Slide 1: Q4 and Full Year 2013 Earnings Presentation
Q4 and Full Year 2013 Earnings Presentation 0March 18, 2014
Slide 2: Q4 and Full Year 2013 Earnings Call Agenda
I. Introduction Chris Bradshaw, EVP and CFO II. Operational Highlights Sten Gustafson, Chief Executive Officer III. Financial Review Chris Bradshaw, EVP and CFO IV. Closing Remarks Sten Gustafson, Chief Executive Officer V. Questions & Answers Q4 and Full Year 2013 Earnings Call Agenda 1
Slide 3: Forward-looking statements
2 This presentation contains “forward-looking statements.” Forward-looking statements give the Company’s current expectations or forecasts of future events. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “es
Slide 4: EBITDA and Adjusted EBITDA definitions
3 This presentation includes EBITDA and Adjusted EBITDA as supplemental measures of the Company’s operating performance. EBITDA is defined as Earnings before Interest (includes interest income, interest expense and interest expense on advances from SEACOR), Taxes, Depreciation and Amortization. Adju
Slide 5: Operational Highlights
GROUP INC. Operational Highlights
Slide 6: Full Year 2013 Highlights
5 Full Year 2013 Highlights • Record operating revenues of $299.0mm represent a 10% increase over full year 2012 ̶ Total increase of $26.0mm primarily due to higher utilization of medium helicopters related to an increase in oil & gas activities in the U.S. Gulf of Mexico and Alaska, the commencemen
Slide 7: Q4 2013 Highlights Compared to Prior Year Quarter
6 Q4 2013 Highlights Compared to Prior Year Quarter • Record Q4 operating revenues of $76.0mm represent a 7% increase over the prior year quarter ̶ Total increase of $5.1mm primarily due to the EC225 helicopters resuming operations, increased utilization and rates for single engine helicopters in th
Slide 8: Oil and Gas
7 Oil and Gas • Q4 operating revenues from oil and gas activities of $53.6mm ̶ 25% increase from Q4 2012 ̶ 4% decrease from Q3 2013 due to seasonality in Alaska • U.S. Gulf of Mexico operating revenues of $45.5mm ̶ 25% increase from prior year quarter primarily due the EC225 helicopters resuming ope
Slide 9: Other Service Lines
8 Other Service Lines • Dry-leasing revenues of $11.6mm in Q4 2013 ̶ 38% decrease from Q4 2012 primarily due to the timing of cash receipts from Aeróleo and our customer in India and to contract-leases that have ended since the prior year quarter ̶ 11% increase from Q3 2013 due almost entirely to th
Slide 10: Helicopter Order and Options Book
Helicopter Order and Options Book 9 C u r r e n t O r d e r B o o k O p t i o n s Delivery Class Type Number Remaining Amount Firm Cancellable 2014 Medium AW139 2 $18.9 – 2014 Heavy AW189 3 $42.6 – 2015 Heavy AW189 2 – $33.6 2016 Heavy AW189 3 – $51.4 2016 Heavy S92 3 $76.7 – 2017 Heavy AW189 2 – $3
Slide 11: Financial Review
Financial Review 10
Slide 12: Period Over Period Comparison – Full Year
11 Period Over Period Comparison – Full Year Twelve Months Ended December 31, 2013 2012 $ Change % Variance ($000s) Operating revenues 298,959$ 272,921$ 26,038$ 10% Operating expenses 186,612 167,195 19,417 (12%) G&A expenses 38,924 34,785 4,139 (12%) Depreciation 45,561 42,502 3,059 (7%) Gains on a
Slide 13: Period Over Period Comparison – 4th Quarter
12 Period Over Period Comparison – 4th Quarter Three Months Ended December 31, 2013 2012 $ Change % Variance ($000s) Operating revenues 75,998$ 70,895$ 5,103$ 7% Operating expenses 45,213 42,282 2,931 (7%) G&A expenses 10,562 7,575 2,987 (39%) Depreciation 11,129 11,471 (342) 3% Gains on asset dispo
Slide 14: Sequential Quarter Comparison
13 Sequential Quarter Comparison Three Months Ended 31‐Dec 30‐Sep $ Change % Variance ($000s) Operating revenues 75,998$ 80,997$ (4,999)$ (6%) Operating expenses 45,213 51,338 (6,125) 12% G&A expenses 10,562 9,683 879 (9%) Depreciation 11,129 11,340 (211) 2% Gains on asset dispositions 464 2,560 (2,
Slide 15: Capitalization and Financial Policy
Capitalization and Financial Policy 14 • Era continues to generate substantial free cash flow • Flexibility to fund growth via organic and strategic opportunities • Existing capital commitments can be funded via combination of cash-on-hand, cash flow from operations and temporary borrowings under ou
Slide 16: Net Asset Value
15 Net Asset Value $15 $20 $25 $30 $35 $40 $45 $50 22-Jan 22-Feb 22-Mar 22-Apr 22-May 22-Jun 22-Jul 22-Aug 22-Sep 22-Oct 22-Nov 22-Dec 22-Jan 22-Feb NAV per Share (excl. deferred taxes) Stock Price NAV per Share (net of deferred taxes) Book Value per Share
Slide 17: Appendix
Lr GROUP INC.
Slide 18: Fleet Overview
Fleet Overview 17 Owned Joint Ventured Leased-In Managed Total Average Age(1) Heavy: EC225 9 – – – 9 4 Total Heavy 9 – – – 9 Medium: AW139 34 1 – – 35 4 Bell 212 11 – – – 11 35 Bell 412 6 – – – 6 32 S76 A/A++ 3 – – – 3 27 S76 C+/C++ 5 – – 1 6 7 Total Medium 59 1 – 1 61 Light – twin engine: A109 7 –
Slide 19: NAV per Share Calculation
18 NAV per Share Calculation (as of 12/31/13) Notes: 1) NAV calculation only includes fair market value of helicopters that we own; it does not include any value for leased-in or managed helicopters that we operate 2) Helicopter fair market values based on annual desktop appraisal performed by Ascen
Slide 20: Financial Highlights
Financial Highlights 19 (a) See next page for Adjusted EBITDA reconciliation to Net Income (Loss) ($ millions) 2008 2009 2010 2011 2012 2013 Q4 '13 Q4 '12 Revenue 248.6$ 235.7$ 235.4$ 258.1$ 272.9$ 299.0$ 76.0$ 70.9$ Operating Expenses 181.5 148.0 147.2 162.7 167.2 186.6 45.2 42.3 G&A 20.1 21.4 25.8
Slide 21: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures • Historically, SEACOR charged its corporate costs and overhead charges to all of its operating divisions − These charges have been excluded from Adjusted EBITDA to more accurately reflect Era’s historical results if we had not been a SEACOR subsidiary •