Slide 1: Q1 2014 Earnings Presentation
Q1 2014 Earnings Presentation 0May 7, 2014
Slide 2: Q1 2014 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 Q1 2014 Earnings Call Agenda 1
Slide 3: Cautionary Statement Regarding Forward Looking Statements
2 Cautionary Statement Regarding Forward Looking Statements 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
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: Q1 2014 Highlights
5 Q1 2014 Highlights Compared to Prior Year Quarter • Record Q1 operating revenues of $79.4mm represent a 17% increase over the prior year quarter ̶ Total increase of $11.7mm primarily due to strong results from our U.S. Gulf of Mexico operations ̶ Partially offset by lower revenues from dry-leasing
Slide 7: Oil and Gas
6 Oil and Gas • Q1 operating revenues from oil and gas activities of $56.6mm ̶ 25% increase from Q1 2013 ̶ 5% increase from Q4 2013 • U.S. Gulf of Mexico operating revenues of $49.1mm ̶ 36% increase from Q1 2013 primarily due to an increase in fleet count, higher rates and the resumption of operatio
Slide 8: Other Service Lines
7 Other Service Lines • Dry-leasing revenues of $10.9mm in Q1 2014 ̶ 22% decrease from Q1 2013 due to fewer helicopters on dry-lease ̶ 6% decrease from Q4 2013 ̶ Revenues from Aeróleo and a customer in India continue to be recognized on a cash receipts basis due to liquidity issues experienced by bo
Slide 9: Helicopter Order and Options Book
Helicopter Order and Options Book 8 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 1 $9.1 – 2014 Heavy AW189 3 $40.4 – 2015 Heavy AW189 2 $14.2 $16.8 2016 Heavy AW189 3 – $51.4 2016 Heavy S92 3 $76.7 – 2017 Heavy AW189 2 –
Slide 10: Financial Review
Financial Review 9
Slide 11: Period Over Period Comparison
10 Period Over Period Comparison Three Months Ended March 31, 2014 2013 $ Change % Variance ($000s) Operating revenues 79,443$ 67,727$ 11,716$ 17% Operating expenses 49,640 43,116 6,524 (15%) G&A expenses 11,334 9,134 2,200 (24%) Depreciation 11,287 11,661 (374) 3% Gains on asset dispositions 2,891
Slide 12: Sequential Quarter Comparison
11 Sequential Quarter Comparison Three Months Ended 31‐Mar 31‐Dec $ Change % Variance ($000s) Operating revenues 79,443$ 75,998$ 3,445$ 5% Operating expenses 49,640 45,213 4,427 (10%) G&A expenses 11,334 10,562 772 (7%) Depreciation 11,287 11,129 158 (1%) Gains on asset dispositions 2,891 464 2,427
Slide 13: Capitalization and Financial Policy
March 31, 2014 ($000s) Cash and cash equivalents $25,338 Revolving credit facility $55,000 Promissory notes 29,613 Total secured debt $84,613 7.750% Senior Notes $200,000 Total debt $284,613 Net debt $259,275 Shareholders' equity $442,632 Total capitalization $727,245 Total Debt / Adjusted EBITDA 3.
Slide 14: Net Asset Value
13 Net Asset Value $15 $20 $25 $30 $35 $40 $45 $50 1/22/13 4/22/13 7/22/13 10/22/13 1/22/14 4/22/14 NAV per Share (excl. deferred taxes) Stock Price NAV per Share (net of deferred taxes) Book Value per Share
Slide 15: Appendix
Lr GROUP INC.
Slide 16: Fleet Overview
Fleet Overview 15 Owned Joint Ventured Leased-In Managed Total Average Age(a) Heavy: EC225 9 – – – 9 4 Total Heavy 9 – – – 9 Medium: AW139 36 1 – – 37 4 B212 10 – – – 10 35 B412 6 – – – 6 32 S76 A/A++ 2 – – – 2 24 S76 C+/C++ 5 – – 1 6 7 Total Medium 59 1 – 1 61 Light – twin engine: A109 7 – – 2 9 8
Slide 17: NAV per Share Calculation
16 NAV per Share Calculation (as of 3/31/14) Notes: 1) NAV calculation only includes fair market value of helicopters that we own; it does not include any value for leased-in or managed helicopters that we operate 2) Helicopter fair market values based on annual desktop appraisal performed by Ascend
Slide 18: Financial Highlights
Financial Highlights 17 (a) See next page for Adjusted EBITDA reconciliation to Net Income (Loss) Fiscal Year 3 Mos. Ended March 31, ($ millions) 2009 2010 2011 2012 2013 2013 2014 Revenue 235.7$ 235.4$ 258.1$ 272.9$ 299.0$ 67.7$ 79.4$ Operating Expenses 148.0 147.2 162.7 167.2 186.6 43.1 49.6 G&A 2
Slide 19: 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 •