PRESS RELEASE
ERA GROUP INC. REPORTS
FIRST QUARTER 2015 RESULTS
Houston, Texas
May 5, 2015
FOR IMMEDIATE RELEASE — Era Group Inc. (NYSE: ERA) today reported break-even net earnings for its first quarter ended March 31, 2015 (“current quarter”) on operating revenues of $67.4 million. Net income for the quarter ended March 31, 2014 (“prior year quarter”) was $4.4 million, or $0.22 per diluted share, on operating revenues of $79.4 million. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) was $14.6 million in the current quarter compared to $21.8 million in the prior year quarter.
Foreign exchange losses of $3.0 million in the current quarter were primarily due to the strengthening of the U.S. dollar resulting in losses on our euro denominated cash balances. Excluding the impact of foreign exchange losses, net income in the current year quarter would have been $1.8 million, or $0.09 per share, and EBITDA would have been $17.6 million.
“As previewed in our last two earnings releases, the current excess capacity in our medium helicopter fleet is higher than it has been in recent years,” said Chris Bradshaw, Chief Executive Officer of Era Group. “The first quarter, which is typically our weakest quarter due to seasonal factors, also reflected the first full period impact of the lower utilization for our medium helicopters. Our cost-cutting and operational efficiency initiatives contributed to a reduction in expenses of almost $8.0 million, but this was not enough to keep pace with the decline in revenues.”
“Our first quarter results were also adversely impacted by foreign exchange losses. These losses resulted from a buildup in euro denominated cash balances related to the delivery and acceptance of the new AW189 heavy helicopters, which were postponed due to the delayed FAA certification of this new helicopter model. We now expect to take delivery and make final payment for these new helicopters in the second quarter. Our day-to-day operations do not have significant currency exposure.”
“We typically experience a seasonal increase in activity in the second and third quarters of the year as daylight hours increase and weather conditions improve in the U.S. Gulf of Mexico and Alaska and as our seasonal firefighting and flightseeing operations resume in Alaska. In addition to the delivery of four new AW189 helicopters referenced above, we also expect to take delivery of two new S92 heavy helicopters during 2015. We expect all six of these new heavy helicopters to work on contracts in the U.S. Gulf of Mexico. In Brazil, of the seven contracts awarded in 2013 for AW139 medium helicopters with Petrobras, three began operations in December 2014, one began in March 2015, two began in April 2015, and we expect the last one to begin in early June 2015. We currently expect the January 2015 contract awards for additional medium and heavy helicopters with Petrobras to begin in the second half of 2015 and early 2016.”
First Quarter Results
Operating revenues in the current quarter were $12.0 million lower than the prior year quarter primarily due to lower utilization of our medium helicopters.
Operating expenses were $6.0 million lower in the current quarter primarily due to decreased repairs and maintenance expense related to the timing of repairs and receipt of credits and decreased fuel expense related to fewer flight hours and lower fuel prices.
Administrative and general expenses were $1.6 million lower primarily due to reduced headcount in the current quarter and accelerated share-based compensation expenses related to changes in senior management in the prior year quarter.
Gains on asset dispositions were $0.5 million higher in the current quarter. In the current quarter, we sold two helicopters for proceeds of $5.4 million and recognized gains of $2.2 million. In addition, a leasing customer exercised a purchase option for three helicopters from which we recognized a gain of $1.2 million. During the prior year quarter, we sold two helicopters for total proceeds of $3.6 million resulting in gains of $2.9 million.
Equity earnings were $0.6 million lower in the current quarter primarily due to losses from our Dart Holding Company Ltd. joint venture.
Sequential Quarter Results
Operating revenues in the current quarter were $7.3 million lower compared to the fourth quarter of 2014 (“preceding quarter”) primarily due to lower utilization of helicopters in our oil and gas operations.
Operating expenses were $2.2 million lower compared to the preceding quarter primarily due to decreases in fuel, repairs and maintenance, and personnel expenses.
Gains on asset dispositions were $3.4 million higher compared to the preceding quarter.
Foreign currency losses and derivative losses adversely impacted sequential quarter results by $1.1 million and $0.8 million, respectively.
EBITDA and net income attributable to Era Group were $4.0 million and $3.2 million lower, respectively, compared to the preceding quarter.
Fleet Update
During the current quarter, the Company’s capital expenditures were $8.9 million, which consisted primarily of a base expansion project and capitalized interest.
The current excess capacity in our medium helicopter fleet is higher than in recent periods. Excess helicopters include our helicopters other than those under customer contracts, undergoing maintenance or dedicated for charter activity. We are participating in several competitive bids to place some or all of the excess medium helicopters on contract. If we are not successful in securing sufficient new projects, our financial results will be negatively impacted. In addition, we may sell certain helicopters on an opportunistic basis consistent with our stated strategy.
FBO Sale
The Company entered into an agreement to sell its fixed base operations (“FBO”) business at Ted Stevens Anchorage International Airport to Piedmont Hawthorne Aviation, LLC, part of the of Landmark Aviation network consisting of 68 FBOs in the U.S., Canada and Western Europe on April 8, 2015. Pursuant to the agreement, Piedmont Hawthorne Aviation, LLC acquired 100% of Era Group’s wholly-owned subsidiary, Era FBO LLC. The transaction closed on May 1, 2015.
Capital Commitments
The Company’s unfunded capital commitments as of March 31, 2015 consisted primarily of orders for helicopters and totaled $195.2 million, of which $90.2 million is payable during 2015 with the balance payable through 2017. The Company also had $1.8 million of deposits paid on options not yet exercised. The Company may terminate $102.9 million of its total commitments (inclusive of deposits paid on options not yet exercised) without further liability other than aggregate liquidated damages of $2.5 million.
Included in these capital commitments are agreements to purchase nine AW189 heavy helicopters, four S92 heavy helicopters and five AW169 light twin helicopters. The AW189 helicopters are scheduled to be delivered beginning in Q2 2015 through 2017. The S92 helicopters are scheduled to be delivered in 2015 through 2017. Delivery dates for the AW169 helicopters have yet to be determined. In addition, the Company had outstanding options to purchase up to an additional ten AW189 helicopters and five S92 helicopters. If these options are exercised, the helicopters would be scheduled for delivery beginning in 2016 through 2018.
Liquidity
As of March 31, 2015, the Company had $33.7 million in cash balances and remaining availability under its senior secured revolving credit facility of $209.2 million. The Company also had $2.8 million of escrow deposits.
Conference Call
Management will conduct a conference call starting at 10:00 a.m. ET (9:00 a.m. CT) on Wednesday, May 6, 2015, to review the results for the first quarter ended March 31, 2015. The conference call can be accessed as follows:
All callers will need to reference the access code 21928964
Within the U.S.: Operator Assisted Toll-Free Dial-In Number: (866) 607-0535
Outside the U.S.: Operator Assisted International Dial-In Number: (832) 445-1827
Replay
A telephone replay will be available through May 20, 2015 and may be accessed by calling (855) 859-2056 for domestic callers or (404) 537-3406 for international callers. An audio replay will also be available on the Company’s website at www.eragroupinc.com shortly after the call and will be accessible for approximately 90 days.
About Era Group
Era Group is one of the largest helicopter operators in the world and the longest serving helicopter transport operator in the U.S. In addition to servicing its U.S. customers, Era Group also provides helicopters and related services to third-party helicopter operators and customers in other countries, including Brazil, India, Norway, Spain, and the United Kingdom. Era Group’s helicopters are primarily used to transport personnel to, from and between offshore installations, drilling rigs and platforms.
Certain statements discussed in this release as well as in other reports, materials and oral statements that the Company releases from time to time to the public include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements concerning management's expectations, strategic objectives, business prospects, anticipated performance and financial condition and other similar matters involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of results to differ materially from any future results, performance or achievements discussed or implied by such forward-looking statements. Such risks, uncertainties and other important factors include, among others, the Company’s dependence on, and the cyclical nature of, offshore oil and gas exploration, development and production activity; fluctuations in worldwide prices of and demand for oil and natural gas; the Company’s reliance on a small number of customers and reduction of the Company’s customer base resulting from consolidation; inherent risks in operating helicopters; the failure to maintain an acceptable safety record; the ability to successfully expand into other geographic and helicopter service markets; the impact of increased United States (“U.S.”) and foreign government regulation and legislation, including potential government implemented moratoriums on drilling activities; the requirement to engage in competitive processes or expend significant resources with no guaranty of recoupment; the grounding of all or a portion of our fleet for extended periods of time or indefinitely; reduction or cancellation of services for government agencies; reliance on a small number of helicopter manufacturers and suppliers; political instability, governmental action, war, acts of terrorism and changes in the economic condition in any foreign country where the Company does business, which may result in expropriation, nationalization, confiscation or deprivation of our assets or result in claims of a force majeure situation; declines in the global economy and financial markets; foreign currency exposure and exchange controls, including the impact of fluctuations in foreign currency exchange rates on the Company’s cost to purchase helicopters, spare parts and related services and on asset values; credit risk exposure; the ongoing need to replace aging helicopters; the Company’s reliance on the secondary used helicopter market to dispose of older helicopters; the Company’s reliance on information technology; allocation of risk between the Company and its customers; liability, legal fees and costs in connection with providing emergency response services; risks associated with the Company’s debt structure; operational and financial difficulties of the Company’s joint ventures and partners; conflict with the other owners of the Company’s non-wholly owned subsidiaries and other equity investees; adverse results of legal proceedings; adverse weather conditions and seasonality; adequacy of insurance coverage; the attraction and retention of qualified personnel; restrictions on the amount of foreign ownership of the Company’s common stock; and various other matters and factors, many of which are beyond the Company’s control. In addition, these statements constitute Era Group's cautionary statements under the Private Securities Litigation Reform Act of 1995. It is not possible to predict or identify all such factors. Consequently, the foregoing should not be considered a complete discussion of all potential risks or uncertainties. The words "estimate," "project," "intend," "believe," "plan" and similar expressions are intended to identify forward-looking statements. Forward-looking statements speak only as of the date of the document in which they are made. Era Group disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in Era Group's expectations or any change in events, conditions or circumstances on which the forward-looking statement is based. The forward-looking statements in this release should be evaluated together with the many uncertainties that affect the Company's businesses, particularly those mentioned under "Risk Factors" in Era Group's Annual Report on Form 10-K for the year ended December 31, 2014, in Era Group's subsequent Quarterly Reports on Form 10-Q and in Era Group's current reporting on Form 8-K (if any), which are incorporated by reference.
For additional information concerning Era Group, contact Benjamin Slusarchuk at (713) 369-4630 or visit Era Group’s website at www.eragroupinc.com.
ERA GROUP INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except share and per share amounts) |
| | | | | | | | |
| | Three Months Ended
March 31, |
| | 2015 | | 2014 |
Operating revenues | | $ | 67,415 |
| | $ | 79,443 |
|
Costs and expenses: | | | | |
Operating | | 43,605 |
| | 49,640 |
|
Administrative and general | | 9,743 |
| | 11,334 |
|
Depreciation | | 11,602 |
| | 11,287 |
|
Total costs and expenses | | 64,950 |
| | 72,261 |
|
Gains on asset dispositions, net | | 3,388 |
| | 2,891 |
|
Operating income | | 5,853 |
| | 10,073 |
|
Other income (expense): | | | | |
Interest income | | 251 |
| | 145 |
|
Interest expense | | (3,545 | ) | | (3,753 | ) |
Gain on debt extinguishment | | 264 |
| | — |
|
Derivative losses, net | | (12 | ) | | (30 | ) |
Foreign currency losses, net | | (2,960 | ) | | (57 | ) |
Total other income (expense) | | (6,002 | ) | | (3,695 | ) |
Income (loss) before income taxes and equity earnings | | (149 | ) | | 6,378 |
|
Income tax expense (benefit) | | (55 | ) | | 2,503 |
|
Income (loss) before equity earnings (losses) | | (94 | ) | | 3,875 |
|
Equity earnings (losses), net of tax | | (145 | ) | | 499 |
|
Net income (loss) | | (239 | ) | | 4,374 |
|
Net loss attributable to non-controlling interest in subsidiary | | 197 |
| | 71 |
|
Net income (loss) attributable to Era Group Inc. | | $ | (42 | ) | | $ | 4,445 |
|
| | | | |
Earnings (loss) per common share, basic | | $ | — |
| | $ | 0.22 |
|
Earnings (loss) per common share, diluted | | $ | — |
| | $ | 0.22 |
|
| | | | |
Weighted average common shares outstanding, basic | | 20,195,955 |
| | 19,952,930 |
|
Weighted average common shares outstanding, diluted | | 20,195,955 |
| | 20,025,135 |
|
| | | | |
EBITDA | | $ | 14,602 |
| | $ | 21,772 |
|
Adjusted EBITDA | | $ | 14,338 |
| | $ | 21,772 |
|
Adjusted EBITDA excluding Gains | | $ | 10,950 |
| | $ | 18,881 |
|
ERA GROUP INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except share and per share amounts) |
| | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| | Mar 31,
2015 | | Dec 31,
2014 | | Sep 30,
2014 | | Jun 30,
2014 | | Mar 31,
2014 |
Operating revenues | | $ | 67,415 |
| | $ | 74,689 |
| | $ | 90,510 |
| | $ | 86,580 |
| | $ | 79,443 |
|
Costs and expenses: | | | | | | | | | | |
Operating | | 43,605 |
| | 45,772 |
| | 54,282 |
| | 54,679 |
| | 49,640 |
|
Administrative and general | | 9,743 |
| | 9,647 |
| | 12,941 |
| | 10,065 |
| | 11,334 |
|
Depreciation | | 11,602 |
| | 11,854 |
| | 11,746 |
| | 11,425 |
| | 11,287 |
|
Total costs and expenses | | 64,950 |
| | 67,273 |
| | 78,969 |
| | 76,169 |
| | 72,261 |
|
Gains on asset dispositions, net | | 3,388 |
| | 29 |
| | 42 |
| | 3,139 |
| | 2,891 |
|
Operating income | | 5,853 |
| | 7,445 |
| | 11,583 |
| | 13,550 |
| | 10,073 |
|
Other income (expense): | | | | | | | | | | |
Interest income | | 251 |
| | 122 |
| | 130 |
| | 143 |
| | 145 |
|
Interest expense | | (3,545 | ) | | (3,556 | ) | | (3,629 | ) | | (3,840 | ) | | (3,753 | ) |
Gain on debt extinguishment | | 264 |
| | — |
| | — |
| | — |
| | — |
|
Derivative gains (losses), net | | (12 | ) | | 800 |
| | (1,703 | ) | | (11 | ) | | (30 | ) |
Note receivable impairment | | — |
| | — |
| | — |
| | (2,457 | ) | | — |
|
Foreign currency gains (losses), net | | (2,960 | ) | | (1,856 | ) | | (485 | ) | | 21 |
| | (57 | ) |
Other, net | | — |
| | (14 | ) | | (3 | ) | | 13 |
| | — |
|
Total other income (expense) | | (6,002 | ) | | (4,504 | ) | | (5,690 | ) | | (6,131 | ) | | (3,695 | ) |
Income (loss) before income taxes and equity earnings | | (149 | ) | | 2,941 |
| | 5,893 |
| | 7,419 |
| | 6,378 |
|
Income tax expense (benefit) | | (55 | ) | | 155 |
| | 2,868 |
| | 2,759 |
| | 2,503 |
|
Income before equity earnings (losses) | | (94 | ) | | 2,786 |
| | 3,025 |
| | 4,660 |
| | 3,875 |
|
Equity earnings (losses), net of tax | | (145 | ) | | 354 |
| | 1,286 |
| | 536 |
| | 499 |
|
Net income (loss) | | (239 | ) | | 3,140 |
| | 4,311 |
| | 5,196 |
| | 4,374 |
|
Net loss (income) attributable to non-controlling interest in subsidiary | | 197 |
| | 45 |
| | (45 | ) | | 25 |
| | 71 |
|
Net income (loss) attributable to Era Group Inc. | | $ | (42 | ) | | $ | 3,185 |
| | $ | 4,266 |
| | $ | 5,221 |
| | $ | 4,445 |
|
| | | | | | | | | | |
Earnings (loss) per common share, basic | | $ | — |
| | $ | 0.16 |
| | $ | 0.21 |
| | $ | 0.26 |
| | $ | 0.22 |
|
Earnings (loss) per common share, diluted | | $ | — |
| | $ | 0.16 |
| | $ | 0.21 |
| | $ | 0.26 |
| | $ | 0.22 |
|
| | | | | | | | | | |
Weighted average common shares outstanding, basic | | 20,195,955 |
| | 20,173,583 |
| | 20,098,239 |
| | 20,066,060 |
| | 19,952,930 |
|
Weighted average common shares outstanding, diluted | | 20,195,955 |
| | 20,232,025 |
| | 20,163,990 |
| | 20,134,474 |
| | 20,025,135 |
|
| | | | | | | | | | |
EBITDA | | $ | 14,602 |
| | $ | 18,583 |
| | $ | 22,424 |
| | $ | 23,077 |
| | $ | 21,772 |
|
Adjusted EBITDA | | $ | 14,338 |
| | $ | 18,583 |
| | $ | 24,886 |
| | $ | 25,534 |
| | $ | 21,772 |
|
Adjusted EBITDA excluding Gains | | $ | 10,950 |
| | $ | 18,554 |
| | $ | 24,844 |
| | $ | 22,395 |
| | $ | 18,881 |
|
ERA GROUP INC. OPERATING REVENUES BY LINE OF SERVICE (unaudited, in thousands) |
| | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| | Mar 31,
2015 | | Dec 31,
2014 | | Sep 30,
2014 | | Jun 30,
2014 | | Mar 31,
2014 |
Oil and gas:(1) | | | | | | | | | | |
U.S. Gulf of Mexico | | $ | 41,913 |
| | $ | 45,837 |
| | $ | 52,870 |
| | $ | 51,715 |
| | $ | 49,141 |
|
Alaska | | 3,801 |
| | 6,496 |
| | 7,984 |
| | 9,305 |
| | 6,197 |
|
International | | — |
| | 183 |
| | 1,514 |
| | 173 |
| | 1,245 |
|
Total oil and gas | | 45,714 |
| | 52,516 |
| | 62,368 |
| | 61,193 |
| | 56,583 |
|
Dry-leasing | | 11,956 |
| | 11,911 |
| | 12,392 |
| | 11,466 |
| | 10,876 |
|
Search and rescue | | 5,238 |
| | 5,650 |
| | 5,666 |
| | 5,095 |
| | 6,152 |
|
Air medical services | | 2,367 |
| | 2,301 |
| | 2,569 |
| | 3,137 |
| | 3,091 |
|
Flightseeing | | — |
| | — |
| | 4,043 |
| | 2,946 |
| | — |
|
Fixed Base Operations | | 2,146 |
| | 2,403 |
| | 3,562 |
| | 2,858 |
| | 2,842 |
|
Eliminations | | (6 | ) | | (92 | ) | | (90 | ) | | (115 | ) | | (101 | ) |
| | $ | 67,415 |
| | $ | 74,689 |
| | $ | 90,510 |
| | $ | 86,580 |
| | $ | 79,443 |
|
FLIGHT HOURS BY LINE OF SERVICE(2) (unaudited) |
| | | | | | | | | | | | | | | |
| | Three Months Ended |
| | Mar 31,
2015 | | Dec 31,
2014 | | Sep 30,
2014 | | Jun 30,
2014 | | Mar 31,
2014 |
Oil and gas:(1) | | | | | | | | | | |
U.S. Gulf of Mexico | | 7,612 |
| | 8,514 |
| | 10,594 |
| | 11,065 |
| | 9,447 |
|
Alaska | | 290 |
| | 560 |
| | 939 |
| | 1,122 |
| | 682 |
|
International | | — |
| | — |
| | — |
| | — |
| | 57 |
|
Total oil and gas | | 7,902 |
| | 9,074 |
| | 11,533 |
| | 12,187 |
| | 10,186 |
|
Search and rescue | | 300 |
| | 355 |
| | 348 |
| | 258 |
| | 382 |
|
Air medical services | | 825 |
| | 831 |
| | 1,239 |
| | 1,100 |
| | 951 |
|
Flightseeing | | — |
| | — |
| | 1,505 |
| | 1,080 |
| | — |
|
| | 9,027 |
| | 10,260 |
| | 14,625 |
| | 14,625 |
| | 11,519 |
|
____________________
| |
(1) | Primarily oil and gas services, but also includes revenues from activities such as firefighting and utility support. |
| |
(2) | Does not include hours flown by helicopters in our dry-leasing line of service. |
ERA GROUP INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in thousands) |
| | | | | | | | | | | | | | | | | | | | |
| | Mar 31,
2015 | | Dec 31,
2014 | | Sep 30,
2014 | | Jun 30,
2014 | | Mar 31,
2014 |
ASSETS | | (unaudited) | | | | (unaudited) | | (unaudited) | | (unaudited) |
Current assets: | | | | | | | | | | |
Cash and cash equivalents | | $ | 33,691 |
| | $ | 40,867 |
| | $ | 40,357 |
| | $ | 14,940 |
| | $ | 22,290 |
|
Receivables: | | | | | | | | | | |
Trade, net of allowance for doubtful accounts | | 38,949 |
| | 33,390 |
| | 48,307 |
| | 52,582 |
| | 47,780 |
|
Other | | 2,567 |
| | 2,062 |
| | 1,679 |
| | 2,078 |
| | 4,824 |
|
Inventories, net | | 26,189 |
| | 26,869 |
| | 27,039 |
| | 26,863 |
| | 26,780 |
|
Prepaid expenses and other | | 4,081 |
| | 2,661 |
| | 1,712 |
| | 2,991 |
| | 3,292 |
|
Deferred income taxes | | 2,167 |
| | 1,996 |
| | 2,065 |
| | 1,991 |
| | 2,138 |
|
Escrow deposits | | 2,800 |
| | — |
| | — |
| | — |
| | 3,048 |
|
Total current assets | | 110,444 |
| | 107,845 |
| | 121,159 |
| | 101,445 |
| | 110,152 |
|
Property and equipment | | 1,171,548 |
| | 1,171,267 |
| | 1,128,510 |
| | 1,116,678 |
| | 1,084,199 |
|
Accumulated depreciation | | (315,399 | ) | | (308,141 | ) | | (296,294 | ) | | (284,547 | ) | | (273,754 | ) |
Net property and equipment | | 856,149 |
| | 863,126 |
| | 832,216 |
| | 832,131 |
| | 810,445 |
|
Equity investments and advances | | 31,397 |
| | 31,753 |
| | 31,641 |
| | 36,053 |
| | 35,433 |
|
Goodwill | | 352 |
| | 352 |
| | 352 |
| | 352 |
| | 352 |
|
Other assets | | 15,156 |
| | 14,098 |
| | 14,794 |
| | 15,868 |
| | 16,074 |
|
Total assets | | $ | 1,013,498 |
| | $ | 1,017,174 |
| | $ | 1,000,162 |
| | $ | 985,849 |
| | $ | 972,456 |
|
| | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | |
Current liabilities: | | | | | | | | | | |
Accounts payable and accrued expenses | | $ | 13,904 |
| | $ | 15,120 |
| | $ | 21,819 |
| | $ | 23,129 |
| | $ | 13,639 |
|
Accrued wages and benefits | | 6,822 |
| | 7,521 |
| | 9,651 |
| | 9,791 |
| | 9,583 |
|
Accrued interest | | 4,791 |
| | 949 |
| | 4,805 |
| | 950 |
| | 4,624 |
|
Accrued income taxes | | 37 |
| | 267 |
| | 1,029 |
| | 236 |
| | 781 |
|
Derivative instruments | | 275 |
| | 1,109 |
| | 1,991 |
| | 569 |
| | 529 |
|
Current portion of long-term debt | | 26,729 |
| | 27,426 |
| | 2,787 |
| | 2,787 |
| | 2,787 |
|
Other current liabilities | | 3,121 |
| | 3,162 |
| | 4,154 |
| | 4,258 |
| | 4,171 |
|
Total current liabilities | | 55,679 |
| | 55,554 |
| | 46,236 |
| | 41,720 |
| | 36,114 |
|
Long-term debt | | 277,424 |
| | 282,118 |
| | 277,390 |
| | 278,023 |
| | 278,755 |
|
Deferred income taxes | | 217,200 |
| | 217,027 |
| | 216,985 |
| | 214,117 |
| | 211,479 |
|
Deferred gains and other liabilities | | 1,937 |
| | 2,111 |
| | 2,898 |
| | 3,120 |
| | 3,476 |
|
Total liabilities | | 552,240 |
| | 556,810 |
| | 543,509 |
| | 536,980 |
| | 529,824 |
|
Equity: | | | | | | | | | | |
Era Group Inc. stockholders’ equity: | | | | | | | | | | |
Common stock | | 206 |
| | 204 |
| | 204 |
| | 204 |
| | 203 |
|
Additional paid-in capital | | 430,251 |
| | 429,109 |
| | 428,530 |
| | 425,010 |
| | 423,728 |
|
Retained earnings | | 31,755 |
| | 31,797 |
| | 28,612 |
| | 24,346 |
| | 19,125 |
|
Treasury shares, at cost | | (560 | ) | | (551 | ) | | (547 | ) | | (547 | ) | | (334 | ) |
Accumulated other comprehensive income (loss), net of tax | | 93 |
| | 95 |
| | 99 |
| | 146 |
| | 175 |
|
| | 461,745 |
| | 460,654 |
| | 456,898 |
| | 449,159 |
| | 442,897 |
|
Non-controlling interest in subsidiary | | (487 | ) | | (290 | ) | | (245 | ) | | (290 | ) | | (265 | ) |
Total equity | | 461,258 |
| | 460,364 |
| | 456,653 |
| | 448,869 |
| | 442,632 |
|
Total liabilities and stockholders’ equity | | $ | 1,013,498 |
| | $ | 1,017,174 |
| | $ | 1,000,162 |
| | $ | 985,849 |
| | $ | 972,456 |
|
Our management uses EBITDA and Adjusted EBITDA to assess the performance and operating results of our business. EBITDA is defined as Earnings before Interest (includes interest income and interest expense), Taxes, Depreciation and Amortization. Adjusted EBITDA is defined as EBITDA further adjusted for certain items noted in the reconciliation below that occur during the reported period. We include EBITDA and Adjusted EBITDA to provide investors with a supplemental measure of our operating performance. Neither EBITDA nor Adjusted EBITDA is a recognized term under generally accepted accounting principles in the U.S. (“GAAP”). Accordingly, they should not be used as an indicator of, or an alternative to, net income as a measure of operating performance. In addition, EBITDA and Adjusted EBITDA are not intended to be measures of free cash flow available for management’s discretionary use, as they do not consider certain cash requirements, such as debt service requirements. Because the definitions of EBITDA and Adjusted EBITDA (or similar measures) may vary among companies and industries, they may not be comparable to other similarly titled measures used by other companies.
The following table provides a reconciliation of Net Income, the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA (in thousands).
|
| | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| | Mar 31,
2015 | | Dec 31,
2014 | | Sep 30,
2014 | | Jun 30,
2014 | | Mar 31,
2014 |
Net Income | | $ | (239 | ) | | $ | 3,140 |
| | $ | 4,311 |
| | $ | 5,196 |
| | $ | 4,374 |
|
Depreciation | | 11,602 |
| | 11,854 |
| | 11,746 |
| | 11,425 |
| | 11,287 |
|
Interest income | | (251 | ) | | (122 | ) | | (130 | ) | | (143 | ) | | (145 | ) |
Interest expense | | 3,545 |
| | 3,556 |
| | 3,629 |
| | 3,840 |
| | 3,753 |
|
Income tax expense (benefit) | | (55 | ) | | 155 |
| | 2,868 |
| | 2,759 |
| | 2,503 |
|
EBITDA | | $ | 14,602 |
| | $ | 18,583 |
| | $ | 22,424 |
| | $ | 23,077 |
| | $ | 21,772 |
|
Special items (1) | | (264 | ) | | — |
| | 2,462 |
| | 2,457 |
| | — |
|
Adjusted EBITDA | | $ | 14,338 |
| | $ | 18,583 |
| | $ | 24,886 |
| | $ | 25,534 |
| | $ | 21,772 |
|
Gains on asset dispositions, net (“Gains”) | | (3,388 | ) | | (29 | ) | | (42 | ) | | (3,139 | ) | | (2,891 | ) |
Adjusted EBITDA excluding Gains | | $ | 10,950 |
| | $ | 18,554 |
| | $ | 24,844 |
| | $ | 22,395 |
| | $ | 18,881 |
|
____________________
| |
(1) | Special items include the following: |
| |
• | In the three months ended March 31, 2015, a pre-tax gain on the extinguishment of debt of $0.3 million related to the repurchase of a portion of our 7.750% Senior Notes; |
| |
• | In the three months ended September 30, 2014, a pre-tax charge of $2.5 million related to the accelerated recognition of previously awarded but deferred compensation awards following the resignation of our former CEO; and |
| |
• | In the three months ended June 30, 2014, a pre-tax impairment charge of $2.5 million on a note receivable from a foreign company with whom we participated in bids for contracts. |
ERA GROUP INC. FLEET COUNTS (1) (unaudited) |
| | | | | | | | | | | | | | | |
| | Mar 31,
2015 | | Dec 31,
2014 | | Sep 30,
2014 | | Jun 30,
2014 | | Mar 31,
2014 |
Heavy: | | | | | | | | | | |
H225 | | 9 |
| | 9 |
| | 9 |
| | 9 |
| | 9 |
|
| | | | | | | | | | |
Medium: | | | | | | | | | | |
AW139 | | 39 |
| | 39 |
| | 39 |
| | 38 |
| | 37 |
|
B212 | | 8 |
| | 9 |
| | 9 |
| | 9 |
| | 10 |
|
B412 | | 3 |
| | 6 |
| | 6 |
| | 6 |
| | 6 |
|
S76 A/A++ | | 2 |
| | 2 |
| | 2 |
| | 2 |
| | 2 |
|
S76 C+/C++ | | 6 |
| | 6 |
| | 6 |
| | 6 |
| | 6 |
|
| | 58 |
| | 62 |
| | 62 |
| | 61 |
| | 61 |
|
| | | | | | | | | | |
Light—twin engine: | | | | | | | | | | |
A109 | | 7 |
| | 9 |
| | 9 |
| | 9 |
| | 9 |
|
BK-117 | | 3 |
| | 3 |
| | 3 |
| | 3 |
| | 3 |
|
H135 | | 19 |
| | 20 |
| | 20 |
| | 20 |
| | 20 |
|
H145 | | 5 |
| | 5 |
| | 5 |
| | 5 |
| | 4 |
|
| | 34 |
| | 37 |
| | 37 |
| | 37 |
| | 36 |
|
| | | | | | | | | | |
Light—single engine: | | | | | | | | | | |
A119(2) | | 17 |
| | 17 |
| | 17 |
| | 24 |
| | 24 |
|
AS350 | | 35 |
| | 35 |
| | 35 |
| | 35 |
| | 35 |
|
| | 52 |
| | 52 |
| | 52 |
| | 59 |
| | 59 |
|
Total Helicopters | | 153 |
| | 160 |
| | 160 |
| | 166 |
| | 165 |
|
____________________
| |
(1) | Includes all owned, joint ventured, leased-in and managed helicopters and excludes helicopters fully paid for and delivered but not yet placed in service as of the applicable dates. |
| |
(2) | Effective July 24, 2014, we sold our 51% interest in Lake Palma, which owns seven of the A119 helicopters listed above as of June 30, 2014 and March 31, 2014. |
