
100.0 | % | $ |
997.1
|
100.0 | % | $ |
954.2
|
100.0 | % |
(i)
|
See
Note 2 to our audited consolidated financial statements included
elsewhere in this Annual Report.
|
Number
in
Fleet
|
Passenger
Capacity
(i)
|
||||||
Fleet
Composition
|
Owned
|
Leased
|
Type
of
Engine
|
||||
Light
Helicopters
|
|||||||
Eurocopter
AS350 Series
|
1
|
-
|
Turbine
|
5
|
|||
Eurocopter
AS355 Twin Star
|
1
|
-
|
Twin
Turbine
|
4
|
|||
MD
902
|
1
|
-
|
Twin
Turbine
|
7
|
|||
Total
Light
Helicopters
|
3
|
-
|
|||||
Medium
Helicopters
|
|||||||
AgustaWestland
AW139
|
2
|
4
|
Twin
Turbine
|
15
|
|||
Bell
212 Series
|
9
|
1
|
Twin
Turbine
|
14
|
|||
Bell
214
|
1
|
-
|
Twin
Turbine
|
19
|
|||
Bell
412
|
8
|
9
|
Twin
Turbine
|
14
|
|||
Eurocopter
155B
|
-
|
2
|
Twin
Turbine
|
12
|
|||
Eurocopter
365
Series
|
19
|
13
|
Twin
Turbine
|
10
|
|||
Sikorsky
S76
Series
|
48
|
30
|
Twin
Turbine
|
9
|
|||
Total
Medium
Helicopters
|
87
|
59
|
|||||
Heavy
Helicopters
|
|||||||
Eurocopter
Super Puma 332L/L1
|
17
|
15
|
Twin
Turbine
|
20
|
|||
Eurocopter
Super Puma 332 MkII
|
1
|
19
|
Twin
Turbine
|
19
|
|||
Sikorsky
S61N
|
22
|
2
|
Twin
Turbine
|
26
|
|||
Sikorsky
S92
Series
|
-
|
10
|
Twin
Turbine
|
19
|
|||
Total
Heavy
Helicopters
|
40
|
46
|
|||||
Fixed-Wing
Aircraft
|
|||||||
ATR
42-500
|
-
|
1
|
Twin
Turboprop
|
48
|
|||
Boeing
737-300
|
-
|
2
|
Twin
Jet
|
149
|
|||
Convair
580
|
2
|
-
|
Twin
Turboprop
|
55
|
|||
Dash
8
|
6
|
2
|
Twin
Turboprop
|
47
|
|||
Learjet
45
|
1
|
-
|
Twin
Jet
|
9
|
|||
Twin
Otter
|
5
|
1
|
Twin
Turboprop
|
19
|
|||
Total
Fixed-Wing Aircraft
|
14
|
6
|
|||||
TOTAL
|
144
|
111
|
(i)
|
Excludes
pilots and assumes standard seating of only one
pilot.
|
Aircraft
Type
|
Global
Operations
|
European
Operations
|
Heli-One
|
Total
|
Owned
|
Leased
|
||||||||||||||||||
Heavy
|
||||||||||||||||||||||||
Eurocopter
Super Puma
|
9
|
18
|
5
|
32
|
17
|
15
|
||||||||||||||||||
Eurocopter
Super Puma MkII
|
4
|
16
|
-
|
20
|
1
|
19
|
||||||||||||||||||
Sikorsky
S61N
|
12
|
9
|
3
|
24
|
22
|
2
|
||||||||||||||||||
Sikorsky
S92 series
|
2
|
5
|
3
|
10
|
-
|
10
|
||||||||||||||||||
27
|
48
|
11
|
86
|
40
|
46
|
|||||||||||||||||||
Medium
|
||||||||||||||||||||||||
AgustaWestland
AW139
|
2
|
4
|
-
|
6
|
2
|
4
|
||||||||||||||||||
Bell
212
|
10
|
-
|
-
|
10
|
9
|
1
|
||||||||||||||||||
Bell
412
|
15
|
-
|
2
|
17
|
8
|
9
|
||||||||||||||||||
Eurocopter
365 Series
|
15
|
8
|
9
|
32
|
19
|
13
|
||||||||||||||||||
Sikorsky
S76 Series
|
55
|
13
|
10
|
78
|
48
|
30
|
||||||||||||||||||
Other
|
-
|
3
|
-
|
3
|
1
|
2
|
||||||||||||||||||
97
|
28
|
21
|
146
|
87
|
59
|
|||||||||||||||||||
Light
|
||||||||||||||||||||||||
Eurocopter
AS350/355
|
1
|
-
|
1
|
2
|
2
|
-
|
||||||||||||||||||
Other
|
-
|
-
|
1
|
1
|
1
|
-
|
||||||||||||||||||
1
|
-
|
2
|
3
|
3
|
-
|
|||||||||||||||||||
Total
Helicopters
|
125
|
76
|
34
|
235
|
130
|
105
|
||||||||||||||||||
Fixed-wing
|
20
|
-
|
-
|
20
|
14
|
6
|
||||||||||||||||||
Total
Aircraft
|
145
|
76
|
34
|
255
|
144
|
111
|
Owned
or Leased/Lease
Expiration Date
|
||||
Location
|
Operations
|
Buildings
(Sq.
Feet)
|
Land
|
Buildings
|
Richmond,
British
Columbia,
Canada
|
Headquarters
for Corporate,
Global
Operations and Heli-One; Repair and Overhaul
|
80,000
|
Leased
October
1, 2038
|
Owned
|
Gander,
Newfoundland
and
Labrador, Canada
|
CHC
Composites Inc.
Composites
Manufacturer
|
60,000
|
Leased
July,
2018
|
Owned
|
Aberdeen,
Scotland
|
CHC
Scotia Limited;
Helicopter
Operations
|
42,000
|
Leased
April
16, 2030
|
Leased
April
30, 2016
|
CHC
Scotia Limited;
Terminal
Building
|
25,000
|
Leased
June
30, 2027
|
Owned
|
|
Stavanger,
Norway
|
CHC
Helikopter Service AS Helicopter Operations
|
199,000
|
Leased
March
1, 2012
|
Owned
|
Heli-One
(Norway) AS Headquarters;
Repair
and Overhaul
|
179,000(i)
|
Leased
April
20, 2010
|
Owned
|
|
Cape
Town,
South
Africa
|
CHC
Africa;
Helicopter
Operations
|
142,884
|
Leased
April
30, 2010
|
Owned
|
Adelaide,
Australia
|
CHC
Australia;
Helicopter
Operations
|
10,000
|
Owned
|
Owned
|
Hoofddorp,
The
Netherlands
|
CHC
Netherlands BV;
Heli-One
(Netherlands) BV
|
39,000
|
Leased
|
Leased
|
Den
Helder,
The
Netherlands
|
CHC
Netherlands;
Helicopter
Operations
|
5,200
|
Leased
June
30, 2008
|
Leased
June
30, 2008
|
Delta,
British Columbia, Canada(ii)
|
Future
Headquarters for Heli-One and future Repair and Overhaul
facilities
|
240,000
|
Leased
|
Owned
|
Hurst,
Texas
|
Heli-One
USA Inc.
|
30,000
|
Owned
|
Owned
|
(i)
|
Sub-leased
from CHC Helikopter Service AS who leases from Heliwest AS and
included
within the 199,000 square feet shown in the table above for that
company.
|
(ii)
|
The
building on this property is under construction with occupation
expected
in February 2008.
|
ITEM
5.
|
OPERATING
AND FINANCIAL REVIEW AND PROSPECTS
|
•
|
The
Global Operations segment includes helicopter and fixed-wing flying
services for offshore oil and gas and EMS/SAR customers in Australia,
Africa, the Middle East, the Americas, Asia and other locations around
the
world, excluding Europe.
|
•
|
The
European Operations segment provides offshore oil and gas flying
operations from 17 bases in the UK, Norway, Ireland, the Netherlands
and
Denmark, as well as EMS/SAR and training operations throughout
Europe.
|
•
|
The
Heli-One segment combines our helicopter services support capabilities
including repair and overhaul, maintenance, integrated logistics
support
and aircraft leasing to both internal and external customers. Heli-One
operates repair and overhaul facilities located in Norway, Canada,
the UK,
the US, Australia and Africa. Heli-One also performs composite aerospace
component manufacturing.
|
•
|
The
Corporate and other segment includes corporate head office and other
corporate costs in various
jurisdictions.
|
(i)
|
Excluding
the impact of FX, there was a $108.1 million increase in revenue in
fiscal 2007 in Global Operations primarily due to increased flying
revenue
from new and expanded contracts in Australia, South America, Africa
and
Southeast Asia, as well as increased fixed-wing activity in Nigeria
and
rate increases on a number of existing
contracts.
|
(ii)
|
European
Operations’ revenue increased by $17.1 million, excluding FX, over
fiscal 2006 due to new and renewed contracts and rate increases earned
on
new aircraft types. These increases were partially offset by the
loss of
the ConocoPhillips contract in late fiscal 2006 and the impact of
aircraft
availability issues in fiscal 2007.
|
(iii)
|
An
increase in external revenue in fiscal 2007 in Heli-One of
$37.4 million, excluding FX. This increase was due to increases in
both external fleet and R&O revenues. External fleet revenue increased
due to incremental lease revenue on a larger third-party leased fleet,
including new aircraft lease contracts in Mexico and the US. R&O
revenue increased due to an increase in customer flying hours, new
PBH
contracts in Malaysia and Mexico, part sales increases and an increase
in
base maintenance activities. Base maintenance activities increased
primarily as a result of the consolidation of Heli-Dyne in the US,
which
was acquired during fiscal 2007, as well as increases in third party
base
maintenance work performed in Norway and
Europe.
|
Fiscal
Year Ended April 30
|
||||||||||||||||||||||||
2007
|
2006
|
Change
|
2007
|
2006
|
Change
(i)
|
|||||||||||||||||||
Industry
Sector
|
(percentage
of total revenue)
|
(in millions
of CDN dollars)
|
||||||||||||||||||||||
Oil
and Gas
|
69.9 | % | 69.9 | % |
-
|
$ |
803.4
|
$ |
696.7
|
$ |
106.7
|
|||||||||||||
Repair
and Overhaul
|
13.9 | % | 13.2 | % | 0.7 | % |
159.3
|
131.5
|
27.8
|
|||||||||||||||
EMS/SAR
|
7.0 | % | 8.3 | % | (1.3 | )% |
80.7
|
82.7
|
(2.0 | ) | ||||||||||||||
Other
|
6.4 | % | 6.1 | % | 0.3 | % |
73.3
|
61.4
|
11.9
|
|||||||||||||||
Passenger
Transportation
|
2.3 | % | 1.8 | % | 0.5 | % |
26.8
|
18.0
|
8.8
|
|||||||||||||||
Training
|
0.5 | % | 0.7 | % | (0.2 | )% |
5.6
|
6.8
|
(1.2 | ) | ||||||||||||||
Total
|
100.0 | % | 100.0 | % |
-
|
$ |
1,149.1
|
$ |
997.1
|
$ |
152.0
|
(i)
|
The
$106.7 million increase in revenue in the oil and gas sector was due
primarily to growth in Global Operations and European Operations
offset
partially by unfavourable FX. The $27.8 million increase in repair
and overhaul revenue was primarily due to an increase in customer
flying
hours, increased base maintenance activities in Norway and Europe
and the
acquisition of Heli-Dyne in the US during the year, partially offset
by
unfavourable FX.
|
Period
|
Global
Operations
|
European
Operations
|
Total
Flying Segments
|
Heli-One
|
Corporate
&
Other
|
Total
|
|||||||||||||||||||
Fiscal
2007
|
Q1
|
$ |
91.8
|
$ |
132.9
|
$ |
224.7
|
$ |
38.4
|
$ |
-
|
$ |
263.1
|
||||||||||||
Q2
|
97.8
|
131.7
|
229.5
|
43.3
|
0.2
|
273.0
|
|||||||||||||||||||
Q3
|
119.7
|
135.5
|
255.2
|
45.5
|
0.1
|
300.8
|
|||||||||||||||||||
Q4
|
118.7
|
139.8
|
258.5
|
53.5
|
0.2
|
312.2
|
|||||||||||||||||||
$ |
428.0
|
$ |
539.9
|
$ |
967.9
|
$ |
180.7
|
$ |
0.5
|
$ |
1,149.1
|
||||||||||||||
Fiscal
2006
|
Q1
|
$ |
76.0
|
$ |
133.6
|
$ |
209.6
|
$ |
33.4
|
$ |
-
|
$ |
243.0
|
||||||||||||
Q2
|
79.5
|
138.5
|
218.0
|
34.5
|
(0.1 | ) |
252.4
|
||||||||||||||||||
Q3
|
86.6
|
126.0
|
212.6
|
40.8
|
0.1
|
253.5
|
|||||||||||||||||||
Q4
|
88.8
|
122.3
|
211.1
|
37.0
|
0.1
|
248.2
|
|||||||||||||||||||
$ |
330.9
|
$ |
520.4
|
$ |
851.3
|
$ |
145.7
|
$ |
0.1
|
$ |
997.1
|
Flying
Hours
|
Number
of Aircraft at Period End
|
||||||||||||||||||||||||||||
Period
|
Global
Operations
|
European
Operations
|
Total
|
Global
Operations
|
European
Operations
|
Heli-One
|
Total
|
||||||||||||||||||||||
Fiscal
2007
|
Q1
|
19,502
|
24,240
|
43,742
|
132
|
76
|
44
|
252
|
|||||||||||||||||||||
Q2
|
20,981
|
23,256
|
44,237
|
128
|
77
|
43
|
248
|
||||||||||||||||||||||
Q3
|
21,547
|
21,556
|
43,103
|
128
|
75
|
47
|
250
|
||||||||||||||||||||||
Q4
|
22,177
|
21,956
|
44,133
|
145
|
76
|
34
|
255
|
||||||||||||||||||||||
84,207
|
91,008
|
175,215
|
|||||||||||||||||||||||||||
Fiscal
2006
|
Q1
|
16,262
|
23,713
|
39,975
|
127
|
77
|
14
|
218
|
|||||||||||||||||||||
Q2
|
17,042
|
25,968
|
43,010
|
128
|
71
|
27
|
226
|
||||||||||||||||||||||
Q3
|
18,854
|
23,764
|
42,618
|
131
|
72
|
27
|
230
|
||||||||||||||||||||||
Q4
|
17,701
|
22,026
|
39,727
|
131
|
72
|
30
|
233
|
||||||||||||||||||||||
69,859
|
95,471
|
165,330
|
Hourly
|
Fixed
|
Total
|
||||||||||||||||||||||
Segment
|
Fiscal
2007
|
Fiscal
2006
|
Fiscal
2007
|
Fiscal
2006
|
Fiscal
2007
|
Fiscal
2006
|
||||||||||||||||||
Global
Operations
|
$ |
114.1
|
$ |
97.2
|
$ |
260.6
|
$ |
210.7
|
$ |
374.7
|
$ |
307.9
|
||||||||||||
European
Operations
|
282.4
|
311.0
|
231.9
|
186.2
|
514.3
|
497.2
|
||||||||||||||||||
$ |
396.5
|
$ |
408.2
|
$ |
492.5
|
$ |
396.9
|
$ |
889.0
|
$ |
805.1
|
Fiscal
2007
|
Fiscal
2006
|
|||||||||||||||||||||||||||||||||||||||
Segment
|
Heavy
|
Medium
|
Light
|
Fixed
Wing
|
Total
|
Heavy
|
Medium
|
Light
|
Fixed
Wing
|
Total
|
||||||||||||||||||||||||||||||
Global
Operations
|
$ |
87.8
|
$ |
242.1
|
$ |
0.9
|
$ |
43.9
|
$ |
374.7
|
$ |
70.0
|
$ |
204.8
|
$ |
2.5
|
$ |
30.6
|
$ |
307.9
|
||||||||||||||||||||
European
Operations
|
378.2
|
136.1
|
-
|
-
|
514.3
|
369.7
|
127.5
|
-
|
-
|
497.2
|
||||||||||||||||||||||||||||||
Total
Flying
|
||||||||||||||||||||||||||||||||||||||||
Revenue
|
$ |
466.0
|
$ |
378.2
|
$ |
0.9
|
$ |
43.9
|
$ |
889.0
|
$ |
439.7
|
$ |
332.3
|
$ |
2.5
|
$ |
30.6
|
$ |
805.1
|
||||||||||||||||||||
Total
%
|
52.5 | % | 42.5 | % | 0.1 | % | 4.9 | % | 100.0 | % | 54.6 | % | 41.3 | % | 0.3 | % | 3.8 | % | 100.0 | % |
(in
millions of Canadian dollars)
|
2007
|
2006
|
||||||
Interest
on debt obligations
|
$ |
51.9
|
$ |
43.5
|
||||
Amortization
of deferred financing costs
|
1.4
|
1.6
|
||||||
Foreign
exchange losses
|
8.2
|
6.2
|
||||||
Release
of currency translation adjustment
|
(0.3 | ) |
2.6
|
|||||
Other
interest income
|
(2.9 | ) | (0.9 | ) | ||||
Total
|
$ |
58.3
|
$ |
53.0
|
(in
millions of Canadian dollars)
|
2007
|
2006
|
||||||
Earnings
from continuing operations before income taxes
|
$ |
57.8
|
$ |
100.2
|
||||
Combined
Canadian federal and provincial statutory income tax rate
|
34 | % | 34 | % | ||||
Income
tax provision calculated at statutory rate
|
(19.7 | ) | (34.1 | ) | ||||
(Increase)
decrease in income tax provision resulting from:
|
||||||||
Rate
differences in various jurisdictions
|
12.9
|
13.5
|
||||||
Effect
of change in tax law
|
(1.3 | ) | (0.2 | ) | ||||
Non-deductible
items
|
(0.6 | ) | (1.2 | ) | ||||
Large
corporations tax
|
-
|
(0.5 | ) | |||||
Other
foreign taxes
|
(7.8 | ) | (3.5 | ) | ||||
Non-taxable
portion of capital gains
|
0.6
|
13.6
|
||||||
Non-taxable
income
|
1.9
|
2.7
|
||||||
Valuation
allowance
|
0.7
|
(0.3 | ) | |||||
Other
|
(3.5 | ) | (0.5 | ) | ||||
Income
tax provision
|
$ | (16.8 | ) | $ | (10.5 | ) |
(in
millions of Canadian dollars)
|
||||
2008
|
$ |
5.1
|
||
2009
|
8.9
|
|||
2014
|
3.0
|
|||
2015
|
19.3
|
|||
2026
|
33.0
|
|||
2027
|
4.2
|
|||
Indefinitely
|
80.2
|
|||
$ |
153.7
|
Fiscal
2007
|
Revenue
|
Net
earnings
from continuing operations
|
Net
earnings
|
Total
assets
|
Total
long-term
financial liabilities
|
Cash
dividends
per
share
|
Net
earnings
per
share
from
continuing
operations
|
Net
earnings
per
share
|
||||||||||||||||||||||||||||||||
(in millions
of Canadian dollars)
|
declared
|
Basic
|
Diluted
|
Basic
|
Diluted
|
|||||||||||||||||||||||||||||||||||
Q1
|
$ |
263.1
|
$ |
9.0
|
$ |
8.8
|
$ |
1,838.2
|
$ |
1,043.4
|
$ |
-
|
$ |
0.21
|
$ |
0.20
|
$ |
0.21
|
$ |
0.19
|
||||||||||||||||||||
Q2
|
273.0
|
8.3
|
8.9
|
1,839.0
|
1,018.2
|
0.50
|
0.20
|
0.18
|
0.21
|
0.20
|
||||||||||||||||||||||||||||||
Q3
|
300.8
|
12.0
|
12.8
|
2,012.6
|
877.6
|
-
|
0.28
|
0.26
|
0.30
|
0.28
|
||||||||||||||||||||||||||||||
Q4
|
312.2
|
11.7
|
13.5
|
2,102.2
|
842.7
|
-
|
0.28
|
0.26
|
0.32
|
0.30
|
||||||||||||||||||||||||||||||
Total
|
$ |
1,149.1
|
$ |
41.0
|
$ |
44.0
|
$ |
0.50
|
$ |
0.97
|
$ |
0.90
|
$ |
1.04
|
$ |
0.97
|
||||||||||||||||||||||||
Fiscal
2006
|
||||||||||||||||||||||||||||||||||||||||
Q1
|
$ |
243.0
|
$ |
18.8
|
$ |
19.2
|
$ |
1,669.8
|
$ |
975.2
|
$ |
-
|
$ |
0.45
|
$ |
0.41
|
$ |
0.46
|
$ |
0.42
|
||||||||||||||||||||
Q2
|
252.4
|
39.2
|
39.2
|
1,675.1
|
939.1
|
0.40
|
0.93
|
0.85
|
0.93
|
0.85
|
||||||||||||||||||||||||||||||
Q3
|
253.5
|
21.4
|
21.5
|
1,685.6
|
945.8
|
-
|
0.51
|
0.47
|
0.51
|
0.47
|
||||||||||||||||||||||||||||||
Q4
|
248.2
|
10.3
|
10.8
|
1,686.1
|
911.7
|
-
|
0.25
|
0.22
|
0.26
|
0.23
|
||||||||||||||||||||||||||||||
Total
|
$ |
997.1
|
$ |
89.7
|
$ |
90.7
|
$ |
0.40
|
$ |
2.14
|
$ |
1.95
|
$ |
2.16
|
$ |
1.97
|
(i)
|
Results
for Q2 of fiscal 2006 included a pre-tax gain of $21.8 million for
the sale of the Company’s remaining interest in CHL and other long-term
investments.
|
(ii)
|
Results
for Q3 of fiscal 2006 included a pre-tax gain of $15.7 million for
the sale of the Company’s equity interest in
Inaer.
|
(iii)
|
Results
for Q1 of fiscal 2007 included aircraft introduction costs of
approximately $5.5 million in support of future
growth.
|
(iv)
|
Results
for Q2 of fiscal 2007 included foreign exchange losses of approximately
$6.6 million relating to various items including repatriation of cash
to Canada, internal financing arrangements between subsidiaries of
the
Company in currencies other than their functional currencies, and
short-term imbalances in third-party trade and other balances in
the
Company’s Norwegian and South African
subsidiaries.
|
(v)
|
Results
for Q3 of fiscal 2007 included revenue on the sale of an aircraft
of
approximately $13.0 million.
|
(vi)
|
Results
for Q4 of fiscal 2007 included aircraft introduction costs of
$5.1 million in support of continued
growth.
|
Global
Operations
|
European
Operations
|
Heli-One
|
Corporate
&
Other
|
Inter-segment
Eliminations
|
Total
|
||||||||||||||||
Year
ended April 30, 2006 (i)
|
$ |
330,877
|
$ |
520,367
|
$ |
145,668
|
$ |
175
|
N/A
|
$ |
997,087
|
||||||||||
Foreign
exchange impact (ii)
|
(11,007 | ) |
2,468
|
(2,453 | ) |
13
|
N/A
|
(10,979 | ) | ||||||||||||
Revenue
increase (decrease)
|
108,086
|
17,086
|
37,398
|
429
|
N/A
|
162,999
|
|||||||||||||||
Year
ended April 30,
2007
|
$ |
427,956
|
$ |
539,921
|
$ |
180,613
|
$ |
617
|
N/A
|
$ |
1,149,107
|
||||||||||
Total
revenue
increase
|
$ |
97,079
|
$ |
19,554
|
$ |
34,945
|
N/A
|
N/A
|
$ |
152,020
|
|||||||||||
%
increase
|
29.3 | % | 3.8 | % | 24.0 | % |
N/A
|
N/A
|
15.2 | % | |||||||||||
%
increase excluding
FX
|
32.7 | % | 3.3 | % | 25.7 | % |
N/A
|
N/A
|
16.3 | % |
Global
Operations
|
European
Operations
|
Heli-One
|
Corporate
&
Other
|
Inter-segment
Eliminations
|
Total
|
|||||||||||||||||||
Year
ended April 30, 2006 (i)
|
$ |
90,922
|
$ |
107,481
|
$ |
229,475
|
$ | (27,662 | ) | $ | (154,049 | ) | $ |
246,167
|
||||||||||
Foreign
exchange impact (ii)
|
(3,183 | ) | (3,679 | ) |
1,302
|
1,428
|
-
|
(4,132 | ) | |||||||||||||||
Segment
EBITDAR increase (decrease)
|
47,392
|
(8,460 | ) |
42,397
|
(15,104 | ) | (26,808 | ) |
39,417
|
|||||||||||||||
Year
ended April 30,
2007
|
$ |
135,131
|
$ |
95,342
|
$ |
273,174
|
$ | (41,338 | ) | $ | (180,857 | ) | $ |
281,452
|
||||||||||
Segment
EBITDAR margin
(iii)
|
||||||||||||||||||||||||
-
Last
year
|
27.5 | % | 20.7 | % | 45.8 | % |
N/A
|
N/A
|
24.7 | % | ||||||||||||||
-
This
year
|
31.6 | % | 17.7 | % | 47.7 | % |
N/A
|
N/A
|
24.5 | % | ||||||||||||||
Total
Segment EBITDAR increase
(decrease)
|
$ |
44,209
|
$ | (12,139 | ) | $ |
43,699
|
$ | (13,676 | ) | $ | (26,808 | ) | $ |
35,285
|
|||||||||
%
increase
(decrease)
|
48.6 | % | (11.3 | %) | 19.0 | % | (49.4 | %) |
N/A
|
14.3 | % | |||||||||||||
%
increase (decrease)
excluding FX
|
52.1 | % | (7.9 | %) | 18.5 | % | (54.6 | %) |
N/A
|
16.0 | % |
Global
Operations
|
European
Operations
|
Heli-One
|
Corporate
&
Other
|
Inter-segment
Eliminations
|
Total
|
|||||||||||||||||||
Year
ended April 30, 2006 (i)
|
$ |
7,706
|
$ |
31,857
|
$ |
168,790
|
$ | (27,662 | ) | $ |
-
|
$ |
180,691
|
|||||||||||
Foreign
exchange impact (ii)
|
(1,366 | ) | (3,792 | ) |
4,266
|
1,416
|
-
|
524
|
||||||||||||||||
Segment
EBITDA increase (decrease)
|
27,811
|
(25,830 | ) |
12,901
|
(15,092 | ) |
-
|
(210 | ) | |||||||||||||||
Year
ended April 30,
2007
|
$ |
34,151
|
$ |
2,235
|
$ |
185,957
|
$ | (41,338 | ) | $ |
-
|
$ |
181,005
|
|||||||||||
Segment
EBITDA margin
(iii)
|
||||||||||||||||||||||||
-
Last
year
|
2.3 | % | 6.1 | % | 33.7 | % |
N/A
|
N/A
|
18.1 | % | ||||||||||||||
-
This
year
|
8.0 | % | 0.4 | % | 32.5 | % |
N/A
|
N/A
|
15.8 | % | ||||||||||||||
Total
Segment EBITDA increase
(decrease)
|
$ |
26,445
|
$ | (29,622 | ) | $ |
17,167
|
$ | (13,676 | ) | $ |
-
|
$ |
314
|
||||||||||
%
increase
(decrease)
|
343.2 | % | (93.0 | %) | 10.2 | % | (49.4 | %) |
N/A
|
0.2 | % | |||||||||||||
%
increase (decrease)
excluding FX
|
360.9 | % | (81.1 | %) | 7.6 | % | (54.6 | %) |
N/A
|
(0.1 | %) |
Global
Operations
|
European
Operations
|
Heli-One
|
Corporate
&
Other
|
Inter-segment
Eliminations
|
Total
|
||||||||||||||||
Year
ended April 30, 2006 (i)
|
$ |
2,913
|
$ |
24,721
|
$ |
116,297
|
$ | (34,865 | ) |
N/A
|
$ |
109,066
|
|||||||||
Foreign
exchange impact (ii)
|
(1,133 | ) | (3,736 | ) |
3,196
|
1,391
|
N/A
|
(282 | ) | ||||||||||||
Operating
income increase (decrease)
|
28,271
|
(22,275 | ) |
8,212
|
(7,936 | ) |
N/A
|
6,272
|
|||||||||||||
Year
ended April 30,
2007
|
$ |
30,051
|
$ | (1,290 | ) | $ |
127,705
|
$ | (41,410 | ) |
N/A
|
$ |
115,056
|
||||||||
Total
operating income
increase (decrease)
|
$ |
27,138
|
$ | (26,011 | ) | $ |
11,408
|
$ | (6,545 | ) |
N/A
|
$ |
5,990
|
||||||||
%
increase
(decrease)
|
931.6 | % | (105.2 | %) | 9.8 | % | (18.8 | %) |
N/A
|
5.5 | % | ||||||||||
%
increase (decrease)
excluding FX
|
970.5 | % | (90.1 | %) | 7.1 | % | (22.8 | %) |
N/A
|
5.8 | % |
(i)
|
Comparative
figures have been reclassified for the classification of Survival-One
as
discontinued operations as outlined in Note 2 to our fiscal 2007
audited consolidated financial
statements.
|
(ii)
|
Includes
both the foreign exchange on the translation of the financial results
of
the foreign subsidiaries into Canadian dollars (“translation impact”) and
the foreign exchange on the translation of foreign currency denominated
transactions into the reporting currencies of the subsidiaries
(“transaction impact”).
|
(iii)
|
Segment
EBITDAR and segment EBITDA as a percent of revenue from external
customers
except for the Heli-One segment, which is a percent of total
revenue.
|
(iv)
|
See
Note 25 to our fiscal 2007 audited consolidated financial
statements.
|
•
|
through
BHS, a five-year contract for the provision of eight Sikorsky S76C+
helicopters in support of Petrobras’ operations in the Brazilian offshore
sector.
|
•
|
a
seven-year (plus three years of extension options) EMS contract with
the
Ambulance Service of New South Wales for the provision of five aircraft
in
the Greater Sydney area. The contract commenced in late fiscal 2007
and
calls for AgustaWestland AW139 and Eurocopter EC145
aircraft.
|
•
|
a
contract renewal by the Irish Minister for Transport for the continued
provision of marine SAR services in Ireland from July 2007 to
July 2010, plus three option
years.
|
•
|
a
three-year contract and two five-year contracts by Statoil for the
provision of helicopter services in the Norwegian sector of the
North Sea commencing in
mid-2007.
|
•
|
a
four-year contract renewal by Apache North Sea Limited for the provision
of helicopter services in support of Apache’s offshore operations. The
contract commenced on September 1, 2006 and is supported by a
Sikorsky S92 aircraft.
|
•
|
a
three-year contract (plus two option years) by TOTAL E&P Norge AS for
the provision of helicopter transportation services from Stavanger
and
Kristiansund, Norway, commencing in early 2008. A Eurocopter EC225
will be
deployed on the contract. The contract is expected to generate annual
revenue of approximately
$9.0 million.
|
•
|
two
major contracts by Statoil ASA, Norway for provision of helicopter
services in the Norwegian Sea. The Company believes that this is
the
largest bundle of helicopter services contracts ever awarded, with
a total
value of approximately $1.1 billion, over the fixed and option
periods. The contract details are as
follows:
|
(i)
|
A
five-year contract for the provision of five Sikorsky S92 and two
Eurocopter EC225 aircraft in support of Statoil's offshore operations
based out of Floroe and Bergen, Norway, plus an additional back-up
Eurocopter AS332L2 in Bergen. The operation in Floroe will commence
in
June 2009 and the contract in Bergen in January 2010. The contract
includes options for up to four additional
years.
|
(ii)
|
A
seven-year contract for the provision of two all-weather Search and
Rescue
EC225 aircraft. One helicopter will be based at Statoil's Statfjord
field
in the North Sea, and the other in Bergen as back-up for this service.
Commencing in March 2009, the contract includes options for up to
four
additional years.
|
•
|
a
five-year contract renewal by Statoil for the provision of helicopter
services in support of Statoil’s offshore operations. The contract will
commence on July 1, 2009 and is anticipated to generate up to
$170 million over the five-year extension
period.
|
•
|
a
five-year contract renewal by GDF Production Nederland BV in
Den Helder. The contract was renewed in June 2007 and is expected to
generate revenue of approximately $55 million over the five-year
extension period.
|
Heli-One
Activities
|
||||||||||||||||||||||||
Fiscal
Year Ended April
30,
|
||||||||||||||||||||||||
(in
thousands of Canadian
dollars)
|
||||||||||||||||||||||||
Fleet
|
R&O
|
Total
|
||||||||||||||||||||||
2007
|
2006
|
2007
|
2006
|
2007
|
2006
|
|||||||||||||||||||
Revenue
|
||||||||||||||||||||||||
External
|
||||||||||||||||||||||||
PBH/R&O
|
$ |
-
|
$ |
-
|
$ |
130,878
|
$ |
106,104
|
$ |
130,878
|
$ |
106,104
|
||||||||||||
Lease
|
21,338
|
12,882
|
-
|
-
|
21,338
|
12,882
|
||||||||||||||||||
Other
(i)
|
-
|
-
|
28,397
|
26,682
|
28,397
|
26,682
|
||||||||||||||||||
Total
|
21,338
|
12,882
|
159,275
|
132,786
|
180,613
|
145,668
|
||||||||||||||||||
Internal
|
||||||||||||||||||||||||
PBH/R&O
|
-
|
-
|
210,098
|
194,915
|
210,098
|
194,915
|
||||||||||||||||||
Lease
|
181,200
|
150,855
|
-
|
-
|
181,200
|
150,855
|
||||||||||||||||||
Other
(i)
|
-
|
-
|
222
|
9,243
|
222
|
9,243
|
||||||||||||||||||
Total
|
181,200
|
150,855
|
210,320
|
204,158
|
391,520
|
355,013
|
||||||||||||||||||
Total
Revenue
|
202,538
|
163,737
|
369,595
|
336,944
|
572,133
|
500,681
|
||||||||||||||||||
Direct
costs
(ii)
|
(18,839 | ) | (19,872 | ) | (280,120 | ) | (251,334 | ) | (298,959 | ) | (271,206 | ) | ||||||||||||
Segment
EBITDAR (ii)
|
183,699
|
143,865
|
89,475
|
85,610
|
273,174
|
229,475
|
||||||||||||||||||
Segment
EBITDAR
margin
|
90.7 | % | 87.9 | % | 24.2 | % | 25.4 | % | 47.7 | % | 45.8 | % | ||||||||||||
Aircraft
lease and associated costs (ii)
|
(87,217 | ) | (60,685 | ) |
-
|
-
|
(87,217 | ) | (60,685 | ) | ||||||||||||||
Segment
EBITDA (ii)
|
$ |
96,482
|
$ |
83,180
|
$ |
89,475
|
$ |
85,610
|
185,957
|
168,790
|
||||||||||||||
Segment
EBITDA
margin
|
47.6 | % | 50.8 | % | 24.2 | % | 25.4 | % | 32.5 | % | 33.7 | % | ||||||||||||
Amortization
|
(56,474 | ) | (44,363 | ) | ||||||||||||||||||||
Restructuring
(costs) recovery
|
991
|
(7,445 | ) | |||||||||||||||||||||
Loss
on
disposal of assets
|
(2,769 | ) | (685 | ) | ||||||||||||||||||||
Operating
income
|
$ |
127,705
|
$ |
116,297
|
(i)
|
Other
consists of Composites, Heli-One Components B.V. and the recently
sold
trading surplus business.
|
(ii)
|
See
Note 25 to our fiscal 2007 audited consolidated financial
statements.
|
•
|
a
five-year helicopter lease and maintenance contract, plus two option
years, with AB Norrlandsflyg of Sweden commencing in January 2008.
Heli-One will provide Norrlandsflyg with two new Sikorsky S76C++
helicopters in SAR configuration and will support the helicopters’ major
components through a PBH maintenance agreement. Norrlandsflyg will
operate
the aircraft in a SAR capacity for the Swedish Maritime
Agency.
|
•
|
contracts
with major European Air Forces as
follows:
|
(i)
|
Modifications
to twelve Royal Norwegian Air Force Bell 412SP helicopters and upgrades
to
a further six 412 helicopters form SP to HP models. Work will be
carried
out in 2007 and 2008.
|
(ii)
|
S61A
fleet support for Royal Danish Air Force, including C-inspections,
component repair and overhaul, and personnel
support.
|
(iii)
|
Phase
inspections on two Royal Netherlands Air Force AS532U1 Cougar helicopters
(with options for a further five inspections) to be performed at
Royal
Netherlands Air Force facilities in
Woensdrecht.
|
•
|
a
contract with Eurocopter for the purchase of 16 new EC225
helicopters. Total value of the contract is approximately
$430 million. These aircraft are expected to be delivered between
fiscal 2008 and fiscal 2012. We plan to use these aircraft in support
of
new offshore oil and gas contracts and potentially as SAR aircraft
to meet
the unprecedented demand from various customers in both the offshore
oil
and gas industry and government sponsored SAR. The EC225 fleet will
be
fully supported by Heli-One who will provide total maintenance, repair
and
overhaul support for the advanced EC225. Heli-One has been granted
an
exclusive license to perform R&O on EC225
components.
|
(i)
|
Excluding
the impact of FX, there was a $66.7 million increase in revenue in
fiscal 2006 in Global Operations primarily due to increased flying
revenue
from new and expanded contracts in Southeast Asia, the Ivory Coast,
Canada
and Azerbaijan. This increase also relates to increased revenue from
fixed-wing activity.
|
(ii)
|
An
increase, excluding FX, in revenue in fiscal 2006 in European Operations
of $44.0 million due to new and expanded contracts and increased
flying activity on existing
contracts.
|
(iii)
|
An
increase, excluding the impact of FX, in revenue in fiscal 2006 in
Heli-One of $29.0 million. This increase was due primarily to
increased revenue from existing customers and moving into new markets
including Brazil.
|
Fiscal
Year Ended April 30
|
||||||||||||||||||||||||
2006
|
2005
|
Change
|
2006
|
2005
|
Change
(i)
|
|||||||||||||||||||
Industry
Sector
|
(percentage
of total revenue)
|
(in millions
of CDN dollars)
|
||||||||||||||||||||||
Oil
and Gas
|
69.9 | % | 70.0 | % | (0.1 | )% | $ |
696.7
|
$ |
667.6
|
$ |
29.1
|
||||||||||||
Repair
and Overhaul
|
13.2 | % | 11.7 | % | 1.5 | % |
131.5
|
112.2
|
19.3
|
|||||||||||||||
EMS/SAR
|
8.3 | % | 8.9 | % | (0.6 | )% |
82.7
|
84.8
|
(2.1 | ) | ||||||||||||||
Other
|
6.1 | % | 6.0 | % | 0.1 | % |
61.4
|
57.5
|
3.9
|
|||||||||||||||
Passenger
Transportation
|
1.8 | % | 2.6 | % | (0.8 | )% |
18.0
|
24.7
|
(6.7 | ) | ||||||||||||||
Training
|
0.7 | % | 0.8 | % | (0.1 | )% |
6.8
|
7.4
|
(0.6 | ) | ||||||||||||||
Total
|
100.0 | % | 100.0 | % |
-
|
$ |
997.1
|
$ |
954.2
|
$ |
42.9
|
(i)
|
The
$29.1 million increase in revenue in the oil and gas sector was due
primarily to growth in Global Operations and European Operations
offset
partially by unfavourable FX. The $19.3 million increase in repair
and overhaul revenue was due primarily to revenue from growth in
the
business from new and expanded contracts partially offset by unfavourable
FX.
|
Period
|
Global
Operations
|
European
Operations
|
Total
Flying Segments
|
Heli-One
|
Corporate
&
Other
|
Total
|
|||||||||||||||||||
Fiscal
2006
|
Q1
|
$ |
76.0
|
$ |
133.6
|
$ |
209.6
|
$ |
33.4
|
$ |
-
|
$ |
243.0
|
||||||||||||
Q2
|
79.5
|
138.5
|
218.0
|
34.5
|
(0.1 | ) |
252.4
|
||||||||||||||||||
Q3
|
86.6
|
126.0
|
212.6
|
40.8
|
0.1
|
253.5
|
|||||||||||||||||||
Q4
|
88.8
|
122.3
|
211.1
|
37.0
|
0.1
|
248.2
|
|||||||||||||||||||
$ |
330.9
|
$ |
520.4
|
$ |
851.3
|
$ |
145.7
|
$ |
0.1
|
$ |
997.1
|
||||||||||||||
Fiscal
2005
|
Q1
|
$ |
71.9
|
$ |
137.6
|
$ |
209.5
|
$ |
30.2
|
$ |
-
|
$ |
239.7
|
||||||||||||
Q2
|
71.2
|
134.6
|
205.8
|
32.9
|
0.1
|
238.8
|
|||||||||||||||||||
Q3
|
73.8
|
132.0
|
205.8
|
32.4
|
0.1
|
238.3
|
|||||||||||||||||||
Q4
|
75.2
|
126.7
|
201.9
|
35.3
|
0.2
|
237.4
|
|||||||||||||||||||
$ |
292.1
|
$ |
530.9
|
$ |
823.0
|
$ |
130.8
|
$ |
0.4
|
$ |
954.2
|
Flying
Hours
|
Number
of Aircraft at Period End
|
|||||||||||||
Period
|
Global
Operations
|
European
Operations
|
Total
|
Global
Operations
|
European
Operations
|
Heli-One
|
Total
|
|||||||
Fiscal
2006
|
Q1
|
16,262
|
23,713
|
39,975
|
127
|
77
|
14
|
218
|
||||||
Q2
|
17,042
|
25,968
|
43,010
|
128
|
71
|
27
|
226
|
|||||||
Q3
|
18,854
|
23,764
|
42,618
|
131
|
72
|
27
|
230
|
|||||||
Q4
|
17,701
|
22,026
|
39,727
|
131
|
72
|
30
|
233
|
|||||||
69,859
|
95,471
|
165,330
|
||||||||||||
Fiscal
2005
|
Q1
|
16,481
|
24,468
|
40,949
|
112
|
82
|
13
|
207
|
||||||
Q2
|
16,364
|
24,028
|
40,392
|
114
|
80
|
13
|
207
|
|||||||
Q3
|
17,070
|
22,927
|
39,997
|
122
|
79
|
13
|
214
|
|||||||
Q4
|
16,778
|
22,183
|
38,961
|
121
|
81
|
13
|
215
|
|||||||
66,693
|
93,606
|
160,299
|
Hourly
|
Fixed
|
Total
|
||||||||||||||||||||||
Segment
|
Fiscal
2006
|
Fiscal
2005
|
Fiscal
2006
|
Fiscal
2005
|
Fiscal
2006
|
Fiscal
2005
|
||||||||||||||||||
European
flying
|
$ |
97.2
|
$ |
82.1
|
$ |
210.7
|
$ |
194.5
|
$ |
307.9
|
$ |
276.6
|
||||||||||||
International
flying
|
311.0
|
321.1
|
186.2
|
181.6
|
497.2
|
502.7
|
||||||||||||||||||
$ |
408.2
|
$ |
403.2
|
$ |
396.9
|
$ |
376.1
|
$ |
805.1
|
$ |
779.3
|
2006
|
2005
|
|||||||||||||||||||||||||||||||||||||||
Segment
|
Heavy
|
Medium
|
Light
|
Fixed
Wing
|
Total
|
Heavy
|
Medium
|
Light
|
Fixed
Wing
|
Total
|
||||||||||||||||||||||||||||||
Global
Operations
|
$ |
70.0
|
$ |
204.8
|
$ |
2.5
|
$ |
30.6
|
$ |
307.9
|
$ |
69.1
|
$ |
174.3
|
$ |
3.5
|
$ |
29.7
|
$ |
276.6
|
||||||||||||||||||||
European
Operations
|
369.7
|
127.5
|
-
|
-
|
497.2
|
363.2
|
137.9
|
1.6
|
-
|
502.7
|
||||||||||||||||||||||||||||||
Total
Flying
Revenue
|
$ |
439.7
|
$ |
332.3
|
$ |
2.5
|
$ |
30.6
|
$ |
805.1
|
$ |
432.3
|
$ |
312.2
|
$ |
5.1
|
$ |
29.7
|
$ |
779.3
|
||||||||||||||||||||
Total
%
|
54.6 | % | 41.3 | % | 0.3 | % | 3.8 | % | 100.0 | % | 55.5 | % | 40.1 | % | 0.6 | % | 3.8 | % | 100.0 | % |
Fiscal
2006
|
Fiscal
2005
|
%
Change
(2006
vs 2005)
|
|
Q1
|
115,696
|
102,228
|
13.2%
|
Q2
|
120,813
|
104,715
|
15.4%
|
Q3
|
113,743
|
95,896
|
18.6%
|
Q4
|
114,684
|
101,132
|
13.4%
|
Total
|
464,936
|
403,971
|
15.1%
|
(in millions
of Canadian dollars)
|
2006
|
2005
|
||||||
Interest
on debt obligations
|
$ |
43.5
|
$ |
32.4
|
||||
Amortization
of deferred financing costs
|
1.6
|
3.2
|
||||||
Foreign
exchange losses (gains)
|
6.2
|
(1.2 | ) | |||||
Release
of currency translation adjustment
|
2.6
|
-
|
||||||
Other
interest and banking expenses
|
(0.9 | ) |
3.0
|
|||||
Total
|
$ |
53.0
|
$ |
37.4
|
(in
millions of Canadian dollars)
|
2006
|
2005
|
||||||
Earnings
from continuing operations before income taxes
|
$ |
100.2
|
$ |
74.3
|
||||
Combined
Canadian federal and provincial statutory income tax rate
|
34 | % | 35 | % | ||||
Income
tax provision calculated at statutory rate
|
(34.1 | ) | (26.0 | ) | ||||
(Increase)
decrease in income tax provision resulting from:
|
||||||||
Rate
differences in various jurisdictions
|
13.5
|
16.0
|
||||||
Effect
of change in tax legislation
|
(0.2 | ) | (4.2 | ) | ||||
Non-deductible
items
|
(1.2 | ) | (3.2 | ) | ||||
Large
corporations tax
|
(0.5 | ) | (0.5 | ) | ||||
Other
foreign taxes paid
|
(3.5 | ) | (1.7 | ) | ||||
Non-taxable
portion of capital gains
|
13.6
|
1.1
|
||||||
Non-taxable
income
|
2.7
|
1.3
|
||||||
Valuation
allowance
|
(0.3 | ) | (7.0 | ) | ||||
Other
|
(0.5 | ) | (3.1 | ) | ||||
Income
tax provision
|
$ | (10.5 | ) | $ | (27.3 | ) |
Fiscal
|
Revenue
|
Net
earnings from continuing operations
|
Net
earnings
|
Total
assets
|
Total
long-term financial liabilities
|
Cash
dividends per share
|
Net
earnings per share from continuing operations
|
Net
earnings per share
|
||||||||||||||||||||||||||||||||
2006 |
(in millions
of Canadian dollars)
|
declared
|
Basic
|
Diluted
|
Basic
|
Diluted
|
||||||||||||||||||||||||||||||||||
Q1
|
$ |
243.0
|
$ |
18.8
|
$ |
19.2
|
$ |
1,669.8
|
$ |
975.2
|
$ |
-
|
$ |
0.45
|
$ |
0.41
|
$ |
0.46
|
$ |
0.42
|
||||||||||||||||||||
Q2
|
252.4
|
39.2
|
39.2
|
1,675.1
|
939.1
|
0.40
|
0.93
|
0.85
|
0.93
|
0.85
|
||||||||||||||||||||||||||||||
Q3
|
253.5
|
21.4
|
21.5
|
1,685.6
|
945.8
|
-
|
0.51
|
0.47
|
0.51
|
0.47
|
||||||||||||||||||||||||||||||
Q4
|
248.2
|
10.3
|
10.8
|
1,686.1
|
911.7
|
-
|
0.25
|
0.22
|
0.26
|
0.23
|
||||||||||||||||||||||||||||||
Total
|
$ |
997.1
|
$ |
89.7
|
$ |
90.7
|
$ |
0.40
|
$ |
2.14
|
$ |
1.95
|
$ |
2.16
|
$ |
1.97
|
||||||||||||||||||||||||
Fiscal
|
||||||||||||||||||||||||||||||||||||||||
2005 | ||||||||||||||||||||||||||||||||||||||||
Q1
|
$ |
239.7
|
$ |
18.2
|
$ |
17.5
|
$ |
1,494.0
|
$ |
829.9
|
$ |
-
|
$ |
0.44
|
$ |
0.40
|
$ |
0.42
|
$ |
0.37
|
||||||||||||||||||||
Q2
|
238.8
|
(0.7 | ) | (0.7 | ) |
1,512.8
|
855.0
|
0.30
|
(0.02 | ) | (0.01 | ) | (0.02 | ) | (0.01 | ) | ||||||||||||||||||||||||
Q3
|
238.3
|
14.7
|
22.5
|
1,624.5
|
924.2
|
-
|
0.35
|
0.32
|
0.54
|
0.49
|
||||||||||||||||||||||||||||||
Q4
|
237.4
|
14.7
|
17.2
|
1,686.7
|
934.4
|
-
|
0.35
|
0.32
|
0.41
|
0.38
|
||||||||||||||||||||||||||||||
Total
|
$ |
954.2
|
$ |
46.9
|
$ |
56.5
|
$ |
0.30
|
$ |
1.12
|
$ |
1.03
|
$ |
1.35
|
$ |
1.23
|
(i)
|
In
Q2 of fiscal 2005, the Company incurred a tax asset adjustment of
$4.2 million relating to a tax rate reduction in the
Netherlands.
|
(ii)
|
In
Q2 of fiscal 2005, the Company recorded a fair value adjustment for
Composites of $14.3 million.
|
(iii)
|
In
Q3 of fiscal 2005, the Company incurred a net-of-tax gain on the
sale of
Schreiner Aircraft Maintenance B.V. (“SAMCO”) and Schreiner Canada Ltd.
(“Schreiner Canada”) of $7.5 million included in discontinued
operations. The remaining $1.1 million net-of-tax gain on the sale of
SAMCO and Schreiner Canada was incurred in Q4 of fiscal
2006.
|
(iv)
|
Results
for Q2 of fiscal 2006 included a pre-tax gain of $21.8 million for
the sale of the Company’s remaining interest in CHL and other long-term
investments.
|
(v)
|
Results
for Q3 of fiscal 2006 included a pre-tax gain of $15.7 million for
the sale of the Company’s equity interest in
Inaer.
|
Global
Operations
|
European
Operations
|
Heli-One
|
Corporate
&
Other
|
Inter-segment
Eliminations
|
Total
|
||||||||||||||||
Year
ended April 30, 2005 (i)
|
$ |
292,066
|
$ |
530,897
|
$ |
130,844
|
$ |
435
|
N/A
|
$ |
954,242
|
||||||||||
Foreign
exchange impact (ii)
|
(27,868 | ) | (54,575 | ) | (14,153 | ) | (17 | ) |
N/A
|
(96,613 | ) | ||||||||||
Revenue
increase (decrease)
|
66,679
|
44,045
|
28,977
|
(243 | ) |
N/A
|
139,458
|
||||||||||||||
Year
ended April 30, 2006 (i)
|
$ |
330,877
|
$ |
520,367
|
$ |
145,668
|
$ |
175
|
N/A
|
$ |
997,087
|
||||||||||
Total
revenue increase
(decrease)
|
$ |
38,811
|
$ | (10,530 | ) | $ |
14,824
|
N/A
|
N/A
|
$ |
42,845
|
||||||||||
%
increase
(decrease)
|
13.3 | % | (2.0 | %) | 11.3 | % |
N/A
|
N/A
|
4.5 | % | |||||||||||
%
increase excluding
FX
|
22.8 | % | 8.3 | % | 22.1 | % |
N/A
|
N/A
|
14.6 | % | |||||||||||
Global
Operations
|
European
Operations
|
Heli-One
|
Corporate
&
Other
|
Inter-segment
Eliminations
|
Total
|
|||||||||||||||||||
Year
ended April 30, 2005 (i)
|
$ |
87,284
|
$ |
110,792
|
$ |
231,016
|
$ | (32,103 | ) | $ | (153,227 | ) | $ |
243,762
|
||||||||||
Foreign
exchange impact (ii)
|
(6,730 | ) | (12,766 | ) | (6,993 | ) |
1,471
|
-
|
(25,018 | ) | ||||||||||||||
Segment
EBITDAR increase (decrease)
|
10,368
|
9,455
|
5,452
|
2,970
|
(822 | ) |
27,423
|
|||||||||||||||||
Year
ended April 30, 2006 (i)
|
$ |
90,922
|
$ |
107,481
|
$ |
229,475
|
$ | (27,662 | ) | $ | (154,049 | ) | $ |
246,167
|
||||||||||
Segment
EBITDAR margin
(iii)
|
||||||||||||||||||||||||
-
Last
year
|
29.9 | % | 20.9 | % | 45.2 | % |
N/A
|
N/A
|
25.5 | % | ||||||||||||||
-
This
year
|
27.5 | % | 20.7 | % | 45.8 | % |
N/A
|
N/A
|
24.7 | % | ||||||||||||||
Total
Segment EBITDAR increase
(decrease)
|
$ |
3,638
|
$ | (3,311 | ) | $ | (1,541 | ) | $ |
4,441
|
$ | (822 | ) | $ |
2,405
|
|||||||||
%
increase
(decrease)
|
4.2 | % | (3.0 | %) | (0.7 | %) | 13.8 | % |
N/A
|
1.0 | % | |||||||||||||
%
increase excluding
FX
|
11.9 | % | 8.5 | % | 2.4 | % | 9.3 | % |
N/A
|
11.2 | % | |||||||||||||
Global
Operations
|
European
Operations
|
Heli-One
|
Corporate
&
Other
|
Inter-segment
Eliminations
|
Total
|
|||||||||||||||||||
Year
ended April 30, 2005 (i)
|
$ |
15,889
|
$ |
21,976
|
$ |
180,463
|
$ | (32,103 | ) | $ |
-
|
$ |
186,225
|
|||||||||||
Foreign
exchange impact (ii)
|
(6,644 | ) | (8,983 | ) | (651 | ) |
1,467
|
-
|
(14,811 | ) | ||||||||||||||
Segment
EBITDA increase (decrease)
|
(1,539 | ) |
18,864
|
(11,022 | ) |
2,974
|
-
|
9,277
|
||||||||||||||||
Year
ended April 30, 2006 (i)
|
$ |
7,706
|
$ |
31,857
|
$ |
168,790
|
$ | (27,662 | ) | $ |
-
|
$ |
180,691
|
|||||||||||
Segment
EBITDA
margin(i)
|
||||||||||||||||||||||||
-
Last
year
|
5.4 | % | 4.1 | % | 35.3 | % |
N/A
|
N/A
|
19.5 | % | ||||||||||||||
-
This
year
|
2.3 | % | 6.1 | % | 33.7 | % |
N/A
|
N/A
|
18.1 | % | ||||||||||||||
Total
Segment EBITDA increase
(decrease)
|
$ | (8,183 | ) | $ |
9,881
|
$ | (11,673 | ) | $ |
4,441
|
$ |
-
|
$ | (5,534 | ) | |||||||||
%
increase
(decrease)
|
(51.5 | %) | 45.0 | % | (6.5 | %) | 13.8 | % |
N/A
|
(3.0 | %) | |||||||||||||
%
increase (decrease)
excluding FX
|
(9.7 | %) | 85.8 | % | (6.1 | %) | 9.3 | % |
N/A
|
5.0 | % | |||||||||||||
Global
Operations
|
European
Operations
|
Heli-One
|
Corporate
&
Other
|
Inter-segment
Eliminations
|
Total
|
|||||||||||||||||||
Year
ended April 30, 2005 (i)
|
$ |
10,899
|
$ |
13,573
|
$ |
127,459
|
$ | (43,411 | ) |
N/A
|
$ |
108,520
|
||||||||||||
Foreign
exchange impact (ii)
|
(6,310 | ) | (8,460 | ) |
1,065
|
(62 | ) |
N/A
|
(13,767 | ) | ||||||||||||||
Operating
income increase (decrease)
|
(1,676 | ) |
19,608
|
(12,227 | ) |
8,608
|
N/A
|
14,313
|
||||||||||||||||
Year
ended April 30, 2006 (i)
|
$ |
2,913
|
$ |
24,721
|
$ |
116,297
|
$ | (34,865 | ) |
N/A
|
$ |
109,066
|
||||||||||||
Total
operating income
increase (decrease)
|
$ | (7,986 | ) | $ |
11,148
|
$ | (11,162 | ) | $ |
8,546
|
N/A
|
$ |
546
|
|||||||||||
%
increase
(decrease)
|
(73.3 | %) | 82.1 | % | (8.8 | %) | 19.7 | % |
N/A
|
0.5 | % | |||||||||||||
%
increase (decrease)
excluding FX
|
(15.4 | %) | 144.5 | % | (9.6 | %) | 19.8 | % |
N/A
|
13.2 | % |
(i)
|
Figures
have been reclassified for the classification of Survival-One as
discontinued operations as outlined in Note 2 to our fiscal 2007
audited consolidated financial
statements.
|
(ii)
|
Includes
both the foreign exchange on the translation of the financial results
of
the foreign subsidiaries into Canadian dollars (“translation impact”) and
the foreign exchange on the translation of foreign currency denominated
transactions into the reporting currencies of the subsidiaries
(“transaction impact”).
|
(iii)
|
Segment
EBITDAR as a percent of revenue from external customers except
for the
Heli-One segment, which is a percent of total
revenue.
|
(iv)
|
See
Note 25 to our fiscal 2007 audited consolidated financial
statements.
|
•
|
a
five-year contract renewal (plus two one-year options) with ConocoPhillips
Australia Pty Ltd. for two Super Puma AS332 helicopters in
Australia;
|
•
|
a
five-year contract renewal (plus one-year option) with Petronas for
S76C+
and fixed-wing services in Southeast
Asia;
|
•
|
a
four-year contract for the lease of two Bell 412 in
India;
|
•
|
a
two-year contract (plus one-year option) with Cairn Energy Sangu
Field in
Bangladesh;
|
•
|
a
multi-year renewal for Sikorsky S61 services in support of the Sable
Offshore Energy Project in Halifax, Canada;
and
|
•
|
a
two-year contract for an S92 in Asia with Malaysian Helicopter Services
in
support of Shell offshore
operations.
|
•
|
a
five-year contract by the United Kingdom Maritime and Coastguard
Agency (MCA) for the provision of commercial search and rescue helicopter
services from four bases in the UK commencing July 1, 2007. The
contract requires the deployment of four Sikorsky S92s and three
AgustaWestland AW139s;
|
•
|
a
five-year contract renewal by ConocoPhillips (UK) Limited for the
provision of a dedicated Sikorsky S76C, plus additional flight hours,
in
support of ConocoPhillips Southern North Sea
operations;
|
•
|
a
contract from Tullow Oil Plc. for the provision of a dedicated Sikorsky
S76A+ to support development activity in Southern North Sea and a
three-year contract renewal, plus options, for the provision of a
sole-use
AgustaWestland AW139 helicopter commencing in July
2006;
|
•
|
a
five-year contract renewal (plus three one-year options) by Maersk
Oil and
Gas AS for the provision of helicopter transportation services in
support
of its offshore oil and gas operations in the Danish sector of the
North Sea. The contract will be supported by three dedicated Sikorsky
S92 helicopters beginning on July 1, 2007;
and
|
•
|
a
seven-year contract renewal, plus options, by Perenco UK Limited
for the
provision of a sole-use AgustaWestland AW139 helicopter commencing
in
fiscal 2007.
|
•
|
An
increase in receivables of $50.8 million over the prior year
primarily related to an increase in trade receivables from increased
activity and an increase in non-trade receivables of $10.9 million
related to the sale of an aircraft to a lessor. Days sales in trade
receivables decreased from 69 days at April 30, 2006 to
66 days at April 30 2007, which was offset by an increase in
trade receivables of $47.4 million resulting from an increase in
activity.
|
•
|
An
increase in inventory of $39.9 million over the prior year due to the
introduction of 40 aircraft, increases in safety stock at bases
throughout the world to improve aircraft serviceability, and increased
base maintenance related to the acquisition of Heli-Dyne in fiscal
2007.
|
•
|
An
increase in prepaid expenses of $30.4 million over the prior year
largely related to the advancement of approximately $25 million of
security deposits related to future lease
transactions.
|
•
|
An
increase in payables and accruals of $83.9 million over the prior
year mainly related to approximately $40 million in final balances
owing on recent aircraft purchases and overall increased
activity.
|
•
|
the
addition of 18 new aircraft and several new aircraft types, including
the
Sikorsky S92, AgustaWestland AW139 and Eurocopter
EC155;
|
•
|
the
establishment of a new global warehouse in the Netherlands and the
build-up of repair and overhaul facilities in British Columbia,
Canada;
|
•
|
the
acquisition of inventory from new PBH customers including
ACN;
|
•
|
the
purchase of stock previously provided by third-party consignment
vendors;
|
•
|
increases
in safety stock at bases throughout the world to improve aircraft
serviceability; and
|
•
|
accounts
receivable has also increased in part due to the build-up of operating
capability in BHS and significant growth in our international customer
base where payment terms exceed other jurisdictions in which we
operate.
|
Currency
|
Debt
in functional currency
(millions)
|
Canadian
equivalent
(millions)
|
||||||
UK
pound sterling
|
£ |
9.6
|
$ |
21.2
|
||||
Euro
|
€ |
33.2
|
50.2
|
|||||
Canadian
dollar
|
$ |
164.2
|
164.2
|
|||||
US
dollar
|
USD |
505.0
|
558.9
|
|||||
Norwegian
kroner
|
NOK |
240.0
|
44.7
|
|||||
Brazilian
real
|
BRL |
2.7
|
1.4
|
|||||
Cash
(various currencies)
|
(89.5 | ) | ||||||
Total
net debt
|
$ |
751.1
|
April
30,
2007
|
April
30, 2006
|
|||||||||||||||
Fair
Value
|
Carrying
Value
|
Fair
Value
|
Carrying
Value
|
|||||||||||||
Senior
subordinated notes (7⅜%)
|
$ |
429.4
|
$ |
442.7
|
$ |
454.3
|
$ |
448.1
|
Hedging
Item
|
Maturity
|
Notional
amount
|
Fair
market value
gain
(loss) (millions)
|
||
Forward
foreign exchange contracts
|
|||||
Sell
US
dollar; buy Canadian dollar
|
Various
|
$118.0
|
$5.0
|
||
Sell
pound sterling; buy euro
|
Various
|
€ 30.5
|
(1.2)
|
||
Sell
Norwegian kroner; buy pound sterling
|
May
2007
|
£
12.4
|
-
|
||
Sell
Norwegian kroner; buy Australian dollar
|
May
2007
|
AUD
28.0
|
-
|
||
Sell
Norwegian kroner; buy euro
|
May
2007
|
€ 26.9
|
-
|
||
Sell
Canadian dollar; buy euro
|
May
2007
|
€ 2.7
|
-
|
||
Sell
Brazilian real; buy US dollar
|
May
2007
|
USD
28.0
|
0.1
|
||
Sell
Canadian dollar; buy Norwegian kroner
|
May
2007
|
NOK
150.0
|
(0.2)
|
||
Sell
Canadian dollar; buy US dollar
|
June
2007
|
USD
150.0
|
(0.2)
|
||
$3.5
|
Contractual
obligations
|
Total
|
Less
than
1
year
|
1-3
years
|
4-5
years
|
More
than
5
years
|
|||||||||||||||
Long-term
debt
|
$ |
397.9
|
$ |
333.7
|
$ |
41.5
|
$ |
9.6
|
$ |
13.1
|
||||||||||
Senior
subordinated notes (7⅜%)
|
442.7
|
-
|
-
|
-
|
442.7
|
|||||||||||||||
Operating
lease (aircraft)
|
556.3
|
103.4
|
187.5
|
151.7
|
113.7
|
|||||||||||||||
Operating
lease (other)
|
44.6
|
5.7
|
9.0
|
7.5
|
22.4
|
|||||||||||||||
New
aircraft commitments
|
837.1
|
295.5
|
474.2
|
67.4
|
-
|
|||||||||||||||
Total
contractual obligations
|
$ |
2,278.6
|
$ |
738.3
|
$ |
712.2
|
$ |
236.2
|
$ |
591.9
|
Number
of Shares
|
Consideration
|
|||||||||||||||
(amounts
in thousands)
|
April
30,
2007
|
April
30, 2006
|
April
30,
2007
|
April
30, 2006
|
||||||||||||
Class
A subordinate voting shares
|
39,858
|
36,860
|
$ |
235,346
|
$ |
223,241
|
||||||||||
Class
B multiple voting shares
|
5,863
|
5,861
|
18,413
|
18,413
|
||||||||||||
Ordinary
shares
|
22,000
|
22,000
|
33,000
|
33,000
|
||||||||||||
Ordinary
share loan
|
-
|
-
|
(33,000 | ) | (33,000 | ) | ||||||||||
Class
A
subordinate voting employee share purchase loans
|
-
|
-
|
(1,254 | ) | (1,502 | ) | ||||||||||
$ |
252,505
|
$ |
240,152
|
|||||||||||||
Contributed
surplus
|
$ |
5,042
|
$ |
4,363
|
Class
A Shares that would be issued upon conversion of the
following:
|
April
30,
2007
|
April
30, 2006
|
||||||
Class
B Shares
|
5,863
|
5,861
|
||||||
Stock
options
|
2,232
|
3,819
|
||||||
Convertible
debt
|
-
|
1,379
|
(a)
|
Recoverability
of pre-operating expenses
|
(b)
|
Flying
asset amortization
|
(c)
|
Carrying
value of aircraft
|
(d)
|
Inventory
obsolescence
|
(e)
|
Defined
benefit employee pension plans
|
(f)
|
Utilization
of income tax losses
|
(g)
|
Lease
aircraft return costs
|
(h)
|
Aircraft
operating leases
|
(i)
|
Consolidation
of variable interest entities
(“VIE”s)
|
(j)
|
General
tax contingencies
|
(a)
|
Financial
Instruments
|
|
New
Accounting
Policies
|
(i)
|
Classification
of financial
instruments
|
(ii)
|
Determination
of fair
value
|
(iii)
|
Transaction
costs
|
(iv)
|
Normal
purchase and sale
exemption
|
|
Classification
on Initial
Adoption
|
•
|
Cash
and cash equivalents and restricted cash are designated as held for
trading. These items are measured at fair value. At May 1 and
July 31, 2007, the measured amount approximates
cost.
|
•
|
Receivables,
junior loans and loans receivable are classified as loans and receivables.
After their initial fair value assessment, these items are measured
at
amortized cost using the effective interest rate
method.
|
•
|
Payables
and accruals, dividends payable, non-revolving long-term debt and
senior
subordinated notes are classified as other liabilities. After their
initial fair value assessment, these items are measured at amortized
cost
using the effective interest rate
method.
|
Derivatives
|
|
Retained
earnings
|
Accumulated
other comprehensive
earnings
|
|||||||
Deferred
debt issue costs
|
$ | (580 | ) | $ |
-
|
|||
Cash
flow hedges
|
-
|
2,275
|
||||||
Guarantees
|
(2,774 | ) |
-
|
|||||
Embedded
derivatives
|
(5,583
|
) |
-
|
|||||
Total
|
$ | (8,937 | ) | $ |
2,275
|
(b)
|
Other
|
Year
ended April 30, (in millions
of US dollars, except per share amounts)
|
2007
|
2006
|
||||||
Revenue
|
$ |
1,038.3
|
$ |
901.0
|
||||
Operating
income
|
104.0
|
98.6
|
||||||
Net
earnings from continuing
operations
|
37.0
|
81.1
|
||||||
Net
earnings from discontinued
operations
|
2.0
|
0.9
|
||||||
Extraordinary
item
|
0.7
|
-
|
||||||
Net
earnings
|
39.7
|
82.0
|
||||||
Per
Share
Information
|
||||||||
Basic
|
||||||||
Net
earnings
from continuing operations
|
$ |
0.88
|
$ |
1.93
|
||||
Net
earnings
from discontinued operations
|
0.05
|
0.02
|
||||||
Extraordinary
item
|
0.02
|
-
|
||||||
Net
earnings
|
0.95
|
1.95
|
||||||
Diluted
|
||||||||
Net
earnings
from continuing operations
|
$ |
0.81
|
$ |
1.76
|
||||
Net
earnings
from discontinued operations
|
0.05
|
0.02
|
||||||
Extraordinary
item
|
0.02
|
-
|
||||||
Net
earnings
|
0.88
|
1.78
|
ITEM
6.
|
DIRECTORS,
SENIOR MANAGEMENT AND EMPLOYEES
|
Sylvain
Allard, M.B.A.,
49,
|
Director
since November, 2004. Resident of British Columbia, Canada.
Mr. Allard is the President and Chief Executive Officer of the
Corporation. He has been President for eight years and was appointed
Chief
Executive Officer in November 2004. Mr. Allard started with the
Corporation as a helicopter pilot in Eastern Canada in 1982. He earned
a
Masters of Business Administration degree (Gold Medalist) from Concordia
University, Montreal, and has held several key positions in the
Corporation, including President of Viking Helicopters Ltd., Canadian
Helicopters (Eastern) and CHC Helicopters International Inc.
|
Donald
Carty, O.C., 61,
|
Director
since November, 2004. Resident of Texas, United States of America.
Mr. Carty is the Vice Chairman and Chief Financial Officer of Dell
Inc. He served as Chairman and Chief Executive Officer of AMR Corporation
from 1998 to 2003. He served as President and CEO of CP Air in Canada
from
1985 to 1987 and spent several years in various management positions
with
Celanese Canada, Ltd., Air Canada, and the Canadian Pacific Railway.
Mr. Carty is a graduate of Queen's University in Kingston, Ontario,
and of the Harvard Graduate School of Business Administration.
Mr. Carty was appointed as an officer of the Order of Canada in 2002.
He is a director of Dell Inc. and Barrick Gold
Corp.
|
Craig
C. Dobbin,
42,
|
Director
since 1998. Resident of Newfoundland and Labrador, Canada. From 1999
to
January 2002, he was Director of Marketing with CHC Composites Ltd.
From
1995 to 1999, he was the President of Seaforest Plantation Co. Ltd.,
a cod
aquaculture company. From 1996 to 2006, he was General Manager of
Canadian
Northern Outfitters Ltd., an executive wilderness retreat. From 1991
to
1993, he was employed as the marketing director for GPA Helicopters
Limited (a division of CHC) and from 1993 to 1995 he was Manager
of
Corporate Planning for Air Atlantic and subsequently served on the
Board
of Directors of Air Atlantic (1995) Limited. From January 2002 until
March
2003, he was a Vice-President of CHC Helicopter Corporation.
|
Mark
Dobbin,
47,
|
Director
since 2006. Resident of Newfoundland and Labrador, Canada. Mr. Dobbin
is the founder and President of Killick Capital Inc., a Newfoundland
based
private equity company and is the Chairman of the Board of the
Corporation. From 1998 to 2003 Mr. Dobbin was the Chair and CEO of
Vector Aerospace Corporation, a globally recognized aviation repair
and
overhaul service. Prior to Vector he was employed for 17 years with
the Corporation and held increasingly responsible positions with
CHC
culminating in serving as Senior Vice-President. He was a director
of the
Corporation from 1994 to 1998 and from 2001 to 2003. He is currently
a
director of Aurora Energy Resources Inc., Plasco Energy Group Inc.,
Consilient Technologies Inc., Verafin Inc. and Greyfirst
Corp.
|
George
N. Gillett Jr.,
68,
|
Director
since October, 2004. Resident of Colorado, United States of America.
Since
1996 Mr. Gillett has been Chairman of Booth Creek Management
Corporation, based in Vail, Colorado, a diversified company with
interests
in the recreational, fresh and processed protein products, automotive
and
transportation, and landscape and garden industries. Mr. Gillett is
Chairman of the Montreal Canadiens hockey club, Booth Creek Ski Holdings,
and Coleman Natural Foods. He is also a director of Steadman Hawkins
Research Foundation and is a member of the Board of Governors of
the
National Hockey League.
|
John
J. Kelly,
B.E.,
Ph.D., 72,
|
Director
since 1999. Resident of Ireland. He holds both a Bachelor of Engineering
and a Ph.D. degree from University College, Dublin. On graduation,
he
worked for a number of years in the petroleum industry in the UK
and in
Ireland, after which he was appointed to the staff of the School
of
Engineering in University College, Dublin, where he served as Dean
of
Engineering, from 1979 to 1986, from 1986 to 1994 as Registrar/Senior
Vice-President of the University and since 1994 as Professor of Chemical
Engineering at the University. He was a Fulbright Scholar to the
University of Maryland, where he was visiting Professor in its School
of
Engineering. He was the director of the Fulbright Scholarship Program
between Ireland and the United States from 1996 to 2000, and acts
as
Executive Director of the Ireland Canada University
Foundation.
|
Jack
M. Mintz,
B.A.,
M.A., Ph.D., 56,
|
Director
since 2004. Resident of Ontario, Canada. He is a Professor of Business
Economics at the University of Toronto. From 1999 to July 2006 he
was the
President and Chief Executive Officer of the C.D. Howe Institute,
an
independent policy think-tank. He has published more than 180 books
and articles in the fields of public economics and fiscal federalism.
He
has consulted widely with the World Bank, the International Monetary
Fund,
the Organization for Economic Co-operation and Development and various
governments, businesses and non-profit organizations. He serves as
a
director of Brookfield Asset Management Inc., Imperial Oil Limited,
Ontario Financing Authority, the Royal Ontario Museum Foundation
and the
National Statistics Council.
|
Sir
Bob Reid,
73,
|
Director
since 2004. Resident of the United Kingdom. He joined Shell International
Petroleum Company in 1956 and spent much of his career overseas,
including
posts in Brunei, Nigeria, Thailand and Australia. He served as Chairman
and Chief Executive of Shell UK from 1985 to 1990. He has served
as
Chairman of the British Railways Board, London Electricity, British-Borneo
Oil and Gas plc, The Council of the Industrial Society and Sears
plc. From
1997 to 2004 he served as Deputy Governor of the Bank of Scotland.
He has
been Chairman of the Petroleum Exchange of London (now ICE Futures)
since
1999. He served as Chairman of Avis Europe from 2002 to 2004 and
as a
non-executive director for Sun Life Financial Services of Canada
until
2004. He also serves as a non-executive director for Intercontinental
Exchange Service Inc., The Merchants Trust and Siemens, plc.
|
Guylaine
Saucier, C.M.,
F.C.A., 61,
|
Director
since 2005. Resident of Quebec, Canada. Ms. Saucier is a Fellow of
the Institute of Chartered Accountants. She was Chair of the Joint
Committee on Corporate Governance established in 2000 by the Canadian
Institute of Chartered Accountants, the Canadian Venture Exchange
and the
Toronto Stock Exchange. She was Chair of the Canadian Institute of
Chartered Accountants from June 1999 to June 2000 and was Chairman
of the
Board of the Canadian Broadcasting Corporation from April 1995 to
December
2000. In 1989 she was appointed as a member of the Order of Canada.
Ms.
Saucier is currently a member of the board of directors of several
Canadian corporations including Petro-Canada Inc. and the Bank of
Montreal, and the French company, Areva.
|
William
W. Stinson,
73,
|
Director
since 2003. Resident of Newfoundland and Labrador, Canada. He is
Chairman
and CEO of Westshore Terminals Inc. which operates a bulk terminal
facility. He is also a director of Grant Forest Products. From 2003
to
2005 he was Chairman of the Board of Sun Life Financial, a worldwide
insurer and wealth management company. He was a director of Sun Life
Financial since 1985. Mr. Stinson spent most of his career with Canadian
Pacific Ltd., a diversified transportation and industrial company,
where
he was Chief Executive Officer for eleven years and Chairman and
Chief
Executive Officer for six years before retiring in 1996.
|
Sylvain
Allard, M.B.A.,
49,
|
See
“Board of
Directors.”
|
Annette
Cusworth, C.A.,
41,
|
Resident
of British Columbia, Canada. Ms. Cusworth began as the Assistant
Director, Financial Reporting of the Corporation in November 2004,
subsequently holding the positions of Director, Financial Reporting
and
Corporate Controller. In October 2006 she was appointed Vice-President,
Financial Services. Prior to her employment with the Corporation,
she was
the Manager, Financial Services for Weldwood of Canada Limited, a
Canadian
subsidiary of International Paper.
|
Rick
Davis, C.A.,
45,
|
Resident
of British Columbia, Canada. Mr. Davis began as the Vice-President,
Internal Audit of the Corporation and in September 2004, was appointed
as
Vice-President, Financial Reporting. In May 2006, he was appointed
Acting
Chief Financial Officer and in September 2006, he was appointed Senior
Vice-President and Chief Financial Officer. Prior to his employment
with
the Corporation, he was the Corporate Controller for Vector Aerospace
Corporation, a publicly traded aerospace maintenance, repair and
overhaul
service provider.
|
Mark
Dobbin,
47,
|
See
“Board of
Directors.”
|
G.
Blake Fizzard, C.A.,
43,
|
Resident
of British Columbia, Canada. Mr. Fizzard began as the Director of
Taxation of the Corporation in March 2001 and was appointed
Vice-President, Financial Structuring in 2003. Prior to his employment
with the Corporation, he was member of the tax and audit departments
at
Deloitte & Touche LLP and served as an Assistant Vice-President of
International Advisory Services in Hamilton, Bermuda. Mr. Fizzard
received a Bachelor of Commerce degree from Memorial University of
Newfoundland in 1986 and became a chartered accountant in
1988.
|
Rick
O. Green, C.G.A.,
50,
|
Resident
of British Columbia, Canada. Mr. Green has been employed by the
Corporation for the past 19 years. He began as the Chief Accountant
with a
predecessor company, Sealand Helicopters Limited, and moved through
increasingly responsible positions within the Corporation. In 1988,
he was
named the Assistant Corporate Controller. In 1993, he moved into
an
Internal Audit function until 1995 when he was appointed as
Vice-President, Finance in the International division. He remained
in this
position until 2000 when he was appointed as Vice-President, Planning
and
Control. In May 2003, he assumed the role of Vice-President, Global
Systems and Solutions. In May 2006, he was appointed as Vice-President
and
Chief Information Officer.
|
John
Hanbury, C.M.A.,
50,
|
Resident
of British Columbia, Canada. Mr. Hanbury was appointed as Corporate
Treasurer of the Corporation in July 2005. Prior to his employment
with
the Corporation, he was the Treasurer of a major company operating
in the
forestry sector of British Columbia. Mr. Hanbury has a Bachelor of
Commerce degree from the University of British Columbia.
|
Martin
Lockyer, LLB,
47,
|
Resident
of British Columbia, Canada. Mr. Lockyer is the Vice-President, Legal
Services and Corporate Secretary of the Corporation. Prior to his
employment with the Corporation, he was a partner of a major Atlantic
Canada law firm and was outside counsel to the Corporation. His practice
included corporate and commercial transactions and securities matters.
He
is former Vice-Chairman of a Canadian airport authority. Mr. Lockyer
has an honours degree in Commerce from Memorial University of Newfoundland
and a law degree from Osgoode Hall Law School.
|
Nancy
Montgomery, C.A.,
36,
|
Resident
of British Columbia, Canada. Ms. Montgomery began as the Director,
SOX and Internal Audit of the Corporation in March 2006. In
May 2007, she was appointed Vice-President, Internal Audit. Prior to
her employment with the Corporation, she was the Manager, SOX Compliance
at a major publicly traded Canadian gold mining
Company.
|
Director
|
Director
Since
|
Class
A
Shares
|
Class
B
Shares
|
Ordinary
Shares
|
Class
A Shares Under
Options
|
Share
Appreciation
Rights
|
Value
of All Unexercised
In-The-Money Options and SARS
|
|||
Vested
|
Unvested
|
Options
|
Vested
SARs
|
Unvested
SARs
|
||||||
Sylvain
Allard
|
2004
|
278,468
|
-
|
-
|
643,932
|
-
|
-
|
7,713,216
|
-
|
-
|
Donald
Carty, OC
|
2004
|
20,000
|
-
|
-
|
-
|
73,334
|
36,666
|
-
|
47,667
|
23,833
|
Craig
C. Dobbin
|
1998
|
-
|
-
|
-
|
60,000
|
-
|
-
|
1,042,200
|
-
|
-
|
Mark
D. Dobbin
|
2006(i)
|
5,665,188(ii)
|
5,673,604(iii)
|
22,000,000(iv)
|
519,990(v)
|
-
|
110,000
|
4,055,922
|
-
|
118,800
|
George
N. Gillett Jr.
|
2004
|
-
|
-
|
-
|
-
|
73,334
|
36,666
|
310,000
|
-
|
|
John
J. Kelly, B.E., Ph.D.
|
1999
|
6,280
|
-
|
-
|
-
|
60,000
|
-
|
1,008,450
|
-
|
|
Jack
M. Mintz, B.A., M.A., Ph.D.
|
2004
|
2,000
|
-
|
-
|
-
|
73,334
|
36,666
|
409,200
|
-
|
|
Sir
Bob Reid
|
2004
|
-
|
-
|
-
|
-
|
110,000
|
-
|
731,500
|
-
|
|
Guylaine
Saucier, C.M., F.C.A.
|
2005
|
3,000
|
-
|
-
|
-
|
73,334
|
36,666
|
-
|
-
|
|
William
W. Stinson
|
2003
|
10,000
|
-
|
-
|
-
|
110,000
|
-
|
-
|
1,039,500
|
-
|
(i)
|
Mark D.
Dobbin previously served as a director of the Corporation from 1994
- 1998
and 2001 - 2003.
|
(ii)
|
Of
these, 3,892,540 shares are held by Discovery Helicopters Inc., a
holding
company, all of the voting shares of which are owned by the Estate
of
Craig L. Dobbin, of which Mark Dobbin is the sole executor and
251,264 shares are held by a family education
trust.
|
(iii)
|
Of
these, 5,555,432 shares are held by Discovery Helicopters
Inc.
|
(iv) | These shares are held by O.S. Holdings, a holding company wholly owned indirectly by the Estate of Craig L. Dobbin. |
(v) | These options are held by the Estate of Craig L. Dobbin. |
•
|
met
with management and the external auditors to review and discuss the
April 30, 2007 consolidated financial
statements;
|
•
|
discussed
with the external auditors the matters required by Canadian regulators
in
accordance with Section 5751 of the General Assurance and Auditing
Standards of the Canadian Institute of Chartered Accountants
“Communications with Those Having Oversight Responsibility for the
Financial Reporting Process” and by US regulators in accordance with the
Statement on Auditing Standards No. 61 “Communication with Audit
Committee” issued by the American Institute of Certified Public
Accountants;
|
•
|
received
written disclosures from the independent auditors required by the
US
Securities and Exchange Commission in accordance with the requirements
of
the Independence Standards Board;
and
|
•
|
discussed
with the external auditors that firm’s
independence.
|
(i)
|
to
provide a compensation program that motivates executive officers
to
achieve their strategic goals;
|
(ii)
|
to
be competitive with other leading North American and global companies
so
as to attract and retain talented executives; and,
|
(iii)
|
to
align the interests of its executive officers with the long-term
interests
of the Corporation's shareholders through stock-related
programs.
|
Director
|
Director
and
Board
Chair
Cash
Retainer
$
|
Committee
Chair
Cash
Retainer
$
|
Board
and
Committee
Attendance
Fees
$
|
Total
Annual
Fees
$
|
Sylvain
Allard
|
-
|
-
|
-
|
-
|
Donald
Carty, O.C.
|
45,835
|
-
|
32,025
|
77,860
|
Craig
C. Dobbin
|
45,835
|
-
|
18,334
|
64,169
|
Mark
D. Dobbin
|
284,375
|
-
|
-
|
284,375
|
George
N. Gillett Jr.
|
45,835
|
-
|
16,169
|
62,004
|
John
J. Kelly, B.E., Ph.D.
|
58,266
|
14,567
|
23,306
|
96,139
|
Jack
M. Mintz, B.A., M.A., Ph.D.
|
45,835
|
28,647
|
32,025
|
106,507
|
Sir
Bob Reid
|
85,416
|
53,385
|
38,392
|
177,193
|
Guylaine
Saucier, C.M., F.C.A.
|
45,835
|
-
|
38,930
|
84,765
|
William
W. Stinson
|
45,835
|
-
|
11,212
|
57,047
|
(i)
|
directors
are encouraged to maintain minimum share ownership in the Corporation
equal in value to the annual board fees;
and
|
(ii)
|
the
Named Executive Officers are encouraged to maintain minimum share
ownership in the Corporation equal in value to their base
salary.
|
Name
and principal
position
|
Year
|
Annual
compensation
$
(i)
|
Long-term
compensation
$
(ii)
|
All
other
compensation
$
(iii)
|
Pension
service
cost
$
|
Total
compensation
$
|
EBITDA
$
millions
|
Total
compensation as % of
EBITDA
%
|
|||||||
Sylvain
Allard
President
and Chief Executive Officer
|
2007
|
1,340,690
|
812,500
|
61,399
|
408,100
|
2,622,689
|
181,005
|
1.45%
|
|||||||
Rick
Davis
Senior
Vice-President and Chief Financial Officer
|
2007
|
640,308
|
350,000
|
58,999
|
-
|
1,049,307
|
181,005
|
0.58%
|
|||||||
Christine
Baird
President,
Global Operations
|
2007
|
626,436
|
165,000
|
39,520
|
98,600
|
929,556
|
181,005
|
0.51%
|
|||||||
Neil
Calvert
President,
Heli-One
|
2007
|
521,067
|
165,000
|
59,163
|
89,600
|
834,830
|
181,005
|
0.46%
|
|||||||
Keith
Mullett
Managing
Director, European Operations
|
2007
|
445,093
|
153,085
|
75,493
|
76,900
|
750,571
|
181,005
|
0.41%
|
(i)
|
Cash
payments of base salary and STIP
award.
|
(ii)
|
The
value of PSUs granted under the LTIP calculated by multiplying the
number
of PSUs granted by the grant price which for Fiscal 2007 was $28.12.
In
the case of Mr. Davis, no value is ascribed to the SARs granted to
him during Fiscal 2007 as none of these had vested as of April 30,
2007.
|
(iii)
|
Includes
vehicle expenses and allowances, relocation assistance under the
Corporation’s relocation plans available to employees other then the Named
Executive Officers and contribution to the
RPP.
|
Annual
compensation
|
Long-term
compensation
|
||||||||||||
Bonus
(i)
|
Awards
|
||||||||||||
Name
and principal
position
|
Year
|
Salary
$
|
Operations
$
(v)
|
Corporate
development
$
(iv)
|
Other
annual
compensation
$
(ii)
|
Securities
under options/SARs
granted
#
|
All
other
compensation
$
(iii)
|
||||||
Sylvain
Allard
|
2007
|
650,000
|
690,690
|
-
|
-
|
-
|
20,000
|
||||||
President
& Chief Executive Officer
|
2006
|
650,000
|
-
|
-
|
-
|
200,000
|
19,000
|
||||||
2005
|
650,000
|
1,807,000
|
225,000
|
-
|
-
|
16,500
|
|||||||
Jo
Mark
Zurel
|
2007
|
21,000
|
-
|
-
|
-
|
-
|
1,060,000
|
||||||
Former
Senior Vice-President & Chief Financial
|
2006
|
435,000
|
-
|
-
|
-
|
100,000
|
19,000
|
||||||
Officer
|
2005
|
435,000
|
1,072,000
|
150,000
|
-
|
-
|
16,500
|
||||||
Rick
Davis
|
2007
|
350,000
|
290,308
|
-
|
-
|
55,524
|
20,000
|
||||||
Senior
Vice-President & Chief Financial
|
2006
|
200,000
|
20,000
|
-
|
-
|
40,000
|
9,500
|
||||||
Officer
|
2005
|
175,000
|
74,760
|
-
|
-
|
-
|
8,250
|
||||||
Christine
Baird
|
2007
|
339,900
|
286,536
|
-
|
-
|
-
|
20,000
|
||||||
President,
Global Operations
|
2006
|
330,000
|
33,000
|
-
|
-
|
60,000
|
19,000
|
||||||
2005
|
330,000
|
161,700
|
-
|
-
|
-
|
16,500
|
|||||||
Neil
Calvert
|
2007
|
339,900
|
181,167
|
-
|
-
|
-
|
20,000
|
||||||
President,
Heli-One
|
2006
|
330,000
|
33,000
|
-
|
-
|
60,000
|
19,000
|
||||||
2005
|
330,000
|
207,075
|
-
|
-
|
-
|
16,500
|
|||||||
Keith
Mullett
|
2007
|
326,205
|
111,888
|
-
|
-
|
-
|
18,920
|
||||||
Managing
Director, European Operations
|
2006
|
252,804
|
108,959
|
-
|
-
|
60,000
|
15,166
|
||||||
2005
|
204,762
|
143,471
|
-
|
-
|
-
|
10,735
|
(i)
|
Bonuses
are
shown in the fiscal year to which payments relate.
|
(ii)
|
Other
compensation and personal benefits amount to less than the lower
of
$50,000 and 10% of salary and bonus for all Named Executive Officers
in
2007 and for all except the Executive Chairman in each of the previous
two
fiscal years. The amounts shown for Mr. Davis in fiscal 2005 are
relocation allowance in connection with the move of the Corporation’s head
office in fiscal 2005 and vehicle benefits.
|
(iii)
|
This
consists
of Corporation’s contributions to the RPP made on behalf of the Named
Executive Officers. For Mr. Zurel, whose employment with the
Corporation terminated on May 10, 2006, it includes amounts payable
to him upon termination including bonuses, car allowance, and health
and
dental benefits.
|
(iv)
|
These
special
transaction bonuses (Corporate Development) are related to the
acquisition
of Schreiner Aviation Group and were paid in August 2005 upon the
attainment of certain financial targets by Schreiner.
|
(v)
|
These
amounts
include:
|
|
(a)
regular
performance bonus payments under the STIP, which is also used
as an
incentive for other senior managers, and
|
|
(b)
the TSR Plan.
|
(vi)
|
Mr. Davis
became Acting Chief Financial Officer on May 10, 2006 and was
appointed Senior Vice-President and Chief Financial Officer on
September 13, 2006.
|
(vii)
|
Mr. Mullett
is paid in
GBP. The amounts included in the table are the Canadian dollar
equivalents converted using the year to date average exchange rate
as at
April 30 of the relevant year.
|
Performance
Period
|
Estimated
Future Payouts
Under
Non-Securities-Price-Based
Plans
|
||||
Name
|
PSUs
(#)
|
Until
Payout
|
Threshold
($
or #)
|
Target
($
or #)
|
Maximum
($
or
#)
|
Sylvain
Allard
|
28,894
|
April
30, 2009
|
N/A
|
N/A
|
N/A
|
Rick
Davis
|
12,447
|
April
30, 2009
|
N/A
|
N/A
|
N/A
|
Christine
Baird
|
5,868
|
April
30, 2009
|
N/A
|
N/A
|
N/A
|
Neil
Calvert
|
5,868
|
April
30, 2009
|
N/A
|
N/A
|
N/A
|
Keith
Mullett
|
5,444
|
April
30, 2009
|
N/A
|
N/A
|
N/A
|
Plan
Category
|
Number
of securities
to
be issued upon exercise of
outstanding options
|
Weighted-average
exercise
price per
share
of
outstanding
options
|
Number
of securities
remaining
available
for
future issuance
under
equity
compensation
plans
|
||||
Employee
Share Option Plan
|
2,232,922
|
$
17.64
|
10,462
|
||||
Equity
compensation plans not approved by security holders
|
-
|
-
|
-
|
||||
Total
|
2,232,922
|
$
17.64
|
10,462
|
Name
|
SARs
Granted
#
|
Percent
of Total SARs Granted
to Employees during the year ended April 30, 2007
|
Exercise
Price
($/Security)
|
Market
Value of Securities
Underlying SARs at the Date of Grant ($/Security)
|
Expiration
Date
|
Sylvain
Allard
|
-
|
-
|
-
|
-
|
-
|
Rick
Davis
|
55,524
|
57.1%
|
$22.07
|
$22.07
|
September
28, 2016
|
Jo
Mark Zurel
|
-
|
-
|
-
|
-
|
-
|
Christine
Baird
|
-
|
-
|
-
|
-
|
-
|
Neil
Calvert
|
-
|
-
|
-
|
-
|
-
|
Keith
Mullett
|
-
|
-
|
-
|
-
|
-
|
Name
|
Type
of
Security
|
Securities
acquired on
exercise
#
|
Aggregate
value
realized
$
|
Options
exercisable (vested) at
April 30, 2007
#
(i)
|
Options
not exercisable
(unvested) at April 30, 2007
#
(i)
|
Value
of all vested unexercised
in-the-money options
April
30,
2007
$
|
Value
of all non-vested
unexercised in-the-money options
April
30,
2007
$
|
Sylvain
Allard
|
Class A
|
-
|
-
|
241,966
|
80,000
|
7,713,216
|
-
|
Rick
Davis
|
Class A
|
-
|
-
|
4,000
|
16,000
|
-
|
-
|
Jo Mark
Zurel
|
Class A
|
46,500
|
1,052,063
|
97,500
|
-
|
1,469,650
|
-
|
Christine
Baird
|
Class A
|
-
|
-
|
12,000
|
18,000
|
-
|
-
|
Neil
Calvert
|
Class A
|
-
|
-
|
12,000
|
18,000
|
-
|
-
|
Keith
Mullett
|
Class A
|
-
|
-
|
18,000
|
18,000
|
121,080
|
-
|
(i)
|
Each
option entitles the holder to receive two Class A
Shares.
|
•
|
0.5%
of average earnings up to the CPP earnings limit at
retirement;
|
•
|
1%
of average earnings above such CPP earnings limit up to the earnings
for
which the Canada Revenue Agency (the "CRA") maximum contribution
could be
made under the RPP in the year of retirement;
and
|
•
|
2%
of average earnings in excess of the above CRA earnings
limits.
|
Years
of Credited Service
|
|||||||||||||||||
Remuneration
|
15
|
20
|
25
|
30
|
35
|
||||||||||||
$
|
$
|
$
|
$
|
$
|
$
|
||||||||||||
200,000
|
60,000
|
80,000
|
100,000
|
120,000
|
140,000
|
||||||||||||
400,000
|
120,000
|
160,000
|
200,000
|
240,000
|
280,000
|
||||||||||||
600,000
|
180,000
|
240,000
|
300,000
|
360,000
|
420,000
|
||||||||||||
800,000
|
240,000
|
320,000
|
400,000
|
480,000
|
560,000
|
||||||||||||
1,000,000
|
300,000
|
400,000
|
500,000
|
600,000
|
700,000
|
||||||||||||
1,200,000
|
360,000
|
480,000
|
600,000
|
720,000
|
840,000
|
||||||||||||
1,400,000
|
420,000
|
560,000
|
700,000
|
840,000
|
980,000
|
||||||||||||
1,600,000
|
480,000
|
640,000
|
800,000
|
960,000
|
1,120,000
|
||||||||||||
1,800,000
|
540,000
|
720,000
|
900,000
|
1,080,000
|
1,260,000
|
||||||||||||
2,000,000
|
600,000
|
800,000
|
1,000,000
|
1,200,000
|
1,400,000
|
Aggregate
Indebtedness
($)
|
||
Purpose
|
To
the Corporation or its
subsidiaries
|
To
another
entity
|
Executive
Share Purchase Loans
(A
loan program)
|
$1,206,210
|
-
|
Ordinary
share loan
|
$33,000,000
|
-
|
Name
and principal position
|
Involvement
of Corporation or subsidiary
|
Largest
amount outstanding during fiscal year 2007
$
|
Amount
outstanding as at August 31, 2007
$
|
Financially
assisted securities purchases during fiscal 2007
#
|
Security
for indebtedness
|
Amount
forgiven during fiscal 2007
|
EXECUTIVE
SHARE PURCHASE LOANS (A loan program)
|
||||||
Sylvain
Allard
President
& Chief Executive Officer, Proposed Nominee Director
|
Lender
|
277,067
|
236,189
|
-
|
An
assignment of the shares or proceeds of vested options to acquire
100,000
Class A shares held by the executive, having an exercise price of
$2.125 per share.
|
-
|
Christine
Baird
President,
CHC Global Operations
|
Lender
|
34,980
|
28,021
|
-
|
A
first lien on the Class A shares purchased under the
program
|
-
|
THE
ORDINARY SHARE LOAN
|
||||||
O.S.
Holdings Inc.
(a
corporation indirectly wholly owned by Craig L. Dobbin)
|
Lender
|
33,000,000
|
33,000,000
|
-
|
A
lien in CHC’s favour on the purchased Ordinary Shares, together with
certain other security (see below)
|
-
|
Year
ended April
30
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
Administrative,
support and other personnel
|
1,534
|
1,320
|
1,450
|
|||||||||
Pilots
|
930
|
836
|
756
|
|||||||||
Maintenance
engineers
|
1,353
|
1,010
|
883
|
|||||||||
3,817
|
3,166
|
3,089
|
Name
|
Class
A
Shares
|
Percent
of Total
Class
A
Shares
|
Options
(Class A
Shares)
(i)
|
Exercise
Price of options
|
Expiration
date of options
|
||||||
Sylvain
Allard
|
278,468
|
0.697%
|
Grant
1:
|
103,216
|
Grant
1:
|
$
4.26
|
Grant
1:
|
April
22, 2009
|
|||
Grant
2:
|
118,750
|
Grant
2:
|
30.70
|
Grant
2:
|
May
1, 2012
|
||||||
Grant
3:
|
100,000
|
Grant
3:
|
49.60
|
Grant
3:
|
June
29, 2015
|
||||||
321,966
|
|||||||||||
Rick
Davis
|
2,400
|
0.006%
|
20,000
|
$
49.60
|
June
29, 2015
|
||||||
Christine
Baird
|
13,160
|
0.033%
|
30,000
|
$
49.60
|
June
29, 2015
|
||||||
Neil
Calvert
|
2,399
|
0.006%
|
30,000
|
$
49.60
|
June
29, 2015
|
||||||
Keith
Mullet
|
337
|
0.000%
|
Grant
1:
|
6,000
|
Grant
1:
|
$
30.70
|
Grant
1:
|
May
1, 2012
|
|||
|
|
Grant
2:
|
30,000
|
Grant
2:
|
49.60
|
Grant
2:
|
June
29, 2015
|
||||
36,000
|
(i)
|
Each
option entitles the holder to receive two Class A
shares.
|
ITEM
7.
|
MAJOR
SHAREHOLDERS AND RELATED PARTY
TRANSACTIONS
|
Name
of Shareholder
|
Number
of voting shares owned,
controlled
or directed (i)
|
Percent
of class (i)
|
||||||||||||||||||||||
Subordinate
Voting
Shares
|
Multiple
Voting
Shares
|
Ordinary
Shares
|
Subordinate
Voting
Shares
|
Multiple
Voting
Shares
|
Ordinary
Shares
|
|||||||||||||||||||
Estate
of Craig L. Dobbin (ii)
|
5,426,462
|
5,555,432
|
22,000,000
|
13.6 | % | 94.8 | % | 100.0 | % | |||||||||||||||
FMR
Corp.
|
2,875,800
|
-
|
-
|
7.2 | % |
-
|
-
|
(i)
|
Includes
shares beneficially owned by the listed person. If a person has the
right
to acquire beneficial ownership of any shares by exercise of options
or
otherwise by October 30, 2007, those shares are deemed beneficially
owned by that person and are deemed to be outstanding solely for
the
purpose of determining the percentage of the shares that the person
owns.
Those shares are not included in the computations for any other
person.
|
(ii)
|
Discovery
Helicopters Inc., a holding company, all of the voting shares of
which are
owned by the estate of Craig L. Dobbin (the “Estate”), holds 3,892,540
Class A shares. All of the Class B shares are beneficially owned
by the Estate. O.S. Holdings Inc., a holding company, wholly owned
by the
Estate, holds all of the ordinary shares. The Estate directly or
indirectly own shares of the Corporation that collectively carry
62.8% of
the votes attached to all of the outstanding shares of the Corporation.
The shares owned by Discovery Helicopters Inc. collectively represent
59.0% of the votes attached to all of our outstanding
shares.
|
(a)
|
In
the course of its regular business activities, the Company enters
into
routine transactions with companies subject to significant influence
by
the Company (most significantly ACN) as well as parties affiliated
with
the controlling shareholder. These transactions are measured at the
amounts exchanged, which is the amount of consideration determined
and
agreed to by the related parties. Transactions with related parties
for
the years ended April 30 are summarized as
follows:
|
2007
|
2006
|
2005
|
||||||||||
Revenues
from ACN
|
$ |
90,256
|
$ |
70,738
|
$ | 43,518 | ||||||
Direct
costs
|
432
|
446
|
1,298 | |||||||||
Inventory
additions
|
-
|
10,679
|
- | |||||||||
Capital
asset additions
|
-
|
5,692
|
8,160 | |||||||||
Net
amounts receivable and payable in respect of such revenues,
expenses and additions
|
25,351
|
21,878
|
15,044 |
(b)
|
During
fiscal 2000, in connection with securing tender credit facilities,
the
Company received an unsecured, subordinated, convertible 12% loan
from an
affiliate of the controlling shareholder in the amount of
$5.0 million. This loan was subordinated to the Company’s senior
credit facilities and its senior subordinated notes (see Note 14 to
our fiscal 2007 audited consolidated financial statements). The loan
was
convertible at the option of the shareholder into Class A subordinate
voting shares at $3.63 per share. The estimated value of the loan
proceeds attributable to the conversion feature of $1.0 million was
allocated to contributed surplus. The equivalent reduction in the
carrying
value of the loan is amortized to earnings over the term of the loan.
Interest expense of $0.6 million (2006 - $0.6 million, 2005 -
$0.7 million), including amortization of the above noted discount,
was recorded on the loan during the fiscal year ended April 30,
2007.
|
ITEM
8.
|
FINANCIAL
INFORMATION
|
ITEM
9.
|
THE
OFFER AND LISTING
|
Class
A Subordinate Voting
Shares
|
Class
B Multiple Voting
Shares
|
|||||||||||||||||||||||
High
|
Low
|
Volume
|
High
|
Low
|
Volume
|
|||||||||||||||||||
Fiscal
2007
|
||||||||||||||||||||||||
First
quarter
|
$ |
28.50
|
$ |
23.65
|
7,662,870
|
$ |
28.30
|
$ |
24.88
|
6,750
|
||||||||||||||
Second
quarter
|
26.10
|
21.06
|
5,945,693
|
26.99
|
21.78
|
8,336
|
||||||||||||||||||
Third
quarter
|
26.69
|
22.63
|
5,743,981
|
26.00
|
24.30
|
13,117
|
||||||||||||||||||
Fourth
quarter
|
25.45
|
21.86
|
8,442,500
|
25.60
|
23.00
|
5,940
|
||||||||||||||||||
Fiscal
2006
|
||||||||||||||||||||||||
First
quarter
|
$ |
28.08
|
$ |
23.24
|
10,314,800
|
$ |
28.00
|
$ |
23.90
|
4,300
|
||||||||||||||
Second
quarter
|
27.34
|
22.11
|
9,896,100
|
25.75
|
24.00
|
1,600
|
||||||||||||||||||
Third
quarter
|
28.48
|
23.39
|
4,743,500
|
28.75
|
24.00
|
3,700
|
||||||||||||||||||
Fourth
quarter
|
31.25
|
24.30
|
8,795,700
|
33.00
|
25.15
|
20,000
|
Class
A Subordinate Voting
Shares
|
Class
B Multiple Voting
Shares
|
|||||||||||||||||||||||
High
|
Low
|
Volume
|
High
|
Low
|
Volume
|
|||||||||||||||||||
2003
|
$ |
18.03
|
$ |
10.82
|
37,426,564
|
$ |
18.00
|
$ |
10.90
|
94,502
|
||||||||||||||
2004
|
20.62
|
12.00
|
37,563,400
|
20.50
|
12.41
|
107,000
|
||||||||||||||||||
2005
|
29.71
|
18.38
|
27,155,639
|
29.08
|
18.58
|
21,918
|
||||||||||||||||||
2006
|
31.25
|
22.11
|
33,750,100
|
33.00
|
23.90
|
29,600
|
||||||||||||||||||
2007
|
28.50
|
21.06
|
27,795,044
|
28.30
|
21.78
|
34,143
|
Class
A Subordinate Voting
Shares
|
Class
B Multiple Voting
Shares
|
|||||||||||||||||||||||
High
|
Low
|
Volume
|
High
|
Low
|
Volume
|
|||||||||||||||||||
March
2007
|
$ |
24.45
|
$ |
21.86
|
3,311,859
|
$ |
25.10
|
$ |
23.63
|
700
|
||||||||||||||
April
2007
|
24.05
|
22.40
|
2,849,313
|
23.63
|
23.00
|
1,500
|
||||||||||||||||||
May
2007
|
26.54
|
23.13
|
2,898,543
|
26.35
|
23.81
|
4,300
|
||||||||||||||||||
June
2007
|
28.33
|
23.16
|
5,399,615
|
27.70
|
24.34
|
2,400
|
||||||||||||||||||
July
2007
|
29.88
|
27.33
|
4,062,967
|
29.70
|
27.70
|
1,100
|
||||||||||||||||||
August
2007
|
29.98
|
25.04
|
3,718,755
|
30.00
|
26.00
|
4,000
|
High
|
Low
|
Volume
|
||||||||||
Fiscal
2007
|
||||||||||||
First
quarter
|
$ |
25.60
|
$ |
21.25
|
757,300
|
|||||||
Second
quarter
|
23.25
|
18.66
|
1,024,500
|
|||||||||
Third
quarter
|
23.37
|
19.25
|
874,000
|
|||||||||
Fourth
quarter
|
21.60
|
18.65
|
787,981
|
|||||||||
Fiscal
2006
|
||||||||||||
First
quarter
|
$ |
22.37
|
$ |
18.88
|
852,600
|
|||||||
Second
quarter
|
22.48
|
18.70
|
743,200
|
|||||||||
Third
quarter
|
24.66
|
19.84
|
618,900
|
|||||||||
Fourth
quarter
|
27.00
|
21.02
|
924,400
|
High
|
Low
|
Volume
|
||||||||||
2003
|
$ |
11.65
|
$ |
7.38
|
6,568,600
|
|||||||
2004
|
15.23
|
8.65
|
3,930,600
|
|||||||||
2005
|
24.13
|
13.19
|
4,890,500
|
|||||||||
2006
|
27.00
|
18.70
|
3,139,100
|
|||||||||
2007
|
25.60
|
18.65
|
3,443,781
|
High
|
Low
|
Volume
|
||||||||||
March
2007
|
$ |
20.83
|
$ |
18.65
|
257,600
|
|||||||
April
2007
|
21.04
|
20.03
|
110,400
|
|||||||||
May
2007
|
24.58
|
20.89
|
362,000
|
|||||||||
June
2007
|
26.66
|
21.65
|
813,100
|
|||||||||
July
2007
|
28.46
|
25.87
|
471,400
|
|||||||||
August
2007
|
28.30
|
23.65
|
772,800
|
ITEM
10.
|
ADDITIONAL
INFORMATION
|
ITEM
11.
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
|
ITEM
12.
|
DESCRIPTION
OF SECURITIES OTHER THAN EQUITY
SECURITIES
|
ITEM
13.
|
DEFAULTS,
DIVIDEND ARREARAGES AND
DELINQUENCIES
|
ITEM
14.
|
MATERIAL
MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF
PROCEEDS
|
ITEM
15.
|
CONTROLS
AND PROCEDURES
|
•
|
Pertain
to the maintenance of records that, in reasonable detail, accurately
and
fairly reflect the transactions and dispositions of the assets of
the
Company;
|
•
|
Provide
reasonable assurance that transactions are recorded as necessary
to permit
preparation of financial statements in accordance with generally
accepted
accounting principles, and receipts and expenditures of the Company
are
made only in accordance with authorizations of management and the
directors of the Company; and
|
•
|
Provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of the Company’s assets that
could have a material effect on the annual financial statements or
interim
financial statements.
|
ITEM
16A.
|
AUDIT
COMMITTEE FINANCIAL EXPERT
|
ITEM
16B.
|
CODE
OF ETHICS
|
ITEM
16C.
|
PRINCIPAL
ACCOUNTANT FEES AND SERVICES
|
2007
|
2006
|
|||||||
($ millions)
|
||||||||
Audit
Fees
|
$ |
4.1
|
$ |
2.4
|
||||
Audit-Related
Fees
|
0.2
|
0.1
|
||||||
Tax
Fees
|
0.9
|
0.9
|
||||||
All
Other Fees
|
0.1
|
-
|
||||||
Total
|
$ |
5.3
|
$ |
3.4
|
ITEM
16D.
|
EXEMPTIONS
FROM THE LISTING STANDARDS FOR AUDIT
COMMITTEES
|
ITEM
16E.
|
PURCHASE
OF EQUITY SECURITIES BY ISSUER AND AFFILIATED
PURCHASERS
|
ITEM
17.
|
FINANCIAL
STATEMENTS
|
Contents
|
Page
|
|||
MANAGEMENT’S
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
|
103
|
|||
REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON FINANCIAL
STATEMENTS
|
104
|
|||
REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON INTERNAL CONTROLS
(UNDER THE STANDARDS OF THE PUBLIC COMPANY ACCOUNTING OVERSIGHT BOARD
(UNITED STATES))
|
105
|
|||
CONSOLIDATED
BALANCE SHEETS
|
107
|
|||
CONSOLIDATED
STATEMENTS OF EARNINGS
|
108
|
|||
CONSOLIDATED
STATEMENTS OF SHAREHOLDERS’ EQUITY
|
109
|
|||
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
110
|
|||
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS
|
111
|
(a)
|
Pertain
to the maintenance of records that, in reasonable detail, accurately
and
fairly reflect the transactions and dispositions of the assets of
the
Company;
|
(b)
|
Provide
reasonable assurance that transactions are recorded as necessary
to permit
preparation of financial statements in accordance with generally
accepted
accounting principles, and that receipts and expenditures of the
Company
are made only in accordance with authorizations of management and
the
directors of the Company; and
|
(c)
|
Provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the Company’s assets that
could have a material effect on the financial
statements.
|
Sylvain
Allard, MBA
President
and Chief Executive Officer
|
Rick
Davis, CA
Senior
Vice President and Chief Financial
Officer
|
2007
|
2006
|
|||||||
Assets
(Note
14)
|
||||||||
Current
assets
|
||||||||
Cash
and cash equivalents
(Note 6)
|
$ |
89,511
|
$ |
26,331
|
||||
Receivables
(Note
7)
|
277,767
|
246,217
|
||||||
Future
income tax assets (Note 22)
|
32,169
|
26,859
|
||||||
Inventory
|
126,315
|
91,884
|
||||||
Prepaid
expenses
|
55,121
|
10,619
|
||||||
Assets
of discontinued operations (Note
5)
|
3,961
|
3,857
|
||||||
584,844
|
405,767
|
|||||||
Property
and equipment, net (Note
8)
|
1,092,664
|
919,364
|
||||||
Investments
(Note
9)
|
7,478
|
5,422
|
||||||
Intangible
assets (Note
10)
|
17,874
|
640
|
||||||
Goodwill
(Note
11)
|
55,276
|
1,224
|
||||||
Other
assets (Note
12)
|
290,936
|
296,352
|
||||||
Future
income tax assets (Note 22)
|
34,678
|
39,848
|
||||||
Assets
of discontinued operations (Note
5)
|
18,469
|
17,465
|
||||||
$ |
2,102,219
|
$ |
1,686,082
|
|||||
Liabilities
and shareholders’
equity
|
||||||||
Current
liabilities
|
||||||||
Payables
and
accruals
|
$ |
340,912
|
$ |
227,646
|
||||
Deferred
revenue
|
2,057
|
2,608
|
||||||
Dividends
payable
|
11,241
|
8,548
|
||||||
Income
taxes payable
|
7,498
|
7,018
|
||||||
Future
income tax liabilities (Note
22)
|
9,813
|
8,852
|
||||||
Current
portion of debt obligations (Note
14(a))
|
333,728
|
24,948
|
||||||
Liabilities
of
discontinued operations (Note
5)
|
2,979
|
4,037
|
||||||
708,228
|
283,657
|
|||||||
Long-term
debt (Note
14(a))
|
64,168
|
150,982
|
||||||
Senior
subordinated notes (Note
14(b))
|
442,680
|
448,120
|
||||||
Other
liabilities (Note
16)
|
139,791
|
132,431
|
||||||
Future
income tax liabilities (Note
22)
|
193,172
|
176,708
|
||||||
Liabilities
of discontinued operations (Note
5)
|
2,900
|
3,450
|
||||||
Shareholders’
equity
|
551,280
|
490,734
|
||||||
$ |
2,102,219
|
$ |
1,686,082
|
Mark
Dobin
Chairman
|
Jack
M. Mintz, Ph.D.
Director
|
2007
|
2006
|
2005
|
||||||||||
Revenue
(Note
31(a))
|
$ |
1,149,107
|
$ |
997,087
|
$ |
954,242
|
||||||
Direct
costs
|
(924,714 | ) | (788,501 | ) | (732,738 | ) | ||||||
General
and administration
costs
|
(43,388 | ) | (27,895 | ) | (35,279 | ) | ||||||
Amortization
|
(65,303 | ) | (55,470 | ) | (50,184 | ) | ||||||
Restructuring
(costs) recovery
(Note
15)
|
2,341
|
(16,150 | ) | (17,390 | ) | |||||||
Gain
(loss) on disposals of
assets
|
(2,987 | ) | (5 | ) |
4,129
|
|||||||
Fair
value adjustment (Note
5)
|
-
|
-
|
(14,260 | ) | ||||||||
Operating
income
|
115,056
|
109,066
|
108,520
|
|||||||||
Debt
settlement costs (Note
14(e))
|
-
|
-
|
(2,017 | ) | ||||||||
Financing
charges (Note
14(d))
|
(58,296 | ) | (52,974 | ) | (37,428 | ) | ||||||
Earnings
from continuing
operations before income taxes and undernoted
items
|
56,760
|
56,092
|
69,075
|
|||||||||
Gain
on sale of long-term
investments (Note
9)
|
-
|
37,558
|
-
|
|||||||||
Equity
in
earnings of associated companies and non-controlling
interest
|
1,053
|
6,564
|
5,192
|
|||||||||
Income
tax provision (Note
22)
|
(16,826 | ) | (10,509 | ) | (27,338 | ) | ||||||
Net
earnings from continuing
operations
|
40,987
|
89,705
|
46,929
|
|||||||||
Net
earnings from discontinued
operations (Note
5)
|
2,167
|
1,005
|
9,590
|
|||||||||
Net
earnings before extraordinary
item
|
43,154
|
90,710
|
56,519
|
|||||||||
Extraordinary
item, net of tax
(Note
11(b))
|
810
|
-
|
-
|
|||||||||
Net
earnings
|
$ |
43,964
|
$ |
90,710
|
$ |
56,519
|
||||||
Earnings
per share (Note
23)
|
||||||||||||
Basic
|
||||||||||||
Net
earnings from continuing
operations
|
$ |
0.97
|
$ |
2.14
|
$ |
1.12
|
||||||
Net
earnings from discontinued
operations
|
0.05
|
0.02
|
0.23
|
|||||||||
Extraordinary
item
|
0.02
|
-
|
-
|
|||||||||
Net
earnings
|
1.04
|
2.16
|
1.35
|
|||||||||
Diluted
|
||||||||||||
Net
earnings from continuing
operations
|
$ |
0.90
|
$ |
1.95
|
$ |
1.03
|
||||||
Net
earnings from discontinued
operations
|
0.05
|
0.02
|
0.20
|
|||||||||
Extraordinary
item
|
0.02
|
-
|
-
|
|||||||||
Net
earnings
|
0.97
|
1.97
|
1.23
|
2007
|
2006
|
2005
|
||||||||||
Retained
earnings, beginning of
year
|
312,481
|
238,854
|
195,140
|
|||||||||
Net
earnings
|
43,964
|
90,710
|
56,519
|
|||||||||
Dividends
|
(21,912 | ) | (17,083 | ) | (12,805 | ) | ||||||
Retained
earnings, end of
year
|
334,533
|
312,481
|
238,854
|
|||||||||
Capital
stock (Note
17)
|
252,505
|
240,152
|
239,469
|
|||||||||
Contributed
surplus (Note
17)
|
5,042
|
4,363
|
3,291
|
|||||||||
Foreign
currency translation
adjustment (Note
20)
|
(40,800 | ) | (66,262 | ) | (21,471 | ) | ||||||
Total
shareholders’
equity
|
$ |
551,280
|
$ |
490,734
|
$ |
460,143
|
||||||
Dividends
declared per
participating voting share
|
$ |
0.50
|
$ |
0.40
|
$ |
0.30
|
2007
|
2006
|
2005
|
||||||||||
Operating
activities
|
||||||||||||
Net
earnings from continuing
operations
|
$ |
40,987
|
$ |
89,705
|
$ |
46,929
|
||||||
Operating
items not involving
cash:
|
||||||||||||
Amortization
|
65,303
|
55,470
|
50,184
|
|||||||||
Loss
(gain) on
disposals of assets and long-term investments
|
2,987
|
(37,553 | ) | (4,129 | ) | |||||||
Equity
earnings
of associated companies and non-controlling
interest
|
(1,053 | ) | (6,564 | ) | (5,192 | ) | ||||||
Income
taxes
|
5,256
|
2,611
|
18,976
|
|||||||||
Defined
benefit
pension plans
|
887
|
(2,015 | ) | (13,280 | ) | |||||||
Amortization
of
contract credits and deferred gains
|
(15,293 | ) | (15,616 | ) | (14,103 | ) | ||||||
Prepaid
aircraft rental
|
(15,326 | ) | (1,453 | ) | (7,513 | ) | ||||||
Claims
reserve
|
(5,141 | ) |
3,408
|
-
|
||||||||
Deferred
revenue
|
(685 | ) |
6,083
|
(6,618 | ) | |||||||
Long-term
receivables from BHS - Brazilian Helicopter Services Taxi Aereo
Ltda.
prior to acquisition
|
(17,324 | ) |
-
|
-
|
||||||||
Other
|
2,819
|
(6,957 | ) |
13,382
|
||||||||
63,417
|
87,119
|
78,636
|
||||||||||
Change
in non-cash working capital
(Note
24)
|
(37,199 | ) | (55,020 | ) |
22,726
|
|||||||
Cash
flow from
operations
|
26,218
|
32,099
|
101,362
|
|||||||||
Financing
activities
|
||||||||||||
Long-term
debt
proceeds
|
386,889
|
595,345
|
384,684
|
|||||||||
Long-term
debt
repayments
|
(166,344 | ) | (497,089 | ) | (242,927 | ) | ||||||
Dividends
paid
|
(19,211 | ) | (14,939 | ) | (11,596 | ) | ||||||
Capital
stock
issued
|
6,297
|
496
|
907
|
|||||||||
Other
|
(379 | ) | (7,338 | ) | (7,488 | ) | ||||||
207,252
|
76,475
|
123,580
|
||||||||||
Investing
activities
|
||||||||||||
Property
and equipment
additions
|
(393,246 | ) | (280,701 | ) | (234,742 | ) | ||||||
Helicopter
major
inspections
|
(30,066 | ) | (23,612 | ) | (15,539 | ) | ||||||
Proceeds
from disposal of assets
and long-term investments
|
318,320
|
313,694
|
90,925
|
|||||||||
Junior
loans
receivable
|
(17,809 | ) |
481
|
-
|
||||||||
Aircraft
deposits
|
(46,683 | ) | (124,990 | ) | (52,983 | ) | ||||||
Restricted
cash
|
6,835
|
(5,565 | ) | (5,323 | ) | |||||||
Investments
in subsidiaries, net
of cash acquired
|
-
|
(1,123 | ) | (17,984 | ) | |||||||
Advances
to BHS - Brazilian
Helicopter Services Taxi Aereo Ltda. prior to
acquisition
|
(1,780 | ) | (3,892 | ) |
-
|
|||||||
Cash
on acquisition of BHS -
Brazilian Helicopter Services Taxi Aereo Ltda., net of acquisition
costs
|
1,674
|
-
|
-
|
|||||||||
Other
|
(6,524 | ) |
1,555
|
(7,075 | ) | |||||||
(169,279 | ) | (124,153 | ) | (242,721 | ) | |||||||
Effect
of exchange rate changes on
cash and cash equivalents
|
(150 | ) | (10,623 | ) | (3,828 | ) | ||||||
Cash
provided by (used in)
continuing operations
|
64,041
|
(26,202 | ) | (21,607 | ) | |||||||
Cash
(used in) provided by
discontinued operations (Note
5)
|
(861 | ) |
1,142
|
11,919
|
||||||||
Change
in cash and cash
equivalents during the year
|
63,180
|
(25,060 | ) | (9,688 | ) | |||||||
Cash
and cash equivalents,
beginning of year
|
26,331
|
51,391
|
61,079
|
|||||||||
Cash
and cash equivalents, end of
year
|
$ |
89,511
|
$ |
26,331
|
$ |
51,391
|
1.
|
DESCRIPTION
OF THE
BUSINESS
|
2.
|
SUMMARY
OF SIGNIFICANT
ACCOUNTING POLICIES
|
(a)
|
Flying
assets
|
|
(i)
|
Aircraft,
components and spares are recorded at cost and are amortized to their
estimated residual value on a straight-line basis to amortization
expense
over their estimated service life of 15-25 years. At pre-determined
intervals, as specified by the original manufacturer and aviation
regulatory authorities, airframes require major inspections. The
cost of
these major airframe inspections and modifications for both owned
and
leased aircraft is capitalized and amortized to amortization expense
over
the lesser of their estimated useful life and remaining lease term,
if
applicable.
|
|
(ii)
|
Repairable
parts are recorded at cost and are amortized to their estimated residual
value on a declining balance basis. When components are retired or
otherwise disposed of in the ordinary course of business, their original
cost, net of salvage or sale proceeds, is charged to accumulated
amortization and cost.
|
(b)
|
Facilities
and
equipment
|
3.
|
FUTURE
ACCOUNTING
CHANGES
|
(a)
|
Financial
Instruments
|
•
|
The
difference between the carrying amount and the fair value of financial
assets and financial liabilities on initial measurement, other than
financial assets classified as
available-for-sale.
|
•
|
The
difference between the carrying amount and the fair value of derivatives,
other than those that are designated and effective hedging
items.
|
•
|
The
ineffective portion of the gain or loss on a hedging item that is
determined to be an effective
hedge.
|
•
|
The
impact of embedded derivatives outstanding as at May 1,
2007.
|
•
|
The
difference between the carrying amount and the fair value of financial
assets classified as
available-for-sale.
|
•
|
The
portion of the gain or loss on a hedging item that is determined
to be an
effective cash flow hedge or an effective hedge of a net investment
in a
self-sustaining foreign operation.
|
•
|
Reclassification
of the unrealized foreign currency translation adjustment in the
financial
statements of self-sustaining foreign operations, net of hedge
transactions.
|
(b)
|
Other
|
4.
|
ACCOUNTING
ESTIMATES AND
MEASUREMENT UNCERTAINTY
|
(a)
|
Recoverability
of pre-operating expenses
|
(b)
|
Flying
asset amortization
|
(c)
|
Carrying
value of aircraft
|
(d)
|
Inventory
obsolescence
|
(e)
|
Defined
benefit employee pension plans
|
(f)
|
Utilization
of income tax losses
|
(g)
|
Lease
aircraft return costs
|
(h)
|
Aircraft
operating leases
|
(i)
|
Consolidation
of variable interest entities
(“VIE”s)
|
5.
|
DISCONTINUED
OPERATIONS
|
As
at April
30,
|
||||||||
Balance
Sheets
|
2007
|
2006
|
||||||
Assets
|
||||||||
Receivables
|
$ |
2,994
|
$ |
3,109
|
||||
Future
income tax assets
|
125
|
-
|
||||||
Inventory
|
739
|
638
|
||||||
Prepaid
expenses
|
103
|
110
|
||||||
3,961
|
3,857
|
|||||||
Property
and equipment, net
|
7,289
|
6,720
|
||||||
Intangible
assets
|
4,046
|
4,166
|
||||||
Goodwill
|
7,134
|
6,579
|
||||||
Total
assets of discontinued
operations
|
22,430
|
21,322
|
||||||
Liabilities
|
||||||||
Payables
and accruals
|
1,734
|
1,948
|
||||||
Current
portion of debt obligations
|
-
|
746
|
||||||
Income
taxes payable
|
1,245
|
1,343
|
||||||
2,979
|
4,037
|
|||||||
Long-term
debt
|
-
|
157
|
||||||
Future
income tax liabilities
|
2,900
|
3,293
|
||||||
Total
liabilities of
discontinued operations
|
5,879
|
7,487
|
||||||
Net
assets of discontinued
operations
|
$ |
16,551
|
$ |
13,835
|
Year
Ended April
30,
|
||||||||||||
Statement
of
Earnings
|
2007
|
2006
|
2005
|
|||||||||
Revenue
|
$ |
18,799
|
$ |
17,681
|
$ |
25,619
|
||||||
Operating
income
|
$ |
3,508
|
$ |
2,452
|
$ |
23,973
|
||||||
Net
earnings from discontinued operations (i)
|
$ |
2,167
|
$ |
1,005
|
$ |
9,590
|
(i)
|
Net
earnings from discontinued operations for the year ended April 30,
2007 includes income tax expense of $0.5 million (2006 -
$0.4 million; 2005 -
$0.3 million).
|
Year
Ended April
30,
|
||||||||||||
Statements
of Cash
Flows
|
2007
|
2006
|
2005
|
|||||||||
Operating
activities
|
$ |
4,237
|
$ |
3,617
|
$ | (1,052 | ) | |||||
Financing
activities
|
(2,535 | ) | (907 | ) | (601 | ) | ||||||
Investing
activities
|
(2,686 | ) | (1,459 | ) |
12,865
|
|||||||
(984 | ) |
1,251
|
11,212
|
|||||||||
Effect
of exchange rate changes on cash and cash equivalents
|
123
|
(109 | ) |
707
|
||||||||
Cash
provided by (used in) discontinued operations
|
$ | (861 | ) | $ |
1,142
|
$ |
11,919
|
6.
|
CASH
AND CASH
EQUIVALENTS
|
7.
|
RECEIVABLES
|
2007
|
2006
|
|||||||
Trade
receivables, net of allowance for doubtful accounts of $8.4 million
(2006
- $24.5 milion)
|
$ |
232,240
|
$ |
192,639
|
||||
Due
from BHS - Brazilian Helicopter Services Taxi Aereo Ltda. (i)
|
-
|
9,641
|
||||||
Other
receivables
|
45,527
|
43,937
|
||||||
$ |
277,767
|
$ |
246,217
|
(i)
|
BHS
- Brazilian Helicopter Services Taxi Aereo Ltda. receivables are
now
eliminated upon consolidation effective March 8, 2007, the
acquisition date of BHS
(Note 11(a)).
|
8.
|
PROPERTY
AND
EQUIPMENT
|
Cost
|
Accumulated
Amortization
|
Net
Book
Value
|
||||||||||
2007
|
||||||||||||
Flying
Assets
|
$ |
1,122,641
|
$ |
149,099
|
$ |
973,542
|
||||||
Facilities
|
99,680
|
34,761
|
64,919
|
|||||||||
Equipment
|
117,972
|
63,769
|
54,203
|
|||||||||
$ |
1,340,293
|
$ |
247,629
|
$ |
1,092,664
|
|||||||
2006
|
||||||||||||
Flying
Assets
|
$ |
990,067
|
$ |
158,931
|
$ |
831,136
|
||||||
Facilities
|
88,114
|
39,811
|
48,303
|
|||||||||
Equipment
|
113,224
|
73,299
|
39,925
|
|||||||||
$ |
1,191,405
|
$ |
272,041
|
$ |
919,364
|
9.
|
INVESTMENTS
|
2007
|
2006
|
|||||||
Long-term
investments, at equity
|
||||||||
Luchthaven
Den
Helder C.V. (2007 - 50%, 2006 - 50%)
|
$ |
5,072
|
$ |
3,545
|
||||
Aero
Contractors Company of Nigeria Limited ("ACN") (2007 - 40%, 2006 -
40%)
|
1,406
|
-
|
||||||
Other,
at cost
|
1,000
|
1,877
|
||||||
$ |
7,478
|
$ |
5,422
|
10.
|
INTANGIBLE
ASSETS
|
2007
|
2006
|
|||||||
Customer
contracts and relationships, less accumulated amortization of $0.6
million (2006 - $0.1 million)
|
$ |
17,121
|
$ |
212
|
||||
Other,
net of accumulated amortization of $0.4 million (2006 - $0.2
million)
|
753
|
428
|
||||||
$ |
17,874
|
$ |
640
|
11.
|
ACQUISITIONS
|
(a)
|
BHS
- Brazilian Helicopter Services Taxi Aereo
Ltda.
|
Fair
value of net assets
acquired
|
||||
Cash
|
$ |
2,529
|
||
Other
current assets
|
5,066
|
|||
Intangible
assets
(i)
|
17,564
|
|||
Goodwill
(ii)
|
55,794
|
|||
Property
and
equipment
|
1,619
|
|||
Current
liabilities
|
(4,155 | ) | ||
Due
to
CHC
|
(32,830 | ) | ||
Long-term
debt
|
(3,555 | ) | ||
Tax
and
other liabilities
|
(41,177 | ) | ||
$ |
855
|
|||
Purchase
price
|
||||
Consideration
|
$ |
-
|
||
Acquisition
costs
|
855
|
|||
$ |
855
|
(i)
|
The
intangible assets consist of customer contracts and related intangibles
which are being amortized on a straight line basis over their estimated
useful life of seven years.
|
(ii) |
The
acquisition resulted in goodwill of $55.8 million, of which
$31.1 million has been allocated to Global Operations and
$24.7 million has been allocated to Heli-One. The goodwill is not
expected to be deductible for tax
purposes.
|
(b)
|
Heli-Dyne
Systems Inc.
|
12.
|
OTHER
ASSETS
|
2007
|
2006
|
|||||||
Prepaid
pension costs (i)
|
$ |
99,956
|
$ |
100,101
|
||||
Prepaid
aircraft rentals (ii)
|
38,277
|
21,042
|
||||||
Aircraft
operating lease junior loans (iii)
|
61,517
|
40,502
|
||||||
Deferred
charges, less accumulated amortization of $2.0 million (April
30, 2006 -
$0.7 million) (iv)
|
9,752
|
6,245
|
||||||
Deferred
financing costs, less accumulated amortization of $5.9 million
(April 30, 2006 - $4.4 million) (v)
|
7,426
|
6,769
|
||||||
Loans
receivable (vi)
|
15,868
|
20,326
|
||||||
Pre-operating
expenses (vii)
|
6,025
|
3,657
|
||||||
Aircraft
deposits (viii)
|
32,876
|
70,872
|
||||||
Norway
public pension scheme prepayments
|
4,955
|
6,324
|
||||||
Restricted
cash (ix)
|
13,669
|
19,705
|
||||||
Other
|
615
|
809
|
||||||
$ |
290,936
|
$ |
296,352
|
(i)
|
Prepaid
pension costs represent accumulated contributions paid by the
Company into
its defined benefit employee pension plans in excess of the accumulated
current and prior years’ benefit pension expense
(Note 30).
|
(ii)
|
The
prepaid aircraft rentals are up-front rental payments made on aircraft
leased under operating leases. These rentals are being amortized
over the
related lease terms.
|
(iii)
|
The
aircraft junior loans include junior loans, deferred payments and
rebateable advance rentals, which are amounts due from lessors on
the
financing of 71 aircraft under operating leases as at April 30,
2007. Such loans bear interest at 2.5% to 7.0% (2006 - 2.5% to 7.0%)
with
principal and accrued interest due at maturity. These loans mature
between
fiscal 2008 and 2016. As at April 30, 2007, no allowance has been
recorded on these loans and accrued interest as the Company currently
believes that the aircraft will realize a value upon sale at the
end of
the lease terms sufficient to recover these
loans.
|
(iv)
|
Deferred
charges (net of accumulated amortization) at April 30, 2007 include
legal and arrangement fees directly related to lease financing activities.
These costs are being amortized to aircraft lease costs over the
term of
the related lease.
|
(v)
|
Deferred
financing costs (net of accumulated amortization) at April 30, 2007
include $11.1 million (2006 - $10.9 million) in legal, bank and
other fees directly related to long-term financing activities net
of
$3.7 million of debt premium (2006 - $4.0 million) related to
the Company’s US dollar denominated senior subordinated notes. These costs
are being amortized to financing charges over the term of the related
debt
obligations, with $1.5 million amortized in fiscal 2007 (2006 -
$1.6 million; 2005 -
$3.0 million).
|
(vi)
|
The
loans receivable are non-interest bearing loans with lessors for
the
financing of 25 aircraft under operating leases as at April 30,
2007. Such loans mature between fiscal 2010 and 2014, at the end
of the
lease terms. As at April 30, 2007, no allowance has been recorded on
these loans as the Company currently believes that the aircraft will
realize a value upon sale at the end of the lease terms sufficient
to
recover these loans.
|
(vii)
|
The
pre-operating expenses balance as of April 30, 2007 consists of costs
incurred in the start-up phase of new businesses. These costs are
being
amortized on a straight-line basis over periods not exceeding
five years. The Company has determined that the pre-operating
expenses are recoverable from future cash flows to be generated from
the
new businesses.
|
(viii)
|
Aircraft
deposits are paid to manufacturers to secure deliveries at future
dates,
as described in Note 26.
|
(ix)
|
The
restricted cash balance consists of cash that is subject to restrictions
that prevent its use for current purposes, primarily cash that the
Company’s reinsurance subsidiary must retain to fund its required claims
reserves, cash held by the bank for a SARs derivative and deposits
held as
security for guarantees and bid
bonds.
|
13.
|
STOCK
APPRECIATION RIGHTS,
PERFORMANCE UNITS AND LONG-TERM INCENTIVE
PLANS
|
14.
|
DEBT
OBLIGATIONS
|
(a)
|
Long-term
debt
|
Interest
rates
|
Principal
repayment
terms
|
Maturity
dates
|
2007
|
2006
|
|
Senior
credit
facilities
|
|||||
Non-revolving
credit facilities
|
|||||
GBP
LIBOR + margin
|
Quarterly
|
December
2009
|
$
8,401
|
$
10,846
|
|
Euro
LIBOR + margin
|
Quarterly
|
December
2009
|
49,967
|
65,451
|
|
Revolving
credit facility
|
|||||
CAD
B.A. + margin
|
At
maturity
|
December
2007
|
137,000
|
15,000
|
|
US
LIBOR + margin
|
At
maturity
|
December
2007
|
116,203
|
44,812
|
|
NOK
LIBOR + margin
|
At
maturity
|
December
2007
|
44,664
|
-
|
|
GBP
LIBOR + margin
|
At
maturity
|
December
2007
|
7,747
|
-
|
|
Other
term
loans
|
|||||
12%
unsecured, subordinated, convertible note (Note 31(b))
|
At
maturity
|
January
2008
|
-
|
4,695
|
|
2.50%
|
At
maturity
|
December
2010
|
1,927
|
1,733
|
|
5.75%
|
At
maturity
|
January
2008
|
1,157
|
1,008
|
|
8.00%
|
Monthly
|
February
2009
|
26
|
-
|
|
Non-interest
bearing
|
Monthly
|
December
2010
|
92
|
405
|
|
Non-interest
bearing
|
At
maturity
|
April
2012
|
1,949
|
1,799
|
|
Non-interest
bearing
|
Semi-annually
|
April
2009
|
192
|
248
|
|
12%
|
Monthly
|
March
2009
|
1,234
|
-
|
|
9.84%
|
Monthly
|
December
2010
|
124
|
-
|
|
Non-interest
bearing
|
Monthly
|
April
2010
|
91
|
-
|
|
B.A.
CDOR rate + margin
|
Semi-annually
|
June
2014
|
8,138
|
9,223
|
|
B.A.
CDOR rate + margin
|
Semi-annually
|
April
2018
|
18,984
|
20,710
|
|
Total
long-term debt
|
397,896
|
175,930
|
|||
Less:
current portion
|
(333,728)
|
(24,948)
|
|||
$
64,168
|
$150,982
|
(b)
|
Senior
subordinated notes
|
(c)
|
Foreign
currency
|
2007
|
2006
|
|||||||||||||||
Debt
in
original
currency
|
Canadian
equivalent
|
Debt
in
original
currency
|
Canadian
equivalent
|
|||||||||||||
Euro
|
€ |
33,183
|
$ |
50,159
|
€ |
46,454
|
$ |
65,700
|
||||||||
Pound
sterling
|
£ |
9,570
|
21,181
|
£ |
7,537
|
15,384
|
||||||||||
US
dollar
|
USD |
505,023
|
558,909
|
USD |
440,000
|
492,932
|
||||||||||
Norwegian
kroner
|
NOK |
240,000
|
44,664
|
NOK |
-
|
-
|
||||||||||
Brazilian
real
|
BRL |
2,661
|
1,449
|
BRL |
-
|
-
|
||||||||||
$ |
676,362
|
$ |
574,016
|
(d)
|
Financing
charges
|
2007
|
2006
|
2005
|
||||||||||
Interest
on debt obligations
|
$ |
51,798
|
$ |
43,457
|
$ |
32,469
|
||||||
Amortization
of deferred financing costs
|
1,443
|
1,560
|
3,176
|
|||||||||
Foreign
exchange losses
|
8,210
|
6,234
|
(1,200 | ) | ||||||||
Release
of currency translation adjustment (i)
|
(282 | ) |
2,612
|
-
|
||||||||
Other
interest (income) expense
|
(2,873 | ) | (889 | ) |
2,983
|
|||||||
$ |
58,296
|
$ |
52,974
|
$ |
37,428
|
(i)
|
During
the year ended April 30, 2007, the Company settled
$125.9 million (2006 - $20.0 million; 2005 - $nil) of
inter-company debts denominated in foreign currencies, which were
designated as part of the Company’s net investments in self-sustaining
foreign subsidiaries, giving rise to the recognition of a portion
of the
Company’s currency translation adjustment account as financing
charges.
|
(e)
|
Debt
settlement costs
|
(f)
|
Repayment
requirements
|
2008
|
$ |
333,728
|
||
2009
|
26,920
|
|||
2010
|
14,605
|
|||
2011
|
4,795
|
|||
2012
|
4,782
|
15.
|
RESTRUCTURING
COSTS
|
2007
|
2006
|
2005
|
|||
Restructuring
costs accrued, beginning of year
|
$
5,876
|
$
7,678
|
$
1,833
|
||
Expensed
(recovered) during the year - continuing operations
|
(2,341)
|
16,150
|
17,390
|
||
Expensed
during the year - discontinued operations
|
-
|
195
|
199
|
||
Restructuring
costs paid during the year
|
(3,004)
|
(18,147)
|
(11,744)
|
||
Restructuring
costs accrued, end of year
|
$
531
|
$
5,876
|
$
7,678
|
16.
|
OTHER
LIABILITIES
|
2007
|
2006
|
|||||||
Deferred
revenue (i)
|
$ |
9,083
|
$ |
6,743
|
||||
Deferred
government assistance (ii)
|
2,716
|
3,323
|
||||||
Accrued
pension obligation (iii)
|
31,623
|
34,040
|
||||||
Deferred
gains on sale-leasebacks of aircraft (iv)
|
79,713
|
60,405
|
||||||
Insurance
claims accrual (v)
|
9,609
|
13,655
|
||||||
Long-term
incentive plan (vi)
|
-
|
1,935
|
||||||
Unfavourable
contract credits (vii)
|
1,144
|
6,722
|
||||||
Lease
aircraft return costs (viii)
|
-
|
2,141
|
||||||
Other
|
5,903
|
3,467
|
||||||
$ |
139,791
|
$ |
132,431
|
(i)
|
Deferred
revenue at April 30, 2007 includes $9.1 million (2006 -
$6.8 million) of billings to customers for repair and overhaul
services to be performed in future periods under PBH contracts.
A
significant number of the Company’s repair and overhaul contracts require
customers to pay for services on an hourly flying basis. A portion
of this
PBH revenue is recognized on a monthly basis to reflect ongoing
services
being provided, with the current balance deferred and included
in deferred
revenue and the long-term balance deferred in other liabilities
to be
recognized in earnings when the services are
performed.
|
(ii)
|
The
Government of Newfoundland and Labrador has provided CHC Composites
Inc.
with financial assistance to partially offset construction costs
of
property and equipment. The assistance for construction costs is
not
repayable but is subject to specified conditions that, if not met,
could
result in the conversion of the assistance to fully paid common shares
of
Composites. However, as these specified conditions have been fully
met by
Composites as at April 30, 2007, the risk of conversion of the
assistance to common shares no longer exists. This assistance is
being
amortized over the life of the related assets on the same basis as
such
assets are themselves amortized. At April 30, 2007 government
assistance of $2.7 million (April 2006 - $3.3 million)
relating to plant and equipment has been deferred to other
liabilities.
|
(iii)
|
The
Company has a supplementary retirement pension plan (“SERP”) in Canada for
certain of its executives. This plan had accrued benefit obligations
at
April 30, 2007 of $17.8 million (2006 - $20.6 million). The
Company also has an unfunded early retirement pension plan in Norway.
The
accrued pension obligation related to this unfunded plan and related
amounts included in other liabilities at April 30, 2007 was
$6.7 million (2006 - $5.7 million). Included in the accrued
pension obligation at April 30, 2007 was $7.1 million (2006 -
$7.7 million) related to funded defined benefit pension plans in the
Netherlands that had a funding deficit upon acquisition in fiscal
2004
(Note 30).
|
(iv)
|
The
deferred gains arising from certain aircraft sale-leaseback and lease-out
lease-in transactions are being amortized over the lease terms.The
Company
has disposed of aircraft at amounts greater than book value resulting
in
deferred gains of $29.5 million for fiscal 2007 (2006 -
$22.1 million). Deferred gain amortization of $10.2 million
(2006 - $8.9 million; 2005 - $7.1 million) was recorded as a
reduction of operating lease expense during fiscal 2007. On certain
leases
a portion of the proceeds are deferred as part of the sale-leaseback
transaction agreement and have been netted against the deferred gains
for
the purpose of calculating the amount of the gain to be amortized.
Under
these lease agreements, if the aircraft are sold by the lessors at
the
termination of the leases for proceeds greater than the unamortized
amount
under the lease for such aircraft, the deferred payments may be fully
payable to the Company and recorded as a gain at that
time.
|
(v)
|
The
insurance claims accrual relates solely to the Company’s reinsurance
subsidiary, CHC Reinsurance S.A. The amount represents reinsurance
premiums received but unearned, accruals for losses that have been
reported but not yet paid and accruals for losses that have been
incurred
but not yet reported. The reinsurance subsidiary reinsures death
and
disability benefits and loss of license insurance for the Company’s
Norwegian helicopter and repair and overhaul operations and for certain
other external parties.
|
(vi)
|
See
discussion in Note 13.
|
(vii)
|
As
part of the acquisition of Schreiner in fiscal 2004, the Company
valued
the long-term contracts of Schreiner and recorded unfavourable contract
credits for those contracts for which the return is below market.
The
unfavourable contract credits are being amortized over the term of
the
contract, for a maximum of five years. During fiscal 2007
amortization of these unfavourable contract credits of $5.9 million
(2006 -$5.7 million; 2005 - $6.7 million) was recorded as a
reduction of operating expenses.
|
(viii)
|
Lease
aircraft return costs are obligations that arise under the terms
of the
Company’s operating lease agreements, which require that an aircraft be
returned with major components in a specified condition. At April 30,
2007 the Company had provided $nil (2006 - $2.1 million) in respect
of these obligations.
|
17.
|
CAPITAL
STOCK AND CONTRIBUTED
SURPLUS
|
Number
of Shares
|
Consideration
|
|||||||||||||||||||||||
2007
|
2006
|
2005
|
2007
|
2006
|
2005
|
|||||||||||||||||||
Class
A subordinate voting shares
|
39,858
|
36,860
|
36,833
|
$ |
235,346
|
$ |
223,241
|
$ |
222,727
|
|||||||||||||||
Class
B multiple voting shares
|
5,863
|
5,861
|
5,866
|
18,413
|
18,413
|
18,431
|
||||||||||||||||||
Ordinary
shares
|
22,000
|
22,000
|
22,000
|
33,000
|
33,000
|
33,000
|
||||||||||||||||||
Ordinary
share loan
|
-
|
-
|
-
|
(33,000 | ) | (33,000 | ) | (33,000 | ) | |||||||||||||||
Class
A subordinate voting employee share purchase loans
|
(1,254 | ) | (1,502 | ) | (1,689 | ) | ||||||||||||||||||
$ |
252,505
|
$ |
240,152
|
$ |
239,469
|
|||||||||||||||||||
Contributed
surplus
|
$ |
5,042
|
$ |
4,363
|
$ |
3,291
|
2007
|
2006
|
2005
|
||||||||||
Class
B multiple voting shares
|
5,863
|
5,861
|
5,866
|
|||||||||
Share
options (Note
18)
|
2,232
|
3,819
|
2,815
|
|||||||||
Convertible
debt (Note
31(b))
|
-
|
1,379
|
1,379
|
Number
of shares
|
Class
A subordinate
voting
shares
|
Class
B
multiple
voting
shares
|
Ordinary
shares
|
|||||||||
Balance,
April 30,
2004
|
36,756
|
5,877
|
22,000
|
|||||||||
Shares
issued to employees for cash
|
||||||||||||
Share
option plan
|
55
|
-
|
-
|
|||||||||
Share
purchase plan
|
11
|
-
|
-
|
|||||||||
Share
conversions
|
11
|
(11 | ) |
-
|
||||||||
Balance,
April 30,
2005
|
36,833
|
5,866
|
22,000
|
|||||||||
Shares
issued to employees for cash
|
||||||||||||
Share
purchase plan
|
22
|
-
|
-
|
|||||||||
Share
conversions
|
5
|
(5 | ) |
-
|
||||||||
Balance,
April 30,
2006
|
36,860
|
5,861
|
22,000
|
|||||||||
Share
issued to employees for cash
|
||||||||||||
Share
option plan (Note
18)
|
1,584
|
-
|
-
|
|||||||||
Share
purchase plan
|
35
|
2
|
-
|
|||||||||
Conversion
of debt (Note
31(b))
|
1,379
|
-
|
-
|
|||||||||
Balance,
April 30,
2007
|
$ |
39,858
|
$ |
5,863
|
$ |
22,000
|
Stated
value
|
Class
A subordinate
voting
shares
|
Class
B
multiple
voting
shares
|
Contributed
surplus
|
|||||||||
Balance,
April 30,
2004
|
$ |
221,532
|
$ |
18,719
|
$ |
3,291
|
||||||
Shares
issued to employees for cash
|
||||||||||||
Share
option plan
|
668
|
-
|
-
|
|||||||||
Share
purchase plan
|
239
|
-
|
-
|
|||||||||
Share
conversions
|
288
|
(288 | ) |
-
|
||||||||
Balance,
April 30,
2005
|
$ |
222,727
|
$ |
18,431
|
$ |
3,291
|
||||||
Shares
issued to employees for cash
|
||||||||||||
Share
purchase plan
|
496
|
-
|
-
|
|||||||||
Share
conversions
|
18
|
(18 | ) |
-
|
||||||||
Stock
based compensation expense
|
-
|
-
|
1,072
|
|||||||||
Balance,
April 30,
2006
|
223,241
|
18,413
|
4,363
|
|||||||||
Shares
issued to employees for cash
|
||||||||||||
Share
option plan (Note
18)
|
5,611
|
-
|
-
|
|||||||||
Share
purchase plan (Note
18)
|
686
|
-
|
-
|
|||||||||
Conversion
of debt (Note
31(b))
|
5,808
|
-
|
(951 | ) | ||||||||
Stock
based compensation expense (Note
18)
|
-
|
-
|
1,630
|
|||||||||
Balance,
April 30,
2007
|
$ |
235,346
|
$ |
18,413
|
$ |
5,042
|
18.
|
SHARE
OPTION
PLAN
|
Expected
life
|
4
years
|
Expected
dividend yield
|
1.2%
|
Risk-free
interest rate
|
3.2%
|
Stock
volatility
|
31%
|
Number
of options - Exercise price range $4.26 - $4.30
|
Weighted
average exercise price
|
Number
of options - Exercise price range $7.35 - $9.00
|
Weighted
average exercise price
|
Number
of options - Exercise price range $26.11 - $30.70
|
Weighted
average exercise price
|
Number
of options - Exercise price
$49.10
- $53.86
|
Weighted
average exercise price
|
Total
number of options
|
Total
weighted average exercise price
|
|||||||||||||||||||||||||||||||
Class
A subordinate voting share
options
|
||||||||||||||||||||||||||||||||||||||||
Beginning
of year
|
485
|
$ |
4.28
|
470
|
$ |
8.96
|
452
|
$ |
30.44
|
502
|
$ |
49.60
|
1,909
|
$ |
23.54
|
|||||||||||||||||||||||||
Granted
|
-
|
-
|
-
|
-
|
-
|
-
|
30
|
52.25
|
30
|
52.25
|
||||||||||||||||||||||||||||||
Forfeited
|
-
|
-
|
-
|
-
|
-
|
-
|
(16 | ) | (49.60 | ) | (16 | ) | (49.60 | ) | ||||||||||||||||||||||||||
Expired
|
-
|
- | - | - | - | - | (15 | ) | (49.60 | ) | (15 | ) | (49.60 | ) | ||||||||||||||||||||||||||
Exercised
|
(340 | ) | (4.30 | ) | (450 | ) |
(9.00
|
) |
-
|
-
|
(2 | ) | (49.60 | ) | (792 | ) | (7.08 | ) | ||||||||||||||||||||||
End
of year
|
145
|
$ |
4.27
|
20
|
$ |
8.18
|
452
|
$ |
30.44
|
499
|
$ |
49.76
|
1,116
|
$ | 35.27 | |||||||||||||||||||||||||
Weighted
average contractual life of options outstanding
|
1.5
years
|
0.4
years
|
5.0
years
|
8.3
years
|
5.9
years
|
Number
of options - Exercise price range $4.26 - $4.30
|
Weighted
average exercise price
|
Number
of options - Exercise price range $7.35 - $9.00
|
Weighted
average exercise price
|
Number
of options - Exercise price range $26.11 - $30.70
|
Weighted
average exercise price
|
Number
of options - Exercise price
$49.60
|
Weighted
average exercise price
|
Total
number of options
|
Total
weighted average exercise price
|
|||||||||||||||||||||||||||||||
Class
A subordinate voting share
options
|
||||||||||||||||||||||||||||||||||||||||
Beginning
of year
|
485
|
$ |
4.28
|
470
|
$ |
8.96
|
452
|
$ |
30.44
|
-
|
$ |
-
|
1,407
|
$ |
14.25
|
|||||||||||||||||||||||||
Granted
|
-
|
-
|
-
|
-
|
-
|
-
|
510
|
49.60
|
510
|
49.60
|
||||||||||||||||||||||||||||||
Forfeited
|
-
|
-
|
-
|
-
|
-
|
-
|
(8 | ) | (49.60 | ) | (8 | ) | (49.60 | ) | ||||||||||||||||||||||||||
End
of year
|
485
|
$ |
4.28
|
470
|
$ |
8.96
|
452
|
$ |
30.44
|
502
|
$ |
49.60
|
1,909
|
$ |
23.54
|
|||||||||||||||||||||||||
Weighted
average contractual life of options outstanding
|
2.5
years
|
1.4
years
|
6.0
years
|
9.2
years
|
4.8
years
|
19.
|
SUPPLEMENTAL
CASH FLOW
INFORMATION
|
2007
|
2006
|
2005
|
||||||||||
Cash
interest paid
|
$ |
49,074
|
$ |
39,451
|
$ |
23,007
|
||||||
Cash
taxes paid
|
$ |
11,571
|
$ |
13,550
|
$ |
11,143
|
20.
|
FOREIGN
CURRENCY
|
(a)
|
Foreign
currency translation adjustment
|
2007
|
2006
|
2005
|
||||||||||
Balance,
beginning of year
|
$ | (66,262 | ) | $ | (21,471 | ) | $ | (17,605 | ) | |||
Release
of currency translation adjustment (Note
15(d))
|
(282 | ) |
2,612
|
-
|
||||||||
Translation
adjustment during year
|
25,744
|
(47,403 | ) | (3,866 | ) | |||||||
Balance,
end of year
|
$ | (40,800 | ) | $ | (66,262 | ) | $ | (21,471 | ) |
(b)
|
Year-end
exchange rates
|
2007
|
2006
|
|||||||
US
dollar
|
$ |
1.11
|
$ |
1.12
|
||||
UK
pound sterling
|
2.21
|
2.04
|
||||||
Norwegian
kroner
|
0.19
|
0.18
|
||||||
South
African rand
|
0.16
|
0.19
|
||||||
Australian
dollar
|
0.92
|
0.85
|
||||||
Euro
|
1.51
|
1.41
|
||||||
Brazilian
real
|
0.54
|
0.54
|
2007
|
2006
|
2005
|
||||||||||
US
dollar
|
$ |
1.14
|
$ |
1.19
|
$ |
1.27
|
||||||
UK
pound sterling
|
2.17
|
2.11
|
2.35
|
|||||||||
Norwegian
kroner
|
0.18
|
0.18
|
0.19
|
|||||||||
South
African rand
|
0.16
|
0.19
|
0.20
|
|||||||||
Australian
dollar
|
0.88
|
0.89
|
0.94
|
|||||||||
Euro
|
1.47
|
1.44
|
1.61
|
|||||||||
Brazilian
real
|
0.53
|
0.52
|
0.45
|
21.
|
FINANCIAL
INSTRUMENTS
|
(a)
|
Primary
Financial Instruments
|
April
30,
2007
|
April
30, 2006
|
|||||||||||||||
Fair
value
|
Carrying
value
|
Fair
value
|
Carrying
value
|
|||||||||||||
7⅜%
Senior subordinated notes
|
$ |
429,400
|
$ |
442,680
|
$ |
454,282
|
$ |
448,120
|
(b)
|
Derivative
Financial Instruments Used for Risk
Management
|
Hedging
item
|
Maturity
|
Notional
amount
|
Fair
market
value
|
||
Forward
foreign exchange contracts
|
|||||
Sell
US
dollar; buy Canadian dollar
|
Various
|
(i)
|
$118,010
|
$
5,002
|
|
Sell
pound sterling; buy euro
|
Various
|
(i)
|
€ 30,517
|
(1,216)
|
|
Sell
Norwegian kroner; buy pound sterling
|
May
2007
|
£
12,388
|
15
|
||
Sell
Norwegian kroner; buy Australian dollar
|
May
2007
|
AUD
28,000
|
(23)
|
||
Sell
Norwegian kroner; buy euro
|
May
2007
|
€ 26,893
|
(43)
|
||
Sell
Canadian dollar; buy euro
|
May
2007
|
€ 2,740
|
(21)
|
||
Sell
Brazilian real; buy US dollar
|
May
2007
|
USD
28,000
|
144
|
||
Sell
Canadian dollar; buy Norwegian kroner
|
May
2007
|
NOK
150,000
|
(142)
|
||
Sell
Canadian dollar; buy US dollar
|
June
2007
|
USD
150,000
|
(201)
|
||
$
3,515
|
(i)
|
With
expiration dates through to fiscal
2010.
|
(c)
|
Credit
Risk on Financial Instruments
|
(d)
|
Interest
Rate Risk
|
(e)
|
Trade
Credit Risk
|
22.
|
INCOME
TAXES
|
2007
|
2006
|
2005
|
||||||||||
Current
income tax (provision) recovery
|
||||||||||||
Canada
|
$ | (3,793 | ) | $ | (2,800 | ) | $ | (3,810 | ) | |||
Foreign
|
1,262
|
6,790
|
(25,632 | ) | ||||||||
(2,531 | ) |
3,990
|
(29,442 | ) | ||||||||
Future
income tax (provision) recovery
|
||||||||||||
Canada
|
||||||||||||
Recovery
related to origination and reversal of temporary
differences
|
5,837
|
14,646
|
9,022
|
|||||||||
Foreign
|
||||||||||||
Provision related
to origination and reversal of temporary differences
|
(20,132 | ) | (29,145 | ) | (6,918 | ) | ||||||
(14,295 | ) | (14,499 | ) |
2,104
|
||||||||
Income
tax provision
|
$ | (16,826 | ) | $ | (10,509 | ) | $ | (27,338 | ) |
2007
|
2006
|
2005
|
||||||||||
Earnings
from continuing operations before income taxes
|
$ |
57,813
|
$ |
100,214
|
$ |
74,267
|
||||||
Combined
Canadian federal and provincial statutory income tax rate
|
34 | % | 34 | % | 35 | % | ||||||
Income
tax provision calculated at statutory rate
|
(19,656 | ) | (34,073 | ) | (25,993 | ) | ||||||
(Increase)
decrease in income tax provision resulting from:
|
||||||||||||
Rate
differences in various jurisdictions
|
12,857
|
13,515
|
16,043
|
|||||||||
Effect
of change in tax legislation
|
(1,285 | ) | (220 | ) | (4,224 | ) | ||||||
Non-deductible
items
|
(637 | ) | (1,187 | ) | (3,193 | ) | ||||||
Large
corporations tax
|
-
|
(470 | ) | (457 | ) | |||||||
Other
foreign taxes paid
|
(7,761 | ) | (3,471 | ) | (1,745 | ) | ||||||
Non-taxable
portion of capital gains
|
575
|
13,617
|
1,154
|
|||||||||
Non-taxable
income
|
1,857
|
2,669
|
1,274
|
|||||||||
Valuation
allowance
|
717
|
(334 | ) | (7,049 | ) | |||||||
Other
|
(3,493 | ) | (555 | ) | (3,148 | ) | ||||||
Income
tax provision
|
$ | (16,826 | ) | $ | (10,509 | ) | $ | (27,338 | ) |
2007
|
2006
|
|||||||
Future
income tax (liabilities)
assets
|
||||||||
Property
and equipment
|
$ | (77,027 | ) | $ | (99,406 | ) | ||
Long-term
investments
|
(13,547 | ) | (10,261 | ) | ||||
Pension
and other employee benefits
|
(14,410 | ) | (9,253 | ) | ||||
Deferred
capital gains and deferred revenue
|
(37,615 | ) | (30,699 | ) | ||||
Losses
carried forward
|
52,303
|
41,463
|
||||||
Deferred
costs
|
(1,013 | ) |
348
|
|||||
Long-term
debt
|
(42,243 | ) | (19,380 | ) | ||||
Current
accounts payable and receivable
|
15,994
|
11,486
|
||||||
Other
|
(2,372 | ) |
4,232
|
|||||
Total
future income tax liabilities
|
(119,930 | ) | (111,470 | ) | ||||
Valuation
allowance
|
(16,208 | ) | (7,383 | ) | ||||
Net
future income tax liabilities
|
$ | (136,138 | ) | $ | (118,853 | ) | ||
Distributed
as follows:
|
||||||||
Current
future income tax assets
|
32,169
|
26,859
|
||||||
Current
future income tax liabilities
|
(9,813 | ) | (8,852 | ) | ||||
Long-term
future income tax assets
|
34,678
|
39,848
|
||||||
Long-term
future income tax liabilities
|
(193,172 | ) | (176,708 | ) | ||||
$ | (136,138 | ) | $ | (118,853 | ) |
(a)
|
Tax
losses
|
(in
thousands of Canadian dollars)
|
||||
2008
|
$ |
5,067
|
||
2009
|
8,937
|
|||
2014
|
2,994
|
|||
2015
|
19,328
|
|||
2026
|
33,052
|
|||
2027
|
4,179
|
|||
Indefinitely
|
80,192
|
|||
$ |
153,749
|
23.
|
PER
SHARE
INFORMATION
|
2007
|
||||||||||||||||||||||||||||||||||||
Net
earnings
|
Weighted
|
Net
earnings
per
share
|
||||||||||||||||||||||||||||||||||
Cont.
ops.
|
Disc.
ops.
|
Extra-ordinary
item
|
Total
|
average
number of shares
|
Cont.
ops.
|
Disc.
ops.
|
Extra-ordinary
item
|
Total
|
||||||||||||||||||||||||||||
$ |
40,987
|
$ |
2,167
|
$ |
810
|
$ |
43,964
|
42,819
|
||||||||||||||||||||||||||||
Shares
as security for Class A subordinate voting employee share
purchase
loans
(Note
17)
|
-
|
-
|
-
|
-
|
(626 | ) | ||||||||||||||||||||||||||||||
Basic
|
$ |
40,987
|
$ |
2,167
|
$ |
810
|
$ |
43,964
|
42,193
|
$ |
0.97
|
$ |
0.05
|
$ |
0.02
|
$ |
1.04
|
|||||||||||||||||||
Effect
of potential dilutive
securities:
|
||||||||||||||||||||||||||||||||||||
Share
options (Note
18)
|
1,978
|
|||||||||||||||||||||||||||||||||||
Convertible
debt (Note
31(b))
|
379
|
-
|
-
|
379
|
1,323
|
|||||||||||||||||||||||||||||||
Shares
as security for Class A subordinate voting employee share
purchase
loans
(Note
17)
|
626
|
|||||||||||||||||||||||||||||||||||
Diluted
|
$ |
41,366
|
$ |
2,167
|
$ |
810
|
$ |
44,343
|
46,120
|
$ |
0.90
|
$ |
0.05
|
$ |
0.02
|
$ |
0.97
|
2006
|
||||||||||||||||||||||||||||||||||||
Net
earnings
|
Weighted
|
Net
earnings
per
share
|
||||||||||||||||||||||||||||||||||
Cont.
ops.
|
Disc.
ops.
|
Extra-ordinary
item
|
Total
|
average
number of shares
|
Cont.
ops.
|
Disc.
ops.
|
Extra-ordinary
item
|
Total
|
||||||||||||||||||||||||||||
$ |
89,705
|
$ |
1,005
|
$ |
-
|
$ |
90,710
|
42,708
|
||||||||||||||||||||||||||||
Shares
as security for Class A subordinate voting employee share
purchase
loans
(Note
17)
|
-
|
-
|
-
|
-
|
(709 | ) | ||||||||||||||||||||||||||||||
Basic
|
$ |
89,705
|
$ |
1,005
|
$ |
-
|
$ |
90,710
|
41,999
|
$ |
2.14
|
$ |
0.02
|
$ |
-
|
$ |
2.16
|
|||||||||||||||||||
Effect
of potential dilutive
securities:
|
||||||||||||||||||||||||||||||||||||
Share
options (Note
18)
|
2,076
|
|||||||||||||||||||||||||||||||||||
Convertible
debt (Note
31(b))
|
386
|
-
|
-
|
386
|
1,379
|
|||||||||||||||||||||||||||||||
Shares
as security for Class A subordinate voting employee share
purchase
loans
(Note
17)
|
709
|
|||||||||||||||||||||||||||||||||||
Diluted
|
$ |
90,091
|
$ |
1,005
|
$ |
-
|
$ |
91,096
|
46,163
|
$ |
1.95
|
$ |
0.02
|
$ |
-
|
$ |
1.97
|
2005
|
||||||||||||||||||||||||||||||||||||
Net
earnings
|
Weighted
|
Net
earnings
per
share
|
||||||||||||||||||||||||||||||||||
Cont.
ops.
|
Disc.
ops.
|
Extra-ordinary
item
|
Total
|
average
number of shares
|
Cont.
ops.
|
Disc.
ops.
|
Extra-ordinary
item
|
Total
|
||||||||||||||||||||||||||||
$ |
46,929
|
$ |
9,590
|
$ |
-
|
$ |
56,519
|
42,673
|
||||||||||||||||||||||||||||
Shares
as security for Class A subordinate voting employee share
purchase
loans
(Note
17)
|
-
|
-
|
-
|
-
|
(736 | ) | ||||||||||||||||||||||||||||||
Basic
|
$ |
46,929
|
$ |
9,590
|
$ |
-
|
$ |
56,519
|
41,937
|
$ |
1.12
|
$ |
0.23
|
$ |
-
|
$ |
1.35
|
|||||||||||||||||||
Effect
of potential dilutive
securities:
|
||||||||||||||||||||||||||||||||||||
Share
options (Note
18)
|
1,975
|
|||||||||||||||||||||||||||||||||||
Convertible
debt (Note
31(b))
|
386
|
-
|
-
|
386
|
1,379
|
|||||||||||||||||||||||||||||||
Shares
as security for Class A subordinate voting employee share
purchase
loans
(Note
17)
|
736
|
|||||||||||||||||||||||||||||||||||
Diluted
|
$ |
47,315
|
$ |
9,590
|
$ |
-
|
$ |
56,905
|
46,027
|
$ |
1.03
|
$ |
0.20
|
$ |
-
|
$ |
1.23
|
24.
|
CHANGE
IN NON-CASH WORKING
CAPITAL
|
2007
|
2006
|
2005
|
||||||||||
Receivables
|
$ | (50,755 | ) | $ | (37,285 | ) | $ | (40,291 | ) | |||
Inventory
|
(39,902 | ) | (29,936 | ) |
1,765
|
|||||||
Prepaid
expenses
|
(30,449 | ) | (6,170 | ) |
1,709
|
|||||||
Payables
and accruals
|
83,907
|
18,371
|
59,543
|
|||||||||
$ | (37,199 | ) | $ | (55,020 | ) | $ |
22,726
|
25.
|
SEGMENT
INFORMATION
|
•
|
Global
Operations;
|
•
|
European
Operations;
|
•
|
Heli-One;
and
|
•
|
Corporate
and Other.
|
Global
operations
|
European
operations
|
Heli-One
|
Corporate
and other
|
Inter-segment
eliminations
|
Consolidated
|
|||||||||||||||||||
Revenue
from external
customers
|
$ |
427,956
|
$ |
539,921
|
$ |
180,613
|
$ |
617
|
$ |
-
|
$ |
1,149,107
|
||||||||||||
Add:
Inter-segment revenues
|
1,093
|
6,634
|
391,520
|
1,433
|
(400,680 | ) |
-
|
|||||||||||||||||
Total
revenue
|
429,049
|
546,555
|
572,133
|
2,050
|
(400,680 | ) |
1,149,107
|
|||||||||||||||||
Direct
costs(i)
|
(293,918 | ) | (451,213 | ) | (298,959 | ) |
-
|
219,823
|
(824,267 | ) | ||||||||||||||
General
and administration
|
-
|
-
|
-
|
(43,388 | ) |
-
|
(43,388 | ) | ||||||||||||||||
Segment
EBITDAR(ii)
|
135,131
|
95,342
|
273,174
|
(41,338 | ) | (180,857 | ) |
281,452
|
||||||||||||||||
Aircraft
lease and associated costs
|
||||||||||||||||||||||||
-
Internal
|
(92,052 | ) | (89,148 | ) |
343
|
-
|
180,857
|
-
|
||||||||||||||||
-
External
|
(8,928 | ) | (3,959 | ) | (87,560 | ) |
-
|
-
|
(100,447 | ) | ||||||||||||||
Segment
EBITDA(iii)
|
34,151
|
2,235
|
185,957
|
(41,338 | ) |
-
|
181,005
|
|||||||||||||||||
Amortization
|
(4,116 | ) | (3,424 | ) | (56,474 | ) | (1,289 | ) |
-
|
(65,303 | ) | |||||||||||||
Restructuring
costs
|
-
|
-
|
991
|
1,350
|
-
|
2,341
|
||||||||||||||||||
Gain
(loss) on disposals of assets
|
16
|
(101 | ) | (2,769 | ) | (133 | ) |
-
|
(2,987 | ) | ||||||||||||||
Operating
income
(loss)
|
$ |
30,051
|
$ | (1,290 | ) | $ |
127,705
|
$ | (41,410 | ) | $ |
-
|
115,056
|
|||||||||||
Financing
charges
|
(58,296 | ) | ||||||||||||||||||||||
Earnings
from continuing
operations before income taxes and undernoted items
|
56,760
|
|||||||||||||||||||||||
Equity
earnings of associated companies and non-controlling interest
|
1,053
|
|||||||||||||||||||||||
Income
tax provision
|
(16,826 | ) | ||||||||||||||||||||||
Net
earnings from continuing
operations
|
40,987
|
|||||||||||||||||||||||
Net
earnings from discontinued
operations (Note
5)
|
2,167
|
|||||||||||||||||||||||
Net
earnings before
extraordinary item
|
43,154
|
|||||||||||||||||||||||
Extraordinary
item, net of tax
(Note
11(b))
|
810
|
|||||||||||||||||||||||
Net
earnings
|
$ |
43,964
|
||||||||||||||||||||||
Segment
assets - continuing operations
|
$ |
271,321
|
$ |
234,182
|
$ |
1,460,177
|
$ |
114,109
|
$ |
2,079,789
|
||||||||||||||
Segment
assets - discontinued operations (Note
5)
|
-
|
-
|
-
|
-
|
22,430
|
|||||||||||||||||||
Total
Assets
|
2,102,219
|
|||||||||||||||||||||||
Segment
capital asset expenditures
|
7,096
|
3,855
|
380,397
|
1,898
|
393,246
|
|||||||||||||||||||
Segment
helicopter major inspections
|
-
|
-
|
30,066
|
-
|
30,066
|
|||||||||||||||||||
Segment
goodwill
|
30,686
|
-
|
24,590
|
-
|
55,276
|
Global
operations
|
European
operations
|
Heli-One
|
Corporate
and other
|
Inter-segment
eliminations
|
Consolidated
|
|||||||||||||||||||
Revenue
from external
customers
|
$ |
330,877
|
$ |
520,367
|
$ |
145,668
|
$ |
175
|
$ |
-
|
$ |
997,087
|
||||||||||||
Add:
Inter-segment revenues
|
350
|
12,773
|
355,013
|
58
|
(368,194 | ) |
-
|
|||||||||||||||||
Total
revenue
|
331,227
|
533,140
|
500,681
|
233
|
(368,194 | ) |
997,087
|
|||||||||||||||||
Direct
costs(i)
|
(240,305 | ) | (425,659 | ) | (271,206 | ) |
-
|
214,145
|
(723,025 | ) | ||||||||||||||
General
and administration
|
-
|
-
|
-
|
(27,895 | ) |
-
|
(27,895 | ) | ||||||||||||||||
Segment
EBITDAR(ii)
|
90,922
|
107,481
|
229,475
|
(27,662 | ) | (154,049 | ) |
246,167
|
||||||||||||||||
Aircraft
lease and associated costs
|
||||||||||||||||||||||||
-
Internal
|
(76,447 | ) | (74,408 | ) | (3,194 | ) |
-
|
154,049
|
-
|
|||||||||||||||
-
External
|
(6,769 | ) | (1,216 | ) | (57,491 | ) |
-
|
-
|
(65,476 | ) | ||||||||||||||
Segment
EBITDA(iii)
|
7,706
|
31,857
|
168,790
|
(27,662 | ) |
-
|
180,691
|
|||||||||||||||||
Amortization
|
(4,113 | ) | (5,946 | ) | (44,363 | ) | (1,048 | ) |
-
|
(55,470 | ) | |||||||||||||
Restructuring
costs
|
(975 | ) | (1,597 | ) | (7,445 | ) | (6,133 | ) |
-
|
(16,150 | ) | |||||||||||||
Gain
on disposals of assets
|
295
|
407
|
(685 | ) | (22 | ) |
-
|
(5 | ) | |||||||||||||||
Operating
income
(loss)
|
$ |
2,913
|
$ |
24,721
|
$ |
116,297
|
$ | (34,865 | ) | $ |
-
|
109,066
|
||||||||||||
Financing
charges
|
(52,974 | ) | ||||||||||||||||||||||
Earnings
from continuing
operations before income taxes and undernoted items
|
56,092
|
|||||||||||||||||||||||
Gain
on sale of long-term investments
|
37,558
|
|||||||||||||||||||||||
Equity
earnings of associated companies and non-controlling interest
|
6,564
|
|||||||||||||||||||||||
Income
tax provision
|
(10,509 | ) | ||||||||||||||||||||||
Net
earnings from continuing
operations
|
89,705
|
|||||||||||||||||||||||
Net
earnings from discontinued
operations (Note
5)
|
1,005
|
|||||||||||||||||||||||
Net
earnings
|
$ |
90,710
|
||||||||||||||||||||||
Segment
assets - continuing operations
|
$ |
167,268
|
$ |
235,158
|
$ |
1,095,048
|
$ |
167,286
|
$ |
1,664,760
|
||||||||||||||
Segment
assets - discontinued operations (Note
5)
|
-
|
-
|
-
|
-
|
21,322
|
|||||||||||||||||||
Total
Assets
|
1,686,082
|
|||||||||||||||||||||||
Segment
capital asset expenditures
|
4,477
|
2,281
|
273,485
|
458
|
280,701
|
|||||||||||||||||||
Segment
helicopter major inspections
|
-
|
-
|
23,612
|
-
|
23,612
|
|||||||||||||||||||
Segment
goodwill
|
-
|
-
|
1,224
|
-
|
1,224
|
Global
operations
|
European
operations
|
Heli-One
|
Corporate
and other
|
Inter-segment
eliminations
|
Consolidated
|
|||||||||||||||||||
Revenue
from external
customers
|
$ |
292,066
|
$ |
530,897
|
$ |
130,844
|
$ |
435
|
$ |
-
|
$ |
954,242
|
||||||||||||
Add:
Inter-segment revenues
|
-
|
10,697
|
380,573
|
2,741
|
(394,562 | ) | (551 | ) | ||||||||||||||||
Total
revenue
|
292,066
|
541,594
|
511,417
|
3,176
|
(394,562 | ) |
953,691
|
|||||||||||||||||
Direct
costs(i)
|
(204,782 | ) | (430,802 | ) | (280,401 | ) |
-
|
241,335
|
(674,650 | ) | ||||||||||||||
General
and administration
|
-
|
-
|
-
|
(35,279 | ) |
-
|
(35,279 | ) | ||||||||||||||||
Segment
EBITDAR(ii)
|
87,284
|
110,792
|
231,016
|
(32,103 | ) | (153,227 | ) |
243,762
|
||||||||||||||||
Aircraft
lease and associated costs
|
||||||||||||||||||||||||
-
Internal
|
(64,411 | ) | (88,816 | ) |
-
|
-
|
153,227
|
-
|
||||||||||||||||
-
External
|
(6,984 | ) |
-
|
(50,553 | ) |
-
|
-
|
(57,537 | ) | |||||||||||||||
Segment
EBITDA(iii)
|
15,889
|
21,976
|
180,463
|
(32,103 | ) |
-
|
186,225
|
|||||||||||||||||
Amortization
|
(3,632 | ) | (5,539 | ) | (39,765 | ) | (1,248 | ) |
-
|
(50,184 | ) | |||||||||||||
Restructuring
costs
|
(1,358 | ) | (2,864 | ) | (3,108 | ) | (10,060 | ) |
-
|
(17,390 | ) | |||||||||||||
Gain
on disposals of assets
|
-
|
-
|
4,129
|
-
|
-
|
4,129
|
||||||||||||||||||
Fair
value adjustment
|
-
|
-
|
(14,260 | ) |
-
|
-
|
(14,260 | ) | ||||||||||||||||
Operating
income
(loss)
|
$ |
10,899
|
$ |
13,573
|
$ |
127,459
|
$ | (43,411 | ) | $ |
-
|
108,520
|
||||||||||||
Debt
settlement costs
|
(2,017 | ) | ||||||||||||||||||||||
Financing
charges
|
(37,428 | ) | ||||||||||||||||||||||
Earnings
from continuing
operations before income taxes and undernoted items
|
69,075
|
|||||||||||||||||||||||
Equity
earnings of associated companies and non-controlling interest
|
5,192
|
|||||||||||||||||||||||
Income
tax provision
|
(27,338 | ) | ||||||||||||||||||||||
Net
earnings from continuing
operations
|
46,929
|
|||||||||||||||||||||||
Net
earnings from discontinued
operations (Note
5)
|
9,590
|
|||||||||||||||||||||||
Net
earnings
|
$ |
56,519
|
||||||||||||||||||||||
Segment
capital asset expenditures
|
13,021
|
2,829
|
218,509
|
383
|
234,742
|
|||||||||||||||||||
Segment
helicopter major inspections
|
-
|
-
|
15,539
|
-
|
15,539
|
(i)
|
Direct
costs in the segment information presented excludes aircraft lease
and
associated costs. In the consolidated income statement these costs
are
combined.
|
(ii)
|
Segment
EBITDAR is defined as segment EBITDA before aircraft lease and associated
costs.
|
(iii)
|
Segment
EBITDA is defined as operating income before amortization,
restructuring
costs, and gain (loss) on disposals of
assets.
|
(iv)
|
Comparative
information has been reclassified to reflect the classification
of
Survival-One in discontinued operations as described in
Note 2.
|
Revenues
(i)
|
Property
and equipment (ii)
|
Goodwill
|
||||||||||||||||||||||||||
2007
|
2006
|
2005
|
2007
|
2006
|
2007
|
2006
|
||||||||||||||||||||||
Canada
|
$ |
48,214
|
$ |
32,909
|
$ |
23,956
|
$ |
104,699
|
$ |
87,912
|
$ |
55,276
|
$ |
1,224
|
||||||||||||||
United
Kingdom
|
248,752
|
209,355
|
237,683
|
140,804
|
71,230
|
-
|
-
|
|||||||||||||||||||||
Norway
|
202,020
|
206,693
|
182,927
|
273,042
|
341,683
|
-
|
-
|
|||||||||||||||||||||
Africa
|
189,895
|
150,110
|
124,337
|
189,500
|
140,875
|
-
|
-
|
|||||||||||||||||||||
Australia
|
74,641
|
64,536
|
62,157
|
84,864
|
73,349
|
-
|
-
|
|||||||||||||||||||||
Denmark
|
29,095
|
28,144
|
35,473
|
25,668
|
25,452
|
-
|
-
|
|||||||||||||||||||||
The
Netherlands
|
72,133
|
67,160
|
65,915
|
63,165
|
32,338
|
-
|
-
|
|||||||||||||||||||||
Other
Asian countries
|
68,096
|
52,661
|
88,473
|
125,870
|
79,419
|
-
|
-
|
|||||||||||||||||||||
Other
European countries
|
120,884
|
107,964
|
88,694
|
11,894
|
36,144
|
-
|
-
|
|||||||||||||||||||||
Other
countries
|
95,377
|
77,555
|
44,627
|
73,158
|
30,962
|
-
|
-
|
|||||||||||||||||||||
Consolidated
total
|
$ |
1,149,107
|
$ |
997,087
|
$ |
954,242
|
$ |
1,092,664
|
$ |
919,364
|
$ |
55,276
|
$ |
1,224
|
(i)
|
Revenues
are attributed to countries based on the location of the customer
for
repair and overhaul services and the location of service for flying
revenue.
|
(ii)
|
Property
and equipment is attributed to countries based on the physical
location of
the asset at the fiscal year-end.
|
26.
|
COMMITMENTS
|
Aircraft
operating
leases
|
Building,
land
and
equipment
operating
leases
|
Total
operating
leases
|
||||||||||
2008
|
$ |
103,438
|
$ |
5,706
|
$ |
109,144
|
||||||
2009
|
96,628
|
4,844
|
101,472
|
|||||||||
2010
|
90,922
|
4,141
|
95,063
|
|||||||||
2011
|
82,579
|
3,807
|
86,386
|
|||||||||
2012
|
69,085
|
3,692
|
72,777
|
|||||||||
and
thereafter
|
113,659
|
22,416
|
136,075
|
|||||||||
$ |
556,311
|
$ |
44,606
|
$ |
600,917
|
27.
|
VARIABLE
INTEREST
ENTITIES
|
28.
|
GUARANTEES
|
29.
|
CONTINGENCIES
|
(a)
|
Contingent
liabilities
|
(b)
|
General
tax contingencies
|
30.
|
EMPLOYEE
PENSION
PLANS
|
Category
|
Percentage
maximum
|
UK
equities
|
42%
to 48%
|
Overseas
equities
|
27%
to 33%
|
UK
bonds
|
22%
to 28%
|
Category
|
Percentage
maximum
|
|||
Norwegian
equities
|
15 | % | ||
International
equities
|
35 | % | ||
Total
equities (i)
|
35 | % | ||
Norwegian
bonds
|
70 | % | ||
High
yield bonds (i)
|
25 | % | ||
Emerging
markets bonds (i)
|
25 | % | ||
Global
government bonds
|
25 | % | ||
Total
bonds
|
100 | % | ||
Money
market
|
100 | % | ||
Property
funds
|
15 | % | ||
Hedge
funds (i)
|
10 | % | ||
Private
equity funds (i)
|
10 | % |
(i)
|
The
total of equities, emerging markets bonds, high yield bonds, hedge
funds
and private equity funds can be maximum 60% of total
assets.
|
2007
|
2006
|
|||||||
Change
in benefit
obligations
|
||||||||
Benefit
obligations, beginning of year
|
$ |
599,161
|
$ |
620,398
|
||||
Current
service cost
|
21,455
|
19,328
|
||||||
Interest
cost
|
30,804
|
28,702
|
||||||
Amendments
|
2,269
|
(354 | ) | |||||
Net
actuarial and experience (gains) losses
|
(3,207 | ) |
18,450
|
|||||
Past
service obligation
|
983
|
-
|
||||||
Benefits
paid
|
(22,261 | ) | (15,726 | ) | ||||
Foreign
exchange
|
31,311
|
(71,637 | ) | |||||
Benefit
obligations, end of year
|
$ |
660,515
|
$ |
599,161
|
||||
Change
in plan
assets
|
||||||||
Fair
value of plan assets, beginning of year
|
$ |
525,010
|
$ |
490,501
|
||||
Actual
return on plan assets
|
29,709
|
75,408
|
||||||
Employer
contributions
|
18,612
|
30,775
|
||||||
Participant
contributions
|
2,884
|
2,638
|
||||||
Benefits
paid
|
(20,402 | ) | (14,977 | ) | ||||
Foreign
exchange
|
27,563
|
(59,335 | ) | |||||
Fair
value of plan assets, end of year
|
$ |
583,376
|
$ |
525,010
|
||||
Funded
status
|
$ | (77,139 | ) | $ | (74,151 | ) | ||
Unrecognized
net actuarial and experience losses
|
138,367
|
134,467
|
||||||
Unrecognized
prior service costs
|
1,146
|
(149 | ) | |||||
Unrecognized
transition amounts
|
655
|
715
|
||||||
Pension
guarantee deposits
|
5,304
|
5,179
|
||||||
Total
recognized net pension asset
|
$ |
68,333
|
$ |
66,061
|
As
at April 30, 2007
|
||||||||||||||||||||||||
Funded
plans
|
SERP
&
Unfunded
|
Other
assets
|
Other
liabilities
|
|||||||||||||||||||||
Surplus
|
Deficit
|
Plans
|
Total
|
(Note
12)
|
(Note
16)
|
|||||||||||||||||||
Benefit
obligations
|
$ |
210,442
|
$ |
384,812
|
$ |
65,261
|
$ |
660,515
|
$ |
527,318
|
$ |
133,197
|
||||||||||||
Fair
value of plan assets
|
232,383
|
339,320
|
11,673
|
583,376
|
508,988
|
74,388
|
||||||||||||||||||
Funded
status
|
21,941
|
(45,492 | ) | (53,588 | ) | (77,139 | ) | (18,330 | ) | (58,809 | ) | |||||||||||||
Unrecognized
net actuarial and experience losses
|
36,201
|
79,574
|
22,592
|
138,367
|
111,286
|
27,081
|
||||||||||||||||||
Unrecognized
prior service costs
|
1,696
|
(6,338 | ) |
5,788
|
1,146
|
1,696
|
(550 | ) | ||||||||||||||||
Unrecognized
transition amounts
|
-
|
-
|
655
|
655
|
-
|
655
|
||||||||||||||||||
Pension
guarantee deposits
|
4,508
|
796
|
-
|
5,304
|
5,304
|
-
|
||||||||||||||||||
$ |
64,346
|
$ |
28,540
|
$ | (24,553 | ) | $ |
68,333
|
$ |
99,956
|
$ | (31,623 | ) |
As
at April 30, 2006
|
||||||||||||||||||||||||
Funded
plans
|
SERP
&
Unfunded
|
Other
assets
|
Other
liabilities
|
|||||||||||||||||||||
Surplus
|
Deficit
|
Plans
|
Total
|
(Note
12)
|
(Note
16)
|
|||||||||||||||||||
Benefit
obligations
|
$ |
195,556
|
$ |
351,679
|
$ |
51,926
|
$ |
599,161
|
$ |
486,569
|
$ |
112,592
|
||||||||||||
Fair
value of plan assets
|
223,018
|
296,264
|
5,728
|
525,010
|
459,442
|
65,568
|
||||||||||||||||||
Funded
status
|
27,462
|
(55,415 | ) | (46,198 | ) | (74,151 | ) | (27,127 | ) | (47,024 | ) | |||||||||||||
Unrecognized
net actuarial and experience losses
|
33,219
|
87,437
|
13,811
|
134,467
|
120,923
|
13,544
|
||||||||||||||||||
Unrecognized
prior service costs
|
1,126
|
(6,701 | ) |
5,426
|
(149 | ) |
1,126
|
(1,275 | ) | |||||||||||||||
Unrecognized
transition amounts
|
-
|
-
|
715
|
715
|
-
|
715
|
||||||||||||||||||
Pension
guarantee deposits
|
4,402
|
777
|
-
|
5,179
|
5,179
|
-
|
||||||||||||||||||
$ |
66,209
|
$ |
26,098
|
$ | (26,246 | ) | $ |
66,061
|
$ |
100,101
|
$ | (34,040 | ) |
2007
|
2006
|
2005
|
||||||||||
Discount
rate
|
5.32 | % | 4.94 | % | 5.15 | % | ||||||
Rate
of compensation increase
|
3.80 | % | 3.50 | % | 3.38 | % |
2007
|
2006
|
2005
|
||||||||||
Discount
rate
|
5.35 | % | 5.08 | % | 5.74 | % | ||||||
Expected
long-term rate of return on plan assets
|
6.69 | % | 6.66 | % | 6.70 | % |
2007
|
2006
|
2005
|
||||||||||
Current
service cost
|
$ |
21,455
|
$ |
19,328
|
$ |
19,508
|
||||||
Interest
cost
|
30,804
|
28,702
|
29,015
|
|||||||||
Actual
return on plan assets
|
(29,709 | ) | (75,408 | ) | (29,936 | ) | ||||||
Excess
of actual return over expected return
|
(6,583 | ) |
47,769
|
347
|
||||||||
Amortization
of net actuarial and experience losses
|
6,999
|
10,114
|
7,985
|
|||||||||
Amortization
of prior service costs
|
751
|
(1 | ) | (376 | ) | |||||||
Amortization
of transition amounts
|
60
|
48
|
268
|
|||||||||
Participant
contributions
|
(2,884 | ) | (2,638 | ) | (3,595 | ) | ||||||
Net
defined benefit pension plan expense
|
$ |
20,893
|
$ |
27,914
|
$ |
23,216
|
2008
|
$ |
20,349
|
||
2009
|
21,446
|
|||
2010
|
23,140
|
|||
2011
|
24,257
|
|||
2012
|
25,414
|
|||
2013-2017
|
145,105
|
31.
|
RELATED
PARTY
TRANSACTIONS
|
(a)
|
In
the course of its regular business activities, the Company enters
into
routine transactions with companies subject to significant influence
by
the Company (most significantly ACN) as well as parties affiliated
with
the controlling shareholder. These transactions are measured at the
amounts exchanged, which is the amount of consideration determined
and
agreed to by the related parties. Transactions with related parties
for
the years ended April 30 are summarized as
follows:
|
2007
|
2006
|
2005
|
||||||||||
Revenues
from ACN
|
$ |
90,256
|
$ |
70,738
|
$ |
43,518
|
||||||
Direct
costs
|
432
|
446
|
1,298
|
|||||||||
Inventory
additions
|
-
|
10,679
|
-
|
|||||||||
Capital
asset additions
|
-
|
5,692
|
8,160
|
|||||||||
Net
amounts receivable and payable in respect of such revenues, expenses
and
additions
|
25,351
|
21,878
|
15,044
|
(b)
|
During
fiscal 2000, in connection with securing tender credit facilities,
the
Company received an unsecured, subordinated, convertible 12% loan
from an
affiliate of the controlling shareholder in the amount of
$5.0 million. This loan was subordinated to the Company’s senior
credit facilities and its senior subordinated notes (Note 14). The
loan was convertible at the option of the shareholder into Class A
subordinate voting shares at $3.63 per share. The estimated value of
the loan proceeds attributable to the conversion feature of
$1.0 million was allocated to contributed surplus. The equivalent
reduction in the carrying value of the loan is amortized to earnings
over
the term of the loan. Interest expense of $0.6 million (2006 -
$0.6 million, 2005 - $0.7 million), including amortization of
the above noted discount, was recorded on the loan during the fiscal
year
ended April 30, 2007.
|
32.
|
RECONCILIATION
TO ACCOUNTING
PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF
AMERICA
|
Year
Ended
April 30,
2007
|
Year
Ended
April 30,
2006
|
Year
Ended
April 30,
2005
|
||||||||||
Financing
Charges
|
$ | 2,510 | $ | (717 | ) | $ | (8,683 | ) | ||||
Operating
Income
|
2,510 | (717 | ) | (8,683 | ) | |||||||
Income
tax recovery
(provision)
|
(706 | ) | 201 | 2,432 | ||||||||
Net
earnings (loss) according to
US GAAP
|
$ | 1,804 | $ | (516 | ) | $ | (6,251 | ) | ||||
Comprehensive
earnings (loss)
according to US GAAP
|
$ | 1,804 | $ | (516 | ) | $ | (6,251 | ) | ||||
Net
earnings (loss) per share
according to US GAAP
|
||||||||||||
Basic
|
$ | 0.04 | $ | (0.01 | ) | $ | (0.15 | ) | ||||
Diluted
|
$ | 0.04 | $ | (0.01 | ) | $ | (0.14 | ) |
As
at
April 30,
2007
|
As
at
April 30,
2006
|
As
at
April 30,
2005
|
||||||||||
Assets
|
||||||||||||
Future
income tax
assets
|
$ | 2,168 | $ | 2,874 | $ | 2,673 | ||||||
$ | 2,168 | $ | 2,874 | $ | 2,673 | |||||||
Liabilities
|
||||||||||||
Other
liabilities
|
7,751 | 10,261 | 9,544 | |||||||||
Retained
earnings, end of
year
|
(5,583 | ) | (7,387 | ) | (6,871 | ) | ||||||
$ | 2,168 | $ | 2,874 | $ | 2,673 |
(a)
|
Consolidated
statements of earnings and comprehensive
earnings
|
Year
Ended April
30,
|
||||||||||||
2007
(Restated)
|
2006
(Restated)
|
2005
(Restated)
|
||||||||||
Net
earnings according to Canadian
GAAP
|
$ |
43,964
|
$ |
90,710
|
$ |
56,519
|
||||||
Pre-operating
expenses
(i)
|
(2,369 | ) |
3,261
|
(3,515 | ) | |||||||
Tax
impact of
pre-operating expenses
(ix)
|
684
|
(1,065 | ) |
1,168
|
||||||||
Unrealized
gain (loss) on
ineffective hedges (ii)
|
(9,765 | ) |
43,803
|
(4,796 | ) | |||||||
Tax
impact of
unrealized gain (loss) on ineffective hedges
(ix)
|
1,738
|
(7,256 | ) |
778
|
||||||||
Amortization
of guarantees
recognized
(iii)
|
(2,002 | ) | (1,365 | ) | (827 | ) | ||||||
Tax
impact of
amortization of guarantees recognized
(ix)
|
602
|
533
|
225
|
|||||||||
Proportionate
foreign currency translation ("CTA") (gain) loss due to
partial reduction in subsidiary net investments
(iv)
|
(282 | ) |
2,612
|
-
|
||||||||
Tax
impact of
CTA (gain) loss (ix)
|
96
|
(891 | ) |
-
|
||||||||
Foreign
currency embedded
derivatives (xi)
|
2,510
|
(717 | ) | (8,683 | ) | |||||||
Tax
impact of
foreign currency embedded derivatives (ix)
|
(706 | ) |
201
|
2,432
|
||||||||
Other,
net of
tax
|
243
|
277
|
(448 | ) | ||||||||
Net
earnings according to US
GAAP
|
34,713
|
130,103
|
42,853
|
|||||||||
Other
comprehensive
earnings
|
||||||||||||
Foreign
currency translation (v)
|
42,059
|
(79,713 | ) |
8,588
|
||||||||
Minimum
pension
liability (vi)
|
14,989
|
23,702
|
(78,117 | ) | ||||||||
Tax
impact of minimum pension liability (ix)
|
(4,580 | ) | (7,242 | ) |
23,412
|
|||||||
Foreign
currency cash flow hedges (vii)
|
||||||||||||
Unrealized
holding gains arising during the period
|
252
|
8,166
|
7,052
|
|||||||||
Less: reclassification
adjustment for gains included in net earnings
|
(3,480 | ) | (3,857 | ) | (4,487 | ) | ||||||
Tax
impact on
foreign currency cash flow hedges (ix)
|
1,180
|
(1,575 | ) | (1,052 | ) | |||||||
Unrealized
gains on securities (viii)
|
||||||||||||
Unrealized
holding gains arising during the period
|
-
|
2,319
|
1,688
|
|||||||||
Less: reclassification
adjustment for gains included in net earnings
|
-
|
(4,007 | ) |
-
|
||||||||
Tax
impact on
unrealized gains on securities (ix)
|
-
|
301
|
(301 | ) | ||||||||
Comprehensive
earnings according
to US GAAP
|
$ |
85,133
|
$ |
68,197
|
$ |
(364
|
) | |||||
Net
earnings per share according
to US GAAP
|
||||||||||||
Basic
|
$ |
0.82
|
$ |
3.10
|
$ |
1.02
|
||||||
Diluted
|
$ |
0.75
|
$ |
2.82
|
$ |
0.93
|
(b)
|
Consolidated
balance sheets
|
April 30,
2007
|
April
30,
2006
|
|||||||||||||||
Canadian
GAAP
|
US
GAAP
(Restated)
|
Canadian
GAAP
|
US
GAAP
(Restated)
|
|||||||||||||
Current
future income tax assets
(ii)
|
$ |
32,169
|
$ |
30,958
|
$ |
26,859
|
$ |
25,648
|
||||||||
Other
current assets (iii)
|
552,675
|
554,677
|
378,908
|
379,985
|
||||||||||||
Property
and equipment, net
(x)
|
1,092,664
|
1,273,566
|
919,364
|
920,613
|
||||||||||||
Long-term
future income tax assets
(i,iii,iv,vi,xi)
|
34,678
|
72,410
|
39,848
|
56,657
|
||||||||||||
Other
assets (i,iii,vi,viii)
|
390,033
|
370,042
|
321,103
|
307,520
|
||||||||||||
$ |
2,102,219
|
$ |
2,301,653
|
$ |
1,686,082
|
$ |
1,690,423
|
|||||||||
Current
future income tax
liabilities (ii,vii)
|
$ |
9,813
|
$ |
10,561
|
$ |
8,852
|
$ |
10,177
|
||||||||
Other
current liabilities
(vii,x)
|
698,415
|
876,081
|
274,805
|
271,437
|
||||||||||||
Long-term
debt
|
64,168
|
64,168
|
150,982
|
151,287
|
||||||||||||
Senior
subordinated
notes
|
442,680
|
442,680
|
448,120
|
448,120
|
||||||||||||
Other
liabilities (ii,iii,vi,vii,xi)
|
142,691
|
275,735
|
135,881
|
204,020
|
||||||||||||
Long-term
future income tax
liabilities (ii,vi,vii,viii)
|
193,172
|
182,848
|
176,708
|
170,331
|
||||||||||||
Shareholders’
equity
|
||||||||||||||||
Class
A subordinate voting
shares
|
235,346
|
234,538
|
223,241
|
223,241
|
||||||||||||
Class
A
subordinate voting employee share purchase loans
|
(1,254 | ) | (1,254 | ) | (1,502 | ) | (1,502 | ) | ||||||||
Class
B multiple voting
shares
|
18,413
|
18,413
|
18,413
|
18,413
|
||||||||||||
Contributed
surplus
|
5,042
|
5,042
|
4,363
|
3,412
|
||||||||||||
Foreign
currency translation
adjustment (ii,iv,v)
|
(40,800 | ) |
-
|
(66,262 | ) |
-
|
||||||||||
Accumulated
other comprehensive
loss (v,vi,vii,viii)
|
-
|
(147,486 | ) |
-
|
(136,039 | ) | ||||||||||
Retained
earnings (i,ii,iii,iv,xi)
|
334,533
|
340,327
|
312,481
|
327,526
|
||||||||||||
$ |
2,102,219
|
$ |
2,301,653
|
$ |
1,686,082
|
$ |
1,690,423
|
(i)
|
Pre-operating
expenses
|
(ii)
|
Unrealized
gain (loss) on ineffective hedges
|
(iii)
|
Amortization
of guarantees recognized
|
(iv)
|
Proportionate
foreign currency translation loss due to partial reduction in subsidiary
net investment
|
(v)
|
Foreign
currency translation
|
(vi)
|
Minimum
pension liability
|
Prior
to Adopting Statement 158(i)
|
Effect
of Adopting Statement 158
|
As
Reported
|
||||||||||
Other
assets
|
$ |
5,788
|
$ | (3,940 | ) | $ |
1,848
|
|||||
Other
liabilities
|
58,185
|
83,832
|
142,017
|
|||||||||
Future
income taxes
|
16,009
|
25,905
|
41,914
|
|||||||||
Accumulated
other comprehensive loss
|
46,797
|
61,867
|
108,664
|
|
(i)
|
Includes
the effect of recognizing an additional minimum pension liability
(reduction of $10.4 million and $16.5 million, net of tax for
fiscal 2007 and fiscal 2006, respectively) included in other comprehensive
earnings had the Company not been required to adopt Statement 158 at
April 30, 2007.
|
(vii)
|
Foreign
currency cash flow hedges
|
(viii)
|
Unrealized
gains on securities
|
(ix)
|
Income
taxes
|
2007
|
2006
|
2005
|
||||||||||
Canada
|
34.12 | % | 34.12 | % | 35.62 | % | ||||||
United
Kingdom
|
30.00 | % | 30.00 | % | 30.00 | % | ||||||
Norway
|
28.00 | % | 28.00 | % | 28.00 | % | ||||||
The
Netherlands
|
29.60 | % | 30.50 | % | 30.46 | % | ||||||
Australia
|
30.00 | % | 30.00 | % | 30.00 | % | ||||||
Barbados
|
2.46 | % | 2.04 | % | 2.00 | % |
(x)
|
Assets
under construction
|
(xi)
|
Foreign
currency embedded dervatives
|
(c)
|
Consolidated
statements of cash flows
|
(d)
|
Consolidated
statements of changes in shareholders’
equity
|
2007
(Restated)
|
2006
(Restated)
|
2005
(Restated)
|
||||||||||
Capital
Stock
|
||||||||||||
Balance,
beginning of
year
|
$ |
240,152
|
$ |
239,469
|
$ |
238,428
|
||||||
Shares
issued to employees for
cash
|
||||||||||||
Share
option
plan
|
5,611
|
-
|
668
|
|||||||||
Share
purchase
plan
|
686
|
496
|
239
|
|||||||||
Debt
conversion
|
5,000
|
-
|
-
|
|||||||||
Change
in employee share purchase
loans
|
248
|
187
|
134
|
|||||||||
Balance,
end of
year
|
251,697
|
240,152
|
239,469
|
|||||||||
Contributed
Surplus
|
||||||||||||
Balance,
beginning of
year
|
3,412
|
2,340
|
2,340
|
|||||||||
Stock
based compensation
expense
|
1,630
|
1,072
|
-
|
|||||||||
Balance,
end of
year
|
5,042
|
3,412
|
2,340
|
|||||||||
Retained
Earnings
|
||||||||||||
Balance,
beginning of
year
|
327,526
|
214,506
|
184,458
|
|||||||||
Net
earnings
|
34,713
|
130,103
|
42,853
|
|||||||||
Dividends
|
(21,912 | ) | (17,083 | ) | (12,805 | ) | ||||||
Balance,
end of
year
|
340,327
|
327,526
|
214,506
|
|||||||||
Accumulated
Other Comprehensive
Loss, Net of Tax
|
||||||||||||
Balance,
beginning of
year
|
(136,039 | ) | (74,133 | ) | (30,916 | ) | ||||||
Foreign
currency translation
adjustment
|
42,059
|
(79,713 | ) |
8,588
|
||||||||
Minimum
pension
liability
|
10,409
|
16,460
|
(54,705 | ) | ||||||||
Unrealized
gains on foreign
currency cash flow hedges
|
(2,048 | ) |
2,734
|
1,513
|
||||||||
Unrealized
gains on
securities
|
-
|
(1,387 | ) |
1,387
|
||||||||
FAS
158 cumulative
adjustment
|
(61,867 | ) |
-
|
-
|
||||||||
Balance,
end of
year
|
$ | (147,486 | ) | $ | (136,039 | ) | $ | (74,133 | ) | |||
Shareholders'
equity, end of
year
|
$ |
449,580
|
$ |
435,051
|
$ |
382,182
|
(e)
|
Other
supplemental disclosures
|
2007
|
2006
|
|||||||
Payables
- trade
|
$ |
238,641
|
$ |
138,800
|
||||
Accruals
|
85,468
|
71,965
|
||||||
Interest
accrual
|
16,803
|
16,881
|
||||||
Total
payables and accruals
|
$ |
340,912
|
$ |
227,646
|
(i)
|
Fair
Value Measurements
|
(ii)
|
Uncertainty
in Income Taxes
|
(iii)
|
Quantifying
Misstatements in the Financial
Statements
|
33.
|
SUPPLEMENTAL
GUARANTOR
FINANCIAL INFORMATION
|
2007
(Restated) |
||||||||||||||||||||
As
at
April 30
|
CHC
Helicopter
Corporation
|
Guarantor
subsidiaries
|
Non-Guarantor
subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||
Assets
|
||||||||||||||||||||
Current
assets
|
||||||||||||||||||||
Cash
and cash
equivalents
|
$ |
9,981
|
$ |
47,681
|
$ |
31,849
|
$ |
-
|
$ |
89,511
|
||||||||||
Receivables
|
36,800
|
194,100
|
79,009
|
(32,142 | ) |
277,767
|
||||||||||||||
Inventory
|
-
|
15,873
|
110,442
|
-
|
126,315
|
|||||||||||||||
Other
current
assets
|
2,098
|
43,482
|
16,454
|
26,047
|
88,081
|
|||||||||||||||
Assets
of
discontinued operations
|
-
|
3,961
|
-
|
-
|
3,961
|
|||||||||||||||
48,879
|
305,097
|
237,754
|
(6,095 | ) |
585,635
|
|||||||||||||||
Property
and equipment,
net
|
-
|
794,229
|
482,337
|
(3,000 | ) |
1,273,566
|
||||||||||||||
Investments
|
655,905
|
336,173
|
73,565
|
(1,058,165 | ) |
7,478
|
||||||||||||||
Long-term
intercompany
|
543,623
|
(222,885 | ) | (236,307 | ) | (84,431 | ) |
-
|
||||||||||||
Other
long-term
assets
|
36,031
|
214,510
|
166,233
|
(269 | ) |
416,505
|
||||||||||||||
Assets
of discontinued
operations
|
-
|
18,469
|
-
|
-
|
18,469
|
|||||||||||||||
$ |
1,284,438
|
$ |
1,445,593
|
$ |
723,582
|
$ | (1,151,960 | ) | $ |
2,301,653
|
||||||||||
Liabilities
and shareholders'
equity
|
||||||||||||||||||||
Current
liabilities
|
||||||||||||||||||||
Payables
and
accruals
|
$ |
15,979
|
$ |
150,226
|
$ |
167,367
|
$ |
7,340
|
$ |
340,912
|
||||||||||
Other
current
liabilities
|
155,970
|
$ |
322,743
|
$ |
49,847
|
$ |
14,191
|
542,751
|
||||||||||||
Liabilities
of
discontinued operations
|
-
|
2,979
|
-
|
-
|
2,979
|
|||||||||||||||
171,949
|
475,948
|
217,214
|
21,531
|
886,642
|
||||||||||||||||
Long-term
debt
|
57,651
|
4,018
|
2,499
|
-
|
64,168
|
|||||||||||||||
Senior
subordinated
notes
|
442,680
|
-
|
-
|
-
|
442,680
|
|||||||||||||||
Other
liabilities
|
(1,483 | ) |
160,003
|
166,519
|
(52,204 | ) |
272,835
|
|||||||||||||
Future
income tax
liabilities
|
7,126
|
34,724
|
73,249
|
67,749
|
182,848
|
|||||||||||||||
Liabilities
of discontinued
operations
|
-
|
2,900
|
-
|
-
|
2,900
|
|||||||||||||||
Shareholders'
equity
|
||||||||||||||||||||
Capital
stock
|
251,697
|
88,424
|
44,876
|
(133,300 | ) |
251,697
|
||||||||||||||
Contributed
surplus
|
5,042
|
137,689
|
(54,381 | ) | (83,308 | ) |
5,042
|
|||||||||||||
Accumulated
other comprehensive earnings (loss)
|
9,449
|
(169,565 | ) |
19,437
|
(6,807 | ) | (147,486 | ) | ||||||||||||
Retained
earnings
|
340,327
|
711,452
|
254,169
|
(965,621 | ) |
340,327
|
||||||||||||||
$ |
1,284,438
|
$ |
1,445,593
|
$ |
723,582
|
$ | (1,151,960 | ) | $ |
2,301,653
|
2007
(Restated) |
||||||||||||||||||||
For
the year ended
April 30
|
CHC
Helicopter
Corporation
|
Guarantor
subsidiaries
|
Non-Guarantor
subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||
Revenue
|
$ | - | $ | 752,229 | $ | 586,597 | $ | (189,719 | ) | $ | 1,149,107 | |||||||||
Direct
costs
|
1,207 | (657,756 | ) | (443,124 | ) | 172,590 | (927,083 | ) | ||||||||||||
General
and administration
costs
|
- | (43,388 | ) | - | - | (43,388 | ) | |||||||||||||
Amortization
|
- | (20,662 | ) | (45,482 | ) | 1,041 | (65,103 | ) | ||||||||||||
Restructuring
recovery
|
- | 1,350 | 991 | - | 2,341 | |||||||||||||||
Gain
(loss) on disposals of
assets
|
(6 | ) | (4,618 | ) | 3,313 | (1,676 | ) | (2,987 | ) | |||||||||||
Operating
income
|
1,201 | 27,155 | 102,295 | (17,764 | ) | 112,887 | ||||||||||||||
Financing
charges
|
(6,384 | ) | (37,965 | ) | (27,315 | ) | 3,991 | (67,673 | ) | |||||||||||
Earnings
(loss) from continuing operations
before income taxes and
undernoted items |
(5,183 | ) | (10,810 | ) | 74,980 | (13,773 | ) | 45,214 | ||||||||||||
Equity
in earnings of associated companies
|
16,527 | 38,096 | - | (53,570 | ) | 1,053 | ||||||||||||||
Intercompany
charges
|
10,484 | 25,919 | (34,634 | ) | (1,769 | ) | - | |||||||||||||
Income
tax recovery (provision)
|
12,885 | (17,538 | ) | (2,970 | ) | (6,908 | ) | (14,531 | ) | |||||||||||
Net
earnings from continuing operations
|
34,713 | 35,667 | 37,376 | (76,020 | ) | 31,736 | ||||||||||||||
Net
earnings from discontinued operations
|
- | 2,167 | - | - | 2,167 | |||||||||||||||
Net
earnings before extraordinary item
|
34,713 | 37,834 | 37,376 | (76,020 | ) | 33,903 | ||||||||||||||
Extraordinary
item, net of tax
|
- | 1,268 | 1,500 | (1,958 | ) | 810 | ||||||||||||||
Net
earnings
|
34,713 | 39,102 | 38,876 | (77,978 | ) | 34,713 | ||||||||||||||
Retained
earnings, beginning of year
|
327,526 | 672,350 | 215,293 | (887,643 | ) | 327,526 | ||||||||||||||
Dividends
|
(21,912 | ) | - | - | - | (21,912 | ) | |||||||||||||
Retained
earnings, end of year
|
$ | 340,327 | $ | 711,452 | $ | 254,169 | $ | (965,621 | ) | $ | 340,327 |
2007
|
||||||||||||||||||||
For
the year ended
April 30
|
CHC
Helicopter
Corporation
|
Guarantor
subsidiaries
|
Non-Guarantor
subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||
Operating
activities
|
||||||||||||||||||||
Cash
flow from
operations
|
$ | (8,485 | ) | $ | (73,075 | ) | $ |
107,778
|
$ |
-
|
$ |
26,218
|
||||||||
Financing
activities
|
||||||||||||||||||||
Long-term
debt proceeds
|
131,452
|
202,431
|
44,288
|
8,718
|
386,889
|
|||||||||||||||
Long-term
debt repayments
|
(60,752 | ) | (94,020 | ) | (2,854 | ) | (8,718 | ) | (166,344 | ) | ||||||||||
Dividends
paid
|
(19,211 | ) |
-
|
-
|
-
|
(19,211 | ) | |||||||||||||
Capital
stock
issued
|
6,297
|
-
|
-
|
-
|
6,297
|
|||||||||||||||
Other
|
-
|
(80 | ) | (299 | ) |
-
|
(379 | ) | ||||||||||||
57,786
|
108,331
|
41,135
|
-
|
207,252
|
||||||||||||||||
Investing
activities
|
||||||||||||||||||||
Property
and
equipment additions
|
-
|
(257,894 | ) | (135,352 | ) |
-
|
(393,246 | ) | ||||||||||||
Helicopter
major inspections
|
-
|
(14,236 | ) | (15,830 | ) |
-
|
(30,066 | ) | ||||||||||||
Proceeds
from
disposal
|
-
|
288,529
|
29,791
|
-
|
318,320
|
|||||||||||||||
Junior
loans
receivable
|
-
|
(13,713 | ) | (4,096 | ) |
-
|
(17,809 | ) | ||||||||||||
Aircraft
deposits
|
-
|
(46,459 | ) | (224 | ) |
-
|
(46,683 | ) | ||||||||||||
Restricted
cash
|
-
|
1,012
|
5,823
|
-
|
6,835
|
|||||||||||||||
Advances
to
BHS
|
-
|
(1,780 | ) |
-
|
-
|
(1,780 | ) | |||||||||||||
Other
|
-
|
(2,328 | ) | (2,522 | ) |
-
|
(4,850 | ) | ||||||||||||
-
|
(46,869 | ) | (122,410 | ) |
-
|
(169,279 | ) | |||||||||||||
Effect
of
exchange rate changes on cash and cash equivalents
|
-
|
133
|
(283 | ) |
-
|
(150 | ) | |||||||||||||
Cash
provided
by (used in) continuing operations
|
49,301
|
(11,480 | ) |
26,220
|
-
|
64,041
|
||||||||||||||
Cash
used in
discontinued operations
|
-
|
(861 | ) |
-
|
-
|
(861 | ) | |||||||||||||
Change
in
cash and cash equivalents during the year
|
49,301
|
(12,341 | ) |
26,220
|
-
|
63,180
|
||||||||||||||
Cash
and cash equivalents,
beginning of year
|
(39,320 | ) |
60,022
|
5,629
|
-
|
26,331
|
||||||||||||||
Cash
and cash equivalents,
end of year
|
$ |
9,981
|
$ |
47,681
|
$ |
31,849
|
$ |
-
|
$ |
89,511
|
2006
(Restated) |
||||||||||||||||||||
As
at
April 30
|
CHC
Helicopter
Corporation
|
Guarantor
subsidiaries
|
Non-Guarantor
subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||
Assets
|
||||||||||||||||||||
Current
assets
|
||||||||||||||||||||
Cash
and cash
equivalents
|
$ | (39,320 | ) | $ | 60,022 | $ | 5,629 | $ | - | $ | 26,331 | |||||||||
Receivables
|
21,645 | 156,404 | 82,750 | (14,582 | ) | 246,217 | ||||||||||||||
Inventory
|
- | 21,570 | 70,314 | - | 91,884 | |||||||||||||||
Other
current
assets
|
(1,108 | ) | 9,641 | 5,300 | 23,511 | 37,344 | ||||||||||||||
Assets
of discontinued
operations
|
- | 3,857 | - | - | 3,857 | |||||||||||||||
(18,783 | ) | 251,494 | 163,993 | 8,929 | 405,633 | |||||||||||||||
Property
and equipment,
net
|
7 | 523,385 | 405,808 | (8,587 | ) | 920,613 | ||||||||||||||
Investments
|
639,112 | 225,649 | 105,928 | (965,267 | ) | 5,422 | ||||||||||||||
Long-term
intercompany
|
539,055 | (257,432 | ) | (138,892 | ) | (142,731 | ) | - | ||||||||||||
Other
long-term
assets
|
39,933 | 183,370 | 118,047 | (60 | ) | 341,290 | ||||||||||||||
Assets
of discontinued
operations
|
- | 17,465 | - | - | 17,465 | |||||||||||||||
$ | 1,199,324 | $ | 943,931 | $ | 654,884 | $ | (1,107,716 | ) | $ | 1,690,423 | ||||||||||
Liabilities
and shareholders'
equity
|
||||||||||||||||||||
Current
liabilities
|
||||||||||||||||||||
Payables
and
accruals
|
$ | 25,572 | $ | 104,588 | $ | 94,103 | $ | 3,383 | $ | 227,646 | ||||||||||
Other
current
liabilities
|
24,539 | 4,694 | 9,825 | 10,873 | 49,931 | |||||||||||||||
Liabilities
of discontinued
operations
|
- | 4,037 | - | - | 4,037 | |||||||||||||||
50,111 | 113,319 | 103,928 | 14,256 | 281,614 | ||||||||||||||||
Long-term
debt
|
101,620 | 49,575 | 92 | - | 151,287 | |||||||||||||||
Senior
subordinated
notes
|
448,120 | - | - | - | 448,120 | |||||||||||||||
Other
liabilities
|
13,740 | 124,044 | 118,561 | (55,775 | ) | 200,570 | ||||||||||||||
Future
income tax
liabilities
|
13,902 | 28,953 | 71,229 | 56,247 | 170,331 | |||||||||||||||
Liabilities
of discontinued
operations
|
- | 3,450 | - | - | 3,450 | |||||||||||||||
Shareholders'
equity
|
||||||||||||||||||||
Capital
stock
|
240,152 | 88,157 | 42,118 | (130,275 | ) | 240,152 | ||||||||||||||
Contributed
surplus
|
3,412 | 30,782 | 48,934 | (79,716 | ) | 3,412 | ||||||||||||||
Accumulated
other
comprehensive earnings (loss)
|
741 | (166,699 | ) | 54,729 | (24,810 | ) | (136,039 | ) | ||||||||||||
Retained
earnings
|
327,526 | 672,350 | 215,293 | (887,643 | ) | 327,526 | ||||||||||||||
$ | 1,199,324 | $ | 943,931 | $ | 654,884 | $ | (1,107,716 | ) | $ | 1,690,423 |
|
2006 (Restated) |
|||||||||||||||||||
For
the year ended
April 30
|
CHC
Helicopter
Corporation
|
Guarantor
subsidiaries
|
Non-Guarantor
subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||
Revenue
|
$ | - | $ | 699,532 | $ | 475,807 | $ | (178,252 | ) | $ | 997,087 | |||||||||
Direct
costs
|
(670 | ) | (623,553 | ) | (387,343 | ) | 223,295 | (788,271 | ) | |||||||||||
General
and administration
costs
|
- | (27,895 | ) | - | - | (27,895 | ) | |||||||||||||
Amortization
|
- | (26,637 | ) | (27,156 | ) | (1,413 | ) | (55,206 | ) | |||||||||||
Restructuring
costs
|
- | (11,904 | ) | (4,246 | ) | - | (16,150 | ) | ||||||||||||
Gain
(loss) on disposals of
assets
|
- | 12,404 | 8,258 | (20,667 | ) | (5 | ) | |||||||||||||
Operating
income
(loss)
|
(670 | ) | 21,947 | 65,320 | 22,963 | 109,560 | ||||||||||||||
Financing
charges
|
23,228 | (10,265 | ) | (18,922 | ) | 495 | (5,464 | ) | ||||||||||||
Earnings
from continuing operations before income taxes and
undernoted
items |
22,558 | 11,682 | 46,398 | 23,458 | 104,096 | |||||||||||||||
Gain
on sale of long-term
investments
|
- | 37,558 | - | - | 37,558 | |||||||||||||||
Equity
in earnings of associated
companies
and
non-controlling
interest
|
107,906 | 25,084 | (66 | ) | (126,360 | ) | 6,564 | |||||||||||||
Intercompany
charges
|
- | 20,690 | (20,690 | ) | - | - | ||||||||||||||
Income
tax
provision
|
(361 | ) | (12,963 | ) | (7,673 | ) | 1,877 | (19,120 | ) | |||||||||||
Net
earnings from continuing operations
|
130,103 | 82,051 | 17,969 | (101,025 | ) | 129,098 | ||||||||||||||
Net
earnings
from discontinued
operations
|
- | 1,005 | - | - | 1,005 | |||||||||||||||
Net
earnings
|
130,103 | 83,056 | 17,969 | (101,025 | ) | 130,103 | ||||||||||||||
Retained
earnings, beginning of
year
|
214,506 | 589,294 | 197,324 | (786,618 | ) | 214,506 | ||||||||||||||
Dividends
|
(17,083 | ) | - | - | - | (17,083 | ) | |||||||||||||
Retained
earnings, end of
year
|
$ | 327,526 | $ | 672,350 | $ | 215,293 | $ | (887,643 | ) | $ | 327,526 |
2006
|
||||||||||||||||||||
For
the year ended
April 30
|
CHC
Helicopter
Corporation
|
Guarantor
subsidiaries
|
Non-Guarantor
subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||
Operating
activities
|
||||||||||||||||||||
Cash
flow
from operations
|
$ | (31,754 | ) | $ |
144,275
|
$ | (80,422 | ) | $ |
-
|
$ |
32,099
|
||||||||
Financing
activities
|
||||||||||||||||||||
Long-term
debt proceeds
|
289,636
|
175,265
|
152,236
|
(21,792 | ) |
595,345
|
||||||||||||||
Long-term
debt repayments
|
(372,562 | ) | (146,006 | ) | (313 | ) |
21,792
|
(497,089 | ) | |||||||||||
Dividends
paid
|
(14,939 | ) |
-
|
-
|
-
|
(14,939 | ) | |||||||||||||
Capital
stock
issued
|
496
|
-
|
-
|
-
|
496
|
|||||||||||||||
Other
|
(6,888 | ) | (450 | ) |
-
|
-
|
(7,338 | ) | ||||||||||||
(104,257 | ) |
28,809
|
151,923
|
-
|
76,475
|
|||||||||||||||
Investing
activities
|
||||||||||||||||||||
Property
and
equipment additions
|
-
|
(166,080 | ) | (114,621 | ) |
-
|
(280,701 | ) | ||||||||||||
Helicopter
major inspections
|
-
|
(7,354 | ) | (16,258 | ) |
-
|
(23,612 | ) | ||||||||||||
Proceeds
from
disposal
|
-
|
258,483
|
55,211
|
-
|
313,694
|
|||||||||||||||
Aircraft
deposits
|
-
|
(124,990 | ) |
-
|
(124,990 | ) | ||||||||||||||
Restricted
cash
|
16
|
(5,581 | ) |
-
|
(5,565 | ) | ||||||||||||||
Advances
to
BHS
|
-
|
(3,892 | ) |
-
|
-
|
(3,892 | ) | |||||||||||||
Other
|
(141 | ) |
1,054
|
913
|
||||||||||||||||
-
|
(43,958 | ) | (80,195 | ) |
-
|
(124,153 | ) | |||||||||||||
Effect
of
exchange rate changes on cash and cash equivalents
|
-
|
(11,389 | ) |
766
|
-
|
(10,623 | ) | |||||||||||||
Cash
provided
by (used in) discontinued operations
|
(136,011 | ) |
117,737
|
(7,928 | ) |
-
|
(26,202 | ) | ||||||||||||
Cash
provided
by discontinued operations
|
-
|
1,142
|
-
|
-
|
1,142
|
|||||||||||||||
Change
in
cash and cash equivalents during the year
|
(136,011 | ) |
118,879
|
(7,928 | ) |
-
|
(25,060 | ) | ||||||||||||
Cash
and cash equivalents,
beginning of year
|
96,691
|
(58,856 | ) |
13,556
|
-
|
51,391
|
||||||||||||||
Cash
and cash equivalents,
end of year
|
$ | (39,320 | ) | $ |
60,023
|
$ |
5,628
|
$ |
-
|
$ |
26,331
|
2005
(Restated) |
||||||||||||||||||||
For
the year ended
April 30
|
CHC
Helicopter
Corporation
|
Guarantor
subsidiaries
|
Non-Guarantor
subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||
Revenue
|
$ | - | $ | 673,940 | $ | 387,296 | $ | (106,994 | ) | $ | 954,242 | |||||||||
Direct
costs
|
471 | (538,631 | ) | (308,995 | ) | 109,345 | (737,810 | ) | ||||||||||||
General
and administration
costs
|
- | (35,279 | ) | - | - | (35,279 | ) | |||||||||||||
Amortization
|
123 | (24,313 | ) | (25,705 | ) | (221 | ) | (50,116 | ) | |||||||||||
Restructuring
costs
|
- | (15,110 | ) | (2,280 | ) | - | (17,390 | ) | ||||||||||||
Gain
(loss) on disposals of
assets
|
- | (223 | ) | 4,101 | 251 | 4,129 | ||||||||||||||
Fair
value
adjustment
|
- | - | (14,260 | ) | - | (14,260 | ) | |||||||||||||
Operating
income
|
594 | 60,384 | 40,157 | 2,381 | 103,516 | |||||||||||||||
Debt
settlement
costs
|
(1,043 | ) | (974 | ) | - | - | (2,017 | ) | ||||||||||||
Financing
charges
|
(9,903 | ) | (12,752 | ) | (27,990 | ) | (262 | ) | (50,907 | ) | ||||||||||
Earnings
(loss) from continuing operations before
income taxes
and
undernoted items |
(10,352 | ) | 46,658 | 12,167 | 2,119 | 50,592 | ||||||||||||||
Equity
in earnings of associated companies and non-controlling
interest
|
50,805 | 31,261 | (288 | ) | (76,586 | ) | 5,192 | |||||||||||||
Intercompany
charges
|
- | 9,451 | (9,451 | ) | - | - | ||||||||||||||
Income
tax recovery (provision)
|
2,400 | (14,336 | ) | (7,321 | ) | (3,264 | ) | (22,521 | ) | |||||||||||
Net
earnings from continuing operations
|
42,853 | 73,034 | (4,893 | ) | (77,731 | ) | 33,263 | |||||||||||||
Net
earnings from discontinued operations
|
- | 9,590 | - | - | 9,590 | |||||||||||||||
Net
earnings
|
42,853 | 82,624 | (4,893 | ) | (77,731 | ) | 42,853 | |||||||||||||
Retained
earnings, beginning of year
|
184,458 | 506,670 | 202,217 | (708,887 | ) | 184,458 | ||||||||||||||
Dividends
|
(12,805 | ) | - | - | - | (12,805 | ) | |||||||||||||
Retained
earnings, end of year
|
$ | 214,506 | $ | 589,294 | $ | 197,324 | $ | (786,618 | ) | $ | 214,506 |
2005
|
||||||||||||||||||||
For
the year ended
April 30
|
CHC
Helicopter
Corporation
|
Guarantor
subsidiaries
|
Non-Guarantor
subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||
Operating
activities
|
||||||||||||||||||||
Cash
flow
from operations
|
$ | (151 | ) | $ |
124,856
|
$ | (23,343 | ) | $ |
-
|
$ |
101,362
|
||||||||
Financing
activities
|
||||||||||||||||||||
Long-term
debt proceeds
|
356,258
|
(24 | ) |
32,209
|
(3,759 | ) |
384,684
|
|||||||||||||
Long-term
debt repayments
|
(242,588 | ) | (3,304 | ) | (794 | ) |
3,759
|
(242,927 | ) | |||||||||||
Dividends
paid
|
(11,596 | ) |
-
|
-
|
-
|
(11,596 | ) | |||||||||||||
Capital
stock
issued
|
907
|
-
|
-
|
-
|
907
|
|||||||||||||||
Other
|
(7,363 | ) |
-
|
(125 | ) |
-
|
(7,488 | ) | ||||||||||||
95,618
|
(3,328 | ) |
31,290
|
-
|
123,580
|
|||||||||||||||
Investing
activities
|
||||||||||||||||||||
Property
and
equipment additions
|
-
|
(167,005 | ) | (67,737 | ) |
-
|
(234,742 | ) | ||||||||||||
Helicopter
major inspections
|
-
|
(11,939 | ) | (3,600 | ) |
-
|
(15,539 | ) | ||||||||||||
Proceeds
from
disposal
|
-
|
39,798
|
51,127
|
-
|
90,925
|
|||||||||||||||
Aircraft
deposits
|
-
|
(53,360 | ) |
377
|
-
|
(52,983 | ) | |||||||||||||
Restricted
cash
|
-
|
(1,985 | ) | (3,338 | ) |
-
|
(5,323 | ) | ||||||||||||
Investment
in
subsidiaries, net of cash acquired
|
-
|
(17,984 | ) |
-
|
-
|
(17,984 | ) | |||||||||||||
Other
|
56
|
(7,161 | ) |
30
|
-
|
(7,075 | ) | |||||||||||||
56
|
(219,636 | ) | (23,141 | ) |
-
|
(242,721 | ) | |||||||||||||
Effect
of
exchange rate changes on cash and cash equivalents
|
-
|
(4,116 | ) |
288
|
-
|
(3,828 | ) | |||||||||||||
Cash
provided
by (used in) continuing operations
|
95,523
|
(102,224 | ) | (14,906 | ) |
-
|
(21,607 | ) | ||||||||||||
Cash
provided
by discontinued operations
|
-
|
105
|
11,814
|
-
|
11,919
|
|||||||||||||||
Change
in
cash and cash equivalents during the year
|
95,523
|
(102,119 | ) | (3,092 | ) |
-
|
(9,688 | ) | ||||||||||||
Cash
and cash equivalents,
beginning of year
|
1,168
|
43,263
|
16,648
|
-
|
61,079
|
|||||||||||||||
Cash
and cash equivalents,
end of year
|
$ |
96,691
|
$ | (58,856 | ) | $ |
13,556
|
$ |
-
|
$ |
51,391
|
SUBSEQUENT
EVENT
|
(a)
|
Sale
of Survival-One
|
(b)
|
Renewal
of Credit Facility
|
ITEM
18.
|
FINANCIAL
STATEMENTS
|
ITEM
19.
|
EXHIBITS
|
1.1
|
Articles
of Amalgamation - filed as Exhibit 3.1 to the Company's Amendment
#1 to
Registration Statement on Form F-1 dated October 20, 1993 and
incorporated herein by reference.
|
1.2
|
Certificates
of Amendment to Articles of Amalgamation dated November 2, 1993,
February 23, 1994, December 24, 1996, December 9, 1997,
November 18, 2003 and April 14, 2005 filed as Exhibit 1.2
to the Original Annual Report on Form 20-F and incorporated herein by
reference.
|
1.3
|
Bylaws,
as amended - filed as Exhibit 1.2 to the Company’s Form 20-F for fiscal
2002 dated September 17, 2002 and incorporated herein by
reference.
|
1.4
|
Amendments
to By-laws filed as Exhibit 1.4 to the Original Annual Report on
Form 20-F and incorporated herein by
reference.
|
2.1
|
Indenture
dated as of April 27, 2004 among the Company, each of the Subsidiary
Guarantors named therein, and The Bank of New York, as Trustee, relating
to the 7 3/8% Senior Subordinated Notes due 2014 filed as Exhibit
4.5 to
the Company’s Registration Statement on Form F-4 dated June 30, 2004
and incorporated herein by reference.
|
2.2
|
First
Supplemental Indenture dated as of December 23, 2004 among the Company,
each of the Additional Guarantors named therein and The Bank of New
York,
as Trustee, to the Indenture dated as of April 27, 2004 among the
Company,
each of the Subsidiary Guarantors named therein and the Trustee.
Filed as
Exhibit 2.2 to the Company’s Annual Report on Form 20-F for
fiscal 2006 and incorporated herein by reference.
|
2.3
|
Form
of 7 3/8% Senior Subordinated Notes due 2014 filed as Exhibit 4.6
to the
Company’s Registration Statement on Form F-4 dated June 30, 2004 and
incorporated herein by reference.
|
4.3
|
Purchase
Agreement dated April 21, 2004 among the Company, each of the
Subsidiary Guarantors named therein, Merrill Lynch & Co., Merrill
Lynch, Pierce, Fenner & Smith Incorporated and Scotia Capital (USA)
Inc. - filed as Exhibit 4.7 to the Company’s Registration Statement on
Form F-4 dated June 30, 2004 and incorporated herein by
reference.
|
4.4
|
Second
Amended and Restated US $225,000,000 Senior Credit Agreement dated as
of December 22, 2004 among The Bank of Nova Scotia, as Administrative
Agent, The Lenders from time to time party to this Agreement and
the
Company, as amended by the amending agreements dated as of
February 2, 2005, March 11, 2005, June 10, 2005,
June 19, 2006, September 12, 2006, March 9, 2007 and
April 26, 2007 filed as Exhibit 4.4 to the Original Annual Report
on Form
20-F and incorporated herein by reference.
|
4.6
|
Employee
Share Option Plan, as amended March 3, 2003 and September 28,
2006 filed as Exhibit 4.6 to the Original Annual Report on
Form 20-F and incorporated herein by
reference.
|
4.9
|
Employee
Share Purchase Plan, filed as Exhibit 4.9 to the Company’s Form 20-F for
fiscal 2001 dated September 13, 2001 and incorporated herein by
reference.
|
4.10
|
Share
Appreciation Rights Plan, filed as Exhibit 4.10 to the Company’s Form 20-F
for fiscal 2001 dated September 13, 2001 and incorporated herein by
reference.
|
7.1
|
Statement
Regarding Computation of Ratio of Earnings to Fixed Charges filed
as
Exhibit 7.1 to the Original Annual Report on Form 20-F and incorporated
herein by reference.
|
8.1
|
Significant
Subsidiaries filed as Exhibit 8.1 to the Original Annual Report on
Form 20-F and incorporated herein by
reference.
|
12.1
|
Section
302 Certification by Chief Executive Officer
|
12.2
|
Section
302 Certification by Chief Financial Officer
|
13.1
|
Section 906
Certification by Chief Executive Officer
|
13.2
|
Section
906 Certification by Chief Financial
Officer
|
Date:
January 24, 2008
|
CHC
HELICOPTER
CORPORATION
BY: /s/
Rick Davis
Rick
Davis
Senior
Vice-President & Chief Financial
Officer
|