Earnings before interest, taxes, depreciation and amortization (“EBITDA”) was $18.3 million in the current quarter compared to $4.5 million in the preceding quarter. EBITDA adjusted to exclude asset dispositions and special items was $8.0 million in the current quarter compared to $5.6 million in the preceding quarter. Net losses on asset dispositions were $0.1 million in both the current quarter and preceding quarter.
Special items in the current quarter consisted of $10.9 million of equity earnings related to gains on the sale of the Dart Holding Company Limited (“Dart”) joint venture, a $0.6 million loss on the sale of investments and a less than $0.1 million loss on the extinguishment of debt. Special items in the preceding quarter consisted of $1.0 million of equity losses from the Dart joint venture.
The Company generated $7.3 million of free cash flow in the first six months of 2019, continuing its track record of positive free cash flow generation since 2015. From June 1 through July 26, 2019, the Company repurchased approximately 1.0 million ERA shares for gross consideration of $7.6 million, representing an average purchase price of $7.72 per share. Separately, the Company repurchased $0.7 million of its 7.75% Senior Unsecured Notes at par.
“Era continues to generate positive free cash flow, and we were pleased to return capital to our shareholders by repurchasing approximately 5% of the previously outstanding unrestricted ERA shares,” said Chris Bradshaw, President and Chief Executive Officer of Era Group Inc.
“We continue to believe that our strong balance sheet and positive cash flow profile present multiple opportunities to create value for Era shareholders, including the potential for value-accretive consolidation opportunities.”
Contracts Update
The Company recently signed new, multi-year contracts with its two largest oil and gas customers in the deepwater Gulf of Mexico, Anadarko Petroleum Corporation and Exxon Mobil Corporation.
In total, Era currently has 14 full-time, contracted medium and heavy helicopters supporting these two customers. Separately, the Company recently began a new emergency response services contract in Suriname, supporting offshore oil and gas operations in that country. In addition, the Company has signed a new emergency response services contract in the U.S., supporting a leading player in the commercial space industry. The latter contract is scheduled to commence later this year and will employ two full-time medium helicopters and two additional medium helicopters during manned mission flights.
“We are pleased by the continued trust and confidence placed in Era by our valued oil and gas customers, and our entire team is dedicated to providing them with safe, efficient and reliable helicopter services, every day,” said Mr. Bradshaw. “In addition, we are excited by the growth and diversification in our emergency response service line, with the recent contract awards in Suriname and the rapidly growing commercial space industry here in the U.S.”
Asset Sale Update
In early July 2019, the Company sold three light twin helicopters EC135 and one hangar facility for cash proceeds of $7.3 million, resulting in net gains of $0.8 million.
About Era Group: Era (NYSE: ERA) is one of the largest helicopter operators in the world and the longest serving helicopter transport operator in the United States. In addition to servicing its U.S. customers, Era provides helicopters and related services to customers and third-party helicopter operators in other countries, including Brazil, Colombia, India, Mexico, Spain, and Suriname.
Era’s helicopters are primarily used to transport personnel to, from and between offshore oil and gas production platforms, drilling rigs and other installations. In addition, Era’s helicopters are used to perform emergency response services, firefighting, utility, VIP transport and other services. Era also provides a variety of operating lease solutions and technical fleet support to third party operators.
See also |
ERA Helicopters 
Helicopters Markets & Finance 
