Slide 1: Q1 2016 Earnings Presentation
Q1 2016 Earnings Presentation 0May 4, 2016 Exhibit 99.2
Slide 2: Q1 2016 Earnings Call Agenda
I. Introduction Shefali Shah, SVP and General Counsel II. Operational Highlights Chris Bradshaw, President and CEO III. Financial Review Andy Puhala, SVP and CFO IV. Concluding Remarks Chris Bradshaw, President and CEO V. Questions & Answers Q1 2016 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 Non-GAAP Measures
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: Operational Highlights
• Era achieved its objective of ZERO air accidents in Q1 2016 ̶ Extended clean sheet of ZERO air accidents in FY2014 and FY2015 • On April 29, 2016, an accident occurred outside of Bergen, Norway with an Airbus Helicopters H225 operated by another helicopter company ̶ 13 fatalities reported ̶ The ca
Slide 7: Financial Stability
• Generated positive operating cash flow of almost $15 million in Q1 2016 ̶ Combined with $2.6 million net cash provided by investing activities, Era generated over $17 million in free cash flow Cash Flow from Operating Activities ($mm) • Continue to protect the balance sheet(a) ̶ Total liquidity =
Slide 8: Financial Review
7 Financial Review
Slide 9: Q1 2016 Highlights – Year over Year
$14,338 $12,249 – $10,000 $20,000 $30,000 Q1 2015 Q1 2016 $67,415 $62,582 – $25,000 $50,000 $75,000 $100,000 $125,000 Q1 2015 Q1 2016 • Revenues of $62.6mm ̶ $4.8mm lower than Q1 2015 due to fewer helicopters on contract and lower average rates as well as the sale of the FBO in Alaska ̶ Partially of
Slide 10: Q1 2016 Highlights – Sequential
$17,307 $12,249 – $10,000 $20,000 $30,000 Q4 2015 Q1 2016 $73,943 $62,582 – $25,000 $50,000 $75,000 $100,000 $125,000 Q4 2015 Q1 2016 • Revenues were $11.4mm lower than Q4 2015 primarily due to lower utilization, including the end of several contracts in December 2015 as previously disclosed • Opera
Slide 11: Summary of Aeróleo Consolidation Impact in Q1 2016
10 • Prior to October 2015, revenues from Aeróleo were only recognized when Era received cash from Aeróleo and were reported in Era’s Dry-leasing line of service • Beginning October 1, 2015, Aeróleo’s financials are included in Era’s consolidated results; revenues from end-customers are reported in
Slide 12: Healthy Leverage Metrics and Ample Liquidity
11 Leverage Metrics(a) Total Liquidity (US$mm)(b) Healthy Leverage Metrics and Ample Liquidity (a) Funded debt to EBITDA and interest coverage ratios calculated as defined in the Company’s Credit Facility (b) At period end $244 $244 $214 $209 $219 $227 $207 $209 $15 $40 $41 $34 $17 $14 $14 $31 $259
Slide 13: Appendix
12 Appendix
Slide 14: Fleet Overview
13 Owned Leased-In Managed Total Average Age(a) Heavy: H225 9 – – 9 6 S92 2 – – 2 0 AW189 2 – – 2 0 Total Heavy 13 – – 13 Medium: AW139 38 – – 38 6 S76 C+/C++ 5 – 1 6 9 B212 8 – – 8 37 B412 1 – – 1 35 Total Medium 52 – 1 53 Light – twin engine: A109 7 – – 7 10 EC135 14 2 1 17 8 EC145 3 – 2 5 8 BK-11
Slide 15: Capitalization and Financial Policy
14 • In 2015, the Company repurchased a total of $50.2mm of its 7.75% Senior Notes, funded with existing cash balances, cash from operating activities, proceeds from asset dispositions and borrowings under the Credit Facility • Era continues to generate substantial free cash flow • Existing capital
Slide 16: Operating Revenues and Flight Hours by Line of Service
15 Operating Revenues and Flight Hours by Line of Service Note: Flight hours exclude hours flown by helicopters in the Dry-leasing line of service (a) Primarily oil and gas services, but also includes revenues and flight hours from activities such as firefighting and utility support Three Months End
Slide 17: Financial Highlights
16 (a) See next page for Adjusted EBITDA reconciliation to Net Income (Loss) Financial Highlights Fiscal Year 3 Mos. Ended Mar 31, ($ millions) 2011 2012 2013 2014 2015 2015 2016 Revenue 258.1$ 272.9$ 299.0$ 331.2$ 281.8$ 67.4$ 62.6$ Operating Expenses 162.7 167.2 186.6 204.4 171.5 43.6 44.3 G&A 31.
Slide 18: Adjusted EBITDA Special Items
• Adjusted EBITDA reflects special items: – Executive severance adjustments of $4.2 million, $0.7 million, and $2.5 million in 2011, 2012, and 2014, respectively – An adjustment for IPO related fees and expenses of $2.9 million in 2012 – A pre-tax impairment of $5.9 million related to the Company’s
Slide 19: Quarterly Reconciliation of Non-GAAP Financial Measures
18 Quarterly Reconciliation of Non-GAAP Financial Measures Quarterly Historical EBITDA and Adjusted EBITDA (USD$ in thousands) 31-Mar-15 30-Jun-15 30-Sep-15 31-Dec-15 31-Mar-16 Net Income (Loss) (239) 11,105 653 (3,620) (3,950) Depreciation 11,602 11,398 12,186 12,151 12,766 Interest Income (251) (3