CHC Helicopter Corporation
NYSE : FLI
TSX : FLY.SV.A
TSX : FLY.MV.B

CHC Helicopter Corporation

December 13, 2005 16:30 ET

CHC Announces Second Quarter Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 29, 2005) - CHC Helicopter Corporation (the "Company") (TSX:FLY.SV.A)(TSX:FLY.MV.B)(NYSE:FLI) today announced unaudited financial results for the three and six months ended October 31, 2005.



Financial Highlights
(in millions of Canadian dollars, except per share amounts)
Three Months Ended Six Months Ended
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October October October October
31, 2005 31, 2004 31, 2005 31, 2004
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Revenue(1) $ 252.1 $ 239.5 $ 496.5 $ 478.3
Operating income 53.6 32.1 87.0 68.9
Net earnings from continuing
operations 41.6 16.0 60.3 39.3
Net loss from discontinued
operations (0.1) (17.3) (0.5) (18.3)
Net earnings (loss) 41.5 (1.3) 59.8 21.0
Per share information(2)
Basic
Weighted average number of
shares 42.0 42.0 42.0 41.9
Net earnings from continuing
operations $ 0.99 $ 0.38 $ 1.44 $ 0.94
Net loss from discontinued
operations - (0.41) (0.01) (0.44)
Net earnings (loss) 0.99 (0.03) 1.43 0.50
Diluted
Weighted average number of
shares 46.1 46.0 46.1 45.9
Net earnings from continuing
operations $ 0.91 $ 0.35 $ 1.31 $ 0.86
Net loss from discontinued
operations - (0.38) (0.01) (0.40)
Net earnings (loss) 0.91 (0.03) 1.30 0.46
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(1) Comparative figures have been restated to conform to the current
period's classification of certain fuel, landing fees and other costs
recovered from customers as revenue rather than as cost reductions.
(2) Comparative share information has been adjusted to reflect the April
2005 2-for-1 stock split.

Highlights

- Revenue increased $32.7 million or 13.6% compared to the second
quarter of last year, excluding foreign exchange ("FX").

- Excluding FX, revenue in all operating segments increased from the
second quarter of last year.

- Excluding FX, segment EBITDAR increased in Global Operations by 22.4%
from the second quarter of last year.

- Operating income for the second quarter was $53.6 million, an increase
of $24.2 million (excluding FX of $2.7 million) from the same period
last year. This increase was primarily the result of a pre-tax gain of
$21.8 million on the sale of the Company's remaining interest in
Canadian Helicopters Limited ("CHL") and other long-term investments.

- Net earnings from continuing operations for the second quarter were
$41.6 million ($0.91 per share, diluted), an increase of $25.6 million
fom the second quarter of last year. A comparison of second quarter
and year-to-date earnings from continuing operations should consider
the following after-tax costs, gains and other significant variances
(in millions, except per share amounts):
a) After-tax costs and gains

Three Months Ended Six Months Ended
------------------------------------------
October October October October
31, 2005 31, 2004 31, 2005 31, 2004
------------------------------------------
Restructuring and debt
settlement costs $ (3.7) $ (2.8) $ (6.3) $ (4.2)
Tax liability/ asset adjustments 5.8 (4.2) 5.8 (4.2)
Gain on sale of CHL and other
long-term investments 17.5 - 17.5 -
------------------------------------------
Total after-tax $ 19.6 $ (7.0) $ 17.0 $ (8.4)
------------------------------------------
------------------------------------------
Diluted net earnings per
share impact $ 0.43 $ (0.15) $ 0.37 $ (0.18)
------------------------------------------
------------------------------------------

b) Other significant variances (after-tax)

- general and administration cost reductions of approximately
$1.5 million or $0.03 per share, diluted, and $2.7 million or
$0.06 per share, diluted, for the three and six months ended
October 31, 2005 respectively, as a result of the Company's
current restructuring initiatives;

- interest expense increases of approximately $2.6 million or
$0.06 per share, diluted, and $4.6 million or $0.10 per share,
diluted, for the three and six months ended October 31, 2005
respectively, primarily as a result of higher debt levels
related to investments in aircraft deposits, aircraft purchases
and other capital assets to support growth; and

- effective average income tax rate increases of 2.9%, which
equates to additional income tax expense of $0.5 million or
$0.01 per share, diluted, and $1.1 million or $0.02 per share,
diluted, for the three and six months ended October 31, 2005
respectively.

- During the second quarter the Company declared an annual dividend of
$0.40 per share, an increase from $0.30 per share declared in the
prior fiscal year.

- Subsequent to the second quarter end the Company announced:

- a five year contract from the United Kingdom Maritime and
Coastguard Agency (MCA) for the provision of commercial search
and rescue helicopter services from four bases in the U.K.
commencing July 1, 2007. The contract requires the deployment
of four Sikorsky S-92s and three Agusta Bell AB139s and is
valued at approximately $215 million over the five year period;

- a five-year $40.0 million contract renewal by ConocoPhillips
(U.K.) Limited for the provision of a dedicated Sikorsky S76C,
plus additional flight hours, in support of ConocoPhillips'
Southern North Sea operations;

- a new $6.1 million contract award from Tullow Oil for the
provision of a dedicated Sikorsky S76A+ aircraft to support
development activity in the Southern North Sea; and

- it has exercised its option to acquire a significant equity
position in Brazilian Helicopter Services ("BHS"). The
acquisition is subject to several terms and conditions and is
expected to close by March 12, 2006.


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 second quarter conference call and webcast will take place Wednesday, December 14, 2005 at 10:30 a.m. EST. 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 877-289-8525 and enter passcode "21165688 followed by the number sign".

The financial results and a live webcast of the conference call will be available at www.chc.ca. The webcast is also available through CNW Group 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 removed or included on the Company's distribution list, please contact communications@chc.ca.

This document may contain projections and other forward-looking statements within the meaning of the "safe harbour" provision of the United States Private Securities Litigation Reform Act of 1995. While these projections and other statements represent our best current judgment, they are subject to risks and uncertainties including, but not limited to, factors detailed in the Annual Report on Form 20-F and in other filings of the Company with the United States Securities and Exchange Commission and in the Company's Annual Information Form filed with Canadian security regulatory authorities. Certain material factors or assumptions were applied in drawing the conclusions or making the forecasts or projections in the forward-looking information herein, namely should one or more of these risks or uncertainties materialize, or should underlying factors assumptions prove incorrect, actual outcomes may vary materially from those indicated. The Company disclaims any intentions or obligations to update or revise any forward-looking information, whether as a result of new information or otherwise, except in accordance with applicable security laws.

Contact Information

  • CHC Helicopter Corporation
    Jo Mark Zurel
    Senior Vice-President & Chief Financial Officer
    (604) 279-2494
    or
    CHC Helicopter Corporation
    Rick Davis
    Vice-President, Financial Reporting
    (604) 279-2471
    or
    CHC Helicopter Corporation
    Chris Flanagan
    Director of Communications
    (604) 279-2493