73887--6/8/2006--Bristow_Group

related topics

{gas, price, oil}

{operation, international, foreign}

{cost, regulation, environmental}

{competitive, industry, competition}

{control, financial, internal}

{financial, litigation, operation}

{cost, contract, operation}

{acquisition, growth, future}

{personnel, key, retain}

{system, service, information}

{condition, economic, financial}

{regulation, change, law}

{regulation, government, change}

The SEC investigation, any related proceedings in other countries and the consequences of the activities identified in the Internal Review could result in civil or criminal proceedings, the imposition of fines and penalties, the commencement of third-party litigation, the incurrence of expenses, the loss of business and other adverse effects on our Company. The disclosure and remediation of activities identified in the Internal Review could result in the loss of business relationships and adversely affect our business. We expect to incur higher costs and lower profit margins as a result of the remediation of activities identified in the Internal Review. We have identified certain material weaknesses related to our disclosure controls and procedures and internal control over financial reporting. As a result of these material weaknesses, we have concluded that as of March 31, 2006, we did not maintain effective internal control over financial reporting. These material weaknesses remain unremediated, which could affect our ability to report accurately and in a timely manner our results of operations and financial condition and could lessen investor confidence in our financial reports. The demand for our services is substantially dependent on the level of offshore oil and gas exploration, development and production activity. Our industry is highly competitive and cyclical, with intense price competition. The implementation by our customers of cost-saving measures could reduce the demand for our services. We are highly dependent upon the level of activity in North America and the North Sea. Our future growth depends on the level of international oil and gas activity and our ability to operate outside of North America and the North Sea. In order to grow our business, we may require additional capital in the future, which may not be available to us. Our operations outside of North America and the North Sea are subject to additional risks. Foreign exchange risks and controls may affect our financial position and results of operations. We operate in many international areas through entities that we do not control. Helicopter operations involve risks that may not be covered by our insurance or may increase our operating costs. We are subject to government regulation that limits foreign ownership of aircraft companies. Our failure to attract and retain qualified personnel could have an adverse affect on us. We face substantial competition in both of our business segments. We depend on a small number of large oil and gas industry customers for a significant portion of our revenues. Our operations are subject to weather-related and seasonal fluctuations. Environmental regulations and liabilities may increase our costs and adversely affect us. The DOJ investigation could result in criminal proceedings and the imposition of fines and penalties.

Full 10-K form ▸

73887--6/8/2006--Bristow_Group_Inc