Slide 1: Q1 2015 Earnings Presentation
Q1 2015 Earnings Presentation 0May 6, 2015
Slide 2: Q1 2015 Earnings Call Agenda
I. Introduction Harmony Packard, Corporate Communications II. Operational Highlights Chris Bradshaw, President, CEO and CFO III. Financial Review Chris Bradshaw, President, CEO and CFO IV. Questions & Answers Q1 2015 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 notice
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
Lora Operational Highlights
Slide 6: Q1 2015 Highlights
• Revenues of $67.4mm ̶ $12.0mm lower than Q1 2014 primarily due to lower utilization of our medium helicopters ̶ $7.3mm lower than Q4 2014 primarily due to lower utilization of helicopters in our oil and gas operations • EBITDA of $14.6mm ̶ Foreign currency loss of $3.0mm ($0.09 per diluted share)
Slide 7: Oil & Gas – Gulf of Mexico
$49,141 $41,913 $45,837 $41,913 – $25,000 $50,000 $75,000 Q1 2014 Q1 2015 Q4 2014 Q1 2015 9,447 7,612 8,514 7,612 0 5,000 10,000 15,000 Q1 2014 Q1 2015 Q4 2014 Q1 2015 6 Oil & Gas – Gulf of Mexico Revenues ($000s) Flight Hours 11% • Year-over-year revenues down along with decline in total flight hou
Slide 8: Oil & Gas – Alaska
$6,197 $3,801 $6,496 $3,801 – $2,000 $4,000 $6,000 $8,000 $10,000 Q1 2014 Q1 2015 Q4 2014 Q1 2015 7 Oil & Gas – Alaska Revenues ($000s) Flight Hours 48% 39% 41% 57% • Decline in revenues year-over-year and sequentially primarily due to lower utilization of medium helicopters 682 290 560 290 0 500 1,
Slide 9: Oil & Gas – International
$1,245 – $183 – – $1,000 $2,000 Q1 2014 Q1 2015 Q4 2014 Q1 2015 8 Oil & Gas – International Revenues ($000s) • Year-over-year and sequential quarter revenues decreased due to conclusion of an international contract
Slide 10: Dry-Leasing
$10,876 $11,956 $11,911 $11,956 – $5,000 $10,000 $15,000 $20,000 $25,000 Q1 2014 Q1 2015 Q4 2014 Q1 2015 9 Dry-Leasing Revenues ($000s) 10% • Revenues increased year-over-year due to increased cash collections from Aeróleo, partially offset by contracts that ended subsequent to the prior year quarte
Slide 11: Search and Rescue
10 Search and Rescue Revenues ($000s) Flight Hours • Decrease in revenues over the prior year quarter and sequentially primarily due to fewer flight hours • Operate AW139 SAR helicopters out of Galveston, TX and Fouchon, LA providing 24/7 emergency services covering the entire U.S. Gulf of Mexico $6
Slide 12: Air Medical
$3,091 $2,367 $2,301 $2,367 – $1,000 $2,000 $3,000 $4,000 $5,000 Q1 2014 Q1 2015 Q4 2014 Q1 2015 951 825 831 825 0 500 1,000 1,500 Q1 2014 Q1 2015 Q4 2014 Q1 2015 11 • Year-over-year decline in revenues primarily due to the conclusion of a contract subsequent to the prior year quarter • Operate with
Slide 13: FBO Revenues
$2,842 $2,146 $2,403 $2,146 – $2,500 $5,000 $7,500 $10,000 Q1 2014 Q1 2015 Q4 2014 Q1 2015 12 • Era operated a fixed based operation (“FBO”) at Ted Stevens Anchorage International Airport that sells fuel on an ad-hoc basis and leases hangar and office space • Decline in FBO revenues primarily due to
Slide 14: Brazil Update: Aeroleo Fleet Plan
13 Aeroleo Fleet Plan Rio de Janeiro • Of the 7x AW139 contracts awarded in 2013, 3 began operations in December 2014, 1 began in March 2015, 2 began in April 2015, and we expect the last 1 to begin in early June 2015 • Aeroleo was the low bidder on multiple lots in Petrobras’ recent tender for heav
Slide 15: Era's Heavy Helicopter Fleet Plan
9 9 9 9 9 9 9 9 9 9 9 4 4 4 4 5 6 7 8 9 1 2 2 3 3 4 4 4 9 9 13 14 15 15 17 18 20 21 22 0 5 10 15 20 25 12/31/2014 3/31/2015 6/30/2015 9/30/2015 12/31/2015 3/31/2016 6/30/2016 9/30/2016 12/31/2016 3/31/2017 6/30/2017 EC225 AW189 S92 14 Era’s Heavy Helicopter Fleet Plan • The new AW189 helicopter mode
Slide 16: Houma Base Expansion
15 Houma Base Expansion • Houma, LA base expansion project progressing ̶ When completed, it will be the premier helicopter operating facility in the Gulf Coast area • Expected total cost of $22mm ̶ $18mm incurred to date (customers funding portion of capital cost) • Strategic benefits ̶ Customer sus
Slide 17: Financial Review
16 Financial Review
Slide 18: Quarter Period Over Period Comparison
17 Quarter Period Over Period Comparison Three Months Ended March 31, 2015 2014 $ Change % Variance ($000s) Operating revenues 67,415$ 79,443$ (12,028)$ (15%) Operating expenses 43,605 49,640 (6,035) 12% G&A expenses 9,743 11,334 (1,591) 14% Depreciation 11,602 11,287 315 (3%) Gains on asset disposi
Slide 19: Sequential Quarter Comparison
18 Sequential Quarter Comparison Three Months Ended 31-Mar 31-Dec $ Change % Variance ($000s) Operating revenues 67,415$ 74,689$ (7,274)$ (10%) Operating expenses 43,605 45,772 (2,167) 5% G&A expenses 9,743 9,647 96 (1%) Depreciation 11,602 11,854 (252) 2% Gains on asset dispositions, net 3,388 29 3
Slide 20: Leverage Metrics and Total Liquidity
19 Leverage Metrics Total Liquidity (US$mm)(a) Healthy Leverage Metrics and Ample Liquidity to Pursue Opportunities Note: As reported GAAP basis (a) At period end $149 $164 $176 $136 $244 $244 $244 $214 $209 $25 $28 $32 $31 $25 $15 $40 $41 $34 $174 $193 $209 $167 $270 $259 $285 $255 $243 – $50 $100
Slide 21: Appendix
20 Appendix
Slide 22: Fleet Overview
21 Owned Joint Ventured Leased-In Managed Total Average Age(a) Heavy: EC225 9 – – – 9 5 Total Heavy 9 – – – 9 Medium: AW139 38 1 – – 39 5 B212 8 – – – 8 36 B412 3 – – – 3 34 S76 A/A++ 2 – – – 2 25 S76 C+/C++ 5 – – 1 6 8 Total Medium 56 1 – 1 58 Light – twin engine: A109 7 – – – 7 9 BK-117 – – 2 1 3
Slide 23: Helicopter Order and Options Book
22 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 2015 Heavy AW189 4 $36.8 – 2015 Heavy S92 2 $11.7 – 2016 Heavy AW189 3 – $40.1 2016 Heavy S92 2 $45.3 – 2017 Heavy AW189 2 – $27.3 TBD Light Twin AW169 5 – $33.8 18 $93.8 $101.2 Note: Capita
Slide 24: Capitalization and Financial Policy
March 31, 2015 ($000s) Cash and cash equivalents $33,691 Credit facility $90,000 Promissory notes 26,729 Total secured debt $116,729 7.750% Senior Notes $190,100 Total debt $306,829 Net debt $273,138 Shareholders' Equity $461,195 Total capitalization $768,024 Total Debt / Adjusted EBITDA 3.7x Adjust
Slide 25: Net Asset Value
24 Net Asset Value Note: 1) Chart above reflects deprecation of all existing helicopter values at 1% per quarter for NAV calculation purposes, consistent with our depreciation policy, for quarters between the annual 3rd party appraisals, which we typically receive at the end of each of year (see nex
Slide 26: NAV per Share Calculation
25 Notes: 1) NAV calculation only includes market value of helicopters that we own; it does not include any value for leased-in or managed helicopters that we operate 2) Helicopter market values based on annual desktop appraisal performed by Ascend Worldwide; new helicopters delivered subsequent to
Slide 27: Operating Revenues and Flight Hours by Line of Service
26 Operating Revenues and Flight Hours by Line of Service Note: Flight hours do not include hours flown by helicopters in our dry-leasing line of service (a) Primarily oil and gas services, but also includes revenues and flight hours from activities such as firefighting and utility support Three Mon
Slide 28: Financial Highlights
27 (a) See next page for Adjusted EBITDA reconciliation to Net Income (Loss) Financial Highlights Fiscal Year 3 Mos. Ended Mar. 31, ($ millions) 2010 2011 2012 2013 2014 2014 2015 Revenue 235.4$ 258.1$ 272.9$ 299.0$ 331.2$ 79.4$ 67.4$ Operating Expenses 147.2 162.7 167.2 186.6 204.4 49.6 43.6 G&A 25
Slide 29: Adjusted EBITDA special items notes
• 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 • Adjusted EBITDA reflects special items: – Non
Slide 30: Quarterly Reconciliation of Non-GAAP Financial Measures
29 Quarterly Reconciliation of Non-GAAP Financial Measures Quarterly Historical EBITDA and Adjusted EBITDA Three Months Ended (USD$ in thousands) 31-Mar-14 30-Jun-14 30-Sep-14 31-Dec-14 31-Mar-15 Net Income (Loss) 4,374 5,196 4,311 3,140 (239) Depreciation 11,287 11,425 11,746 11,854 11,602 Interest