Slide 1: Q2 2015 Earnings Presentation
Q2 2015 Earnings Presentation 0August 5, 2015 Exhibit 99.2
Slide 2: Q2 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 Q2 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 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
a7 Operational Highlights
Slide 6: Q2 2015 Highlights
$86,580 $70,738 $67,415 $70,738 – $25,000 $50,000 $75,000 $100,000 $125,000 Q2 2014 Q2 2015 Q1 2015 Q2 2015 14,625 11,542 9,027 11,542 0 5,000 10,000 15,000 20,000 Q2 2014 Q2 2015 Q1 2015 Q2 2015 • Revenues of $70.7mm ̶ $15.8mm lower than Q2 2014 primarily due to lower utilization of our medium heli
Slide 7: Oil & Gas – Gulf of Mexico
$51,715 $41,821 $41,913 $41,821 – $25,000 $50,000 $75,000 Q2 2014 Q2 2015 Q1 2015 Q2 2015 11,065 8,717 7,612 8,717 0 5,000 10,000 15,000 Q2 2014 Q2 2015 Q1 2015 Q2 2015 6 Oil & Gas – Gulf of Mexico Revenues ($000s) Flight Hours • Year-over-year revenues down along with decline in total flight hours
Slide 8: Oil & Gas – Alaska
$9,305 $6,009 $3,801 $6,009 – $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 Q2 2014 Q2 2015 Q1 2015 Q2 2015 1,122 607 290 607 0 500 1,000 1,500 Q2 2014 Q2 2015 Q1 2015 Q2 2015 7 Oil & Gas – Alaska Revenues ($000s) Flight Hours 46% 109% 35% 58% • Year-over-year revenues down along with decline in total
Slide 9: Oil & Gas – International
8 Oil & Gas – International Revenues ($000s) • Year-over-year revenues decreased due to conclusion of an international contract • Acquisition of 75% interest in Sicher Helicopters SAS in Colombia completed on April 9, 2015 ̶ Financial results from Sicher will be consolidated within Era’s Internation
Slide 10: Expansion into Colombia via Acquisition of Sicher
9 Expansion into Colombia via Acquisition of Sicher • Era has acquired a 75% interest in Sicher Helicopters SAS ̶ Consideration was $3.2mm cash and the contribution of an AW139 helicopter • Sicher is one of the leading helicopter operators in Colombia ̶ Headquartered in Bogota ̶ Strong presence in e
Slide 11: Dry-Leasing
$11,466 $12,233 $11,956 $12,233 – $5,000 $10,000 $15,000 $20,000 $25,000 Q2 2014 Q2 2015 Q1 2015 Q2 2015 10 Dry-Leasing Revenues ($000s) 7% • 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 12: Search and Rescue
$5,095 $4,989 $5,238 $4,989 – $2,500 $5,000 $7,500 $10,000 Q2 2014 Q2 2015 Q1 2015 Q2 2015 258 260 300 260 0 250 500 750 1,000 Q2 2014 Q2 2015 Q1 2015 Q2 2015 11 Search and Rescue Revenues ($000s) Flight Hours • Decrease in revenues over the prior year quarter and sequential quarter primarily due to
Slide 13: Air Medical
$3,137 $1,914 $2,367 $1,914 – $1,000 $2,000 $3,000 $4,000 $5,000 Q2 2014 Q2 2015 Q1 2015 Q2 2015 1,100 826 825 826 0 500 1,000 1,500 Q2 2014 Q2 2015 Q1 2015 Q2 2015 12 • Year-over-year decline in revenues and flight hours primarily due to the conclusion of contracts subsequent to the prior year quar
Slide 14: Flightseeing
13 • Increase in revenues over the prior year quarter due to increased number of passengers flown • Seasonal business which operates AS350s out of bases in Juneau and Denali, Alaska from mid-May to mid-September during tourist season each year ̶ Block space is allocated to cruise lines and seats are
Slide 15: Houma Base Expansion
14 Houma Base Expansion • On June 25, 2015, Era hosted the Grand Opening of its new Super Base in Houma, LA, the premier helicopter operating facility in the Gulf Coast area • Strategic benefits ̶ Customer sustainability, including future growth ̶ Increased passenger terminal capacity ̶ Addition of
Slide 16: Financial Review
15 Financial Review
Slide 17: Quarter Period Over Period Comparison
16 Quarter Period Over Period Comparison Three Months Ended June 30, 2015 2014 $ Change % Variance ($000s) Operating revenues 70,738$ 86,580$ (15,842)$ (18%) Operating expenses 39,784 54,679 (14,895) 27% G&A expenses 10,779 10,065 714 (7%) Depreciation 11,398 11,425 (27) 0% Gains (losses) on asset d
Slide 18: Sequential Quarter Comparison
17 Sequential Quarter Comparison Three Months Ended 30-Jun 31-Mar $ Change % Variance ($000s) Operating revenues 70,738$ 67,415$ 3,323$ 5% Operating expenses 39,784 43,605 (3,821) 9% G&A expenses 10,779 9,743 1,036 (11%) Depreciation 11,398 11,602 (204) 2% Gains (losses) on asset dispositions, net (
Slide 19: Year-to-date Comparison
18 Year-to-date Comparison Six Months Ended June 30, 2015 2014 $ Change % Variance ($000s) Operating revenues 138,153$ 166,023$ (27,870)$ (17%) Operating expenses 83,389 104,319 (20,930) 20% G&A expenses 20,522 21,399 (877) 4% Depreciation 23,000 22,712 288 (1%) Gains on asset dispositions, net 3,14
Slide 20: Healthy Leverage Metrics and Ample Liquidity to Pursue Opportunities
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 $219 $25 $28 $32 $31 $25 $15 $40 $41 $34 $17 $174 $193 $209 $167 $270 $259 $285 $255 $243 $2
Slide 21: Appendix
20 Appendix
Slide 22: Fleet Overview
21 Owned(a) Joint Ventured Leased-In Managed Total Average Age(b) Heavy: H225 9 – – – 9 5 Total Heavy 9 – – – 9 Medium: AW139 38 1 – – 39 6 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
Slide 23: Helicopter Order and Options Book
22 Cu rr ent Orde r Boo k O p tio n s Delivery Class Type Number Remaining Amount Firm Cancellable 2015 Heavy AW189 4 $38.4 – 2015 Heavy S92 2 $3.2 – 2016 Heavy AW189 3 – $41.6 2016 Heavy S92 2 $28.3 – 2017 Heavy AW189 2 – $28.3 TBD Light Twin AW169 5 – $35.1 18 $69.9 $105.0 Note: Capital commitment
Slide 24: Capitalization and Financial Policy
June 30, 2015 ($000s) Cash and cash equivalents $17,002 Credit facility $80,000 Promissory notes 26,130 Total secured debt $106,130 7.750% Senior Notes $190,100 Other 182 Total debt $296,412 Net debt $279,410 Shareholders' Equity $473,303 Total capitalization $769,715 Total Debt / Adjusted EBITDA 3.
Slide 25: Operating Revenues and Flight Hours by Line of Service
24 Operating Revenues and Flight Hours by Line of Service Note: Flight hours do not include hours flown by helicopters in our dry-leasing line of service (a) Primarily oil and gas services, but also includes revenues and flight hours from activities such as firefighting and utility support Three Mon
Slide 26: Financial Highlights
25 (a) See next page for Adjusted EBITDA reconciliation to Net Income (Loss) Financial Highlights Fiscal Year 6 Mos. Ended June 30, ($ millions) 2010 2011 2012 2013 2014 2014 2015 Revenue 235.4$ 258.1$ 272.9$ 299.0$ 331.2$ 166.0$ 138.2$ Operating Expenses 147.2 162.7 167.2 186.6 204.4 104.3 83.4 G&A
Slide 27: Adjusted EBITDA special items
• 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 as if we had not been a SEACOR subsidiary • Adjusted EBITDA reflects special items: –
Slide 28: Quarterly Reconciliation of Non-GAAP Financial Measures
27 Quarterly Reconciliation of Non-GAAP Financial Measures Quarterly Historical EBITDA and Adjusted EBITDA Three Months Ended (USD$ in thousands) 30-Jun-14 30-Sep-14 31-Dec-14 31-Mar-15 30-Jun-15 Net Income (Loss) 5,196 4,311 3,140 (239) 11,105 Depreciation 11,425 11,746 11,854 11,602 11,398 Interes