Slide 1: 3rd Quarter 2013 Earnings Presentation
3rd Quarter 2013 Earnings Presentation 0November 13, 2013
Slide 2: 3rd Quarter 2013 Earnings Call Agenda
I. Introduction Chris Bradshaw, EVP and CFO II. Q3 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 3rd Quarter 2013 Earnings Call Agenda 1
Slide 3: Forward-looking statements
2 This presentation contains “forward-looking statements.” Forward-looking statements give Era Group’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,” “esti
Slide 4: EBITDA, Adjusted EBITDA and Adjusted EBITDAR definitions
3 This presentation includes EBITDA, Adjusted EBITDA and Adjusted EBITDAR as supplemental measures of Era Group’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 Am
Slide 5: Q3 Operational Highlights
GROUP INC. Q3 Operational Highlights
Slide 6: Q3 2013 Highlights
5 Q3 2013 Highlights • Strong operating performance in Q3 2013 reflected by record Q3 operating revenues of $81.0mm ̶ 4% year-over-year increase from Q3 2012 ̶ 9% sequential increase from Q2 2013 • Q3 net income attributable to Era Group Inc. of $5.2mm ̶ Flat from Q3 2012 ̶ 3% increase from Q2 2013
Slide 7: EC225 Helicopters Return to Service
EC225 Helicopters Return to Service 6 • After months of tests, Eurocopter identified the root cause of the service failures and implemented engineering solutions, prevention and detection measures to remedy the matters that led to the suspension • In July, the European Aviation Safety Agency (EASA)
Slide 8: Oil and Gas
7 Oil and Gas • Q3 operating revenues from oil and gas activities of $60.4mm ̶ 20% increase from Q3 2012 ̶ 15% increase from Q2 2013 • U.S. Gulf of Mexico operating revenues of $45.1mm ̶ 12% increase from prior year quarter primarily due to more flight hours in medium helicopters given increased dee
Slide 9: Other Service Lines
8 Other Service Lines • Contract-leasing revenues of $10.4mm in Q3 2013 ̶ 36% decrease from Q3 2012 primarily due to the timing of cash receipts from Aeróleo and to contract-leases that have ended since the prior year quarter ̶ 21% decrease from Q2 2013 due almost entirely to the timing of cash rece
Slide 10: Helicopter Order and Options Book
Helicopter Order and Options Book 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 2013 Medium AW139 2 $20.7 – 2014 Medium AW139 2 $24.6 – 2014 Heavy AW189 3 $30.5 $16.5 2015 Heavy AW189 2 – $33.0 2016 Heavy AW189 3 – $50.5 2017 Heavy AW189 2
Slide 11: Financial Review
Financial Review 10
Slide 12: Period Over Period Comparison
11 Period Over Period Comparison Three Months Ended September 30, 2013 2012 $ Change % Variance ($000s) Operating revenues 80,997$ 77,989$ 3,008$ 4% Operating expenses 51,338 46,235 5,103 (11%) G&A expenses 9,683 10,338 (655) 6% Depreciation 11,340 10,937 403 (4%) Gains on asset dispositions 2,560 6
Slide 13: Sequential Quarter Comparison
12 Sequential Quarter Comparison Three Months Ended 30‐Sep 30‐Jun $ Change % Variance ($000s) Operating revenues 80,997$ 74,237$ 6,760$ 9% Operating expenses 51,338 46,945 4,393 (9%) G&A expenses 9,683 9,545 138 (1%) Depreciation 11,340 11,431 (91) 1% Gains on asset dispositions 2,560 4,476 (1,916)
Slide 14: Capitalization and Financial Policy
Capitalization and Financial Policy 13 September 30, 2013 ($000s) As Adjusted Cash and cash equivalents $32,417 Revolving credit facility $15,000 Promissory notes 31,007 Total secured debt $46,007 7.750% Senior Notes $200,000 Total debt $246,007 Net debt $213,590 Stockholders' equity $433,675 Total
Slide 15: Net Asset Value
14 Net Asset Value $15 $20 $25 $30 $35 $40 $45 $50 22‐Jan 22‐Feb 22‐Mar 22‐Apr 22‐May 22‐Jun 22‐Jul 22‐Aug 22‐Sep 22‐Oct NAV per Share (excl. deferred taxes) Stock Price NAV per Share (net of deferred taxes) Book Value per Share
Slide 16: GROUP INC.
Lr GROUP INC.
Slide 17: Fleet Overview
Owned Joint Ventured Leased-In Managed Total Average Age(a) Heavy: EC225 9 – – – 9 4 Total Heavy 9 – – – 9 4 Medium: AW139 35 1 – – 36 4 Bell 212 11 – – – 11 35 Bell 412 6 – – – 6 32 S76 A/A++ 2 – 1 – 3 23 S76 C+/C++ 5 – – 1 6 7 Total Medium 59 1 1 1 62 13 Light – twin engine: A109 7 – – 2 9 7 BK-11
Slide 18: NAV per Share Calculation (as of 9/30/13)
17 NAV per Share Calculation (as of 9/30/13) • Factors resulting in decline of NAV per share in the current quarter: ̶ Higher diluted share count: This is the first period in which restricted stock awards and in-the- money stock options have had a dilutive effect ̶ Lower EC225 values: Recently compl
Slide 19: Financial Highlights
Financial Highlights 18 (a) See next page for Adjusted EBITDAR reconciliation to Net Income (Loss) ($ millions) 2008 2009 2010 2011 2012 Q3 '13 Q3 '12 Revenue 248.6$ 235.7$ 235.4$ 258.1$ 272.9$ 81.0$ 78.0$ Operating Expenses 181.5 148.0 147.2 162.7 167.2 51.3 46.2 G&A 20.1 21.4 25.8 31.9 34.8 9.7 10
Slide 20: 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 and Adjusted EBITDAR to more accurately reflect Era’s historical results if we had not been