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Segment information
3 Months Ended 12 Months Ended
Jul. 31, 2012
Apr. 30, 2012
Segment information
17. Segment information:

The Company operates under the following segments:

•

Helicopter services;

•

Maintenance, repair and overhaul (“MRO”);

•

Corporate and other.

The Company has provided information on segment revenues and segment EBITDAR (adjusted) because these are the financial measures used by the Company’s chief operating decision maker in making operating decisions and assessing performance. Transactions between operating segments are at standard industry rates.

The Helicopter Services segment includes flying operations around the world serving offshore oil and gas, EMS/SAR and other industries. While management does not include aircraft lease and associated costs in an internal measure of profitability for the Helicopter Services segment, these costs are presented in the Helicopter Services column as they are most directly attributable to Helicopter Services operations and revenues.

The MRO segment includes facilities in Norway, Canada, Australia, Poland, and the US that provide helicopter repair and overhaul services for the Company’s fleet and for a growing external customer base in Europe, Asia and North America.

Corporate and other includes corporate office costs in various jurisdictions and is not considered a reportable segment.

The accounting policies of the segments and the basis of accounting for transactions between segments are the same as those described in the summary of significant accounting policies.

Three months ended July 31, 2012

Helicopter
services
MRO Corporate and
other
Inter-segment
eliminations
Consolidated

Revenue from external customers

$ 389,904 $ 24,546 $ 1,619 $ — $ 416,069

Add: Inter-segment revenues

849 68,461 — (69,310 ) —

Total revenue

390,753 93,007 1,619 (69,310 ) 416,069

Direct costs (i)

(289,142 ) (79,343 ) 1,518 69,310 (297,657 )

Earnings from equity accounted investees

1,012 — — — 1,012

General and administration costs

— — (18,525 ) — (18,525 )

Segment EBITDAR (adjusted) (ii)

102,623 13,664 (15,388 ) — 100,899

Aircraft lease and associated costs

(48,430 ) — — — (48,430 )

Amortization

(28,310 )

Restructuring costs

(1,930 )

Impairment of receivables and funded residual value guarantees

(715 )

Recovery of intangible assets (iii)

521

Impairment of assets held for sale

(5,647 )

Impairment of assets held for use

(660 )

Loss on disposal of assets

(1,591 )

Interest on long-term debt

(29,883 )

Foreign exchange loss

(7,401 )

Other financing charges

(8,154 )

Income tax expense

(1,281 )

Loss from continuing operations

(32,582 )

Earnings from discontinued operations, net of tax

345

Net loss

$ (32,237 )

Segment assets

$ 848,673 $ 339,825 $ 1,451,135 $ — $ 2,639,633

Segment assets - held for sale

526 — 60,809 — 61,335

Total assets

$ 849,199 $ 339,825 $ 1,511,944 $ — $ 2,700,968

(i) Direct costs in the segment information presented excludes aircraft lease and associated costs. In the consolidated statement of operations these costs are combined.
(ii) Segment EBITDAR (adjusted) is defined as earnings before interest, taxes, depreciation, amortization and aircraft lease and associated costs plus earnings from equity accounted investees less direct costs excluding aircraft lease and associated costs and general and administrative expenses.
(iii) Recovery of intangible assets relates to the Corporate and other segment.

Three months ended July 31, 2011

Helicopter
services
MRO Corporate and
other
Inter-segment
eliminations
Consolidated

Revenue from external customers

$ 373,294 $ 34,888 $ 1,467 $ — $ 409,649

Add: Inter-segment revenues

1,264 67,485 30 (68,779 ) —

Total revenue

374,558 102,373 1,497 (68,779 ) 409,649

Direct costs (i)

(279,466 ) (81,359 ) (4,099 ) 68,779 (296,145 )

Earnings from equity accounted investees

596 — — — 596

General and administration costs

— — (14,031 ) — (14,031 )

Segment EBITDAR (adjusted) (ii)

95,688 21,014 (16,633 ) — 100,069

Aircraft lease and associated costs

(40,496 ) — — — (40,496 )

Amortization

(27,103 )

Restructuring costs

(4,804 )

Impairment of receivables and funded residual value guarantees

(16 )

Impairment of intangible assets (iii)

(108 )

Impairment of assets held for sale

(7,381 )

Gain on disposal of assets

4,057

Interest on long-term debt

(30,670 )

Foreign exchange gain

193

Other financing income

256

Income tax recovery

3,847

Loss from continuing operations

(2,156 )

Loss from discontinued operations, net of tax

(786 )

Net loss

$ (2,942 )

(i) Direct costs in the segment information presented excludes aircraft lease and associated costs. In the consolidated statement of operations these costs are combined.
(ii) Segment EBITDAR (adjusted) is defined as earnings before interest, taxes, depreciation, amortization and aircraft lease and associated costs plus earnings from equity accounted investees less direct costs excluding aircraft lease and associated costs and general and administrative expenses.
(iii) Impairment of intangible assets relates to the Corporate and other segment.
27. Segment information:

The Company operates under the following segments:

 

  •  

Helicopter Services;

 

  •  

Maintenance, repair and overhaul (“MRO”); and

 

  •  

Corporate and other.

The Company has provided information on segment revenues and segment EBITDAR (adjusted) because these are the financial measures used by the Company’s Chief operating decision maker in making operating decisions and assessing performance. Transactions between operating segments are at standard industry rates.

The Helicopter Services segment includes flying operations around the world serving offshore oil and gas, EMS/SAR and other industries.

The MRO segment includes facilities in Norway, Canada, Australia, and the US that provide helicopter repair and overhaul services for the Company’s fleet and for a growing external customer base in Europe, Asia and North America.

During 2011, the Company changed its internal structure resulting in the former European Operations and Global Operations segments being combined to form the Helicopter Services segment. In addition, the former Fleet segment was eliminated as the activities of this segment are now being managed as a cost centre as opposed to as a revenue generating division of the Company. While management does not include aircraft lease and associated costs in an internal measure of profitability for the Helicopter Services segment, these costs are now presented in the Helicopter Services column as they are most directly attributable to Helicopter Services operations and revenues.

Corporate and other includes corporate office costs in various jurisdictions and is not considered a reportable segment.

 

The accounting policies of the segments and the basis of accounting for transactions between segments are the same as those described in the summary of significant accounting policies.

 

     For the year ended April 30, 2012  
     Helicopter
services
    MRO     Corporate and
other
    Inter-segment
eliminations
    Consolidated  

Revenue from external customers

   $ 1,520,223      $ 166,479      $ 5,837      $ —        $ 1,692,539   

Add: Inter-segment revenues

     7,550        275,920        18        (283,488 )      —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     1,527,773        442,399        5,855        (283,488 )      1,692,539   

Direct costs (i)

     (1,117,216 )      (353,485 )      (18,002 )      283,488        (1,205,215 ) 

Earnings from equity accounted investees

     2,844        —          —          —          2,844   

General and administrative

     —          —          (69,590 )      —          (69,590 ) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Segment EBITDAR (adjusted) (ii)

     413,401        88,914        (81,737 )      —          420,578   

Aircraft lease and associated costs

     (176,685 )      —          —          —          (176,685 ) 

Amortization

             (112,967 ) 

Restructuring costs

             (22,511 ) 

Recovery of receivables and funded residual value guarantees

             272   

Impairment of intangible assets

             (4,218 ) 

Impairment of assets held for sale

             (13,469 ) 

Gain on disposal of assets

             8,169   

Interest on long-term debt

             (116,578 ) 

Foreign exchange gain

             1,795   

Other financing charges

             (15,062 ) 

Income tax expense

             (48,217 ) 
          

 

 

 

Loss from continuing operations

             (78,893 ) 

Loss from discontinued operations, net of tax

             (16,107 ) 
          

 

 

 

Loss for the year

           $ (95,000 ) 
          

 

 

 

Segment assets

   $ 858,930      $ 392,150      $ 1,385,089      $ —        $ 2,636,169   

Segment assets - held-for-sale (note 7)

     521        —          79,292        —          79,813   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

   $ 859,451      $ 392,150      $ 1,464,381      $ —        $ 2,715,982   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Segment capital asset expenditures

   $ 11,762      $ 114,971      $ 249,891      $ —        $ 376,624   

Segment goodwill

     433,811        —          —          —          433,811   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(i) Direct costs in the segment information presented excludes aircraft lease and associated costs. In the consolidated statement of operations these costs are combined.
(ii) Segment EBITDAR (adjusted) is defined as revenues less directs costs, excluding aircraft lease and associated costs, general and administrative expenses plus earnings from equity accounted investees.
     For the year ended April 30, 2011  
     Helicopter
services
    MRO     Corporate and
other
    Inter-segment
eliminations
    Consolidated  

Revenue from external customers

   $ 1,311,983      $ 129,222      $ 4,255      $ —        $ 1,445,460   

Add: Inter-segment revenues

     7,508        238,397        617        (246,522 )      —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     1,319,491        367,619        4,872        (246,522 )      1,445,460   

Direct costs (i), (iii)

     (951,268 )      (324,057 )      (18,049 )      246,522        (1,046,852 ) 

Earnings from equity accounted investees

     2,159        —          —          —          2,159   

General and administrative

     —          —          (65,391 )      —          (65,391 ) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Segment EBITDAR (adjusted) (ii)

     370,382        43,562        (78,568 )      —          335,376   

Aircraft lease and associated costs

     (164,828 )      —          —          —          (164,828 ) 

Amortization

             (99,625 ) 

Restructuring costs

             (4,751 ) 

Impairment of receivables and funded residual value guarantees

             (1,919 ) 

Impairment of intangible assets

             (20,608 ) 

Impairment of assets held for sale

             (5,239 ) 

Gain on disposal of assets

             7,193   

Interest on long-term debt

             (91,462 ) 

Foreign exchange gain

             17,916   

Other financing charges

             (67,036 ) 

Income tax recovery

             32,916   
          

 

 

 

Loss from continuing operations

             (62,067 ) 

Loss from discontinued operations, net of tax

             (3,202 ) 
          

 

 

 

Loss for the year

           $ (65,269 ) 
          

 

 

 

Segment assets

   $ 1,060,591      $ 404,940      $ 1,272,825      $ —        $ 2,738,356   

Segment assets - held-for-sale (note 7)

     2,749        15,268        31,782        —          49,799   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

   $ 1,063,340      $ 420,208      $ 1,304,607      $ —        $ 2,788,155   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Segment capital asset expenditures

   $ 12,105      $ 100,287      $ 116,412      $ —        $ 228,804   

Segment goodwill

     448,121        —          —          —          448,121   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(i) Direct costs in the segment information presented excludes aircraft lease and associated costs. In the consolidated statement of operations these costs are combined.
(ii) Segment EBITDAR (adjusted) is defined as revenues less directs costs, excluding aircraft lease and associated costs, general and administrative expenses plus earnings from equity accounted investees.
(iii) Direct costs in the Corporate and other segment includes $10.2 million in the write-off of bid costs previously capitalized and other legal and consulting costs incurred in connection with the planned procurement of the UK Search and Rescue Helicopter Services.
     For the year ended April 30, 2010  
     Helicopter
services
    MRO     Corporate and
other
    Inter-segment
eliminations
    Consolidated  

Revenue from external customers

   $ 1,186,898      $ 112,470      $ 14,198      $ —        $ 1,313,566   

Add: Inter-segment revenues

     8,462        263,085        1        (271,548 )      —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     1,195,360        375,555        14,199        (271,548 )      1,313,566   

Direct costs (i)

     (834,351 )      (312,431 )      (9,576 )      271,548        (884,810 ) 

Earnings from equity accounted investees

     1,436        —          —          —          1,436   

General and administrative

     —          —          (61,157 )      —          (61,157 ) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Segment EBITDAR (adjusted) (ii)

     362,445        63,124        (56,534 )      —          369,035   

Aircraft lease and associated costs

     (145,072 )      —          —          —          (145,072 ) 

Amortization

             (77,738 ) 

Restructuring costs

             (4,855 ) 

Impairment of receivables and funded residual value guarantees

             (13,266 ) 

Impairment of intangible assets

             (53,903 ) 

Impairment of assets held for sale

             (26,585 ) 

Impairment of property and equipment

             (36,240 ) 

Loss on disposal of assets

             (2,686 ) 

Interest on long-term debt

             (69,520 ) 

Foreign exchange gain

             16,520   

Other financing charges

             (21,459 ) 

Income tax expense

             (9,297 ) 
          

 

 

 

Loss from continuing operations

             (75,066 ) 

Loss from discontinued operations, net of tax

             (1,436 ) 
          

 

 

 

Loss for the year

           $ (76,502 ) 
          

 

 

 

 

(i) Direct costs in the segment information presented excludes aircraft lease and associated costs. In the consolidated statement of operations these costs are combined.
(ii) Segment EBITDAR (adjusted) is defined as revenues less directs costs, excluding aircraft lease and associated costs, general and administrative expenses plus earnings from equity accounted investees.

Geographic information:

 

     Revenue
For the year ended
 
     April 30,
2012
     April 30,
2011
     April 30,
2010
 

Canada

   $ 13,914       $ 12,671       $ 16,386   

United Kingdom

     262,592         243,921         251,627   

Norway

     531,452         452,578         405,258   

Africa

     60,503         56,361         54,776   

Australia

     213,970         137,639         126,992   

Denmark

     29,538         29,108         29,535   

The Netherlands

     94,663         95,835         119,234   

Brazil

     210,347         163,928         105,856   

Asia

     93,782         107,305         93,671   

Other European countries

     139,955         112,188         49,539   

Other countries

     41,823         33,926         60,692   
  

 

 

    

 

 

    

 

 

 

Consolidated total

   $ 1,692,539       $ 1,445,460       $ 1,313,566   
  

 

 

    

 

 

    

 

 

 

Revenues are attributed to countries based on the location of the customer for MRO services and the location of service for helicopter flying services.

The Company provides services across different geographic areas to many customers. In the year ended April 30, 2012, revenue from two customers (2011 – one customer) was greater than 10% of the Company’s revenue, contributing $450.5 million (2011 – $249.9 million, 2010 – $152.6 million) in Helicopter Services. As at April 30, 2012, these two customers had outstanding accounts receivable balances of $24.4 million.

 

     Property and equipment      Goodwill  
     April 30,
2012
     April 30,
2011
     April 30,
2012
     April 30,
2011
 

Canada

   $ 62,425       $ 91,779       $ 10,857       $ 11,149   

United Kingdom

     60,323         75,879         87,800         93,087   

Norway

     525,470         532,338         39,716         43,526   

Africa

     55,247         95,138         9,794         10,470   

Australia

     111,920         97,954         19,523         20,425   

Denmark

     685         744         1,076         1,199   

The Netherlands

     9,450         19,466         36,179         40,446   

Asia

     43,084         46,035         16,100         16,100   

Other European countries

     58,852         58,686         7,045         7,873   

Other countries

     99,404         115,480         205,721         203,846   
  

 

 

    

 

 

    

 

 

    

 

 

 

Consolidated total

   $ 1,026,860       $ 1,133,499       $ 433,811       $ 448,121   
  

 

 

    

 

 

    

 

 

    

 

 

 

Property and equipment is attributed to countries based on the physical location of the asset at the fiscal year end.