HNZ Group announces exercise of renewal option on Afghanistan contract by USTRANSCOM
MONTREAL, Nov. 1, 2012 /CNW Telbec/ - HNZ Group Inc. (TSX: HNZ.A, HNZ.B) ("HNZ Group"), an international provider of helicopter transportation and related support services, announced today that the United States Transportation Command ("USTRANSCOM") has exercised its renewal option, subject to funding, to extend until October 31, 2013 the contract for work in Afghanistan previously announced on October 1, 2010 involving the movement of supplies and passengers to military forward operating locations. This contract involves the provision by HNZ Group of two fully crewed and supported Sikorsky S-61 heavy category helicopters and four Bell 212 medium category helicopters. There are two additional one-year renewal option periods and a final 8-month renewal option period to June 30, 2016 remaining on the contract, each exercisable at the discretion of USTRANSCOM.
As previously disclosed, the contract is denominated in U.S. dollars and is comprised primarily of a fixed monthly rate and variable hourly revenue components. Total revenue to HNZ Group for the renewal period is expected to be similar to revenue earned in previous years under the contract, assuming that expected hours are flown.
ABOUT HNZ GROUP INC.
HNZ Group is an international provider of helicopter transportation and related support services with operations in Canada, Australia, New Zealand, Afghanistan, Antarctica and southeast Asia. HNZ Group operates in excess of 140 helicopters in support of a range of multinational companies and government agencies, including onshore and offshore oil & gas, mineral exploration, military support, hydro/utilities, forest management, construction, air ambulance and search & rescue. In addition to charter services, HNZ Group provides flight training and third party repair and maintenance services. HNZ Group is headquartered near Montreal, Quebec and employs approximately 800 personnel from 35 locations around the world.
This press release contains forward-looking statements relating to the future contractual relationship between HNZ Group and USTRANSCOM and in particular with respect to expected revenues, the availability of funding for the period covered by the renewal option and the duration of such relationship. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially. Consequently, readers should not place any undue reliance on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they were made. HNZ Group disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise unless being required by applicable laws.
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HNZ Group Inc.
President and Chief Executive Officer