Slide 1: Q2 2016 Earnings Presentation
Q2 2016 Earnings Presentation 0August 3, 2016 Exhibit 99.2
Slide 2: Q2 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 Q2 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 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
Lora Operational Highlights
Slide 6: Operational Highlights: Alaska accident and safety
• On May 5, 2016, an Era AS350B2 single engine helicopter was involved in an air accident on the Norris Glacier near Juneau, Alaska with one pilot onboard (no passengers) ̶ The pilot sustained injuries but is expected to make a full recovery ̶ The investigation into the accident is being conducted b
Slide 7: Financial Stability
• Generated positive operating cash flow of $14 million in Q2 2016 ̶ Generated over $30 million of cash flow from operating and investing activities in the first six months of 2016 Cash Flow from Operating Activities ($mm) • Continue to protect the balance sheet(a) ̶ During Q2 2016, total debt decre
Slide 8: H225 helicopter suspension update
• Following a fatal accident involving another helicopter operator’s EC225LP (also known as H225) model helicopter outside of Bergen, Norway in April 2016, several aviation regulatory authorities have issued directives suspending H225 and AS332 L2 helicopter operations, with limited exceptions ̶ The
Slide 9: Financial Review
8 Financial Review
Slide 10: Q2 2016 Highlights – Year-over-Year Comparison
$70,738 $63,351 – $25,000 $50,000 $75,000 $100,000 Q2 2015 Q2 2016 • Revenues of $63.4mm ̶ $7.4mm lower than Q2 2015 primarily due to decreased revenues in our U.S. oil and gas and dry-leasing service lines and the sale of the FBO ̶ Partially offset by increased revenues resulting from the consolida
Slide 11: Q2 2016 Highlights – Sequential Quarter Comparison
$62,582 $63,351 – $25,000 $50,000 $75,000 $100,000 Q1 2016 Q2 2016 • Revenues were $0.8mm higher than Q1 2016 primarily due to the start of seasonal activities in Alaska and increased international oil & gas revenues, partially offset by decreased revenues in the U.S. Gulf of Mexico and the bankrupt
Slide 12: Summary of Aeróleo Consolidation Impact in Q2 2016
11 • 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 13: Healthy Leverage Metrics and Ample Liquidity
12 • Era continues to generate substantial cash flow and reduced total debt and net debt(b) by $14.3mm and $22.6mm, respectively, during Q2 2016 • The Company has opportunistically repurchased a total of $55.2mm of its 7.75% Senior Notes since Q1 2015, funded with existing cash balances, cash from o
Slide 14: Appendix
13 Appendix
Slide 15: Fleet Overview
14 Owned Leased-In Managed Total Average Age(a) Heavy: H225 9 – – 9 6 S92 2 – – 2 1 AW189 2 – – 2 1 Total Heavy 13 – – 13 Medium: AW139 38 – – 38 6 S76 C+/C++ 5 – 1 6 9 B212 7 – – 7 37 B412 1 – – 1 35 Total Medium 51 – 1 52 Light – twin engine: A109 7 – – 7 10 EC135 14 2 1 17 8 EC145 3 – 2 5 8 BK-11
Slide 16: Operating Revenues and Flight Hours by Line of Service
15 Operating Revenues and Flight Hours by Line of Service Note: Flight hours exclude hours flown by helicopters in the Dry-leasing line of service (a) Primarily oil and gas services, but also includes revenues and flight hours from activities such as firefighting and utility support Three Months End
Slide 17: Financial Highlights
16 (a) See next page for Adjusted EBITDA reconciliation to Net Income (Loss) Financial Highlights Fiscal Year 6 Mos. Ended June 30, ($ millions) 2011 2012 2013 2014 2015 2015 2016 Revenue 258.1$ 272.9$ 299.0$ 331.2$ 281.8$ 138.2$ 125.9$ Operating Expenses 162.7 167.2 186.6 204.4 171.5 83.4 91.7 G&A
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 $5.9 million related to the Company’s
Slide 19: Quarterly Reconciliation of Non-GAAP Financial Measures
18 Quarterly Reconciliation of Non-GAAP Financial Measures Quarterly Historical EBITDA and Adjusted EBITDA Three Months Ended (USD$ in thousands) 30-Jun-15 30-Sep-15 31-Dec-15 31-Mar-16 30-Jun-16 Net Income (Loss) 11,105 653 (3,620) (3,950) (4,510) Depreciation 11,398 12,186 12,151 12,766 12,691 Int