Slide 1: 2nd Quarter 2013 Earnings Presentation
2nd Quarter 2013 Earnings Presentation August 14, 2013 0
Slide 2: 2nd Quarter 2013 Earnings Call Agenda
I. Introduction Chris Bradshaw, EVP and CFO II. Q2 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 2nd 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: Non-GAAP Measures: EBITDA, Adjusted EBITDA and Adjusted EBITDAR
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: Q2 Operational Highlights
Q2 Operational Highlights 4
Slide 6: Q2 2013 Highlights
5 Q2 2013 Highlights • Strong operating performance in Q2 2013 reflected by record Q2 operating revenues of $74.2mm (18% increase from Q2 2012) • Q2 net income attributable to Era Group Inc. of $5.1mm (39% increase from Q2 2012) ̶ Q2 2013 gains on asset dispositions were $3.4mm higher (pre-tax) than
Slide 7: EC225 Helicopters Return to Service
EC225 Helicopters Return to Service 6 • On October 22, 2012, following the second ditching of an EC225 in the North Sea, Era and the other large operators suspended operations of the EC225 globally • We continue to earn revenues associated with our two EC225 helicopters under contract-leases in the
Slide 8: Oil and Gas
7 Oil and Gas • Q2 operating revenues from oil and gas activities of $52.6mm (20% increase from Q2 2012) • U.S. Gulf of Mexico operating revenues of $41.9mm (11% increase from Q2 2012) ̶ Increased deepwater activity led to more medium helicopters being placed in service • Alaska operating revenue of
Slide 9: Other Service Lines
8 Other Service Lines • Contract-leasing revenues of $13.1mm in Q2 2013 (39% increase from Q2 2012) ̶ Primarily due to the recognition of previously deferred revenues from Aeroleo and a customer in India ̶ Revenues from both of these customers are recognized on a cash receipts basis due to liquidity
Slide 10: Fleet Overview
Owned Joint Ventured Leased-In Managed Total Average Age(a) Heavy: EC225 9 – – – 9 3 Total Heavy 9 – – – 9 3 Medium: AW139 34 1 – – 35 4 Bell 212 11 – – – 11 34 Bell 412 6 – – – 6 32 S76 A/A++ 5 – 1 – 6 28 S76 C+/C++ 6 – – 1 7 7 Total Medium 62 1 1 1 65 14 Light – twin engine: A109 7 – – 2 9 7 BK-11
Slide 11: Future Capital Commitments
Future Capital Commitments 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 $23.7 – 2014 Medium AW139 1 $12.2 – 2014 Heavy AW189 3 $31.7 $15.9 2015 Heavy AW189 2 – $31.7 2016 Heavy AW189 3 – $49.8 2017 Heavy AW189 2 – $33.
Slide 12: Market Outlook
11 Market Outlook • Continued emphasis on offshore exploration and production services supported by expectations for sustained high commodity prices • Capital and activity increasingly moving to deepwater with global spending in that market expected to increase ~30% by 2015 to ~$150 billion • Gulf o
Slide 13: Era SAR Update
Era SAR Update 12 • Following our initial entry into this market in mid-2010, Era SAR has grown to become the premier and largest provider of SAR/Medevac services in the Gulf of Mexico • Partnership with Priority 1 Air Rescue, where Era provides the helicopters and pilots and Priority 1 provides the
Slide 14: Financial Review
GROUP INC. Financial Review hp WANs
Slide 15: Period Over Period Comparison
14 Period Over Period Comparison Three Months Ended June 30, 2013 2012 $ Change % Variance ($000s) Operating revenues 74,237$ 62,985$ 11,252$ 18% Operating expenses 46,945 39,002 7,943 (20%) G&A expenses 9,545 7,195 2,350 (33%) Depreciation 11,431 10,464 967 (9%) Gains on asset dispositions 4,476 1,
Slide 16: Sequential Quarter Comparison
15 Sequential Quarter Comparison Three Months Ended 30‐Jun 31‐Mar $ Change % Variance ($000s) Operating revenues 74,237$ 67,727$ 6,510$ 10% Operating expenses 46,945 43,116 3,829 (9%) G&A expenses 9,545 9,134 411 (4%) Depreciation 11,431 11,661 (230) 2% Gains on asset dispositions 4,476 10,801 (6,32
Slide 17: Quarterly Adjusted EBITDAR Growth
16 Quarterly Adjusted EBITDAR Growth • Given the seasonality in our business, the 2nd and 3rd quarters are generally stronger than the 1st and 4th quarters − Longer days mean more potential flight hours − Alaska flightseeing business runs from May through September • Q2 2013 Adjusted EBITDAR represe
Slide 18: Net Asset Value
17 Net Asset Value $15 $20 $25 $30 $35 $40 $45 22-Jan 5-Feb 19-Feb 5-Mar 19-Mar 2-Apr 16-Apr 30-Apr 14-May 28-May 11-Jun 25-Jun 9-Jul 23-Jul 6-Aug NAV per Share (excl. deferred taxes) Stock Price NAV per Share (net of deferred taxes) Book Value per Share
Slide 19: Capitalization and Financial Policy
Capitalization and Financial Policy 18 • Actual June 30, 2013 balance sheet adjusted to reflect: – Release of like-kind exchange escrow deposits of $16.0 million to general cash balance – Repayment of $15.0 million previously drawn on our revolving credit facility • As adjusted for these items, tota
Slide 20: Era Group Inc.
LSroe™ GROUP INC.
Slide 21: Financial Highlights
Financial Highlights 20 (a) See next page for Adjusted EBITDAR reconciliation to Net Income (Loss) ($ millions) 2008 2009 2010 2011 2012 Q2 '13 Q2 '12 Revenue 248.6$ 235.7$ 235.4$ 258.1$ 272.9$ 74.2$ 63.0$ Operating Expenses 181.5 148.0 147.2 162.7 167.2 46.9 39.0 G&A 20.1 21.4 25.8 31.9 34.8 9.5 7.
Slide 22: 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