Canadian Helicopters reports record 2011 year-end results

– 2011 revenue growth of 54.8% to $264.3 million, including $26.8 million from HNZ and a strong 39.1% improvement from existing operations

– EBITDA more than doubled, reaching $85.2 million in 2011, versus $42.1 million a year earlier

– 2011 adjusted net income of $50.5 million or $3.84 per share, up from $26.4 million or $2.02 per share in 2010

– Strong fourth-quarter results mainly driven by contracts in Afghanistan and HNZ contribution

MONTREAL, March 27, 2012 – Canadian Helicopters Group Inc. (TSX: CHL.A, CHL.B) (the Company), an international provider of helicopter ransportation and related support services, today announced its financial and operating results for the fourth quarter and fiscal year ended December 30, 2011. These results reflect the acquisition of Helicopters (N.Z.) Limited, (HNZ) on July 7, 2011. The results also reflect Canadian Helicopters’ conversion to a corporation on December 31, 2010 and the adoption, on January 1, 2011, of International Financial Reporting Standards (IFRS). Results for the prior year period have been restated, for comparability.

The Company generated revenue of $264.3 million, up 54.8% from $170.7 million in 2010. This $93.6 million improvement includes revenue of $26.8 million from HNZ and also reflects an increase of $66.8 million, or approximately 39.1%, from existing operations. Revenue flying hours increased 32.4% to 75,014 hours, including 3,918 hours flown at HNZ. In addition to the HNZ contribution, Visual Flight Rules (VFR) revenue from existing operations increased $64.7 million primarily due to revenues from medium and heavy aircraft contracted in Afghanistan and increased activity in the mining industry in eastern Canada. Excluding HNZ, Instrument Flight Rules (IFR) revenue decreased $5.3 million due to reduced emergency medical services. Ancillary revenue grew $7.4 million reflecting a full year contribution from a repair and maintenance business acquired in 2010 as well as to higher revenue from the DND Contracted Flying Training and Support contract (CFTS)EBITDA for 2011 more than doubled, reaching $85.2 million, up from $42.1 million a year earlier. This increase is mainly attributable to higher operating activity, a more favorable mix resulting from increased activity in Afghanistan where revenues reflect the significantly higher level of effort required to accomplish the work, as well as a $7.8 million EBITDA contribution from HNZ.

2011 net income amounted to $50.5 million, or $3.84 per share, up sharply from $26.4 million of adjusted net income, or $2.02 per share in 2010. Adjusted net income excludes certain significant impacts from classifying the Fund Units and Exchangeable Class B LP Units as financial liabilities before the Fund conversion into an incorporated entity on December 31, 2010. These significant impacts, mostly of a non-cash nature, reduced net income by $78.8 million in 2010. 

Reflecting higher net income, cash flows related to operating activities before net changes in non-cash working capital balances reached $70.5 million in 2011, up from $26.2 million a year earlier. The international character of Canadian Helicopters continued to develop significantly in 2011 with the acquisition of HNZ and further success in Afghanistan. On the North American market, our national presence, strong brand recognition and operating flexibility allowed us to be at the forefront of an accelerating recovery in the mining sector. These factors, together with a control of expenses relative to revenue, contributed to record profitability. Cash flow generation remained very strong, enabling the Company to conclude the year with a sound financial position, said Don Wall, President and Chief Executive Officer of Canadian Helicopters.

For the fourth quarter ended December 30, 2011, revenue reached $68.7 million, up from $43.0 million in the corresponding period in 2010. This increase of $25.7 million, or 59.8%, reflects a $15.4 million contribution from HNZ and a revenue increase of $10.3 million from existing operations. Canadian Helicopters flew 15,875 hours, including 2,316 hours at HNZ, up 44.4% from a year earlier. Excluding HNZ, VFR revenue increased $10.4 million due to contracted aircraft in Afghanistan and higher domestic activity in the mining industry, while IFR revenue decreased $2.0 million as a result of reduced EMS

activity. Ancillary revenue grew $1.9 million reflecting increased maintenance revenues and higher revenue from the CFTS contract. The fourth quarter is seasonally slower in the North American market due to reduced daylight hours and weather conditions, but HNZ’s location in the southern hemisphere results is a seasonal offset to the North American operations. EBITDA amounted to $18.8 million, up significantly from $8.4 million a year earlier, as a result of higher operating activity in North America and in Afghanistan, as well as a $5.6 million EBITDA contribution from HNZ. 2011 net income reached $10.2 million, or $0.77 per share, versus an adjusted net income of $5.1 million, or $0.39 per share, last year. Finally, cash flows related to operating activities before net changes in non-cash working capital balances totalled $15.8 million, compared with $4.3 million in 2010.

As at December 30, 2011, Canadian Helicopters’ financial position remains strong with a debt of $32.3 million, net of cash and cash equivalents and bank indebtedness, drawn under its authorized revolving operating credit facility of $125 million. During the fourth quarter, the Company used its seasonal cash flow resulting in part from the collection of receivables to reduce the outstanding balance on its credit facility by $32.0 million. As a result, the long-term debt-to-equity ratio was 0.19 at the end of 2011.

We are confident in regard to the immediate and long term prospects for Canadian Helicopters. On the international side, we anticipate steady growth from our operations in the southern hemisphere, and our higher contribution revenues will remain significant in Afghanistan. On the North American domestic side, indications of increased mining activity suggest that the momentum in Canada will again produce improved results. Meanwhile, a marketing drive is ongoing to increase our business in new markets, particularly in Asia, and we believe this effort will begin yielding results in coming quarters. With a

strong financial position, Canadian Helicopters also remains poised for further expansion through acquisition, both in Canada and abroad, concluded Mr. Wall.

Under the terms of the Canadian Helicopters long term incentive plan (“LTIP”), Canadian Helicopters has an obligation to purchase shares for the account of eligible employees. In satisfaction of the purchase obligation, on March 27, 2012, Canadian Helicopters, Computershare Trust Company of Canada (Computershare) and Fonds de solidarite des travailleurs du Quebec (F.T.Q.) (“FSTQ”) entered into a share purchase agreement whereby Computershare, as trustee and custodian under the LTIP, will, subject to certain conditions, purchase a minimum of 120,000 and a maximum of 190,000 common shares from FSTQ at a purchase price based on the volume weighted average price of the common shares on the TSX for the ten trading days immediately following March 28, 2012. The closing of the sale is expected to occur in April 2012. 

Immediately following the closing of the sale, FSTQ’s interest in the common shares of Canadian Helicopters will be reduced from approximately 20.87% to between approximately 19.93% and 19.37%.

Canadian Helicopters will hold a conference call to discuss these results on March 28, 2012 at 11:00 AM (ET). Interested parties can join the call by dialing 647-427-7450 (Toronto) or 1-888-231-8191 (toll free). If you are unable to call at this time, you may access a tape recording of the meeting by calling 416-849-0833 (local) or 1-855-859-2056 (toll free) followed by access code 59689382. This tape recording will be available until April 4, 2012.

Canadian Helicopters Group is an international provider of helicopter transportation and related support services with fixed primary operations in Canada, Australia, New Zealand and regions of Southeast Asia. The group also delivers contracted on demand support in Afghanistan and Antarctica. Charter operations are provided under two brands: Helicopters New Zealand (HNZ) in the Asia Pacific and Antarctica regions and Canadian Helicopters Limited (CHL) in Canada and Afghanistan. In addition to charter services, the Company provides flight training and third party repair and maintenance services. With headquarters near Montreal, Canada, the Company operates approximately 160 helicopters and employs approximately 800 personnel.