CHC announces third quarter results



    VANCOUVER, March 14 /CNW/ - CHC Helicopter Corporation (the "Company" or
"CHC") (TSX: FLY.A and FLY.B; NYSE:   FLI) today announced unaudited financial
results for the three and nine months ended January 31, 2007.

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

                             Three Months Ended         Nine Months Ended
    -------------------------------------------------------------------------
                           January 31,  January 31,  January 31,  January 31,
                                 2007         2006         2007         2006
    -------------------------------------------------------------------------
    Revenue                   $ 300.8      $ 253.5      $ 836.9      $ 748.8
    Operating income             26.0         23.8         86.6         85.4
    Net earnings from
     continuing operations       12.0         21.4         29.3         79.4
    Net earnings from
     discontinued operations        -          0.1          0.4          0.6
    Extraordinary item            0.8            -          0.8            -
    Net earnings                 12.8         21.5         30.5         80.0

    Per share information
     (diluted)
    Weighted average number
     of shares                   46.1         46.2         46.1         46.1
    Net earnings from
     continuing operations    $  0.26      $  0.47      $  0.64      $  1.73
    Net earnings from
     discontinued operations        -            -         0.01         0.01
    Extraordinary item           0.02            -         0.02            -
    Net earnings                 0.28         0.47         0.67         1.74
    -------------------------------------------------------------------------
    

    Overview

    For the second consecutive quarter, the Company recorded the highest
quarterly revenue in its history due to continued fleet growth and business
expansion. In addition, the Company continued to add aircraft to its fleet,
with 30 new aircraft added in the first nine months of the current fiscal
year.
    During the third quarter, revenue increased $43.9 million (17%) to
$300.8 million, excluding the impact of foreign exchange ("FX"), compared to
the same period last year. FX had a positive impact on revenue in the third
quarter of $3.4 million.
    Revenue increased in all operating segments for the three months ended
January 31, 2007, but most significantly in the Global Operations segment.
Global Operations' revenue and segment EBITDAR increased $33.8 million (39%)
and $12.8 million (51%), respectively, from the same period last year
(excluding FX). Flying hours in Global Operations increased by 2,693 hours
(14%) over the same period last year. European Operations revenue increased
$5.9 million (5%), compared to the same period last year (excluding FX);
however, segment EBITDAR decreased by $1.2 million (5%) compared to the same
period last year (excluding FX). European Operations' segment EBITDAR
continued to be negatively impacted during the third quarter by aircraft
availability issues on new aircraft types and aircraft introduction costs. The
Company is currently in discussions with manufacturers to remedy the problems
created by low aircraft availability rates. During the third quarter, external
revenue and segment EBITDAR in Heli One increased $4.2 million (10%) and
$12.2 million (23%), respectively, from the same period last year (excluding
FX).
    Operating income increased $1.1 million or 5% (excluding FX) in the third
quarter, compared to the same period last year, despite continued aircraft
availability issues relating to new aircraft types and aircraft introduction
costs that the Company continues to experience as a result of fleet expansion.
During the third quarter, the Company added five aircraft to the fleet to meet
current and future contractual requirements and disposed of or returned three
aircraft, for a net increase in the fleet of two aircraft. In the third
quarter, the Company incurred aircraft introduction costs relating to the five
aircraft added in the third quarter and the 25 aircraft added in the first six
months of fiscal 2007.
    Net earnings for the three months ended January 31, 2007 were
$12.8 million ($0.28 per share, diluted), a decrease of $8.7 million from the
same period last year. The prior year third quarter net earnings included a
gain on sale of the Company's interest in Inversiones Aereas S.L. 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
                                                   January 31,
                                   ------------------------------------------
                                           2007                 2006
                                   ------------------------------------------
                                               Diluted              Diluted
                                      Net     earnings     Net     earnings
                                    earnings  per share  earnings  per share
                                     impact    impact     impact    impact
                                   ------------------------------------------
    Operational Issues:
      Aircraft introduction costs     $ (2.2)    $(0.05)   $ (1.1)    $(0.02)
      Costs related to aircraft
       availability issues              (3.0)     (0.07)     (0.4)     (0.01)
      Net trade receivables
       provision decrease                3.4       0.07         -          -
      SOX Section 404 project
       costs                            (1.6)     (0.03)     (0.1)         -
                                   ------------------------------------------
                                        (3.4)     (0.08)     (1.6)     (0.03)

    Financing, Investing and
     Related Issues:
      Gain on sale of long-term
       investments and equity
       earnings                            -          -      15.7       0.34
      Financing charges
       (FX and other)                    2.6       0.06      (5.3)     (0.11)
                                   ------------------------------------------
                                         2.6       0.06      10.4       0.23

    Other:
      Contract settlement costs            -          -         -          -
      Restructuring (costs)
       recovery                            -          -      (2.5)     (0.06)
      Tax adjustments
       (FIT and other)                  (2.2)     (0.05)        -          -
                                   ------------------------------------------
                                        (2.2)     (0.05)     (2.5)     (0.06)
                                   ------------------------------------------
    Total                             $ (3.0)    $(0.07)   $  6.3     $ 0.14
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



                                                Nine Months Ended
                                                   January 31,
                                   ------------------------------------------
                                           2007                 2006
                                   ------------------------------------------
                                               Diluted              Diluted
                                      Net     earnings     Net     earnings
                                    earnings  per share  earnings  per share
                                     impact    impact     impact    impact
                                   ------------------------------------------
    Operational Issues:
      Aircraft introduction costs     $ (9.9)    $(0.21)   $ (4.8)    $(0.10)
      Costs related to aircraft
       availability issues              (7.0)     (0.15)     (0.4)     (0.01)
      Net trade receivables
       provision decrease               10.7       0.23         -          -
      SOX Section 404 project
       costs                            (4.2)     (0.09)     (0.4)     (0.01)
                                   ------------------------------------------
                                       (10.4)     (0.22)     (5.6)     (0.12)

    Financing, Investing and
     Related Issues:
      Gain on sale of long-term
       investments and equity
       earnings                            -          -      37.4       0.81
      Financing charges
       (FX and other)                   (5.3)     (0.12)     (6.1)     (0.13)
                                    ------------------------------------------
                                        (5.3)     (0.12)     31.3       0.68

    Other:
      Contract settlement costs         (1.2)     (0.03)        -          -
      Restructuring (costs)
       recovery                          1.4       0.03      (8.7)     (0.19)
      Tax adjustments
       (FIT and other)                  (2.2)     (0.05)        -          -
                                   ------------------------------------------
                                        (2.0)     (0.05)     (8.7)     (0.19)
                                   ------------------------------------------
    Total                             $(17.7)    $(0.39)   $ 17.0     $ 0.37
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

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

    
    -  Interest expense increases of approximately $1.8 million ($1.4 million
       or $0.03 per share, diluted, after tax) and $5.4 million ($4.0 million
       or $0.09 per share, diluted, after tax) for the three and nine months
       ended January 31, 2007, respectively, primarily as a result of higher
       debt levels related to investment in a growing fleet and associated
       working capital increases; and

    -  Lease expense increases of approximately $11.0 million ($8.2 million
       or $0.18 per share, diluted, after tax) and $24.8 million
       ($18.3 million or $0.40 per share, diluted, after tax) for the three
       and nine months ended January 31, 2007, respectively, as a result of
       additional leased aircraft and higher interest rates on these
       operating leases.

    Capital and liquidity:

    -  The Company generated $53.1 million in cash from operations and
       invested $73.8 million in property and equipment, including the
       purchase of four aircraft, during the three months ended January 31,
       2007.

    -  The Company has 76 aircraft (35 heavy and 41 medium aircraft) on
       order, eight of which are expected to be delivered in the fourth
       quarter of the current year, with the remaining 68 aircraft to be
       delivered over the next five years. These orders include the EC225
       contract discussed below in subsequent events.

    -  The Company had unused capacity under its credit facilities of
       $78.8 million and cash and cash equivalents of $51.8 million for a
       total of $130.6 million at January 31, 2007.
    

    Sylvain Allard, President and Chief Executive Officer, said: "I am
pleased to report that the Company recorded the highest quarterly revenue in
its history for the second consecutive period. However, during the quarter,
CHC suffered a tragic accident with the December 27, 2006 crash of an AS365N
helicopter in the Irish Sea and the loss of seven lives as a result. Although
the accident did not have a material financial impact on the Company, it did
have a profound impact on the customer and our employees, and most
significantly on the families and friends of those who lost their lives. This
event is an important reminder that although we have an industry-leading
safety record, it is critical that we continue to diligently monitor and
improve our safety management systems and processes and support our culture of
continuous improvement when it comes to safety. CHC continues to assist and
support all agencies investigating the accident."
    Subsequent to the third quarter, the Company announced:

    
    -  the signing of a contract with Eurocopter for the purchase of 16 new
       EC225 helicopters. These aircraft are expected to be delivered between
       fiscal 2008 and fiscal 2012.

       The Company plans to use these aircraft in support of new offshore oil
       and gas contracts and potentially as Search and Rescue ("SAR")
       aircraft to meet the unprecedented demand from various customers in
       both the offshore oil and gas industry and government sponsored SAR.
       The EC225 fleet will be fully supported by Heli One which will provide
       total maintenance, repair and overhaul ("MRO") support for the
       advanced EC225. Heli One has been granted an exclusive license to
       perform repair and overhaul on EC225 components.

    -  a five year helicopter lease and maintenance contract, plus two option
       years, with AB Norrlandsflyg of Sweden commencing in January 2008.
       Heli One will provide Norrlandsflyg with two new Sikorsky S 76C++
       helicopters in SAR configuration and will support the helicopters'
       major components through a power by the hour maintenance agreement.
       Norrlandsflyg will operate the aircraft in a SAR capacity for the
       Swedish Maritime Agency.

    -  it has secured contracts with major European Air Forces as follows:

       1. modifications to twelve Royal Norwegian Air Force Bell 412SP
          helicopters and upgrades to a further six 412 helicopters from SP
          to HP models. Work will be carried out in 2007 and 2008.

       2. S-61A fleet support for Royal Danish Air Force, including
          C-inspections, component repair and overhaul, and personnel
          support.

       3. phase inspections on two Royal Netherlands Air Force AS532U2 Cougar
          helicopters (with options for a further five inspections) to be
          performed at Royal Netherlands Air Force facilities in Woensdrecht.
    

    In addition, subsequent to the third quarter, following regulatory
approval, the Company acquired an equity position in BHS - Brazilian
Helicopter Services Taxi Aereo Ltda. ("BHS"), one of the largest helicopter
operators in the Brazilian offshore sector. Accordingly, commencing on
March 1, 2007, the Company will consolidate BHS. As a result, the Company
expects to record a material amount of assets and liabilities, including
goodwill, other intangible assets and tax liabilities in the fourth quarter
consolidated financial statements.
    For a complete overview of results, including Management's Discussion and
Analysis, and Unaudited Consolidated Interim Financial Statements and Notes
thereto, please visit the CHC website at
http://www.chc.ca/investor_financialreports.php.

    Investor Conference Call

    The Company's third quarter conference call and webcast will take place
Thursday, March 15th, 2007 at 10:30 a.m. EDT. To listen to the conference
call, dial 416-644-3432 for local and overseas calls, or toll free
1-866-250-4665 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 "21202367 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.
    -------------------------------------------------------------------------





For further information:

For further information: Rick Davis, Senior Vice President and Chief
Financial Officer, (604) 279-2471; Chris Flanagan, Director of Communications,
(604) 279-2493

Organization Profile

CHC HELICOPTER CORPORATION

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