Bristow Group Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

GUARANTORS OF SECURITIES

GUARANTORS OF SECURITIES

3 Months Ended

Mar. 31, 2020

Era Group’s payment obligations under the 7.750% Senior Notes are jointly and severally guaranteed by all of its existing 100% owned U.S. subsidiaries that guarantee the Revolving Credit Facility and any future U.S. subsidiaries that guarantee the Revolving Credit Facility or other material indebtedness Era Group may incur in the future (the “Guarantors”). All the Guarantors currently guarantee the Revolving Credit Facility, and the guarantees of the Guarantors are full and unconditional and joint and several.

As a result of the agreement by the Guarantors to guarantee the 7.750% Senior Notes, the Company presents the following condensed consolidating balance sheets and statements of operations, comprehensive income and cash flows for Era Group (“Parent”), the Guarantors and the Company’s other subsidiaries (“Non-guarantors”). These statements should be read in conjunction with the accompanying consolidated financial statements and notes of the Company.

Supplemental Condensed Consolidating Balance Sheet as of March 31, 2020



	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
	(in thousands, except share data)
ASSETS
Current assets:
Cash and cash equivalents	$	111,654		$	—		$	1,864		$	—		$	113,518
Receivables:
Trade, operating, net of allowance for doubtful accounts	—			28,738			5,364			—			34,102
Trade, dry-leasing	—			5,754			—			—			5,754
Tax receivable	—			2			2,157			—			2,159
Other	—			14,594			412			—			15,006
Inventories, net	—			19,927			14			—			19,941
Prepaid expenses	991			2,108			313			—			3,412
Total current assets	112,645			71,123			10,124			—			193,892
Property and equipment	—			876,767			16,818			—			893,585
Accumulated depreciation	—			(340,873		)	(4,584		)	—			(345,457		)
Property and equipment, net	—			535,894			12,234			—			548,128
Operating lease right-of-use	—			7,526			1,146			—			8,672
Investments in consolidated subsidiaries	189,347			—			—			(189,347		)	—
Intangible assets	—			—			92			—			92
Deferred income taxes	11,711			—			—			(11,711		)	—
Intercompany receivables	285,926			—			—			(285,926		)	—
Other assets	524			873			329			—			1,726
Total assets	$	600,153		$	615,416		$	23,925		$	(486,984	)	$	752,510
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	1,239		$	10,078		$	1,158		$	—		$	12,475
Accrued wages and benefits	625			4,767			1,173			—			6,565
Accrued interest	3,259			50			—			—			3,309
Accrued income taxes	2,273			—			24			—			2,297
Accrued other taxes	—			1,201			338			—			1,539
Accrued contingencies	—			—			701			—			701
Current portion of long-term debt	—			17,901			—			—			17,901
Other current liabilities	1,126			1,904			280			—			3,310
Total current liabilities	8,522			35,901			3,674			—			48,097
Long-term debt	142,004			—			—			—			142,004
Deferred income taxes	—			112,788			907			(11,711		)	101,984
Intercompany payables	—			220,529			65,417			(285,946		)	—
Operating lease liabilities	—			6,219			884			—			7,103
Deferred gains and other liabilities	—			920			—			—			920
Total liabilities	150,526			376,357			70,882			(297,657		)	300,108
Redeemable noncontrolling interest	—			—			2,752			—			2,752
Equity:
Common stock, $0.01 par value, 60,000,000 shares authorized; 21,756,272 outstanding, exclusive of treasury shares	230			—			—			—			230
Additional paid-in capital	452,703			100,306			4,562			(104,870		)	452,701
Retained earnings	7,438			138,753			(54,271		)	(84,457		)	7,463
Treasury shares, at cost, 1,236,282 shares	(10,744		)	—			—			—			(10,744		)
Total equity	449,627			239,059			(49,709		)	(189,327		)	449,650
Total liabilities, redeemable noncontrolling interest and stockholders’ equity	$	600,153		$	615,416		$	23,925		$	(486,984	)	$	752,510

Supplemental Condensed Consolidating Balance Sheet as of December 31, 2019



	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
	(in thousands, except share data)
ASSETS
Current assets:
Cash and cash equivalents	$	114,965		$	—		$	2,401		$	—		$	117,366
Receivables:
Trade, operating, net of allowance for doubtful accounts	—			27,230			5,500			—			32,730
Trade, dry leasing	—			5,234			—			—			5,234
Tax receivables	—			2			2,858			—			2,860
Other	—			15,136			285			—			15,421
Inventories, net	—			20,019			47			—			20,066
Prepaid expenses	488			1,480			216			—			2,184
Total current assets	115,453			69,101			11,307			—			195,861
Property and equipment	—			878,281			16,782			—			895,063
Accumulated depreciation	—			(333,788		)	(4,376		)	—			(338,164		)
Property and equipment, net	—			544,493			12,406			—			556,899
Operating lease right-of-use	—			7,694			1,774			—			9,468
Investments in consolidated subsidiaries	190,142			—			—			(190,142		)	—
Intangible assets	—			—			96			—			96
Deferred income taxes	9,909			—			—			(9,909		)	—
Intercompany receivables	288,023			—			—			(288,023		)	—
Other assets	670			1,082			439			—			2,191
Total assets	$	604,197		$	622,370		$	26,022		$	(488,074	)	$	764,515
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	405		$	10,937		$	1,581		$	—		$	12,923
Accrued wages and benefits	122			9,065			1,367			—			10,554
Accrued interest	468			52			—			—			520
Accrued income taxes	3,595			1			16			—			3,612
Accrued other taxes	—			487			450			—			937
Accrued contingencies	—			—			598			—			598
Current portion of long-term debt	—			18,317			—			—			18,317
Other current liabilities	1,053			1,866			396			—			3,315
Total current liabilities	5,643			40,725			4,408			—			50,776
Long-term debt	141,832			—			—			—			141,832
Deferred income taxes	—			112,795			907			(9,909		)	103,793
Intercompany payables	—			225,341			62,702			(288,043		)	—
Operating lease liabilities	—			6,434			1,381			—			7,815
Deferred gains and other liabilities	—			745			—			—			745
Total liabilities	147,475			386,040			69,398			(297,952		)	304,961
Redeemable noncontrolling interest	—			—			2,812			—			2,812
Equity:
Common stock, $0.01 par value, 60,000,000 shares authorized; 21,285,613 outstanding, exclusive of treasury shares	224			—			—			—			224
Additional paid-in capital	452,010			100,307			4,562			(104,870		)	452,009
Retained earnings	14,671			136,023			(50,750		)	(85,252		)	14,692
Treasury shares, at cost, 1,152,826 shares	(10,183		)	—			—			—			(10,183		)
Total equity	456,722			236,330			(46,188		)	(190,122		)	456,742
Total liabilities, redeemable noncontrolling interest and stockholders’ equity	$	604,197		$	622,370		$	26,022		$	(488,074	)	$	764,515

Supplemental Condensed Consolidating Statements of Operations for the Three Months Ended March 31, 2020



	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
	(in thousands)
Revenues	$	—		$	51,918		$	12,150		$	(7,012	)	$	57,056
Costs and expenses:
Operating	—			32,441			13,077			(7,012		)	38,506
Administrative and general	4,583			7,323			839			—			12,745
Depreciation	—			9,295			212			—			9,507
Total costs and expenses	4,583			49,059			14,128			(7,012		)	60,758
Loss on asset dispositions, net	—			(34		)	—			—			(34		)
Operating income (loss)	(4,583		)	2,825			(1,978		)	—			(3,736		)
Other income (expense):
Interest income	378			337			34			—			749
Interest expense	(3,281		)	(158		)	—			—			(3,439		)
Foreign currency losses, net	(24		)	(45		)	(1,635		)	—			(1,704		)
Other, net	—			12			(2		)	—			10
Total other income (expense)	(2,927		)	146			(1,603		)	—			(4,384		)
Income (loss) before income taxes and equity earnings	(7,510		)	2,971			(3,581		)	—			(8,120		)
Income tax (benefit) expense	(1,072		)	241			—			—			(831		)
Income (loss) before equity earnings	(6,438		)	2,730			(3,581		)	—			(7,289		)
Equity in earnings (losses) of subsidiaries	(795		)	—			—			795			—
Net income (loss)	(7,233		)	2,730			(3,581		)	795			(7,289		)
Net loss attributable to noncontrolling interest in subsidiary	—			—			60			—			60
Net income (loss) attributable to Era Group Inc.	$	(7,233	)	$	2,730		$	(3,521	)	$	795		$	(7,229	)

Supplemental Condensed Consolidating Statements of Operations for the Three Months Ended March 31, 2019



	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
	(in thousands)
Revenues	$	—		$	45,314		$	13,617		$	(7,638	)	$	51,293
Costs and expenses:
Operating	—			30,049			14,285			(7,638		)	36,696
Administrative and general	1,242			6,672			961			—			8,875
Depreciation	—			9,197			253			—			9,450
Total costs and expenses	1,242			45,918			15,499			(7,638		)	55,021
Loss on asset dispositions, net	—			(124		)	—			—			(124		)
Operating loss	(1,242		)	(728		)	(1,882		)	—			(3,852		)
Other income (expense):
Interest income	196			504			52			—			752
Interest expense	(3,241		)	(213		)	(7		)	—			(3,461		)
Foreign currency losses, net	(40		)	(49		)	(37		)	—			(126		)
Other, net	—			(1		)	(10		)	—			(11		)
Total other income (expense)	(3,085		)	241			(2		)	—			(2,846		)
Loss before income taxes and equity earnings	(4,327		)	(487		)	(1,884		)	—			(6,698		)
Income tax (benefit) expense	336			(1,924		)	—			—			(1,588		)
Income (loss) before equity earnings	(4,663		)	1,437			(1,884		)	—			(5,110		)
Equity in earnings (losses) of subsidiaries	(1,280		)	(975		)	—			1,280			(975		)
Net income (loss)	(5,943		)	462			(1,884		)	1,280			(6,085		)
Net loss attributable to noncontrolling interest in subsidiary	—			—			142			—			142
Net income (loss) attributable to Era Group Inc.	$	(5,943	)	$	462		$	(1,742	)	$	1,280		$	(5,943	)

Supplemental Condensed Consolidating Statements of Comprehensive Income for the Three Months Ended March 31, 2020



	Parent			Guarantors		Non-guarantors			Eliminations		Consolidated
	(in thousands)
Net income (loss)	$	(7,233	)	$	2,730	$	(3,581	)	$	795	$	(7,289	)
Comprehensive income (loss)	(7,233		)	2,730		(3,581		)	795		(7,289		)
Comprehensive loss attributable to noncontrolling interest in subsidiary	—			—		60			—		60
Comprehensive income (loss) attributable to Era Group Inc.	$	(7,233	)	$	2,730	$	(3,521	)	$	795	$	(7,229	)

Supplemental Condensed Consolidating Statements of Comprehensive Income for the Three Months Ended March 31, 2019



	Parent			Guarantors		Non-guarantors			Eliminations		Consolidated
	(in thousands)
Net income (loss)	$	(5,943	)	$	462	$	(1,884	)	$	1,280	$	(6,085	)
Comprehensive income (loss)	(5,943		)	462		(1,884		)	1,280		(6,085		)
Comprehensive loss attributable to noncontrolling interest in subsidiary	—			—		142			—		142
Comprehensive income (loss) attributable to Era Group Inc.	$	(5,943	)	$	462	$	(1,742	)	$	1,280	$	(5,943	)

Supplemental Condensed Consolidating Statements of Cash Flows for the Three Months Ended March 31, 2020



	Parent			Guarantors			Non-guarantors			Eliminations		Consolidated
	(in thousands)
Net cash provided by (used in) operating activities	$	(2,752	)	$	708		$	(88	)	$	—	$	(2,132	)
Cash flows from investing activities:
Purchases of property and equipment	—			(347		)	(53		)	—		(400		)
Principal payments on third party notes receivable	—			55			—			—		55
Net cash used in investing activities	—			(292		)	(53		)	—		(345		)
Cash flows from financing activities:
Payments on long-term debt	—			(416		)	—			—		(416		)
Purchase of treasury shares	(561		)	—			—			—		(561		)
Net cash used in financing activities	(561		)	(416		)	—			—		(977		)
Effects of exchange rate changes on cash and cash equivalents	—			—			(394		)	—		(394		)
Net decrease in cash, cash equivalents and restricted cash	(3,313		)	—			(535		)	—		(3,848		)
Cash, cash equivalents and restricted cash, beginning of period	114,971			—			2,395			—		117,366
Cash, cash equivalents and restricted cash, end of period	$	111,658		$	—		$	1,860		$	—	$	113,518

Supplemental Condensed Consolidating Statements of Cash Flows for the Three Months Ended March 31, 2019



	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
	(in thousands)
Net cash provided by (used in) operating activities	$	5,477		$	(1,386	)	$	(1,456	)	$	—		$	2,635
Cash flows from investing activities:
Purchases of property and equipment	—			(1,221		)	(91		)	—			(1,312		)
Purchase of investments	(5,000		)	—			—			—			(5,000		)
Principal payments on notes due from equity investees	—			2,334			—			—			2,334
Principal payments on third party notes receivable	—			104			—			—			104
Net cash provided by (used in) investing activities	(5,000		)	1,217			(91		)	—			(3,874		)
Cash flows from financing activities:
Payments on long-term debt	—			(416		)	(126		)	—			(542		)
Proceeds from share award plans	—			—			—			590			590
Purchase of treasury shares	—			—			—			(5		)	(5		)
Borrowings and repayments of intercompany debt	—			585			—			(585		)	—
Net cash provided by (used in) financing activities	—			169			(126		)	—			43
Effects of exchange rate changes on cash and cash equivalents	—			—			55			—			55
Net increase (decrease) in cash, cash equivalents and restricted cash	477			—			(1,618		)	—			(1,141		)
Cash, cash equivalents and restricted cash, beginning of period	48,396			—			2,357			—			50,753
Cash, cash equivalents and restricted cash, end of period	$	48,873		$	—		$	739		$	—		$	49,612