CHC announces fourth quarter results



    VANCOUVER, June 26 /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 and year ended April 30, 2007.

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

                              Three Months Ended           Year Ended
    -------------------------------------------------------------------------
                             April 30,    April 30,    April 30,    April 30,
                               2007         2006         2007         2006
    -------------------------------------------------------------------------
    Revenue                $    312.2   $    248.2   $  1,149.1   $    997.1
    Operating income             28.4         23.7        115.1        109.1
    Net earnings from
     continuing operations       11.7         10.3         41.0         89.7
    Net earnings from
     discontinued operations      1.8          0.5          2.2          1.0
    Extraordinary item              -            -          0.8            -
    Net earnings                 13.5         10.8         44.0         90.7

    Per share information
     (diluted)
    Weighted average number
     of shares                   46.1         46.3         46.1         46.2
    Net earnings from
     continuing operations $     0.26   $     0.22   $     0.90  $      1.95
    Net earnings from
     discontinued operations     0.04         0.01         0.05         0.02
    Extraordinary item              -            -         0.02            -
    Net earnings                 0.30         0.23         0.97         1.97
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    For the three months and year ended April 30, 2007 the Company recorded
the highest quarterly and annual revenue in its history due to continued fleet
growth and business expansion. During fiscal 2007, the Company added 40
aircraft to its fleet.
    During the fourth quarter, revenue increased $46.7 million (19%) to
$312.2 million, excluding the impact of foreign exchange ("FX"), compared to
the same period last year. FX had a positive impact on revenue in the fourth
quarter of $17.2 million.
    Revenue increased in all operating segments for the three months ended
April 30, 2007, but most significantly in the Global Operations and Heli-One
segments. Global Operations' revenue and segment EBITDAR increased
$25.7 million (29%) and $10.4 million (43%), respectively, from the same
period last year (excluding FX). Flying hours in Global Operations increased
by 4,476 hours (25%) over the same period last year. During the fourth
quarter, external revenue and segment EBITDAR in Heli-One increased
$14.0 million (38%) and $13.9 million (23%), respectively, from the same
period last year (excluding FX).
    European Operations revenue increased $6.9 million (6%), compared to the
same period last year (excluding FX); however, segment EBITDAR decreased by
$4.5 million (17%) (excluding FX) as the European Operations' segment
continued to invest in training on new aircraft types and is recovering from
the aircraft availability issues experienced in the year.
    Operating income increased $1.8 million (7%) excluding FX, in the fourth
quarter, compared to the same period last year.
    Net earnings from continuing operations for the fourth quarter were
$11.7 million ($0.26 per share, diluted), an increase of $1.4 million ($0.04
per share, diluted) from the same period last year.
    The results of Survival-One continued to be classified as discontinued
operations at April 30, 2007. Refer to Note 2 of the unaudited consolidated
financial statements attached herein. Net earnings from discontinued
operations for the fourth quarter were $1.8 million ($0.04 per share,
diluted), compared to a net earnings of $0.5 million ($0.01 per share,
diluted) in the same period last year.
    Net earnings for the three months ended April 30, 2007 were $13.5 million
($0.30 per share, diluted), an increase of $2.7 million ($0.07 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
                                                April 30,
                          ---------------------------------------------------
                                      2007                     2006
                          ---------------------------------------------------
                                          Diluted                   Diluted
                                         earnings                  earnings
                           Net earnings  per share   Net earnings  per share
                              impact       impact       impact       impact
                          ---------------------------------------------------
    Operational Issues:
      Aircraft introduction
       costs               $     (3.6)  $    (0.08)  $     (1.4)  $    (0.03)
      Estimated net
       power-by-the-hour
       ("PBH") refund             2.9         0.06            -            -
      Impact of aircraft
       availability issues       (2.1)       (0.05)        (1.0)       (0.02)
      Costs related to pilot
       work-to-rule job
       action in Denmark         (0.7)       (0.02)           -            -
      Net trade receivables
       provision decrease         0.9         0.02            -            -
      SOX Section 404
       project costs             (2.4)       (0.05)        (0.3)       (0.01)
                          ---------------------------------------------------
                                 (5.0)       (0.12)        (2.7)       (0.06)

    Financing, Investing
     and Related Issues:
      Gain on sale of long-
       term investments and
       equity earnings              -            -            -            -
      Financing charges
      (FX and other)             (1.2)       (0.03)        (0.7)       (0.02)
                          ---------------------------------------------------
                                 (1.2)       (0.03)        (0.7)       (0.02)
    Other:
      Contract settlement
       costs                        -            -            -            -
      Restructuring (costs)
       recovery                   0.2            -         (2.5)       (0.05)
                          ---------------------------------------------------
                                  0.2            -         (2.5)       (0.05)
                          ---------------------------------------------------
    Total                  $     (6.0)  $    (0.15)  $     (5.9)  $    (0.13)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                                Year Ended
                                                 April 30,
                          ---------------------------------------------------
                                      2007                      2006
                          ---------------------------------------------------
                                          Diluted                   Diluted
                                         earnings                  earnings
                           Net earnings  per share   Net earnings  per share
                              impact       impact       impact       impact
                          ---------------------------------------------------
    Operational Issues:
      Aircraft introduction
       costs               $    (13.2)  $    (0.29)  $     (6.3)  $    (0.14)
      Estimated net
       power-by-the-hour
       ("PBH") refund             2.9         0.06            -            -
      Impact of aircraft
       availability issues       (9.5)       (0.21)        (1.7)       (0.04)
      Costs related to pilot
       work-to-rule job
       action in Denmark         (0.7)       (0.02)           -            -
      Net trade receivables
       provision decrease        11.2         0.24            -            -
      SOX Section 404
       project costs             (6.4)       (0.14)        (0.6)       (0.01)
                          ---------------------------------------------------
                                (15.7)       (0.36)        (8.6)       (0.19)

    Financing, Investing
     and Related Issues:
      Gain on sale of long-
       term investments and
       equity earnings              -            -         37.4         0.81
      Financing charges
      (FX and other)             (6.3)       (0.14)        (6.8)       (0.15)
                          ---------------------------------------------------
                                 (6.3)       (0.14)        30.6         0.66

    Other:                       (1.3)       (0.02)           -            -
      Contract settlement
       costs
      Restructuring (costs)
       recovery                   1.6         0.04        (11.3)       (0.25)
                          ---------------------------------------------------
                                  0.3         0.02        (11.3)       (0.25)
                          ---------------------------------------------------
    Total                  $    (21.7)  $    (0.48)  $     10.7   $     0.22
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Capital and liquidity:

    -   The Company used $40.6 million in cash for operations and invested
        $51.5 million in property and equipment, including the purchase of
        seven aircraft, during the three months ended April 30, 2007.

    -   The Company has 71 aircraft (34 heavy and 37 medium aircraft) on
        order, expected to be delivered over the next five years. The Company
        also has options to purchase up to twelve additional heavy and medium
        aircraft over the next five years.

    -   The Company has unused capacity under its credit facilities of
        $38.3 million and cash and cash equivalents of $89.5 million for a
        total of $127.8 million at April 30, 2007.
    

    Subsequent to the fourth quarter, the Company announced the completion of
the sale of Survival-One, the Company's Aberdeen-based, non-core operating
unit engaged in the manufacture, repair and distribution of cold-water
survival suits and other safety equipment, for gross proceeds of approximately
$37 million. A gain on sale of approximately $18 million will be recorded in
the first quarter of fiscal 2008, subject to any post-closing adjustments.

    Investor Conference Call

    The Company's fourth quarter conference call and webcast will take place
Wednesday, June 27th, 2007 at 10:30 a.m. EDT. To listen to the conference
call, dial 416-644-3418 for local and overseas calls, or toll-free
1-800-733-7560 for calls from within North America. To hear a replay of the
conference call, dial 416-640-1917 or toll-free 1-877-289-8525 and enter
passcode "21236511" 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, 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, work stoppages due to labour disputes, 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.
    -------------------------------------------------------------------------

    Significant Events

    Investing for the Future

    As the Company looks to the future, it recognizes that the key to success
is to continue to expand and renew its fleet. The Company is adding aircraft
at an unprecedented rate in response to intense customer demand, with ten
aircraft added in the fourth quarter and 30 aircraft added in the first nine
months of the current year, bringing the total fleet additions in fiscal 2007
to 40 aircraft. These additions are partially offset by the sale, disposal or
return to lessors of 18 aircraft resulting in a net fleet increase of 22
aircraft.

    Acquisition

    On March 8, 2007, following regulatory approval, the Company acquired an
equity position in BHS - Brazilian Helicopter Services Taxi Aereo Ltda.
("BHS"). 100% of the voting common shares were acquired through a jointly
owned subsidiary BHH - Brazilian Helicopters Holdings S.A. ("BHH"). BHS is one
of the largest helicopter operators in the Brazilian offshore sector. This
acquisition was accounted for using the purchase method, with results of
operations included in the consolidated financial statements of the Company
from the date of acquisition. The purchase price was allocated based on the
fair value of the net identifiable assets acquired as follows:

    
    Fair value of net assets acquired
      Cash                                                        $    2,529
      Other current assets                                             5,066
      Intangible assets(1)                                            17,564
      Goodwill(2)                                                     55,794
      Property and equipment                                           1,619
      Current liabilities                                             (4,155)
      Indebtedness to CHC                                            (32,830)
      Long-term debt                                                  (3,555)
      Tax and other liabilities                                      (41,177)
                                                                 ------------
                                                                  $      855
    Purchase price
      Consideration                                               $        -
      Acquisition costs                                                  855
                                                                 ------------
                                                                  $      855
                                                                 ------------
                                                                 ------------

    (1) 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.
    (2) 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.
    

    The purchase price allocation for this acquisition is preliminary and may
be adjusted further as a result of obtaining additional information regarding
preliminary estimates of fair values made at the date of purchase.

    Flying Revenue, Fleet and Repair & Overhaul

    Flying Revenue and Hours

    The Company derives its flying revenue from two primary types of
contracts. Approximately 55% (2006 - 49%) of the Company's annual flying
revenue was derived from fixed monthly charges and the remaining 45% (2006 -
51%) was generated by hourly charges. Due to the significant fixed component
in flying revenue, a change in flying hours may not result in a proportionate
change in revenue. While flying hours may not correlate directly with revenue,
they remain a good measure of activity levels.
    The following table provides a quarterly summary of the Company's flying
hours and number of aircraft utilized for the past eight quarters. Of the 34
aircraft in the Heli-One fleet, 19 aircraft are externally leased to
third-parties, five aircraft are undergoing post-delivery modifications, two
aircraft are undergoing major inspections and eight aircraft are available for
sale.

    
    -------------------------------------------------------------------------
                           Flying Hours by Quarter
    -------------------------------------------------------------------------
                     Flying Hours                   Number of Aircraft
             ----------------------------   ---------------------------------
               Global    European             Global    European  Heli-
    Period   Operations Operations  Total   Operations Operations  One  Total
    -------------------------------------   ---------------------------------
    Q1-2006    16,262     23,713   39,975      127         77      14    218
    Q2-2006    17,042     25,968   43,010      128         71      27    226
    Q3-2006    18,854     23,764   42,618      131         72      27    230
    Q4-2006    17,701     22,026   39,727      131         72      30    233
    Q1-2007    19,502     24,240   43,742      132         76      44    252
    Q2-2007    20,981     23,256   44,237      128         77      43    248
    Q3-2007    21,547     21,556   43,103      128         75      47    250
    Q4-2007    22,177     21,956   44,133      145         76      34    255
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    The following table provides year-to-date information on flying revenue by
segment (without adjusting for the impact of FX).

    -------------------------------------------------------------------------
                                               Flying Revenue
                                        Fiscal Year Ended April 30,
                                    (in thousands of Canadian dollars)
                          ---------------------------------------------------
                               Global Operations        European Operations
                          ------------------------- -------------------------
                               2007         2006         2007         2006
                          ------------------------- -------------------------
    Revenue Mix:
      Heavy                $   87,831   $   69,962   $  378,208   $  369,700
      Medium                  242,060      204,828      136,069      127,525
      Light                       857        2,508            -            -
      Fixed-Wing               43,920       30,552            -            -
                          ------------------------- -------------------------
        Total              $  374,668   $  307,850   $  514,277   $  497,225
                          ------------------------- -------------------------
    Hourly vs. Fixed:
      Hourly               $  114,087   $   97,131   $  282,371   $  311,030
      Fixed                   260,581      210,719      231,906      186,195
                          ------------------------- -------------------------
        Total              $  374,668   $  307,850   $  514,277   $  497,225
                          ------------------------- -------------------------
    Industry Sector:
      Oil & Gas            $  295,651   $  235,224   $  484,677   $  461,504
      EMS/SAR(1)               48,492       50,316       29,600       32,434
      Other                    30,525       22,310            -        3,287
                          ------------------------- -------------------------
        Total              $  374,668   $  307,850   $  514,277   $  497,225
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                               Flying Revenue
                                        Fiscal Year Ended April 30,
                                    (in thousands of Canadian dollars)
                          ---------------------------------------------------
                                    Total                    Total %
                          ------------------------- -------------------------
                               2007         2006        2007         2006
                          ------------------------- -------------------------
    Revenue Mix:
      Heavy                $  466,039   $  439,662          52%          55%
      Medium                  378,129      332,353          43%          41%
      Light                       857        2,508           0%           0%
      Fixed-Wing               43,920       30,552           5%           4%
                          ------------------------- ------------ ------------
        Total              $  888,945   $  805,075         100%         100%
                          ------------------------- ------------ ------------
    Hourly vs. Fixed:
      Hourly               $  396,458   $  408,161          45%          51%
      Fixed                $  492,487   $  396,914          55%          49%
                          ------------------------- ------------ ------------
        Total                 888,945      805,075         100%         100%
                          ------------------------- ------------ ------------
    Industry Sector:
      Oil & Gas            $  780,328   $  696,728          88%          87%
      EMS/SAR(1)               78,092       82,750           9%          10%
      Other                $   30,525   $   25,597           3%           3%
                          ------------------------- ------------ ------------
        Total                 888,945      805,075         100%         100%
    -------------------------------------------------------------------------
    (1) Emergency medical services ("EMS") and search and rescue ("SAR")
        services.

    Aberdeen Airport Ltd. in the UK no longer reports monthly passenger
traffic for all helicopter operations in Aberdeen, Scotland. Therefore, the
Company is no longer able to provide this information.

    Fleet and Repair & Overhaul

    The following table provides year-to-date information on Heli-One fleet
and repair & overhaul activities (without adjusting for the impact of FX).

    -------------------------------------------------------------------------
                                        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(1)   $      -  $      -  $130,878  $106,104  $130,878  $106,104
        Lease       21,338    12,882         -         -    21,338    12,882
        Other(2)         -         -    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(1)       -         -   210,098   194,915   210,098   194,915
        Lease      181,200   150,855         -         -   181,200   150,855
        Other(2)         -         -       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(3)      (18,839)  (19,872) (280,120) (251,334) (298,959) (271,206)
                  ------------------- ------------------- -------------------
    Segment
     EBITDAR(3)    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(3)      (87,217)  (60,685)        -         -   (87,217)  (60,685)
                  ------------------- ------------------- -------------------
    Segment
     EBITDA(3)    $ 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
                                                          -------------------
                                                          -------------------
    -------------------------------------------------------------------------
    (1) Power-by-the-hour ("PBH") and repair & overhaul ("R&O").
    (2) Other consists of CHC Composites Inc., Heli-One Components B.V. and
        the recently sold trading surplus business.
    (3) See Note 3 to the unaudited interim financial statements enclosed.

    At April 30, 2007 the Company's fleet consisted of 144 owned aircraft and
111 aircraft under operating leases. 76 of these aircraft are deployed in
European Operations with the remaining 179 deployed throughout the world.
    The following table outlines the changes in the Company's fleet during the
fourth quarter of fiscal 2007:

    -------------------------------------------------------------------------
                          Quarterly Fleet Change Summary
    -------------------------------------------------------------------------
                                                                       Oper-
                                                  Fixed                ating
                            Heavy  Medium  Light   Wing  Total  Owned  Lease
                            -----  ------  -----  -----  -----  -----  -----
    Fleet at January 31,
     2007                      84     144      3     19    250    151     99
    Increases (decreases)
     during the period:
    Lease of ATR42-500                                1      1             1
    Lease of Bell 412EP                 1                    1             1
    Lease of S92                3                            3             3
    Purchase of AW139                   2                    2      2
    Purchase of Bell 412EP              1                    1      1
    Purchase of previously
     leased S61N                                             -      2     (2)
    Purchase of S76C++                  2                    2      2
    Return of leased Bell 212          (1)                  (1)           (1)
    Sale leaseback of AS332L                                 -     (2)     2
    Sale leaseback of AS365N3                                -     (2)     2
    Sale leaseback of
     Bell 412EP                                              -     (1)     1
    Sale leaseback of S76C++                                 -     (5)     5
    Sale of EC155B                     (1)                  (1)    (1)
    Sale of S76A                       (2)                  (2)    (2)
    Sale of S92(1)             (1)                          (1)    (1)
                            -------------------------------------------------
    Fleet at April 30, 2007    86     146      3     20    255    144    111
                            -------------------------------------------------

    Fleet deployment as at
     April 30, 2007

    Global Operations          27      97      1     20    145     93     52
    European Operations        48      28      -      -     76     31     45
    Heli-One                   11      21      2      -     34     20     14
                            -------------------------------------------------
                               86     146      3     20    255    144    111
    -------------------------------------------------------------------------
    (1) This aircraft will be leased back in fiscal 2008.
    

    During the fourth quarter, the Company incurred aircraft operating lease
and related costs of $28.1 million compared to $17.8 million in the same
period last year. As at April 30, 2007, there were 29 more leased aircraft in
the Company's fleet compared to the same period last year. The increase of
$10.3 million in lease costs was primarily due to additional leased aircraft
and an increase in the interest component of lease charges, partially offset
by the amortization of deferred gains recognized on sale-leaseback
transactions. The increase in the interest component of lease charges relates
to an increase in interest rates over the same period last year and the fixing
of interest rates on a number of leases since the beginning of the current
fiscal year.
    The Company has entered into operating leases with third-party lessors in
respect of 111 aircraft included in the Company's fleet at April 30, 2007.
Ninety-six of these leases are long-term with expiry dates ranging from fiscal
2008 to 2015.

    Review of Segment Revenue, EBITDAR and Operating Income

    Comparative Figures for Segmented Reporting

    The following table provides fourth quarter and annual external revenue,
segment EBITDAR, segment EBITDA and operating income variance analysis between
fiscal 2007 and 2006. The numbers in this analysis are referred to in the
review of each operating segment that follows the table.

    
    -------------------------------------------------------------------------
         Segment Revenue from External Customers - Variance Analysis
                     (in thousands of Canadian dollars)

                                                  Fourth Quarter
                                    -----------------------------------------
                                        Global       European
                                      Operations    Operations     Heli-One
                                    -----------------------------------------
    Three months ended April 30,
     2006                            $    88,812   $   122,329   $    37,048
    Foreign exchange impact(1)             4,130        10,636         2,453
    Revenue increase                      25,720         6,883        14,005
                                    -----------------------------------------
    Three months ended April 30,
     2007                            $   118,662   $   139,848   $    53,506
                                    -----------------------------------------
                                    -----------------------------------------
    Total revenue increase           $    29,850   $    17,519   $    16,458
    % increase                             33.6%         14.3%         44.4%
    % increase excluding FX                29.0%          5.6%         37.8%

                                                  Fourth Quarter
                                    -----------------------------------------
                                      Corporate    Intersegment
                                       & Other     Eliminations      Total
                                    -----------------------------------------
    Three months ended April 30,
     2006                            $        58           N/A   $   248,247
    Foreign exchange impact(1)                11           N/A        17,230
    Revenue increase                         111           N/A        46,719
                                    -----------------------------------------
    Three months ended April 30,
     2007                            $       180           N/A   $   312,196
                                    -----------------------------------------
                                    -----------------------------------------
    Total revenue increase                   N/A           N/A   $    63,949
    % increase                               N/A           N/A         25.8%
    % increase excluding FX                  N/A           N/A         18.8%


                                                    Fiscal Year
                                    -----------------------------------------
                                        Global       European
                                      Operations    Operations     Heli-One
                                    -----------------------------------------
    Year ended April 30, 2006        $   330,877   $   520,367   $   145,668
    Foreign exchange impact(1)           (11,007)        2,468        (2,453)
    Revenue increase                     108,086        17,086        37,398
                                    -----------------------------------------
    Year ended April 30, 2007        $   427,956   $   539,921   $   180,613
                                    -----------------------------------------
                                    -----------------------------------------
    Total revenue increase           $    97,079   $    19,554   $    34,945
    % increase                             29.3%          3.8%         24.0%
    % increase excluding FX                32.7%          3.3%         25.7%

                                                    Fiscal Year
                                    -----------------------------------------
                                       Corporate   Intersegment
                                        & Other    Eliminations      Total
                                    -----------------------------------------
    Year ended April 30, 2006        $       175           N/A   $   997,087
    Foreign exchange impact(1)                13           N/A       (10,979)
    Revenue increase                         429           N/A       162,999
                                    -----------------------------------------
    Year ended April 30, 2007        $       617           N/A   $ 1,149,107
                                    -----------------------------------------
                                    -----------------------------------------
    Total revenue increase                   N/A           N/A   $   152,020
    % increase                               N/A           N/A         15.2%
    % increase excluding FX                  N/A           N/A         16.3%
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
                     Segment EBITDAR(2) Variance Analysis
                     (in thousands of Canadian dollars)

                                                  Fourth Quarter
                                    -----------------------------------------
                                        Global       European
                                      Operations    Operations     Heli-One
                                    -----------------------------------------
    Three months ended April 30,
     2006                            $    24,189   $    25,636   $    60,966
    Foreign exchange impact(1)               883           727         3,991
    Segment EBITDAR increase
     (decrease)                           10,430        (4,456)       13,889
                                    -----------------------------------------
    Three months ended April 30,
     2007                            $    35,502   $    21,907   $    78,846
                                    -----------------------------------------
                                    -----------------------------------------
    Segment EBITDAR margin(3)
    - Last year                            27.2%         21.0%         47.2%
    - This year                            29.9%         15.7%         49.4%
    Total Segment EBITDAR increase
     (decrease)                      $    11,313   $    (3,729)  $    17,880
    % increase (decrease)                  46.8%        (14.5%)        29.3%
    % increase (decrease)
     excluding FX                          43.1%        (17.4%)        22.8%

                                                  Fourth Quarter
                                    -----------------------------------------
                                       Corporate   Intersegment
                                        & Other    Eliminations       Total
                                    -----------------------------------------
    Three months ended April 30,
     2006                            $    (9,751)  $   (40,780)  $    60,260
    Foreign exchange impact(1)               259             -         5,860
    Segment EBITDAR increase
     (decrease)                           (2,017)       (7,871)        9,975
                                    -----------------------------------------
    Three months ended April 30,
     2007                            $   (11,509)  $   (48,651)  $    76,095
                                    -----------------------------------------
                                    -----------------------------------------
    Segment EBITDAR margin(3)
    - Last year                              N/A           N/A         24.3%
    - This year                              N/A           N/A         24.4%
    Total Segment EBITDAR increase
     (decrease)                      $    (1,758)  $    (7,871)  $    15,835
    % increase (decrease)                 (18.0%)          N/A         26.3%
    % increase (decrease)
     excluding FX                         (20.7%)          N/A         16.6%


                                                    Fiscal Year
                                    -----------------------------------------
                                        Global       European
                                      Operations    Operations     Heli-One
                                    -----------------------------------------
    Year ended April 30, 2006        $    90,922   $   107,481   $   229,475
    Foreign exchange impact(1)            (3,183)       (3,679)        1,302
    Segment EBITDAR increase
     (decrease)                           47,392        (8,460)       42,397
                                    -----------------------------------------
    Year ended April 30, 2007        $   135,131   $    95,342   $   273,174
                                    -----------------------------------------
                                    -----------------------------------------
    Segment EBITDAR margin(3)
    - Last year                            27.5%         20.7%         45.8%
    - This year                            31.6%         17.7%         47.7%
    Total Segment EBITDAR increase
     (decrease)                      $    44,209   $   (12,139)  $    43,699
    % increase (decrease)                  48.6%        (11.3%)        19.0%
    % increase (decrease)
     excluding FX                          52.1%         (7.9%)        18.5%

                                                    Fiscal Year
                                    -----------------------------------------
                                       Corporate   Intersegment
                                        & Other    Eliminations      Total
                                    -----------------------------------------
    Year ended April 30, 2006        $   (27,662)  $  (154,049)  $   246,167
    Foreign exchange impact(1)             1,428             -        (4,132)
    Segment EBITDAR increase
     (decrease)                          (15,104)      (26,808)       39,417
                                    -----------------------------------------
    Year ended April 30, 2007        $   (41,338)  $  (180,857)  $   281,452
                                    -----------------------------------------
                                    -----------------------------------------
    Segment EBITDAR margin(3)
    - Last year                              N/A           N/A         24.7%
    - This year                              N/A           N/A         24.5%
    Total Segment EBITDAR increase
     (decrease)                      $   (13,676)  $   (26,808)  $    35,285
    % increase (decrease)                 (49.4%)          N/A         14.3%
    % increase (decrease)
     excluding FX                         (54.6%)          N/A         16.0%



                     Segment EBITDA(2) Variance Analysis
                     (in thousands of Canadian dollars)

                                                  Fourth Quarter
                                    -----------------------------------------
                                        Global       European
                                      Operations    Operations     Heli-One
                                    -----------------------------------------
    Three months ended April 30,
     2006                            $     1,409   $     5,889   $    44,868
    Foreign exchange impact(1)             1,192          (373)        3,720
    Segment EBITDA increase
     (decrease)                            3,327        (6,098)        5,603
                                    -----------------------------------------
    Three months ended April 30,
     2007                            $     5,928   $      (582)  $    54,191
                                    -----------------------------------------
                                    -----------------------------------------
    Total Segment EBITDA increase
     (decrease)                      $     4,519   $    (6,471)  $     9,323
    % increase (decrease)                 320.7%       (109.9%)        20.8%
    % increase (decrease)
     excluding FX                         236.1%       (103.5%)        12.5%

                                                  Fourth Quarter
                                    -----------------------------------------
                                       Corporate   Intersegment
                                        & Other    Eliminations      Total
                                    -----------------------------------------
    Three months ended April 30,
     2006                            $    (9,751)  $         -   $    42,415
    Foreign exchange impact(1)               259             -         4,798
    Segment EBITDA increase
     (decrease)                           (2,017)            -           815
                                    -----------------------------------------
    Three months ended April 30,
     2007                            $   (11,509)  $         -   $    48,028
                                    -----------------------------------------
                                    -----------------------------------------
    Total Segment EBITDA increase
     (decrease)                      $    (1,758)  $         -   $     5,613
    % increase (decrease)                 (18.0%)          N/A         13.2%
    % increase (decrease)
     excluding FX                         (20.7%)          N/A          1.9%


                                                    Fiscal Year
                                    -----------------------------------------
                                        Global       European
                                      Operations    Operations     Heli-One
                                    -----------------------------------------
    Year ended April 30, 2006        $     7,706   $    31,857   $   168,790
    Foreign exchange impact(1)            (1,366)       (3,792)        4,266
    Segment EBITDA increase
     (decrease)                           27,811       (25,830)       12,901
                                    -----------------------------------------
    Year ended April 30, 2007        $    34,151   $     2,235   $   185,957
                                    -----------------------------------------
                                    -----------------------------------------
    Total Segment EBITDA increase
     (decrease)                      $    26,445   $   (29,622)  $    17,167
    % increase (decrease)                 343.2%        (93.0%)        10.2%
    % increase (decrease)
     excluding FX                         360.9%        (81.1%)         7.6%

                                                    Fiscal Year
                                    -----------------------------------------
                                       Corporate   Intersegment
                                        & Other    Eliminations      Total
                                    -----------------------------------------
    Year ended April 30, 2006        $   (27,662)  $         -   $   180,691
    Foreign exchange impact(1)             1,416             -           524
    Segment EBITDA increase
     (decrease)                          (15,092)            -          (210)
                                    -----------------------------------------
    Year ended April 30, 2007        $   (41,338)  $         -   $   181,005
                                    -----------------------------------------
                                    -----------------------------------------
    Total Segment EBITDA increase
     (decrease)                      $   (13,676)  $         -   $       314
    % increase (decrease)                 (49.4%)          N/A          0.2%
    % increase (decrease)
     excluding FX                         (54.6%)          N/A         (0.1%)
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
                 Segment Operating Income Variance Analysis
                     (in thousands of Canadian dollars)

                                                  Fourth Quarter
                                    -----------------------------------------
                                        Global       European
                                      Operations    Operations     Heli-One
                                    -----------------------------------------
    Three months ended April 30,
     2006                            $       461   $     4,517   $    29,790
    Foreign exchange impact(1)             1,207          (414)        1,897
    Operating income increase
     (decrease)                            2,614        (5,218)        5,370
                                    -----------------------------------------
    Three months ended April 30,
     2007                            $     4,282   $    (1,115)  $    37,057
                                    -----------------------------------------
                                    -----------------------------------------
    Total operating income increase
     (decrease)                      $     3,821   $    (5,632)  $     7,267
    % increase (decrease)                 828.9%       (124.7%)        24.4%
    % increase (decrease)
     excluding FX                         567.0%       (115.5%)        18.0%

                                                  Fourth Quarter
                                    -----------------------------------------
                                       Corporate   Intersegment
                                        & Other    Eliminations      Total
                                    -----------------------------------------
    Three months ended April 30,
     2006                            $   (11,058)  $         -   $    23,710
    Foreign exchange impact(1)               248             -         2,938
    Operating income increase
     (decrease)                           (1,000)            -         1,766
                                    -----------------------------------------
    Three months ended April 30,
     2007                            $   (11,810)  $         -   $    28,414
                                    -----------------------------------------
                                    -----------------------------------------
    Total operating income increase
     (decrease)                      $      (752)  $         -   $     4,704
    % increase (decrease)                  (6.8%)          N/A         19.8%
    % increase (decrease)
     excluding FX                          (9.0%)          N/A          7.4%


                                                    Fiscal Year
                                    -----------------------------------------
                                        Global       European
                                      Operations    Operations     Heli-One
                                    -----------------------------------------
    Year ended April 30, 2006        $     2,913   $    24,721   $   116,297
    Foreign exchange impact(1)            (1,133)       (3,736)        3,196
    Operating income increase
     (decrease)                           28,271       (22,275)        8,212
                                    -----------------------------------------
    Year ended April 30, 2007        $    30,051   $    (1,290)  $   127,705
                                    -----------------------------------------
                                    -----------------------------------------
    Total operating income increase
     (decrease)                      $    27,138   $   (26,011)  $    11,408
    % increase (decrease)                 931.6%       (105.2%)         9.8%
    % increase (decrease)
     excluding FX                         970.5%        (90.1%)         7.1%

                                                    Fiscal Year
                                    -----------------------------------------
                                       Corporate   Intersegment
                                        & Other    Eliminations      Total
                                    -----------------------------------------
    Year ended April 30, 2006        $   (34,865)  $         -   $   109,066
    Foreign exchange impact(1)             1,391             -          (282)
    Operating income increase
     (decrease)                           (7,936)            -         6,272
                                    -----------------------------------------
    Year ended April 30, 2007        $   (41,410)  $         -   $   115,056
                                    -----------------------------------------
                                    -----------------------------------------
    Total operating income increase
     (decrease)                      $    (6,545)  $         -   $     5,990
    % increase (decrease)                 (18.8%)          N/A          5.5%
    % increase (decrease)
     excluding FX                         (22.8%)          N/A          5.8%
    -------------------------------------------------------------------------
    (1) Includes both translation and transaction FX impact.
    (2) See Note 3 to the unaudited interim financial statements enclosed.
    (3) Segment EBITDAR as a percent of revenue from external customers,
        except for the Heli-One segment, which is a percent of total revenue.

    -------------------------------------------------------------------------
                                                   Year End Foreign
                                                    Exchange Rates
                                         ------------------------------------
                                           April 30, 2007     April 30, 2006
                                         ------------------------------------
    USD - CAD                                  1.1067             1.1203
    NOK - CAD                                  0.1861             0.1817
    GBP - CAD                                  2.2133             2.0410
    EUR - CAD                                  1.5116             1.4143
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                                             Year-to-Date Average Foreign
                                                    Exchange Rates
                                         ------------------------------------
                                           April 30, 2007     April 30, 2006
                                         ------------------------------------
    USD - CAD                                  1.1377             1.1861
    NOK - CAD                                  0.1815             0.1813
    GBP - CAD                                  2.1747             2.1067
    EUR - CAD                                  1.4711             1.4384
    -------------------------------------------------------------------------
    

    Global Operations

    Revenue from the Global Operations segment for the three months ended
April 30, 2007 was $118.7 million, an increase of $29.8 million from the same
period last year. This increase was attributable to revenue growth of
$25.7 million and a favourable FX impact of $4.1 million. The revenue growth
was primarily due to increased flying revenue of $24.0 million (excluding FX)
from new and expanded contracts in Australia, South America, Africa and
Southeast Asia, as well as increased fixed-wing activity in Nigeria, the
acquisition of BHS during the fourth quarter and rate increases on a number of
existing contracts. Flying hours in the Global Operations segment have
increased by 4,476 hours (25%) in the fourth quarter compared to the same
period last year.
    Segment EBITDAR for the three months ended April 30, 2007 was
$35.5 million, an increase of $11.3 million over the same period last year.
This increase was due to an increase in segment EBITDAR of $10.4 million and a
favourable FX impact of $0.9 million. Global Operations' segment EBITDAR
increased 43%, excluding FX, compared to the same period last year. This
increase is due to an increase in revenue and segment EBITDAR margins. Segment
EBITDAR margins have increased primarily due to rate increases on a number of
contracts as a result of the introduction of new aircraft. In addition, there
was a net decrease of $1.3 million in provisions on trade receivables that
have been collected.
    Global Operations has added 26 aircraft to its fleet since the fourth
quarter of last year, which is partially offset by aircraft returned to
Heli-One for re-deployment and the sale of light aircraft during the second
quarter of the current year. The majority of aircraft additions occurred
during the fourth quarter of the current year, with Global Operations adding
17 aircraft to its fleet during this period. Of the 17 aircraft added to the
Global Operations fleet, seven of these are BHS aircraft, which were
previously externally leased to BHS by Heli-One. During the fourth quarter,
Global Operations expensed $0.9 million in aircraft introduction costs. This
is significantly lower than the aircraft introduction costs incurred by
European Operations. The cost of introducing aircraft is not as significant
for Global Operations as it is for European Operations for numerous reasons
including the fact that most of these new aircraft are Sikorsky S76C++
aircraft, which are an advancement from previous S76 models but do not
represent completely new aircraft types like the Sikorsky S92 and
AgustaWestland AW139. New aircraft types require significant introduction
costs primarily relating to the training of personnel and availability issues
related to unplanned maintenance and modification requirements. Global
Operations experienced less aircraft down-time due to training as new crews
were hired specifically to operate these new aircraft. Global Operations'
contracts typically result in the lower utilization of aircraft, reducing the
frequency of maintenance requirements. Global Operations' aircraft flew an
average of 153 hours per aircraft during the fourth quarter, while European
Operations flew an average of 289 hours per aircraft in the same period. As
such, Global Operations has been able to introduce numerous aircraft during
the year without a significant financial impact.
    Operating income for the three months ended April 30, 2007 was
$4.3 million, an increase of $3.8 million from the same period last year,
consisting of an increase in operating income of $2.6 million and a favourable
FX impact of $1.2 million. The increase in operating income is primarily due
to an increase in segment EBITDAR, partially offset by an increase in lease
costs of $6.8 million due to the incremental and higher value of aircraft used
by Global Operations on new and renewed contracts.
    At April 30, 2007 there were 145 aircraft operating in this segment,
consisting of 27 heavy, 97 medium, one light and 20 fixed-wing aircraft.

    European Operations

    Revenue from the Company's European Operations segment for the three
months ended April 30, 2007 was $139.8 million, an increase of $17.5 million
from the same period last year. This change was attributable to an increase in
revenue of $6.9 million and a favourable FX impact of $10.6 million. Revenue
increased compared to the same period last year due to new contracts with
Marathon, Nexen, Total E&P Nederland BV, Wintershall Noordszee BV, PetroCanada
Netherlands BV and Tullow Oil, as well as increased activity on the bp
contract in the Southern North Sea and ad hoc work in Norway. In addition,
rate increases on new aircraft types have resulted in increased revenue. These
increases are partially offset by a decrease in flying hours in the fourth
quarter compared to the same period last year, as a result of the loss of the
ConocoPhillips contract. The loss of the ConocoPhillips contract resulted in
reduced revenue but did not result in a corresponding reduction in costs as
crews were retained to train and fly on new contracts commencing in future
periods. Flying hours are expected to increase as contracts commence with the
United Kingdom Maritime and Coastguard Agency, Statoil and other customers in
the first half of fiscal 2008.
    Segment EBITDAR for the three months ended April 30, 2007 was
$21.9 million, a decrease of $3.7 million from the same period last year. This
decrease was primarily attributable to a decrease in segment EBITDAR of
$4.4 million, partially offset by a favourable FX impact of $0.7 million. The
decrease in segment EBITDAR results from continued aircraft introduction costs
during the fourth quarter and the impact of serviceability issues on certain
new aircraft types. This decrease is partially offset by segment EBITDAR
earned on increased revenue.
    European Operations has added seven aircraft to its fleet since the same
period in the prior year, which is partially offset by aircraft returned to
Heli-One for redeployment. Most of the aircraft added to the fleet are new
aircraft types including the AgustaWestland AW139 and Sikorsky S92. The
introduction of new aircraft types to meet the requirements of new and
existing customers has resulted in aircraft introduction costs of
approximately $2.7 million expensed during the fourth quarter primarily
relating to the training of personnel for upcoming contracts. This included
training costs to prepare for the Statoil contract in Norway, which will
generate revenue in the first quarter of fiscal 2008. The cost of introducing
aircraft has been significant for European Operations as a result of the new
technology aircraft types introduced and the requirement to type-convert and
align existing crews on these aircraft.
    European Operations has also experienced a high amount of scheduled and
unscheduled maintenance on new and older aircraft during fiscal 2007. This
maintenance resulted in customer penalties and reduced revenue as aircraft
were unable to operate on contract. The segment EBITDAR impact of aircraft
availability issues for the three months ended April 30, 2007 totalled
approximately $2.4 million.
    Even though it is normal that new aircraft types have a lower rate of
availability during the introduction period, the current performance of these
new types continues to be below expectations. The availability rate on these
aircraft during the fourth quarter did improve over the third quarter and is
expected to continue to improve in future periods. The Company continues to
work with manufacturers to remedy serviceability issues on new technology
aircraft by increasing spare parts production and improving technical support.
    For the three months ended April 30, 2007, European Operations
experienced an operating loss of $1.1 million, a decrease of $5.6 million from
operating income earned for the same period last year. This decrease is
primarily due to increased lease costs of $2.7 million and decreased segment
EBITDAR. Lease costs have increased due to the addition of higher value,
technologically advanced aircraft in the European Operations fleet. In
addition, operating income was reduced by $1.0 million as a result of the
pilot work-to-rule job action in Denmark. The Company has been successful in
reaching a collective agreement with its pilots and other employee groups
subsequent to the end of the fourth quarter.
    At April 30, 2007, there were 76 aircraft operating in this segment,
consisting of 48 heavy and 28 medium aircraft.

    Heli-One

    Heli-One's fourth quarter performance was strong, with increases in
revenue, segment EBITDAR and operating income. Revenue from external customers
for the Heli-One segment for the three months ended April 30, 2007 was
$53.5 million, an increase of $16.5 million from the same period last year.
This increase was due to revenue growth of $14.0 million and a favourable FX
impact of $2.5 million. Both external fleet and R&O revenues have increased
compared to the same period last year. External fleet revenue has increased
due to incremental lease revenue on a larger fleet, including new leasing
contracts in Mexico and the US. This is partially offset by the acquisition of
BHS as external lease and PBH revenue from BHS are considered internal revenue
for Heli-One on the date of consolidation of BHS. R&O revenue has 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 the recently acquired Heli-Dyne Systems Inc. in the US during
the third quarter of the current year as well as increases in third party base
maintenance work performed in Norway and Europe.
    Internal revenues have increased by $14.0 million to $106.2 million for
the three months ended April 30, 2007, compared to the same period last year.
This increase is due to incremental lease revenue on an increase in the number
and value of aircraft deployed by European Operations and Global Operations.
Internal R&O revenue has increased due to PBH earned on increasing flying
hours. Internal revenues are expected to continue to grow as Global Operations
and European Operations deploy more aircraft and increase flying activity.
    Segment EBITDAR for the three months ended April 30, 2007 was
$78.8 million, an increase of $17.9 million from the same period last year.
This increase is primarily due to segment EBITDAR earned on increased external
and internal revenue and a favourable FX impact of $4.0 million. Segment
EBITDAR from fleet leasing has increased due to an increase in the number and
value of aircraft in the fleet over the same period last year. Segment EBITDAR
from R&O has increased primarily due to an increase in revenue, an increase in
external work at improved margins and a reduction in maintenance costs
primarily due to an estimated $4.0 million net refund on the planned exit from
a third-party PBH maintenance program. The development of the Boundary Bay R&O
facility and expansion of in-house capabilities may result in the exit from
other third-party PBH maintenance programs in the future.
    The number of aircraft in the Heli-One fleet has increased by four
aircraft to 34 aircraft at April 30, 2007 compared to the same period last
year. The increase is due to the addition of aircraft to the fleet that are
not yet deployed in the flying operations as the aircraft are undergoing
post-delivery modifications and an increase in the number of aircraft leased
to third-parties. This is partially offset by aircraft that were previously
externally leased by Heli-One to BHS. These aircraft are included in Global
Operations' fleet as at April 30, 2007. Of the 34 aircraft in the Heli-One
fleet, five aircraft are undergoing post-delivery modifications, two are
undergoing major inspections, 19 aircraft are leased to third-parties
including customers in Mexico and the US and eight aircraft are available for
sale.
    Operating income for the three months ended April 30, 2007 was
$37.1 million, an increase of $7.3 million from the same period last year.
This increase was primarily due to an increase in segment EBITDAR and a
favourable FX impact of $1.9 million. These increases are partially offset by
an increase in external lease charges of $9.5 million and an increase in
amortization of $5.1 million. Amortization increased over the same period last
year due to an increase in spares (rotables), base maintenance capitalized
costs and the increased value of aircraft in the fleet. External lease costs
for the fourth quarter were higher than the same period last year due to an
increase in the percentage of leased aircraft in the fleet and an increase in
the interest component of lease costs.
    The Company continues to develop its Heli-One operations in anticipation
of growth opportunities in this segment. The Company has 71 aircraft (34 heavy
and 37 medium aircraft) on order, expected to be delivered over the next five
years. The Company expects that the majority of these aircraft will be used
internally to support continued growth. Significant opportunities also exist
from the continued development of Heli-One's North American R&O facilities
through the establishment of the 240,000 square foot R&O facility at Boundary
Bay Airport in Delta, BC, Canada expected to be completed in the fourth
quarter of fiscal 2008.
    Subsequent to the fourth quarter, the Company announced the completion of
the sale of Survival-One, the Company's Aberdeen-based, non-core operating
unit engaged in the manufacture, repair and distribution of cold-water
survival suits and other safety equipment, for gross proceeds of approximately
$37 million. A gain on sale of Survival-One of approximately $18 million will
be recorded in the first quarter of fiscal 2008, subject to any post-closing
adjustments.

    Corporate and Other

    Corporate and Other costs of $11.5 million in the three months ended
April 30, 2007 increased $1.8 million from the same period last year. The
increase in costs related primarily to $3.3 million incurred during the fourth
quarter relating to the Company's SOX Section 404 project. In addition, there
was an increase in professional fees of $2.3 million relating to external
audit and other fee increases. These cost increases were partially offset by a
reduction in variable compensation costs of $1.3 million and a reduction in
claims reserves for various insured risks of $2.4 million compared to the same
period last year.

    Income Taxes

    Income tax expense on earnings from continuing operations for the three
months ended April 30, 2007 was $3.8 million compared to $1.9 million for the
same period last year. The Company's combined average effective tax rate for
the year ended April 30, 2007 was 28.3%.

    Cash Flows, Liquidity and Capital Resources

    Cash used in operating activities for the three months ended April 30,
2007 was $40.6 million, compared to cash used of $5.2 million for the same
period last year. The cash used in operating activities of $40.6 million was
largely the result of a $56.0 million change in non-cash working capital,
partially offset by net earnings from continuing operations of $11.7 million
and various changes in non-operating items and items not involving cash.

    
    The change in non-cash working capital was impacted by the following:

    -   An increase in trade receivables of approximately $21 million. This
        increase was related to an increase in the number of days trade
        receivables were outstanding from 65 days at January 31, 2007 to 66
        days at April 30, 2007 and an increase in activity during the fourth
        quarter. Days sales in trade receivables increased primarily due to
        an increase in the amount due from Aero Contractors of Nigeria, where
        delays in payments resulted from administrative disruptions
        associated with the recent election process in that country.

    -   An increase in non-trade receivables of $10.9 million related to the
        sale of an aircraft to a lessor.

    -   An increase in inventory of $15.4 million (excluding FX) mainly in
        relation to Heli-One's investment in new aircraft.
    

    Cash used in investing activities was $11.4 million for the fourth
quarter, compared to $7.7 million for the same period last year. Additions to
property and equipment during the quarter totalled $51.5 million, compared to
$64.4 million in the same period last year. The current quarter additions were
comprised of (i) $12.2 million for the purchase of seven aircraft; (ii)
$1.4 million for aircraft modifications; (iii) $13.2 million related to
buildings and other equipment; and (iv) $24.7 million related to investments
in spare parts (rotables) to support additional aircraft and new aircraft
types. Aircraft expenditures consisted of combined aircraft purchases of
$36.4 million less the application of deposits of $24.2 million.
    The Company advanced new aircraft deposits of $37.0 million (2006 -
$6.3 million) during the fourth quarter on several aircraft. The Company
novated certain of its aircraft purchases to lessors during the fourth quarter
and has been reimbursed $1.0 million (2006 - $nil) in deposits from aircraft
manufacturers, resulting in a net payment of aircraft deposits of
$36.0 million (2006 - $6.3 million). Capital expenditures for helicopter major
inspections during the third quarter totalled $4.8 million (2006 -
$13.5 million). These expenditures were financed from net proceeds totalling
$96.0 million (2006 - $80.0 million), primarily from proceeds received on ten
sale-leaseback transactions.
    At April 30, 2007, the Company had unused capacity under its credit
facilities of $38.3 million (April 30, 2006 - $147.1 million) and cash and
cash equivalents of $89.5 million (April 30, 2006 - $26.3 million), for a
total of $127.8 million (April 30, 2006 - $173.4 million).
    At April 30, 2007, the Company has classified the outstanding balance
under the senior revolving credit facility and related swingline to "Current
portion of debt obligations" on the financial statements as the facility is
due for renewal in December 2007.

    Impact of New Accounting Standards

    Financial Instruments

    Overview

    In 2005, the Canadian Institute of Chartered Accountants ("CICA") issued
three new accounting standards related to financial instruments: Section 1530
- Comprehensive Income ("Section 1530"), 3855 - Financial Instruments -
Recognition & Measurement ("Section 3855") and Section 3865 - Hedges ("Section
3865"). These new standards apply to interim and annual financial statements
relating to fiscal years beginning on or after October 1, 2006 and will be
adopted by the Company on May 1, 2007.

    Comprehensive Income

    Section 1530 introduces the concept of comprehensive income which
consists of net income and other comprehensive income ("OCI") and represents
the change in equity of an entity during a period arising from transactions
and other events and circumstances from non-owner sources. OCI represents
amounts that are recognized in comprehensive income but excluded from net
income as required by primary sources of GAAP. These amounts include gains and
losses on available-for-sale financial assets, exchange gains and losses
arising from the translation of the financial statements of self-sustaining
foreign operations, the portion of the gain or loss on the 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. The Company's financial
statements will include a Consolidated Statement of Comprehensive Income and
accumulated other comprehensive income will be presented as a new category of
shareholders' equity in the Consolidated Balance Sheets.

    Financial Instruments - Recognition & Measurement

    Section 3855 establishes standards for recognizing and measuring
financial assets, financial liabilities and non-financial derivatives. Section
3855 requires that financial assets, financial liabilities and non-financial
derivatives be recognized on the balance sheet at fair value on initial
recognition. Measurement in subsequent periods depends on how the financial
instrument has been classified. Financial assets and liabilities that have
been classified as "held for trading" are carried at fair value with both
realized and unrealized gains and losses included in net income. Financial
assets classified as "held-to-maturity", "loans and receivables" and financial
liabilities other than those classified as "held for trading" are carried at
amortized cost using the effective interest method, with realized gains and
losses and impairment losses recognized immediately in net income. Financial
assets classified as "available-for-sale" are carried at fair value with
unrealized losses reported in OCI and impairment losses recognized immediately
in net income.
    Derivatives are recorded on the balance sheet at fair value, including
derivatives that are embedded in a non-derivative host contract where the
economic characteristics and risks of the embedded derivative are not closely
related to those of the host contract. Changes in the fair value of
derivatives are recognized in net income, with the exception of changes
recognized in OCI for derivatives that have been designated as a cash flow
hedge or a hedge of a net investment in a self sustaining foreign operation.
    The Company is currently completing the process of identifying its
financial instruments and derivatives.

    Hedges

    Section 3865 establishes new standards for hedge accounting. Section 3865
carries forward much of the guidance from Accounting Guideline 13 - Hedging
Relationships and adds requirements detailing how to apply hedge accounting to
various types of hedges. The purpose of hedge accounting is to ensure that
counterbalancing gains, losses, revenues and expenses are recognized in net
income in the same period(s). Hedge accounting is optional and certain
conditions must be satisfied before a hedging relationship qualifies for hedge
accounting, including identification of the specific risk exposure(s) being
hedged, formal documentation of the hedging relationship at inception and
reasonable assurance that the hedging relationship will be effective both at
inception and throughout the term of the hedging relationship.
    Section 3865 discusses three different types of hedges, a fair value
hedge, a cash flow hedge and a hedge of a net investment in a self-sustaining
foreign operation, and prescribes the accounting treatment for each. A fair
value hedge is a hedge of the exposure to changes in the fair value of all or
a portion of a recognized asset or liability or previously unrecognized firm
commitment attributable to a specified risk. In a fair value hedge, both the
hedged item and the hedging item are measured at fair value with gains and
losses due to fluctuations in fair value recognized immediately in net income.
A cash flow hedge is a hedge of the exposure to variability in cash flows of a
recognized asset or liability or a forecasted transaction attributable to a
specified risk or variability in cash flows of a firm commitment attributable
to foreign currency risk. In a cash flow hedge, there is no change to the
measurement of or gain or loss recognition on the hedged item. However, the
portion of the gain or loss on the hedging item determined to be effective is
recognized in OCI and released into net income in the same period the hedged
item affects net income. Any ineffective portion is recognized immediately in
net income. A hedge of a net investment in a self-sustaining foreign operation
is treated in a similar manner to a cash flow hedge.

    Impact of Adoption

    As at May 1, 2007, the Company will recognize all of its financial assets
and liabilities in its Consolidated Balance Sheet according to their
classification. Recognition, de-recognition and measurement policies followed
in financial statements for periods prior to the adoption of the financial
instruments standards are not reversed and, therefore, those financial
statements are not restated. Any adjustments of previous carrying amounts are
recognized as an adjustment of the balance of retained earnings or as the
opening balance in a separate component of accumulated other comprehensive
income.

    
    Adjustments to opening retained earnings may include:

    -   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.

    Adjustments to Accumulated OCI may include:

    -   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.
    

    The Company is currently quantifying the impact of these transition
adjustments on opening retained earnings and the opening balance of
accumulated other comprehensive income.

    Other

    In July 2006, the CICA revised Section 1506 - Accounting Changes, which
requires that (i) voluntary changes in accounting policy are made only if they
result in the financial statements providing reliable and more relevant
information, (ii) changes in accounting policy are generally applied
retrospectively, and (iii) prior period errors are corrected retrospectively.
Section 1506 is effective for the Company's fiscal year beginning May 1, 2007.
Section 1506 could have a material impact on the financial statements if a
change in accounting policy were to occur.

    
                         CHC Helicopter Corporation
                         Consolidated Balance Sheets
                                  Unaudited
                     (in thousands of Canadian dollars)
                    Incorporated under the laws of Canada

                                                               As at
                                                    -------------------------
                                                       April 30,    April 30,
                                                         2007         2006
    -------------------------------------------------------------------------

    Assets

    Current assets
      Cash and cash equivalents                      $   89,511   $   26,331
      Receivables (Note 4)                              277,767      246,217
      Future income tax assets                           32,169       26,859
      Inventory                                         126,315       91,884
      Prepaid expenses                                   55,121       10,619
      Assets of discontinued operations (Note 2)          3,961        3,857
                                                    -------------------------
                                                        584,844      405,767
    Property and equipment, net                       1,092,664      919,364
    Investments                                           7,478        5,422
    Intangible assets (Note 7)                           17,874          640
    Goodwill (Note 7)                                    55,276        1,224
    Other assets                                        290,936      296,352
    Future income tax assets                             34,678       39,848
    Assets of discontinued operations (Note 2)           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                       9,813        8,852
      Current portion of debt obligations               333,728       24,948
      Liabilities of discontinued operations (Note 2)     2,979        4,037
                                                    -------------------------
                                                        708,228      283,657
    Long-term debt                                       64,168      150,982
    Senior subordinated notes                           442,680      448,120
    Other liabilities                                   139,791      132,431
    Future income tax liabilities                       193,172      176,708
    Liabilities of discontinued operations (Note 2)       2,900        3,450
    Shareholders' equity                                551,280      490,734
                                                    -------------------------
                                                     $2,102,219   $1,686,082
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    See accompanying notes
    Guarantees (Note 9) and Tax contingencies (Note 10)



                         CHC Helicopter Corporation
                     Consolidated Statements of Earnings
                                  Unaudited
         (in thousands of Canadian dollars, except per share amounts)

                              Three Months Ended            Year Ended
                          ---------------------------------------------------
                             April 30,    April 30,    April 30,    April 30,
                               2007         2006         2007         2006
    -------------------------------------------------------------------------

    Revenue                $  312,196   $  248,247   $1,149,107   $  997,087
    Direct costs             (252,088)    (196,024)    (924,714)    (788,501)
    General and
     administration costs     (12,080)      (9,808)     (43,388)     (27,895)
    Amortization              (19,130)     (13,979)     (65,303)     (55,470)
    Restructuring (costs)
     recovery (Note 6)            291       (3,583)       2,341      (16,150)
    Loss on disposal of
     assets                      (775)      (1,143)      (2,987)          (5)
                          ---------------------------------------------------
    Operating income           28,414       23,710      115,056      109,066
    Financing charges         (13,248)     (11,764)     (58,296)     (52,974)
                          ---------------------------------------------------
    Earnings from
     continuing operations
     before income taxes
     and undernoted items      15,166       11,946       56,760       56,092
    Gain on sale of
     long-term investments          -            -            -       37,558
    Equity earnings of
     associated companies
     and non-controlling
     interest                     348          274        1,053        6,564
    Income tax provision       (3,803)      (1,939)     (16,826)     (10,509)
                          ---------------------------------------------------
    Net earnings from
     continuing operations     11,711       10,281       40,987       89,705
    Net earnings from
     discontinued operations
     (Note 2)                   1,777          469        2,167        1,005
                          ---------------------------------------------------
    Net earnings before
     extraordinary item        13,488       10,750       43,154       90,710
    Extraordinary item
     (Note 7)                       -            -          810            -
                          ---------------------------------------------------
    Net earnings           $   13,488   $   10,750   $   43,964   $   90,710
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Earnings per share
    Basic
    Net earnings
     from continuing
     operations            $     0.28   $     0.25   $     0.97   $     2.14
    Net earnings from
     discontinued operations     0.04         0.01         0.05         0.02
    Extraordinary item              -            -         0.02            -
    Net earnings                 0.32         0.26         1.04         2.16

    Diluted
    Net earnings
     from continuing
     operations            $     0.26   $     0.22   $     0.90   $     1.95
    Net earnings from
     discontinued operations     0.04         0.01         0.05         0.02
    Extraordinary item              -            -         0.02            -
    Net earnings                 0.30         0.23         0.97         1.97
    -------------------------------------------------------------------------
    See accompanying notes



                         CHC Helicopter Corporation
               Consolidated Statements of Shareholders' Equity
                                  Unaudited
         (in thousands of Canadian dollars, except per share amounts)

                                                             Year Ended
                                                    -------------------------
                                                       April 30,    April 30,
                                                          2007        2006
    -------------------------------------------------------------------------
    Retained earnings, beginning of period           $  312,481   $  238,854
    Net earnings                                         43,964       90,710
    Dividends                                           (21,912)     (17,083)
                                                    -------------------------
    Retained earnings, end of period                    334,533      312,481
    Capital stock                                       252,505      240,152
    Contributed surplus                                   5,042        4,363
    Foreign currency translation adjustment             (40,800)     (66,262)
                                                    -------------------------
    Total shareholders' equity                       $  551,280   $  490,734
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Dividends declared per participating
     voting share                                    $     0.50   $     0.40
    -------------------------------------------------------------------------
    See accompanying notes



                         CHC Helicopter Corporation
                    Consolidated Statements of Cash Flows
                                  Unaudited
                     (in thousands of Canadian dollars)

                              Three Months Ended            Year Ended
                          ---------------------------------------------------
                             April 30,    April 30,    April 30,    April 30,
                               2007         2006         2007         2006
    -------------------------------------------------------------------------
    Operating activities
    Net earnings from
     continuing
     operations            $   11,711   $   10,281   $   40,987   $   89,705
    Non-operating items
     and items not
     involving cash:
      Amortization             19,130       13,979       65,303       55,470
      Loss (gain) on
       disposals of assets
       and long-term
       investments                775        1,143        2,987      (37,553)
      Equity earnings of
       associated companies      (348)        (274)      (1,053)      (6,630)
      Future income taxes      (5,050)       1,172        5,256        2,611
      Defined benefit
       pension plans           (1,399)     (18,213)         887       (2,015)
      Amortization of
       contract credits
       and deferred
       gains                   (3,988)      (3,468)     (15,293)     (15,616)
      Prepaid aircraft
       rental                  (4,047)      (3,562)     (15,326)      (1,453)
      Claims reserve             (151)       1,571       (5,141)       3,408
      Deferred revenue         (1,645)       1,716         (685)       6,083
      Other                       465       (4,801)       2,819       (6,891)
                          ---------------------------------------------------
                               15,453         (456)      80,741       87,119

    Change in non-cash
     working capital          (56,033)      (4,707)     (37,199)     (55,020)
                          ---------------------------------------------------
    Cash flow from
     operations               (40,580)      (5,163)      43,542       32,099
                          ---------------------------------------------------

    Financing activities
    Long-term debt
     proceeds                 121,479      130,963      386,889      595,345
    Long-term debt
     repayments               (27,444)    (118,503)    (166,344)    (497,089)
    Dividends paid             (5,329)      (4,269)     (19,211)     (14,939)
    Capital stock issued        5,628          154        6,534          496
    Other                        (895)      (6,669)        (616)      (7,338)
                          ---------------------------------------------------
                               93,439        1,676      207,252       76,475
                          ---------------------------------------------------

    Investing activities
    Property and equipment
     additions                (51,540)     (64,439)    (393,246)    (280,701)
    Helicopter major
     inspections               (4,775)     (13,527)     (30,066)     (23,612)
    Proceeds from disposal
     of assets and long-term
     investments               96,040       80,023      318,320      313,694
    Junior loans receivable      (182)         (51)     (17,809)         481
    Aircraft deposits         (35,951)      (6,255)     (46,683)    (124,990)
    Restricted cash              (308)      (2,896)       6,835       (5,565)
    Advances to and
     long-term receivables
     from BHS prior to
     acquisition               (1,075)        (529)     (19,104)      (3,892)
    Cash on acquisition of
     BHS, net of
     acquisition costs          1,674            -        1,674            -
    Other                     (15,278)         (46)      (6,524)         432
                          ---------------------------------------------------
                              (11,395)      (7,720)    (186,603)    (124,153)
    Effect of exchange rate
     changes on cash and cash
     equivalents               (1,653)        (628)        (150)     (10,623)
                          ---------------------------------------------------
    Cash provided by
     (used in) continuing
     operations                39,811      (11,835)      64,041      (26,202)
    Cash provided by
     (used in) discontinued
     operations (Note 2)       (2,084)         866         (861)       1,142
                          ---------------------------------------------------
    Change in cash and cash
     equivalents during the
     period                    37,727      (10,969)      63,180      (25,060)
    Cash and cash
     equivalents, beginning
     of period                 51,784       37,300       26,331       51,391
                          ---------------------------------------------------
    Cash and cash
     equivalents,
     end of period         $   89,511   $   26,331   $   89,511   $   26,331
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    See accompanying notes



    CHC Helicopter Corporation
    Notes to the Unaudited Consolidated Interim Financial Statements
    (Unaudited)
    For the periods ended April 30, 2007 and 2006
    (Unless otherwise indicated, tabular amounts in thousands of Canadian
    dollars, except per share amounts)

    1.  Basis of presentation

    These unaudited interim consolidated financial statements ("financial
    statements") include the accounts of CHC Helicopter Corporation and its
    directly and indirectly controlled subsidiaries (collectively, the
    "Company"). These financial statements have been prepared in accordance
    with Canadian generally accepted accounting principles ("GAAP")
    applicable to interim consolidated financial statements. The disclosures
    in these interim financial statements do not meet all disclosure
    requirements of GAAP for annual financial statements and should be read
    in conjunction with the Company's 2006 audited annual consolidated
    financial statements.

    These financial statements follow the same accounting policies as the
    annual financial statements of the Company.

    In the opinion of management, all adjustments necessary for a fair
    presentation are reflected in the financial statements. Such adjustments
    are of a normal and recurring nature.

    Certain prior period amounts have been reclassified to conform to the
    current period's presentation. The most significant changes are as a
    result of the classification of Survival-One Limited ("Survival-One") to
    discontinued operations as outlined in Note 2.

    -------------------------------------------------------------------------

    2.  Discontinued operations

    During the three months ended April 30, 2007, the Company continued to
    classify Survival-One as discontinued operations as a result of the
    decision by management to divest of this business. The assets and
    liabilities of Survival-One were measured using discounted cash flows at
    the lower of their carrying amount and their estimated fair value less
    costs to sell. No fair value adjustment was recorded when Survival-One
    was classified as discontinued operations at January 31, 2007. The
    Company has recorded imputed interest in the results of discontinued
    operations. The results of operations of Survival- One have been reported
    in discontinued operations for the three and twelve months ended
    April 30, 2007 and the prior period comparative figures have been
    restated. Previously, these amounts were included in the Heli-One
    segment.

    Subsequent to the fourth quarter ended April 30, 2007, the sale of
    Survival-One was completed (see Note 11, Subsequent event). Accordingly,
    commencing on May 1, 2007, the operations and cash flows of Survival-One
    will be eliminated from the ongoing operations of the Company.

    The following tables present the consolidated balance sheets,
    consolidated statements of earnings and consolidated statements of cash
    flows of the discontinued operations included in the consolidated
    financial statements:

                                                               As at
                                                      -----------------------
                                                        April 30,   April 30,
                                                          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
                                                      -----------------------
                                                          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
                                                      -----------------------
                                                           5,879       7,487
                                                      -----------------------
    Net assets of discontinued operations              $  16,551   $  13,835
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                 Three Months Ended          Year Ended
                              -----------------------------------------------
                                April 30,   April 30,   April 30,   April 30,
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------
    Revenue                    $   5,318   $   4,571   $  18,799   $  17,681
    Operating income           $   2,198   $     903   $   3,508   $   2,452
    Net earnings from
     discontinued operations   $   1,777   $     469   $   2,167   $   1,005
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                 Three Months Ended          Year Ended
                              -----------------------------------------------
                                April 30,   April 30,   April 30,   April 30,
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------
    Operating activities       $     262   $   1,089   $   4,237   $   3,617
    Financing activities          (1,194)     (1,038)     (2,535)       (907)
    Investing activities          (1,026)        813      (2,686)     (1,459)
                              -----------------------------------------------
                                  (1,958)        864        (984)      1,251
    Effect of exchange rate
     changes on cash and cash
     equivalents                    (126)          2         123        (109)
                              -----------------------------------------------
    Cash provided by (used in)
     discontinued operations   $  (2,084)  $     866   $    (861)  $   1,142
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    3. Segment information

    The Company operates under the following segments:

    -   Global Operations,
    -   European Operations,
    -   Heli-One, and
    -   Corporate and Other.

    This segment classification is representative of the Company's business
    strategy and reflects the Company's internal reporting and management
    structure. The Company has provided information on segment revenues,
    segment EBITDAR(2) and segment operating income because these are the
    financial measures used by the Company's key decision makers in making
    operating decisions and assessing performance. Transactions between
    operating segments are at standard industry rates.

                                         Three Months Ended April 30, 2007
                                     ----------------------------------------
                                        Global       European
                                      Operations    Operations     Heli-One
                                          (4)           (5)           (6)
                                     ------------  ------------  ------------
    Revenue from external customers   $  118,662    $  139,848    $   53,506
    Inter-segment revenues                   214         1,434       106,179
                                     ------------  ------------  ------------
    Total revenue                        118,876       141,282       159,685
    Direct costs(1)                      (83,374)     (119,375)      (80,839)
    General and administration costs           -             -             -
                                     ------------  ------------  ------------
    Segment EBITDAR(2)                    35,502        21,907        78,846
    Aircraft lease and associated
     costs(1)
    - Internal                           (27,240)      (21,551)          140
    - External                            (2,334)         (938)      (24,795)
                                     ------------  ------------  ------------
    Segment EBITDA(3)                      5,928          (582)       54,191
    Amortization                          (1,648)         (531)      (16,550)
    Restructuring recovery                     -             -           167
    Gain (loss) on disposal of
     assets                                    2            (2)         (751)
                                     ------------  ------------  ------------
    Operating income (loss)           $    4,282    $   (1,115)   $   37,057
                                     ------------  ------------  ------------
                                     ------------  ------------  ------------
    Financing charges
    Earnings from continuing
     operations before income taxes
     and undernoted items
    Equity earnings of associated
     companies
    Income tax provision
    Net earnings from continuing
     operations
    Net earnings from discontinued
     operations (Note 2)
    Net earnings


                                         Three Months Ended April 30, 2007
                                     ----------------------------------------
                                       Corporate
                                          and        Inter-
                                         Other       segment        Consoli-
                                          (7)      eliminations      dated
                                     ------------  ------------  ------------
    Revenue from external customers   $      180    $        -    $  312,196
    Inter-segment revenues                   391      (108,218)            -
                                     ------------  ------------  ------------
    Total revenue                            571      (108,218)      312,196
    Direct costs(1)                            -        59,567      (224,021)
    General and administration costs     (12,080)            -       (12,080)
                                     ------------  ------------  ------------
    Segment EBITDAR(2)                   (11,509)      (48,651)       76,095
    Aircraft lease and associated
     costs(1)
    - Internal                                 -        48,651             -
    - External                                 -             -       (28,067)
                                     ------------  ------------  ------------
    Segment EBITDA(3)                    (11,509)            -        48,028
    Amortization                            (401)            -       (19,130)
    Restructuring recovery                   124                         291
    Gain (loss) on disposal of
     assets                                  (24)            -          (775)
                                     ------------  ------------  ------------
    Operating income (loss)           $  (11,810)   $        -        28,414
                                     ------------  ------------
                                     ------------  ------------
    Financing charges                                                (13,248)
                                                                 ------------
    Earnings from continuing
     operations before income taxes
     and undernoted items                                             15,166
    Equity earnings of associated
     companies                                                           348
    Income tax provision                                              (3,803)
                                                                 ------------
    Net earnings from continuing
     operations                                                       11,711
    Net earnings from discontinued
     operations (Note 2)                                               1,777
                                                                 ------------
    Net earnings                                                  $   13,488
                                                                 ------------
                                                                 ------------



                                         Three Months Ended April 30, 2006
                                     ----------------------------------------
                                        Global       European
                                      Operations    Operations     Heli-One
                                          (4)           (5)           (6)
                                     ------------  ------------  ------------
    Revenue from external customers   $   88,812    $  122,329    $   37,048
    Inter-segment revenues                    82         2,338        92,138
                                     ------------  ------------  ------------
    Total revenue                         88,894       124,667       129,186
    Direct costs(1)                      (64,705)      (99,031)      (68,220)
    General and administration costs           -             -             -
                                     ------------  ------------  ------------
    Segment EBITDAR(2)                    24,189        25,636        60,966
    Aircraft lease and associated
     costs(1)
    - Internal                           (20,697)      (19,311)         (772)
    - External                            (2,083)         (436)      (15,326)
                                     ------------  ------------  ------------
    Segment EBITDA(3)                      1,409         5,889        44,868
    Amortization                            (704)       (1,545)      (11,498)
    Restructuring costs                     (200)         (241)       (2,263)
    Gain (loss) on disposal of assets        (44)          414        (1,317)
                                     ------------  ------------  ------------
    Operating income (loss)           $      461    $    4,517    $   29,790
                                     ------------  ------------  ------------
                                     ------------  ------------  ------------
    Financing charges
    Earnings from continuing
     operations before income taxes
     and undernoted items
    Equity earnings of associated
     companies
    Income tax provision
    Net earnings from continuing
     operations
    Net earnings from discontinued
     operations (Note 2)
    Net earnings


                                         Three Months Ended April 30, 2006
                                     ----------------------------------------
                                       Corporate
                                          and        Inter-
                                         Other       segment        Consoli-
                                          (7)      eliminations      dated
                                     ------------  ------------  -----------

    Revenue from external customers   $       58    $        -    $  248,247
    Inter-segment revenues                    (1)      (94,557)            -
                                     ------------  ------------  ------------
    Total revenue                             57       (94,557)      248,247
    Direct costs(1)                            -        53,777      (178,179)
    General and administration costs      (9,808)            -        (9,808)
                                     ------------  ------------  ------------
    Segment EBITDAR(2)                    (9,751)      (40,780)       60,260
    Aircraft lease and associated
     costs(1)
    - Internal                                 -        40,780             -
    - External                                 -             -       (17,845)
                                     ------------  ------------  ------------
    Segment EBITDA(3)                     (9,751)            -        42,415
    Amortization                            (232)            -       (13,979)
    Restructuring costs                     (879)            -        (3,583)
    Gain (loss) on disposal of assets       (196)            -        (1,143)
                                     ------------  ------------  ------------
    Operating income (loss)           $  (11,058)   $        -        23,710
                                     ------------  ------------
                                     ------------  ------------
    Financing charges                                                (11,764)
                                                                 ------------
    Earnings from continuing
     operations before income taxes
     and undernoted items                                             11,946
    Equity earnings of associated
     companies                                                           274
    Income tax provision                                              (1,939)
                                                                 ------------
    Net earnings from continuing
     operations                                                       10,281
    Net earnings from discontinued
     operations (Note 2)                                                 469
                                                                 ------------
    Net earnings                                                  $   10,750
                                                                 ------------
                                                                 ------------



                                              Year Ended April 30, 2007
                                     ----------------------------------------
                                        Global       European
                                      Operations    Operations     Heli-One
                                          (4)           (5)           (6)
                                     ------------  ------------  ------------
    Revenue from external customers   $  427,956    $  539,921    $  180,613
    Inter-segment revenues                 1,093         6,634       391,520
                                     ------------  ------------  ------------
    Total revenue                        429,049       546,555       572,133
    Direct costs(1)                     (293,918)     (451,213)     (298,959)
    General and administration costs           -             -             -
                                     ------------  ------------  ------------
    Segment EBITDAR(2)                   135,131        95,342       273,174
    Aircraft lease and associated
     costs(1)
    - Internal                           (92,052)      (89,148)          343
    - External                            (8,928)       (3,959)      (87,560)
                                     ------------  ------------  ------------
    Segment EBITDA(3)                     34,151         2,235       185,957
    Amortization                          (4,116)       (3,424)      (56,474)
    Restructuring recovery                     -             -           991
    Gain (loss) on disposal of assets         16          (101)       (2,769)
                                     ------------  ------------  ------------
    Operating income (loss)           $   30,051    $   (1,290)   $  127,705
                                     ------------  ------------  ------------
                                     ------------  ------------  ------------
    Financing charges
    Earnings from continuing
     operations before income taxes
     and undernoted items
    Equity earnings of associated
     companies
    Income tax provision
    Net earnings from continuing
     operations
    Net earnings from discontinued
     operations (Note 2)
    Net earnings before extraordinary
     item
    Extraordinary item (Note 7)
    Net earnings


                                              Year Ended April 30, 2007
                                     ----------------------------------------
                                       Corporate
                                          and        Inter-
                                         Other       segment        Consoli-
                                          (7)      eliminations      dated
                                     ------------  ------------  ------------

    Revenue from external customers   $      617    $        -    $1,149,107
    Inter-segment revenues                 1,433      (400,680)            -
                                     ------------  ------------  ------------
    Total revenue                          2,050      (400,680)    1,149,107
    Direct costs(1)                            -       219,823      (824,267)
    General and administration costs     (43,388)            -       (43,388)
                                     ------------  ------------  ------------
    Segment EBITDAR(2)                   (41,338)     (180,857)      281,452
    Aircraft lease and associated
     costs(1)
    - Internal                                 -       180,857             -
    - External                                 -             -      (100,447)
                                     ------------  ------------  ------------
    Segment EBITDA(3)                    (41,338)            -       181,005
    Amortization                          (1,289)            -       (65,303)
    Restructuring recovery                 1,350             -         2,341
    Gain (loss) on disposal of assets       (133)            -        (2,987)
                                     ------------  ------------  ------------
    Operating income (loss)           $  (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                                                         1,053
    Income tax provision                                             (16,826)
                                                                 ------------
    Net earnings from continuing
     operations                                                       40,987
    Net earnings from discontinued
     operations (Note 2)                                               2,167
                                                                 ------------
    Net earnings before extraordinary
     item                                                             43,154
    Extraordinary item (Note 7)                                          810
                                                                 ------------
    Net earnings                                                  $   43,964
                                                                 ------------
                                                                 ------------



                                              Year Ended April 30, 2006
                                     ----------------------------------------
                                        Global       European
                                      Operations    Operations     Heli-One
                                          (4)           (5)           (6)
                                     ------------  ------------  ------------
    Revenue from external customers   $  330,877    $  520,367    $  145,668
    Inter-segment revenues                   350        12,773       355,013
                                     ------------  ------------  ------------
    Total revenue                        331,227       533,140       500,681
    Direct costs(1)                     (240,305)     (425,659)     (271,206)
    General and administration costs           -             -             -
                                     ------------  ------------  ------------
    Segment EBITDAR(2)                    90,922       107,481       229,475
    Aircraft lease and associated
     costs(1)
    - Internal                           (76,447)      (74,408)       (3,194)
    - External                            (6,769)       (1,216)      (57,491)
                                     ------------  ------------  ------------
    Segment EBITDA(3)                      7,706        31,857       168,790
    Amortization                          (4,113)       (5,946)      (44,363)
    Restructuring costs                     (975)       (1,597)       (7,445)
    Gain (loss) on disposal of assets        295           407          (685)
                                     ------------  ------------  ------------
    Operating income (loss)           $    2,913    $   24,721    $  116,297
                                     ------------  ------------  ------------
                                     ------------  ------------  ------------
    Financing charges
    Earnings from continuing
     operations before income taxes
     and undernoted items
    Gain on sale of long-term
     investments
    Equity earnings of associated
     companies and non-controlling
     interest
    Income tax provision
    Net earnings from continuing
     operations
    Net earnings from discontinued
     operations (Note 2)
    Net earnings


                                              Year Ended April 30, 2006
                                     ----------------------------------------
                                       Corporate
                                          and        Inter-
                                         Other       segment        Consoli-
                                          (7)      eliminations      dated
                                     ------------  ------------  ------------
    Revenue from external customers   $      175    $        -    $  997,087
    Inter-segment revenues                    58      (368,194)            -
                                     ------------  ------------  ------------
    Total revenue                            233      (368,194)      997,087
    Direct costs(1)                            -       214,145      (723,025)
    General and administration costs     (27,895)            -       (27,895)
                                     ------------  ------------  ------------
    Segment EBITDAR(2)                   (27,662)     (154,049)      246,167
    Aircraft lease and associated
     costs(1)
    - Internal                                 -       154,049             -
    - External                                 -             -       (65,476)
                                     ------------  ------------  ------------
    Segment EBITDA(3)                    (27,662)            -       180,691
    Amortization                          (1,048)            -       (55,470)
    Restructuring costs                   (6,133)            -       (16,150)
    Gain (loss) on disposal of assets        (22)            -            (5)
                                     ------------  ------------  ------------
    Operating income (loss)           $  (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 2)                                               1,005
                                                                 ------------
    Net earnings                                                  $   90,710
                                                                 ------------
                                                                 ------------



                                           April 30, 2007
                      ------------------------------------------------------
                                                        Corporate
                         Global   European                 and
                      Operations Operations  Heli-One     Other     Consoli-
                          (4)        (5)        (6)        (7)       dated
                      ---------- ---------- ---------- ---------- ----------
    Segment assets
      Continuing
       operations     $  271,321 $  234,182 $1,460,177 $  114,109 $2,079,789
      Discontinued
       operations
       (Note 2)                                                       22,430
                                                                  ----------
                                                                  $2,102,219
                                                                  ----------
                                                                  ----------


                                           April 30, 2006
                      ------------------------------------------------------
                                                        Corporate
                         Global   European                 and
                      Operations Operations  Heli-One     Other     Consoli-
                          (4)        (5)        (6)        (7)       dated
                      ---------- ---------- ---------- ---------- ----------
    Segment assets
      Continuing
       operations     $  167,268 $  235,158 $1,095,048 $  167,286 $1,664,760
      Discontinued
       operations
       (Note 2)                                                       21,322
                                                                  ----------
                                                                  $1,686,082
                                                                  ----------
                                                                  ----------

    Notes:
    1.  Direct costs in this note exclude aircraft lease and associated
        costs. In the consolidated income statement these costs are combined.
    2.  Segment EBITDAR is defined as segment EBITDA before aircraft lease
        and associated costs.
    3.  Segment EBITDA is defined as operating income before amortization,
        restructuring costs (recovery) and gain (loss) on disposals of
        assets.
    4.  Global Operations - includes flying operations in Australia, Africa,
        the Middle East, the Americas and Asia.
    5.  European Operations - includes flying operations in the UK, the
        Netherlands, Norway, Ireland and Denmark, as well as emergency
        medical services and search and rescue services throughout Europe.
    6.  Heli-One - includes helicopter lease and repair and overhaul
        operations based in Norway, the US, the UK, and Canada and CHC
        Composites Inc.
    7.  Corporate and Other - includes corporate office and other corporate
        costs in various jurisdictions.

    -------------------------------------------------------------------------

    4. Receivables

    The Company's current Receivables balance was comprised of the following:

                                                               As at
                                                      -----------------------
                                                        April 30,   April 30,
                                                          2007        2006
                                                      -----------------------
    Trade receivables                                  $ 232,240   $ 192,639
    Due from BHS(1)                                            -       9,641
    Other receivables                                     45,527      43,937
                                                      -----------------------
                                                       $ 277,767   $ 246,217
                                                      -----------------------
                                                      -----------------------

    (1) During the second quarter of fiscal 2007, the Company reclassified
        its receivables from BHS to long-term assets. These receivables are
        now eliminated upon consolidation effective March 8, 2007, the
        acquisition date of BHS.

    5.  Employee pension plans

    The Company's net defined benefit pension plan expense was as follows:

                                 Three Months Ended         Year Ended
                              -----------------------------------------------
                                April 30,   April 30,   April 30,   April 30,
                                  2007        2006        2007        2006
                              -----------------------------------------------
    Current service cost       $   6,351   $   4,959   $  21,455   $  19,328
    Interest cost                  7,927       6,961      30,804      28,702
    Expected return on plan
     assets                       (9,276)     (7,041)    (36,292)    (27,639)
    Amortization of net
     actuarial and experience
     losses                        1,820       2,319       6,999      10,114
    Amortization of prior
     service costs                    36         (15)        751          (1)
    Amortization of transition
     amounts                          15          12          60          48
    Participant contributions       (924)       (552)     (2,884)     (2,638)
                              -----------------------------------------------
    Total                      $   5,949   $   6,643   $  20,893   $  27,914
                              -----------------------------------------------
                              -----------------------------------------------

    6.  Restructuring costs

    During the three months and year ended April 30, 2007, the Company
    reversed $0.3 million and $2.3 million, respectively, of previously
    expensed restructuring costs as the liability was determined no longer
    necessary. During the three months and year ended April 30, 2006, the
    Company expensed restructuring costs of $3.6 million and $16.2 million,
    respectively, in connection with restructuring activities. Restructuring
    costs were primarily comprised of voluntary retirement and involuntary
    severance costs and professional and consulting fees.

    The following table provides a reconciliation of the Company's
    restructuring cost accrual for the three months and year ended April 30,
    2007:

                                                         Three
                                                         Months      Year
                                                         Ended       Ended
                                                        April 30,   April 30,
                                                          2007        2007
                                                      ----------- -----------
    Restructuring costs accrued, beginning of period   $   1,571   $   5,876
    Recovered during the period                             (291)     (2,341)
    Restructuring costs paid during the period              (749)     (3,004)
                                                      ----------- -----------
    Restructuring costs accrued, end of period         $     531   $     531
                                                      ----------- -----------
                                                      ----------- -----------

    7.  Acquisitions

    a)  BHH - Brazilian Helicopters Holdings S.A.

    On March 8, 2007, following regulatory approval, the Company acquired an
    equity position in BHS. 100% of the voting common shares were acquired
    through a jointly owned subsidiary BHH - Brazilian Helicopters Holdings
    S.A. ("BHH"). BHS is one of the largest helicopter operators in the
    Brazilian offshore sector. This acquisition was accounted for using the
    purchase method, with results of operations included in the consolidated
    financial statements of the Company from the date of acquisition. The
    purchase price was allocated based on the fair value of the net
    identifiable assets acquired as follows:

    Fair value of net assets acquired
      Cash                                                         $   2,529
      Other current assets                                             5,066
      Intangible assets(1)                                            17,564
      Goodwill(2)                                                     55,794
      Property and equipment                                           1,619
      Current liabilities                                             (4,155)
      Indebtedness to CHC                                            (32,830)
      Long-term debt                                                  (3,555)
      Tax and other liabilities                                      (41,177)
                                                                  -----------
                                                                   $     855
    Purchase price
      Consideration                                                $       -
      Acquisition costs                                                  855
                                                                  -----------
                                                                   $     855
                                                                  -----------
                                                                  -----------

    (1) 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.
    (2) 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.

    The purchase price allocation for this acquisition is preliminary and may
    be adjusted further as a result of obtaining additional information
    regarding preliminary estimates of fair values made at the date of
    purchase.

    b)  Heli-Dyne Systems Inc.

    On November 30, 2006, the Company acquired 100% of the issued and
    outstanding shares of Heli-Dyne Systems Inc. ("Heli-Dyne"), a helicopter
    completion and maintenance centre based in Hurst, Texas. Heli-Dyne
    specializes in the design and installation of helicopter interiors and
    the maintenance of airframes and avionics.

    This acquisition was accounted for using the purchase method, with
    results of operations included in the consolidated financial statements
    from the acquisition date. The net purchase price of $18,000 was
    allocated based on the fair value of the net identifiable assets
    acquired. This allocation resulted in an excess of the fair value of the
    net identifiable assets over the cost of the purchase, which is sometimes
    referred to as negative goodwill. The negative goodwill was allocated to
    the fair value of the long-term assets acquired and the remaining excess
    of $0.8 million was recognized as an extraordinary gain.

    8.  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 Aero Contactors of
        Nigeria) 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
        periods ended April 30 are summarized as follows:

                                 Three Months Ended         Year Ended
                              -----------------------------------------------
                                April 30,   April 30,   April 30,   April 30,
                                  2007        2006        2007        2006
                              -----------------------------------------------

    Revenues from related
     parties                   $  26,825   $  24,345   $  90,256   $  70,738
    Direct costs paid to
     related parties                   -           8         432         446
    Inventory additions                -      10,679           -      10,679
    Capital asset additions            -       5,692           -       7,126

                                                               As at
                                                      -----------------------
                                                        April 30,   April 30,
                                                          2007        2006
                                                      -----------------------
    Amounts receivable in
     respect of such revenues,
     expenses and additions                            $  25,351   $  21,878
                                                      -----------------------
                                                      -----------------------

    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.
        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 was amortized to earnings
        over the term of the loan. Interest expense of $0.1 million (2006 -
        $0.2 million) and $0.6 million (2006 - $0.6 million), including
        amortization of the above noted discount, was recorded on the loan
        for the three months and year ended April 30, 2007, respectively.

        During the fourth quarter, the entire principal balance of the loan
        was converted to Class A subordinate voting shares. As a result,
        1,379,310 Class A shares were issued and the loan and related
        interest ceased on the conversion date. At the date of conversion,
        the loan had a carrying value of approximately $4.9 million, that was
        recorded as capital stock.

    9.  Guarantees

    The Company has provided guarantees to certain lessors in respect of
    operating leases. If the Company fails to meet the senior credit
    facilities' financial ratios or breaches any of the covenants of those
    facilities and, as a result, the senior lenders accelerate debt
    repayment, the leases provide for a cross-acceleration that could enable
    the lessors and financial institutions that are lenders to those lessors
    the right to terminate the leases and require return of the aircraft and
    payment of the present value of all future lease payments and certain
    other amounts. If the realized value of the aircraft is insufficient to
    discharge the obligations due to those lessors in respect of the present
    value of the future lease payments, those lessors' lenders could obtain
    payment of that deficiency from the Company under these guarantees.

    The Company has provided limited guarantees to third parties under some
    of its operating leases relating to a portion of the aircraft values at
    the termination of the leases. The leases have terms expiring between
    fiscal 2008 and 2015. The Company's exposure under asset value guarantees
    and guarantees in the form of junior loans, rebateable advance rentals
    and deferred payments was approximately $86.4 million at April 30, 2007
    compared to $60.8 million at April 30, 2006. The resale market for the
    aircraft types for which the Company has provided guarantees remains
    strong and, as a result, the Company does not anticipate incurring any
    liability or loss with respect to these guarantees.

    The Company has provided guarantees to certain lessors in respect of
    novated aircraft purchase contracts. Under these contracts, if the
    manufacturer fails to meet specified delivery terms or becomes insolvent
    prior to aircraft delivery, the Company may be required to reimburse the
    lessor for amounts paid by the lessor to the aircraft manufacturer. Under
    either scenario, the Company has recourse against the aircraft
    manufacturer. Once aircraft are delivered under the novated aircraft
    purchase agreements, the Company no longer has an obligation under these
    guarantees. The Company's maximum exposure under the guarantees in the
    novated aircraft purchase agreements at April 30, 2007, was approximately
    $179.5 million (April 30, 2006 -$nil). The Company does not anticipate
    incurring any liability or loss with respect to these guarantees.

    -------------------------------------------------------------------------

    10. Tax contingencies

    The business and operations of the Company are complex and have included
    a number of significant financings, business combinations, acquisitions
    and dispositions over the course of its history. The computation of
    income, payroll and other taxes involves many factors including the
    interpretation of relevant tax legislation in various jurisdictions in
    which the Company is subject to ongoing tax assessments. When applicable,
    the Company adjusts the previously recorded income tax expense, direct
    costs, interest and the associated assets and liabilities to reflect
    changes in its estimates or assessments. These adjustments could have a
    material impact on the Company's results of operations.

    -------------------------------------------------------------------------

    11. Subsequent event

    Subsequent to the fourth quarter ended April 30, 2007, the Company
    announced the completion of the sale of Survival-One, the Company's
    Aberdeen based, non-core operating unit engaged in the manufacture,
    repair and distribution of cold-water survival suits and other safety
    equipment for gross proceeds of approximately $37 million. A gain on sale
    of approximately $18 million will be recorded in the first quarter of
    fiscal 2008, subject to any post-closing adjustments.

    -------------------------------------------------------------------------
    




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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