Quarterly report pursuant to Section 13 or 15(d)

SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION

v2.4.1.9
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION
3 Months Ended
Mar. 31, 2015
Guarantees [Abstract]  
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION
On December 7, 2012, Era Group issued the 7.750% Senior Notes. Era Group’s payment obligations under the 7.750% Senior Notes are jointly and severally guaranteed by all of its existing 100% owned U.S. subsidiaries that guarantee the Revolving Credit Facility and its future U.S. subsidiaries that guarantee the Revolving Credit Facility or other material indebtedness Era Group may incur in the future (the “Guarantors”). All the Guarantors currently guarantee the Revolving Credit Facility, and the guarantees of the Guarantors are full and unconditional and joint and several.
As a result of the agreement by these subsidiaries to guarantee the 7.750% Senior Notes, the Company is presenting the following condensed consolidating balance sheets and statements of operations, comprehensive income and cash flows for Era Group (“Parent”), the Guarantors, and the Company’s other subsidiaries (“Non-guarantors”). These statements should be read in conjunction with the unaudited condensed consolidated financial statements of the Company. The supplemental condensed consolidating financial information has been prepared pursuant to the rules and regulations for condensed financial information and does not include all disclosures included in annual financial statements.
Supplemental Condensed Consolidating Balance Sheet as of March 31, 2015
 
Parent
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Consolidated
 
(in thousands, except share data)
ASSETS
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
14,964

 
$
16,528

 
$
2,199

 
$
—

 
$
33,691

Receivables:
 
 
 
 
 
 
 
 
 
Trade, net of allowance for doubtful accounts of $1,926
39

 
38,910

 
—

 
—

 
38,949

Other, net of allowance for doubtful accounts of $437
66

 
2,501

 
—

 
—

 
2,567

Inventories, net
—

 
26,189

 
—

 
—

 
26,189

Deferred income taxes
7,986

 
—

 
—

 
(5,819
)
 
2,167

Prepaid expenses and other
739

 
3,342

 
—

 
—

 
4,081

Escrow deposits
—

 
2,800

 
—

 
—

 
2,800

Total current assets
23,794

 
90,270

 
2,199

 
(5,819
)
 
110,444

Property and equipment
—

 
1,161,611

 
9,937

 
—

 
1,171,548

Accumulated depreciation
—

 
(313,122
)
 
(2,277
)
 
—

 
(315,399
)
Net property and equipment
—

 
848,489

 
7,660

 
—

 
856,149

Equity investments and advances
—

 
31,397

 
—

 
—

 
31,397

Investments in consolidated subsidiaries
184,685

 
—

 
—

 
(184,685
)
 
—

Goodwill
—

 
352

 
—

 
—

 
352

Intercompany receivables
627,077

 
12,420

 
1,391

 
(640,888
)
 
—

Other assets
6,445

 
8,711

 
—

 
—

 
15,156

Total assets
$
842,001

 
$
991,639

 
$
11,250

 
$
(831,392
)
 
$
1,013,498

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable and accrued expenses
$
144

 
$
13,672

 
$
88

 
$
—

 
$
13,904

Accrued wages and benefits
—

 
6,822

 
—

 
—

 
6,822

Accrued interest
4,772

 
19

 
—

 
—

 
4,791

Current portion of long-term debt
—

 
26,729

 
—

 
—

 
26,729

Derivative instruments
—

 
275

 
—

 
—

 
275

Accrued income taxes
—

 
37

 
—

 
—

 
37

Other current liabilities
610

 
2,511

 
—

 
—

 
3,121

Total current liabilities
5,526

 
50,065

 
88

 
—

 
55,679

Long-term debt
277,424

 
—

 
—

 
—

 
277,424

Deferred income taxes
—

 
223,019

 
—

 
(5,819
)
 
217,200

Intercompany payables
97,399

 
531,069

 
12,420

 
(640,888
)
 
—

Other liabilities
—

 
1,937

 
—

 
—

 
1,937

Total liabilities
380,349

 
806,090

 
12,508

 
(646,707
)
 
552,240

Equity:
 
 
 
 
 
 
 
 
 
Era Group Inc. stockholders’ equity:
 
 
 
 
 
 
 
 
 
Common stock, $0.01 par value, 60,000,000 shares authorized; 20,582,841 outstanding, exclusive of treasury shares
206

 
—

 
—

 
—

 
206

Additional paid-in capital
430,251

 
99,845

 
496

 
(100,341
)
 
430,251

Retained earnings
31,755

 
86,098

 
(1,754
)
 
(84,344
)
 
31,755

Treasury shares, at cost, 19,059 shares
(560
)
 
—

 
—

 
—

 
(560
)
Accumulated other comprehensive income, net of tax
—

 
93

 
—

 
—

 
93

Total Era Group Inc. stockholders’ equity
461,652

 
186,036

 
(1,258
)
 
(184,685
)
 
461,745

Noncontrolling interest in subsidiary
—

 
(487
)
 
—

 
—

 
(487
)
Total equity
461,652

 
185,549

 
(1,258
)
 
(184,685
)
 
461,258

Total liabilities and stockholders’ equity
$
842,001

 
$
991,639

 
$
11,250

 
$
(831,392
)
 
$
1,013,498

Supplemental Condensed Consolidating Balance Sheet as of December 31, 2014
 
Parent
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Consolidated
 
(in thousands, except share data)
ASSETS
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
16,481

 
$
22,188

 
$
2,198

 
$
—

 
$
40,867

Receivables:
 
 
 
 
 
 
 
 
 
Trade, net of allowance for doubtful accounts of $1,955
39

 
33,351

 
—

 
—

 
33,390

Other, net of allowance for doubtful accounts of $437
65

 
1,997

 
—

 
—

 
2,062

Inventories, net
—

 
26,869

 
—

 
—

 
26,869

Deferred income taxes
4,083

 
—

 
—

 
(2,087
)
 
1,996

Prepaid expenses and other
424

 
2,237

 
—

 
—

 
2,661

Escrow deposits
—

 
—

 
—

 
—

 
—

Total current assets
21,092

 
86,642

 
2,198

 
(2,087
)
 
107,845

Property and equipment
—

 
1,161,330

 
9,937

 
—

 
1,171,267

Accumulated depreciation
—

 
(306,010
)
 
(2,131
)
 
—

 
(308,141
)
Net property and equipment
—

 
855,320

 
7,806

 
—

 
863,126

Equity investments and advances
—

 
31,753

 
—

 
—

 
31,753

Investments in consolidated subsidiaries
182,294

 
—

 
—

 
(182,294
)
 
—

Goodwill
—

 
352

 
—

 
—

 
352

Intercompany receivables
616,932

 
12,258

 
1,395

 
(630,585
)
 
—

Other assets
6,914

 
7,184

 
—

 
—

 
14,098

Total assets
$
827,232

 
$
993,509

 
$
11,399

 
$
(814,966
)
 
$
1,017,174

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable and accrued expenses
$
299

 
$
14,817

 
$
4

 
$
—

 
$
15,120

Accrued wages and benefits
—

 
7,521

 
—

 
—

 
7,521

Accrued interest
930

 
19

 
—

 
—

 
949

Current portion of long-term debt
—

 
27,426

 
—

 
—

 
27,426

Derivative instruments
784

 
325

 
—

 
—

 
1,109

Accrued income taxes
—

 
267

 
—

 
—

 
267

Other current liabilities
556

 
2,606

 
—

 
—

 
3,162

Total current liabilities
2,569

 
52,981

 
4

 
—

 
55,554

Long-term debt
282,118

 
—

 
—

 
—

 
282,118

Deferred income taxes
—

 
219,114

 
—

 
(2,087
)
 
217,027

Intercompany payables
81,986

 
536,341

 
12,258

 
(630,585
)
 
—

Other liabilities
—

 
2,111

 
—

 
—

 
2,111

Total liabilities
366,673

 
810,547

 
12,262

 
(632,672
)
 
556,810

Equity:
 
 
 
 
 
 
 
 
 
Era Group Inc. stockholders’ equity:
 
 
 
 
 
 
 
 
 
Common stock, $0.01 par value, 60,000,000 shares authorized; 20,371,672 outstanding, exclusive of treasury shares
204

 
—

 
—

 
—

 
204

Additional paid-in capital
429,109

 
99,845

 
496

 
(100,341
)
 
429,109

Retained earnings
31,797

 
83,312

 
(1,359
)
 
(81,953
)
 
31,797

Treasury shares, at cost, 18,609 shares
(551
)
 
—

 
—

 
—

 
(551
)
Accumulated other comprehensive income, net of tax
—

 
95

 
—

 
—

 
95

Total Era Group Inc. stockholders’ equity
460,559

 
183,252

 
(863
)
 
(182,294
)
 
460,654

Noncontrolling interest in subsidiary
—

 
(290
)
 
—

 
—

 
(290
)
Total equity
460,559

 
182,962

 
(863
)
 
(182,294
)
 
460,364

Total liabilities and stockholders’ equity
$
827,232

 
$
993,509

 
$
11,399

 
$
(814,966
)
 
$
1,017,174



Supplemental Condensed Consolidating Statements of Operations for the Three Months Ended March 31, 2015
 
Parent
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Consolidated
 
(in thousands)
Operating revenues
$
—

 
$
67,415

 
$
—

 
$
—

 
$
67,415

Costs and expenses:
 
 
 
 
 
 
 
 
 
Operating
—

 
43,517

 
88

 
—

 
43,605

Administrative and general
1,374

 
8,369

 
—

 
—

 
9,743

Depreciation
—

 
11,456

 
146

 
—

 
11,602

Total costs and expenses
1,374

 
63,342

 
234

 
—

 
64,950

Gains on asset dispositions, net
—

 
3,388

 
—

 
—

 
3,388

Operating income (loss)
(1,374
)
 
7,461

 
(234
)
 
—

 
5,853

Other income (expense):
 
 
 
 
 
 
 
 
 
Interest income
5

 
245

 
1

 
—

 
251

Interest expense
(3,352
)
 
(193
)
 
—

 
—

 
(3,545
)
Intercompany interest income (expense)
—

 
162

 
(162
)
 
—

 
—

Gain on debt extinguishment
264

 
—

 
—

 
—

 
264

Derivative losses, net
—

 
(12
)
 
—

 
—

 
(12
)
Foreign currency gains (losses), net
542

 
(3,502
)
 
—

 
—

 
(2,960
)
Total other income (expense)
(2,541
)
 
(3,300
)
 
(161
)
 
—

 
(6,002
)
Income (loss) before income taxes and equity earnings
(3,915
)
 
4,161

 
(395
)
 
—

 
(149
)
Income tax expense (benefit)
(1,482
)
 
1,427

 
—

 
—

 
(55
)
Income (loss) before equity earnings
(2,433
)
 
2,734

 
(395
)
 
—

 
(94
)
Equity losses, net of tax
—

 
(145
)
 
—

 
—

 
(145
)
Equity in earnings (losses) of subsidiaries
2,391

 
—

 
—

 
(2,391
)
 
—

Net income (loss)
(42
)
 
2,589

 
(395
)
 
(2,391
)
 
(239
)
Net loss attributable to non-controlling interest in subsidiary
—

 
197

 
—

 
—

 
197

Net income (loss) attributable to Era Group Inc.
$
(42
)
 
$
2,786

 
$
(395
)
 
$
(2,391
)
 
$
(42
)
Supplemental Condensed Consolidating Statements of Operations for the Three Months Ended March 31, 2014
 
Parent
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Consolidated
 
(in thousands)
Operating revenues
$
—

 
$
79,231

 
$
212

 
$
—

 
$
79,443

Costs and expenses:
 
 
 
 
 
 
 
 
 
Operating
—

 
49,583

 
57

 
—

 
49,640

Administrative and general
1,767

 
9,567

 
—

 
—

 
11,334

Depreciation
—

 
11,141

 
146

 
—

 
11,287

Total costs and expenses
1,767

 
70,291

 
203

 
—

 
72,261

Gains on asset dispositions, net
—

 
2,891

 
—

 
—

 
2,891

Operating income
(1,767
)
 
11,831

 
9

 
—

 
10,073

Other income (expense):
 
 
 
 
 
 
 
 
 
Interest income
24

 
120

 
1

 
—

 
145

Interest expense
(3,541
)
 
(212
)
 
—

 
—

 
(3,753
)
Intercompany interest income (expense)
—

 
153

 
(153
)
 
—

 
—

Derivative losses, net
—

 
(30
)
 
—

 
—

 
(30
)
Foreign currency losses, net
—

 
(57
)
 
—

 
—

 
(57
)
Total other income (expense)
(3,517
)
 
(26
)
 
(152
)
 
—

 
(3,695
)
Income (loss) before income taxes and equity earnings
(5,284
)
 
11,805

 
(143
)
 
—

 
6,378

Income tax expense (benefit)
(2,057
)
 
4,560

 
—

 
—

 
2,503

Income (loss) before equity earnings
(3,227
)
 
7,245

 
(143
)
 
—

 
3,875

Equity earnings, net of tax
—

 
499

 
—

 
—

 
499

Equity in earnings (losses) of subsidiaries
7,672

 
—

 
—

 
(7,672
)
 
—

Net income (loss)
4,445

 
7,744

 
(143
)
 
(7,672
)
 
4,374

Net loss attributable to non-controlling interest in subsidiary
—

 
71

 
—

 
—

 
71

Net income (loss) attributable to Era Group Inc.
$
4,445

 
$
7,815

 
$
(143
)
 
$
(7,672
)
 
$
4,445


Supplemental Condensed Consolidating Statements of Comprehensive Income for the Three Months Ended March 31, 2015
 
Parent
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Consolidated
 
(in thousands)
Net income (loss)
(42
)
 
2,589

 
(395
)
 
(2,391
)
 
$
(239
)
Other comprehensive loss:
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
—

 
(3
)
 
—

 
—

 
(3
)
Income tax benefit
—

 
1

 
—

 
—

 
1

Total other comprehensive loss
—

 
(2
)
 
—

 
—

 
(2
)
Comprehensive income (loss)
(42
)
 
2,587

 
(395
)
 
(2,391
)
 
(241
)
Comprehensive loss attributable to non-controlling interest in subsidiary
—

 
197

 
—

 
—

 
197

Comprehensive income (loss) attributable to Era Group Inc.
$
(42
)
 
$
2,784

 
$
(395
)
 
$
(2,391
)
 
$
(44
)

Supplemental Condensed Consolidating Statements of Comprehensive Income for the Three Months Ended March 31, 2014
 
Parent
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Consolidated
 
(in thousands)
Net income (loss)
4,445

 
7,744

 
(143
)
 
(7,672
)
 
$
4,374

Other comprehensive loss:
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
—

 
(2
)
 
—

 
—

 
(2
)
Income tax benefit
—

 
1

 
—

 
—

 
1

Total other comprehensive loss
—

 
(1
)
 
—

 
—

 
(1
)
Comprehensive income (loss)
4,445

 
7,743

 
(143
)
 
(7,672
)
 
4,373

Comprehensive loss attributable to non-controlling interest in subsidiary
—

 
71

 
—

 
—

 
71

Comprehensive income (loss) attributable to Era Group Inc.
$
4,445

 
$
7,814

 
$
(143
)
 
$
(7,672
)
 
$
4,444



Supplemental Condensed Consolidating Statements of Cash Flows for the Three Months Ended March 31, 2015
 
Parent
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Consolidated
 
(in thousands)
Net cash provided by (used in) operating activities
$
(1,517
)
 
$
8,304

 
$
1

 
$
—

 
$
6,788

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Purchases of property and equipment
—

 
(8,866
)
 
—

 
—

 
(8,866
)
Proceeds from disposition of property and equipment
—

 
5,379

 
—

 
—

 
5,379

Cash settlements on forward contracts, net
—

 
—

 
—

 
(1,103
)
 
(1,103
)
Principal payments on notes due from equity investees
—

 
169

 
—

 
—

 
169

Principal payments on third party notes receivable
—

 
25

 
—

 
—

 
25

Escrow deposits, net
—

 
(2,800
)
 
—

 
—

 
(2,800
)
Repayment of intercompany debt
—

 
(1,103
)
 
—

 
1,103

 
—

Net cash used in investing activities
—

 
(7,196
)
 
—

 
—

 
(7,196
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Payments on long-term debt
—

 
(697
)
 
—

 
(15,000
)
 
(15,697
)
Proceeds from Revolving Credit Facility
—

 
—

 
—

 
20,000

 
20,000

Extinguishment of long-term debt
—

 
—

 
—

 
(9,297
)
 
(9,297
)
Proceeds from share award plans
—

 
—

 
—

 
612

 
612

Repayment of intercompany debt
—

 
(3,685
)
 
—

 
3,685

 
—

Net cash used in financing activities
—

 
(4,382
)
 
—

 
—

 
(4,382
)
Effects of exchange rate changes on cash and cash equivalents
—

 
(2,386
)
 
—

 
—

 
(2,386
)
Net increase (decrease) in cash and cash equivalents
(1,517
)
 
(5,660
)
 
1

 
—

 
(7,176
)
Cash and cash equivalents, beginning of period
16,481

 
22,188

 
2,198

 
—

 
40,867

Cash and cash equivalents, end of period
$
14,964

 
$
16,528

 
$
2,199

 
$
—

 
$
33,691


Supplemental Condensed Consolidating Statements of Cash Flows for the Three Months Ended March 31, 2014
 
Parent
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Consolidated
 
(in thousands)
Net cash provided by (used in) operating activities
$
(5,717
)
 
$
16,806

 
$
188

 
$
—

 
$
11,277

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Purchases of property and equipment
—

 
(18,751
)
 
—

 
—

 
(18,751
)
Proceeds from disposition of property and equipment
—

 
3,566

 
—

 
—

 
3,566

Principal payments on notes due from equity investees
—

 
161

 
—

 
—

 
161

Principal payments on third party notes receivable
—

 
36

 
—

 
—

 
36

Escrow deposits, net
—

 
(3,048
)
 
—

 
—

 
(3,048
)
Net cash used in investing activities
—

 
(18,036
)
 
—

 
—

 
(18,036
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Payments on long-term debt
—

 
(697
)
 
—

 
—

 
(697
)
Revolving Credit Facility issuance costs
—

 
—

 
—

 
(2,115
)
 
(2,115
)
Proceeds from share award plans
—

 
—

 
—

 
529

 
529

Repayment of intercompany debt
—

 
(1,586
)
 
—

 
1,586

 
—

Net cash used in financing activities
—

 
(2,283
)
 
—

 
—

 
(2,283
)
Effects of exchange rate changes on cash and cash equivalents
—

 
(3
)
 
—

 
—

 
(3
)
Net decrease in cash and cash equivalents
(5,717
)
 
(3,516
)
 
188

 
—

 
(9,045
)
Cash and cash equivalents, beginning of period
24,635

 
5,403

 
1,297

 
—

 
31,335

Cash and cash equivalents, end of period
$
18,918

 
$
1,887

 
$
1,485

 
$
—

 
$
22,290