Quarterly report pursuant to Section 13 or 15(d)

GUARANTORS OF SECURITIES

v3.7.0.1
GUARANTORS OF SECURITIES
3 Months Ended
Mar. 31, 2017
Guarantees [Abstract]  
GUARANTORS OF SECURITIES
GUARANTORS OF SECURITIES
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 any 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, 2017
 
Parent
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Consolidated
 
(in thousands, except share data)
ASSETS
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
24,835

 
$

 
$
1,504

 
$

 
$
26,339

Receivables:
 
 
 
 
 
 
 
 
 
Trade, net of allowance for doubtful accounts of $1,295
39

 
27,094

 
7,707

 

 
34,840

Tax receivable
9

 
3

 
3,154

 

 
3,166

Other

 
1,523

 
873

 

 
2,396

Inventories, net

 
24,898

 
334

 

 
25,232

Prepaid expenses
667

 
1,732

 
136

 

 
2,535

Escrow deposits

 
3,779

 

 

 
3,779

Total current assets
25,550

 
59,029

 
13,708

 

 
98,287

Property and equipment

 
1,138,773

 
16,062

 

 
1,154,835

Accumulated depreciation

 
(341,925
)
 
(1,734
)
 

 
(343,659
)
Property and equipment, net

 
796,848

 
14,328

 

 
811,176

Equity investments and advances

 
29,727

 

 

 
29,727

Investments in consolidated subsidiaries
172,394

 

 

 
(172,394
)
 

Intangible assets

 

 
1,133

 

 
1,133

Deferred taxes
14,137

 

 

 
(14,137
)
 

Intercompany receivables
457,486

 

 

 
(457,486
)
 

Other assets
1,617

 
4,414

 
65

 

 
6,096

Total assets
$
671,184

 
$
890,018

 
$
29,234

 
$
(644,017
)
 
$
946,419

LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable and accrued expenses
$
616

 
$
5,717

 
$
2,699

 
$

 
$
9,032

Accrued wages and benefits

 
5,197

 
1,684

 

 
6,881

Accrued interest
3,365

 

 

 

 
3,365

Accrued income taxes

 
656

 
33

 

 
689

Accrued other taxes
66

 
749

 
632

 

 
1,447

Accrued contingencies

 

 
1,189

 

 
1,189

Current portion of long-term debt

 
1,524

 
675

 

 
2,199

Other current liabilities
956

 
1,544

 
346

 

 
2,846

Total current liabilities
5,003

 
15,387

 
7,258

 

 
27,648

Long-term debt
201,866

 
21,227

 
2,853

 

 
225,946

Deferred income taxes

 
237,118

 
461

 
(14,137
)
 
223,442

Intercompany payables

 
418,914

 
38,572

 
(457,486
)
 

Other liabilities

 
924

 

 

 
924

Total liabilities
206,869

 
693,570

 
49,144

 
(471,623
)
 
477,960

Redeemable noncontrolling interest

 
4

 
4,050

 

 
4,054

Equity:
 
 
 
 
 
 
 
 
 
Common stock, $0.01 par value, 60,000,000 shares authorized; 21,270,272 outstanding, exclusive of treasury shares
215

 

 

 

 
215

Additional paid-in capital
440,164

 
100,306

 
4,562

 
(104,868
)
 
440,164

Retained earnings
26,904

 
96,048

 
(28,522
)
 
(67,526
)
 
26,904

Treasury shares, at cost, 179,730 shares
(2,968
)
 

 

 

 
(2,968
)
Accumulated other comprehensive income, net of tax

 
90

 

 

 
90

Total equity
464,315

 
196,444

 
(23,960
)
 
(172,394
)
 
464,405

Total liabilities, redeemable noncontrolling interest and stockholders’ equity
$
671,184

 
$
890,018

 
$
29,234

 
$
(644,017
)
 
$
946,419

Supplemental Condensed Consolidating Balance Sheet as of December 31, 2016
 
Parent
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Consolidated
 
(in thousands, except share data)
ASSETS
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
25,474

 
$

 
$
1,476

 
$

 
$
26,950

Receivables:
 
 
 
 
 
 
 
 
 
Trade, net of allowance for doubtful accounts of $1,219
39

 
26,118

 
6,313

 

 
32,470

Tax receivables
9

 
4

 
3,448

 

 
3,461

Other

 
1,658

 
1,058

 

 
2,716

Inventories, net

 
25,156

 
261

 

 
25,417

Prepaid expenses
359

 
976

 
244

 

 
1,579

Escrow deposits

 
3,777

 

 

 
3,777

Total current assets
25,881

 
57,689

 
12,800

 

 
96,370

Property and equipment

 
1,138,020

 
16,008

 

 
1,154,028

Accumulated depreciation

 
(330,735
)
 
(1,484
)
 

 
(332,219
)
Net property and equipment

 
807,285

 
14,524

 

 
821,809

Equity investments and advances

 
29,266

 

 

 
29,266

Investments in consolidated subsidiaries
174,830

 

 

 
(174,830
)
 

Intangible assets

 

 
1,137

 

 
1,137

Deferred income taxes
12,262

 

 

 
(12,262
)
 

Intercompany receivables
460,623

 

 

 
(460,623
)
 

Other assets
1,820

 
4,723

 
48

 

 
6,591

Total assets
$
675,416

 
$
898,963

 
$
28,509

 
$
(647,715
)
 
$
955,173

LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable and accrued expenses
$
322

 
$
6,273

 
$
2,281

 
$

 
$
8,876

Accrued wages and benefits

 
6,446

 
2,061

 

 
8,507

Accrued interest
529

 

 

 

 
529

Accrued income taxes

 
653

 
13

 

 
666

Current portion of long-term debt

 
1,524

 
615

 

 
2,139

Accrued other taxes
29

 
645

 
773

 

 
1,447

Accrued contingencies

 

 
1,237

 

 
1,237

Other current liabilities
481

 
1,525

 
216

 

 
2,222

Total current liabilities
1,361

 
17,066

 
7,196

 

 
25,623

Long-term debt
205,730

 
21,642

 
2,767

 

 
230,139

Deferred income taxes

 
237,067

 
667

 
(12,262
)
 
225,472

Intercompany payables

 
426,410

 
34,213

 
(460,623
)
 

Other liabilities

 
1,301

 

 

 
1,301

Total liabilities
207,091

 
703,486

 
44,843

 
(472,885
)
 
482,535

Redeemable noncontrolling interest

 
4

 
4,217

 

 
4,221

Equity:
 
 
 
 
 
 
 
 
 
Common stock, $0.01 par value, 60,000,000 shares authorized; 20,936,636 shares outstanding, exclusive of treasury shares
211

 

 

 

 
211

Additional paid-in capital
438,489

 
100,306

 
4,562

 
(104,868
)
 
438,489

Retained earnings
32,524

 
95,075

 
(25,113
)
 
(69,962
)
 
32,524

Treasury shares, at cost, 154,549 shares
(2,899
)
 

 

 

 
(2,899
)
Accumulated other comprehensive income, net of tax

 
92

 

 

 
92

Total equity
468,325

 
195,473

 
(20,551
)
 
(174,830
)
 
468,417

Total liabilities, redeemable noncontrolling interest and stockholders’ equity
$
675,416

 
$
898,963

 
$
28,509

 
$
(647,715
)
 
$
955,173

Supplemental Condensed Consolidating Statements of Operations for the Three Months Ended March 31, 2017
 
Parent
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Consolidated
 
(in thousands)
Operating revenues
$

 
$
48,033

 
$
15,400

 
$
(8,906
)
 
$
54,527

Costs and expenses:
 
 
 
 
 
 
 
 
 
Operating

 
29,113

 
17,550

 
(8,906
)
 
37,757

Administrative and general
1,865

 
7,038

 
1,478

 

 
10,381

Depreciation

 
11,320

 
234

 

 
11,554

Total costs and expenses
1,865

 
47,471

 
19,262

 
(8,906
)
 
59,692

Gains on asset dispositions, net

 
109

 

 

 
109

Operating income (loss)
(1,865
)
 
671

 
(3,862
)
 

 
(5,056
)
Other income (expense):
 
 
 
 
 
 
 
 
 
Interest income
21

 
111

 
118

 

 
250

Interest expense
(3,241
)
 
(298
)
 
(50
)
 

 
(3,589
)
Foreign currency gains (losses), net
25

 
8

 
(5
)
 

 
28

Other, net

 

 
12

 

 
12

Total other income (expense)
(3,195
)
 
(179
)
 
75

 

 
(3,299
)
Income (loss) before income taxes and equity earnings
(5,060
)
 
492

 
(3,787
)
 

 
(8,355
)
Income tax expense (benefit)
(1,876
)
 
(16
)
 
(211
)
 

 
(2,103
)
Income (loss) before equity earnings
(3,184
)
 
508

 
(3,576
)
 

 
(6,252
)
Equity earnings, net of tax

 
465

 

 

 
465

Equity in earnings (losses) of subsidiaries
(2,436
)
 

 

 
2,436

 

Net income (loss)
(5,620
)
 
973

 
(3,576
)
 
2,436

 
(5,787
)
Net loss attributable to noncontrolling interest in subsidiary

 

 
167

 

 
167

Net income (loss) attributable to Era Group Inc.
$
(5,620
)
 
$
973

 
$
(3,409
)
 
$
2,436

 
$
(5,620
)
Supplemental Condensed Consolidating Statements of Operations for the Three Months Ended March 31, 2016
 
Parent
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Consolidated
 
(in thousands)
Operating revenues
$

 
$
48,487

 
$
14,095

 
$

 
$
62,582

Costs and expenses:
 
 
 
 
 
 
 
 
 
Operating

 
26,010

 
18,297

 

 
44,307

Administrative and general
1,048

 
7,084

 
1,095

 

 
9,227

Depreciation

 
12,486

 
280

 

 
12,766

Total costs and expenses
1,048

 
45,580

 
19,672

 

 
66,300

Gains on asset dispositions, net

 
2,913

 

 

 
2,913

Operating income
(1,048
)
 
5,820

 
(5,577
)
 

 
(805
)
Other income (expense):
 
 
 
 
 
 
 
 
 
Interest income
4

 
123

 
174

 

 
301

Interest expense
(4,343
)
 
(148
)
 
(257
)
 

 
(4,748
)
Foreign currency gains (losses), net
69

 
(109
)
 
321

 

 
281

Other, net

 

 
(17
)
 

 
(17
)
Total other income (expense)
(4,270
)
 
(134
)
 
221

 

 
(4,183
)
Income (loss) before income taxes and equity earnings
(5,318
)
 
5,686

 
(5,356
)
 

 
(4,988
)
Income tax expense (benefit)
(1,229
)
 
215

 

 

 
(1,014
)
Income (loss) before equity earnings
(4,089
)
 
5,471

 
(5,356
)
 

 
(3,974
)
Equity losses, net of tax

 
24

 

 

 
24

Equity in earnings (losses) of subsidiaries
271

 

 

 
(271
)
 

Net income (loss)
(3,818
)
 
5,495

 
(5,356
)
 
(271
)
 
(3,950
)
Net loss attributable to noncontrolling interest in subsidiary

 

 
132

 

 
132

Net income (loss) attributable to Era Group Inc.
$
(3,818
)
 
$
5,495

 
$
(5,224
)
 
$
(271
)
 
$
(3,818
)
Supplemental Condensed Consolidating Statements of Comprehensive Income for the Three Months Ended March 31, 2017
 
Parent
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Consolidated
 
(in thousands)
Net income (loss)
$
(5,620
)
 
$
973

 
$
(3,576
)
 
$
2,436

 
$
(5,787
)
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments

 
(2
)
 

 

 
(2
)
Income tax benefit

 

 

 

 

Total other comprehensive income (loss)

 
(2
)
 

 

 
(2
)
Comprehensive income (loss)
(5,620
)
 
971

 
(3,576
)
 
2,436

 
(5,789
)
Comprehensive loss attributable to noncontrolling interest in subsidiary

 

 
167

 

 
167

Comprehensive income (loss) attributable to Era Group Inc.
$
(5,620
)
 
$
971

 
$
(3,409
)
 
$
2,436

 
$
(5,622
)

Supplemental Condensed Consolidating Statements of Comprehensive Income for the Three Months Ended March 31, 2016
 
Parent
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Consolidated
 
(in thousands)
Net income (loss)
$
(3,818
)
 
$
5,495

 
$
(5,356
)
 
$
(271
)
 
$
(3,950
)
Other comprehensive loss:
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments

 

 

 

 

Income tax benefit

 

 

 

 

Total other comprehensive loss

 

 

 

 

Comprehensive income (loss)
(3,818
)
 
5,495

 
(5,356
)
 
(271
)
 
(3,950
)
Comprehensive income attributable to noncontrolling interest in subsidiary

 

 
132

 

 
132

Comprehensive income (loss) attributable to Era Group Inc.
$
(3,818
)
 
$
5,495

 
$
(5,224
)
 
$
(271
)
 
$
(3,818
)
Supplemental Condensed Consolidating Statements of Cash Flows for the Three Months Ended March 31, 2017
 
Parent
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Consolidated
 
(in thousands)
Net cash provided by (used in) operating activities
$
(639
)
 
$
4,718

 
$
174

 
$

 
$
4,253

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Purchases of property and equipment

 
(971
)
 
(34
)
 

 
(1,005
)
Proceeds from disposition of property and equipment

 
126

 

 

 
126

Investments in and advances to equity method investees

 
(114
)
 

 

 
(114
)
Principal payments on notes due from equity investees

 
185

 

 

 
185

Principal payments on third party notes receivable

 
56

 

 

 
56

Net cash provided by (used in) investing activities

 
(718
)
 
(34
)
 

 
(752
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Payments on long-term debt

 
(415
)
 
(166
)
 
(6,000
)
 
(6,581
)
Proceeds from Revolving Credit Facility

 

 

 
2,000

 
2,000

Proceeds from share award plans

 

 

 
463

 
463

Purchase of treasury shares

 

 

 
(51
)
 
(51
)
Borrowings and repayments of intercompany debt

 
(3,588
)
 

 
3,588

 

Net cash used in financing activities

 
(4,003
)
 
(166
)
 

 
(4,169
)
Effects of exchange rate changes on cash and cash equivalents

 
3

 
54

 

 
57

Net increase (decrease) in cash and cash equivalents
(639
)
 

 
28

 

 
(611
)
Cash and cash equivalents, beginning of period
25,474

 

 
1,476

 

 
26,950

Cash and cash equivalents, end of period
$
24,835

 
$

 
$
1,504

 
$

 
$
26,339


Supplemental Condensed Consolidating Statements of Cash Flows for the Three Months Ended March 31, 2016
 
Parent
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Consolidated
 
(in thousands)
Net cash provided by (used in) operating activities
$
19,154

 
$
(3,220
)
 
$
(1,491
)
 
$
350

 
$
14,793

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Purchases of property and equipment

 
(2,090
)
 
(55
)
 

 
(2,145
)
Proceeds from disposition of property and equipment

 
3,980

 

 

 
3,980

Return of helicopter deposit

 
544

 

 

 
544

Principal payments on notes due from equity investees

 
177

 

 

 
177

Principal payments on third party notes receivable

 
46

 

 

 
46

Net cash used in investing activities

 
2,657

 
(55
)
 

 
2,602

Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Payments on long-term debt

 
(555
)
 
(1,096
)
 
(7,000
)
 
(8,651
)
Proceeds from Revolving Credit Facility

 

 

 
7,000

 
7,000

Proceeds from share award plans

 

 

 
477

 
477

Purchase of treasury shares

 

 

 
(161
)
 
(161
)
Borrowings and repayments of intercompany debt

 
316

 
350

 
(666
)
 

Net cash used in financing activities

 
(239
)
 
(746
)
 
(350
)
 
(1,335
)
Effects of exchange rate changes on cash and cash equivalents

 
368

 
5

 

 
373

Net increase (decrease) in cash and cash equivalents
19,154

 
(434
)
 
(2,287
)
 

 
16,433

Cash and cash equivalents, beginning of period
7,565

 
3,334

 
3,471

 

 
14,370

Cash and cash equivalents, end of period
$
26,719

 
$
2,900

 
$
1,184

 
$

 
$
30,803