CHC announces first quarter results



    VANCOUVER, Sept. 13 /CNW/ - CHC Helicopter Corporation (the "Company" or
"CHC") (TSX: FLY.A and FLY.B; NYSE:   FLI) today announced unaudited financial
results for the three months ended July 31, 2007.

    
                             Financial Highlights
         (in millions of Canadian dollars, except per share amounts)

                                                          Three Months Ended
    ------------------------------------------------------------------------
                                                           July 31,  July 31,
                                                              2007      2006
    ------------------------------------------------------------------------
    Revenue                                               $  319.9  $  263.2
    Operating income                                          24.6      28.6
    Net earnings from continuing operations                   11.8       9.0
    Net earnings (loss) from discontinued operations          16.4      (0.2)
    Net earnings                                              28.2       8.8

    Per share information (diluted)
    Weighted average number of shares                         46.4      46.2
    Net earnings from continuing operations               $   0.26  $   0.19
    Net earnings from discontinued operations                 0.35         -
    Net earnings                                              0.61      0.19
    -------------------------------------------------------------------------
    

    The Company recorded another quarter of record revenue with continued
expansion of its fleet. During the quarter, the Company began operations on
several new contracts in Europe and exited from certain low margin contracts
in Global Operations. In addition, the Company divested of Survival-One
Limited ("Survival-One") and recognized an after-tax gain on the sale of
$16.4 million.
    During the first quarter, revenue increased $54.4 million (21%) to
$319.9 million, excluding the impact of foreign exchange ("FX"), compared to
the same period last year. FX had a positive impact on revenue in the first
quarter of $2.3 million.
    Revenue increased in all operating segments in the first quarter, but
most significantly in the Global Operations segment. Global Operations'
revenue and segment EBITDAR increased $31.9 million (35%) and $3.9 million
(13%), respectively, from the same period last year (excluding FX). Flying
hours in Global Operations increased by 3,789 hours (19%) over the same period
last year. European Operations revenue and segment EBITDAR increased by
$12.8 million (10%) and $4.0 million (18%), respectively, from the same period
last year (excluding FX). During the first quarter, external revenue and
segment EBITDAR in Heli-One increased $9.5 million (25%) and $9.0 million
(15%), respectively, from the same period last year (excluding FX).
    Operating income decreased by $4.5 million or 16% (excluding FX) in the
first quarter, compared to the same period last year, primarily due to an
increase in amortization relating to an increase in spares and the increased
value of the Company's fleet, as well as a restructuring recovery of $2.1
million in the first quarter last year.
    Net earnings for the first quarter were $28.2 million ($0.61 per share,
diluted), an increase of $19.4 million ($0.42 per share diluted) from the same
period last year.
    The following table presents the impact on net income and diluted
earnings per share of certain items that affect the comparability of the
Company's net earnings from the applicable prior periods (all amounts are
after-tax and in millions, except per share amounts):

    
                                                 Three Months Ended
                                                      July 31,
                                      ---------------------------------------
                                             2007                 2006
                                      ---------------------------------------
                                                 Diluted             Diluted
                                                earnings            earnings
                                            Net      per       Net       per
                                       earnings    share  earnings     share
                                         impact   impact    impact    impact
                                      ---------------------------------------
    Operational Issues:
      Aircraft introduction costs(1)  $   (2.7) $  (0.06) $   (4.0) $  (0.09)
      Major component exchange costs,
       net of estimated power-by-the-
       hour ("PBH") refund                (1.6)    (0.03)        -         -
      Aircraft impairment adjustment      (1.9)    (0.04)        -         -
      Costs associated with exit from
       certain low margin contracts       (0.5)    (0.01)        -         -
      Impact of aircraft
       availability issues(2)             (1.8)    (0.04)     (2.0)    (0.04)
      Net trade receivables
       provision decrease                  1.1      0.02       2.7      0.06
                                      ---------------------------------------
                                          (7.4)    (0.16)     (3.3)    (0.07)

    Financing, Investing and
     Related Issues:
      Gain on disposal of
       Survival-One
       (discontinued operations)          16.4      0.35         -         -
                                      ---------------------------------------
                                          16.4      0.35         -         -

    Other:
      Tax rate reduction in the UK         3.1      0.07         -         -
      Contract settlement costs              -         -      (1.3)    (0.03)
      Restructuring recovery                 -         -       1.4      0.03
                                      ---------------------------------------
                                           3.1      0.07       0.1         -
                                      ---------------------------------------
    Total                             $   12.1  $   0.26  $   (3.2) $  (0.07)
    -------------------------------------------------------------------------
    (1) Includes estimated after-tax interest and lease costs of $0.6 million
        ($0.01 per share, diluted) (2006 - $1.5 million, $0.03 per share,
        diluted).
    (2) Includes estimated revenue lost due to lack of availability of
        aircraft to service contract and non-contract customers.

    Other significant variances include (all amounts are pre-tax, unless
otherwise noted):

    -   Interest expense increases of approximately $1.0 million,
        ($0.8 million or $0.02 per share, diluted, after-tax) in the first
        quarter, primarily as a result of higher debt levels related to
        investment in a growing fleet and associated working capital
        increases; and

    -   Lease expense increases of approximately $7.5 million ($5.8 million
        or $0.12 per share, diluted, after-tax) in the first quarter, as a
        result of additional leased aircraft and higher interest rates on
        various operating leases.

    Capital and liquidity:

    -   The Company used cash of $68.7 million in operations and invested
        $50.3 million in property and equipment, including the purchase of
        two aircraft, during the three months ended July 31, 2007.

    -   The number of aircraft in the fleet decreased by one aircraft during
        the first quarter. This change consisted of the addition of five new
        aircraft, including two Sikorsky S76C++, one DHC8-300 and two search
        and rescue ("SAR") equipped Sikorsky S61N aircraft. As well, the
        Company disposed of or returned to lessors six older technology
        aircraft.

    -   The Company has 70 aircraft (35 heavy and 35 medium aircraft) on
        order, 30 of which are expected to be delivered in the current year,
        with the remaining 40 aircraft to be delivered over the next five
        years. The Company also has the option to purchase up to ten
        additional heavy and medium aircraft over the next five years.

    -   The Company had unused capacity under its credit facilities of
        $39.6 million and cash and cash equivalents of $35.4 million for a
        total of $75.0 million at July 31, 2007.

    -   During the first quarter, the Company completed refinancing of its
        senior credit facilities at interest rates consistent with its
        previous agreements. The refinancing will provide an additional
        US $100 million of capacity, increased flexibility during the current
        period of unprecedented growth and the ability to increase borrowings
        in multiple currencies.

    Subsequent to July 31, 2007, the Company announced:

    -   that it has secured a new maintenance support contract with Lider
        Taxi Aereo S.A. - Air Brasil ("Lider Aviacao") of Brazil. Lider
        Aviacao will send various component units to Heli-One for overhaul on
        an exchange basis. Main, intermediate and tail gearboxes, along with
        other major components for Lider Aviacao's fleet of Sikorsky S76,
        Bell 212 and Bell 412 helicopters will be overhauled by Heli-One and
        exchange units will be provided.

    -   that its Board of Directors has declared an annual dividend of $0.50
        payable quarterly at $0.125 on each Class A subordinate voting share
        and Class B multiple voting share.
    

    For a complete overview of results, including Management's Discussion and
Analysis, and Unaudited Interim Consolidated Financial Statements and Notes
thereto, please visit the CHC website at
http//www.chc.ca/investor_financialreports.php.

    Investor Conference Call

    The Company's first quarter conference call and webcast will take place
Friday, September 14th, 2007 at 10:30 a.m. EDT. To listen to the conference
call, dial 416-644-3414 for local and overseas calls, or toll-free
1-866-733-7560 for calls from within North America. To hear a replay of the
conference call, visit www.chc.ca or dial 416-640-1917 or toll-free
1-877-289-8525 and enter passcode "21245206 followed by the number sign".
    The financial results and conference call webcast will be available at
www.chc.ca. The webcast is also available through Canada Newswire at
www.cnxmarketlink.com.

    CHC Helicopter Corporation is the world's largest provider of helicopter
services to the global offshore oil and gas industry with aircraft operating
in more than 30 countries.

    If you wish to be added to CHC's news distribution list, please visit
http://www.chc.ca/investor_materialrequest.php.

    -------------------------------------------------------------------------
    This document may contain forward-looking information. While these
    projections, conclusions, forecasts and other statements represent our
    best current judgment, the actual results could differ materially from
    the conclusion, forecast or projection contained in the forward-looking
    information. Certain material factors or assumptions were applied in
    drawing a conclusion or making a forecast or projection in the forward-
    looking information contained herein. Such factors include, but are not
    limited to, the following: exchange rate fluctuations, inherent risk,
    trade credit risk, industry exposure, inflation, contract loss, inability
    to maintain government issued licences, inability to obtain necessary
    aircraft or insurance, competition, political, economic and regulatory
    uncertainty, loss of key personnel, pension risk, work stoppages due to
    labour disputes, international uncertainty, and future material
    acquisitions. These risk factors are further detailed in the Annual
    Report on Form 20-F and other filings of the Company with the United
    States Securities and Exchange Commission and in the Company's Annual
    Information Form filed with the Canadian securities regulatory
    authorities. Should one or more of these risks or uncertainties
    materialize, or should underlying assumptions prove incorrect, actual
    outcomes may vary materially from those indicated. CHC disclaims any
    intention or obligation to update or revise any forward-looking
    information, whether as a result of new information, future events or
    otherwise.
    -------------------------------------------------------------------------

    %SEDAR: 00002218E          %CIK: 0000903124




For further information:

For further information: Rick Davis, Senior Vice President and Chief
Financial Officer, (604) 279-2471 or (778) 999-0314; Annette Cusworth, Vice
President, Financial Services, (604) 279-2484 or (778) 999-1476

Organization Profile

CHC HELICOPTER CORPORATION

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