Quarterly report pursuant to Section 13 or 15(d)

GUARANTORS OF SECURITIES

v3.8.0.1
GUARANTORS OF SECURITIES
3 Months Ended
Mar. 31, 2018
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, 2018
 
Parent
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Consolidated
 
(in thousands, except share data)
ASSETS
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
14,195

 
$

 
$
2,358

 
$

 
$
16,553

Receivables:
 
 
 
 
 
 
 
 
 
Trade, operating, net of allowance for doubtful accounts of $1,058

 
28,008

 
6,439

 

 
34,447

Trade, dry-leasing

 
4,253

 

 

 
4,253

Tax receivable
1

 

 
3,465

 

 
3,466

Other

 
2,997

 
1,171

 

 
4,168

Inventories, net

 
20,437

 
393

 

 
20,830

Deferred income taxes
21,136

 

 

 
(21,136
)
 

Prepaid expenses
677

 
1,929

 
198

 

 
2,804

Total current assets
36,009

 
57,624

 
14,024

 
(21,136
)
 
86,521

Property and equipment

 
932,951

 
16,113

 

 
949,064

Accumulated depreciation

 
(294,628
)
 
(2,713
)
 

 
(297,341
)
Property and equipment, net

 
638,323

 
13,400

 

 
651,723

Equity investments and advances

 
30,445

 

 

 
30,445

Investments in consolidated subsidiaries
167,177

 

 

 
(167,177
)
 

Intangible assets

 

 
1,118

 

 
1,118

Intercompany receivables
408,068

 

 

 
(408,068
)
 

Other assets
1,688

 
3,040

 
70

 

 
4,798

Total assets
$
612,942

 
$
729,432

 
$
28,612

 
$
(596,381
)
 
$
774,605

LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable and accrued expenses
$
871

 
$
7,778

 
$
2,435

 
$

 
$
11,084

Accrued wages and benefits

 
4,859

 
1,671

 

 
6,530

Accrued interest
3,485

 

 

 

 
3,485

Accrued income taxes

 
24

 
22

 

 
46

Accrued other taxes

 
1,375

 
481

 

 
1,856

Accrued contingencies

 

 
892

 

 
892

Current portion of long-term debt

 
1,524

 
772

 

 
2,296

Other current liabilities
2,536

 
600

 
30

 

 
3,166

Total current liabilities
6,892

 
16,160

 
6,303

 

 
29,355

Long-term debt
160,439

 
27,564

 
467

 

 
188,470

Deferred income taxes

 
125,751

 
1,250

 
(21,136
)
 
105,865

Intercompany payables

 
358,320

 
49,748

 
(408,068
)
 

Other liabilities

 
1,590

 
6

 

 
1,596

Total liabilities
167,331

 
529,385

 
57,774

 
(429,204
)
 
325,286

Redeemable noncontrolling interest

 
4

 
3,599

 

 
3,603

Equity:
 
 
 
 
 
 
 
 
 
Common stock, $0.01 par value, 60,000,000 shares authorized; 21,688,959 outstanding, exclusive of treasury shares
219

 

 

 

 
219

Additional paid-in capital
445,174

 
100,306

 
4,562

 
(104,868
)
 
445,174

Retained earnings
3,169

 
99,632

 
(37,323
)
 
(62,309
)
 
3,169

Treasury shares, at cost, 215,141 shares
(2,951
)
 

 

 

 
(2,951
)
Accumulated other comprehensive income, net of tax

 
105

 

 

 
105

Total equity
445,611

 
200,043

 
(32,761
)
 
(167,177
)
 
445,716

Total liabilities, redeemable noncontrolling interest and stockholders’ equity
$
612,942

 
$
729,432

 
$
28,612

 
$
(596,381
)
 
$
774,605

Supplemental Condensed Consolidating Balance Sheet as of December 31, 2017
 
Parent
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Consolidated
 
(in thousands, except share data)
ASSETS
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
10,800

 
$

 
$
2,783

 
$

 
$
13,583

Receivables:
 
 
 
 
 
 
 
 
 
Trade, operating, net of allowance for doubtful accounts of $1,196

 
27,968

 
5,872

 

 
33,840

Trade, dry-leasing

 
5,124

 

 

 
5,124

Tax receivables

 

 
2,829

 

 
2,829

Other

 
1,126

 
497

 

 
1,623

Inventories, net

 
20,746

 
366

 

 
21,112

Prepaid expenses
349

 
721

 
133

 

 
1,203

Escrow deposits

 
3,250

 

 

 
3,250

Total current assets
11,149

 
58,935

 
12,480

 

 
82,564

Property and equipment

 
956,918

 
16,024

 

 
972,942

Accumulated depreciation

 
(296,573
)
 
(2,455
)
 

 
(299,028
)
Net property and equipment

 
660,345

 
13,569

 

 
673,914

Equity investments and advances

 
30,056

 

 

 
30,056

Investments in consolidated subsidiaries
161,350

 

 

 
(161,350
)
 

Intangible assets

 

 
1,122

 

 
1,122

Deferred income taxes
19,600

 

 

 
(19,600
)
 

Intercompany receivables
426,806

 

 

 
(426,806
)
 

Other assets
1,011

 
3,370

 
60

 

 
4,441

Total assets
$
619,916

 
$
752,706

 
$
27,231

 
$
(607,756
)
 
$
792,097

LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable and accrued expenses
$
638

 
$
13,655

 
$
2,128

 
$

 
$
16,421

Accrued wages and benefits

 
6,804

 
1,460

 

 
8,264

Accrued interest
549

 
57

 

 

 
606

Accrued income taxes

 
24

 
4

 

 
28

Current portion of long-term debt

 
1,663

 
1,073

 

 
2,736

Accrued other taxes
18

 
1,192

 
600

 

 
1,810

Accrued contingencies

 

 
859

 

 
859

Other current liabilities
848

 
835

 
37

 

 
1,720

Total current liabilities
2,053

 
24,230

 
6,161

 

 
32,444

Long-term debt
172,292

 
27,979

 
1,903

 

 
202,174

Deferred income taxes

 
124,948

 
1,250

 
(19,600
)
 
106,598

Intercompany payables

 
381,660

 
45,146

 
(426,806
)
 

Other liabilities

 
1,435

 
(1
)
 

 
1,434

Total liabilities
174,345

 
560,252

 
54,459

 
(446,406
)
 
342,650

Redeemable noncontrolling interest

 
4

 
3,762

 

 
3,766

Equity:
 
 
 
 
 
 
 
 
 
Common stock, $0.01 par value, 60,000,000 shares authorized; 21,319,150 shares outstanding, exclusive of treasury shares
215

 

 

 

 
215

Additional paid-in capital
443,944

 
100,306

 
4,562

 
(104,868
)
 
443,944

Retained earnings
4,363

 
92,034

 
(35,552
)
 
(56,482
)
 
4,363

Treasury shares, at cost, 215,141 shares
(2,951
)
 

 

 

 
(2,951
)
Accumulated other comprehensive income, net of tax

 
110

 

 

 
110

Total equity
445,571

 
192,450

 
(30,990
)
 
(161,350
)
 
445,681

Total liabilities, redeemable noncontrolling interest and stockholders’ equity
$
619,916

 
$
752,706

 
$
27,231

 
$
(607,756
)
 
$
792,097

Supplemental Condensed Consolidating Statements of Operations for the Three Months Ended March 31, 2018
 
Parent
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Consolidated
 
(in thousands)
Revenues
$

 
$
49,832

 
$
14,467

 
$
(6,977
)
 
$
57,322

Costs and expenses:
 
 
 
 
 
 
 
 
 
Operating

 
29,770

 
14,867

 
(6,977
)
 
37,660

Administrative and general
4,313

 
6,373

 
1,385

 

 
12,071

Depreciation

 
10,094

 
260

 

 
10,354

Total costs and expenses
4,313

 
46,237

 
16,512

 
(6,977
)
 
60,085

Gains on asset dispositions, net

 
4,414

 

 

 
4,414

Operating income (loss)
(4,313
)
 
8,009

 
(2,045
)
 

 
1,651

Other income (expense):
 
 
 
 
 
 
 
 
 
Interest income
4

 
96

 
46

 

 
146

Interest expense
(4,303
)
 
(182
)
 
(91
)
 

 
(4,576
)
Foreign currency gains (losses), net
55

 
30

 
(11
)
 

 
74

Gain on debt extinguishment

 

 
175

 

 
175

Other, net

 

 
(8
)
 

 
(8
)
Total other income (expense)
(4,244
)
 
(56
)
 
111

 

 
(4,189
)
Income (loss) before income taxes and equity earnings
(8,557
)
 
7,953

 
(1,934
)
 

 
(2,538
)
Income tax expense (benefit)
(1,536
)
 
798

 

 

 
(738
)
Income (loss) before equity earnings
(7,021
)
 
7,155

 
(1,934
)
 

 
(1,800
)
Equity earnings, net of tax

 
443

 

 

 
443

Equity in earnings (losses) of subsidiaries
5,827

 

 

 
(5,827
)
 

Net income (loss)
(1,194
)
 
7,598

 
(1,934
)
 
(5,827
)
 
(1,357
)
Net loss attributable to noncontrolling interest in subsidiary

 

 
163

 

 
163

Net income (loss) attributable to Era Group Inc.
$
(1,194
)
 
$
7,598

 
$
(1,771
)
 
$
(5,827
)
 
$
(1,194
)
Supplemental Condensed Consolidating Statements of Operations for the Three Months Ended March 31, 2017
 
Parent
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Consolidated
 
(in thousands)
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

Gain on debt extinguishment

 

 

 

 

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 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 Comprehensive Income for the Three Months Ended March 31, 2018
 
Parent
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Consolidated
 
(in thousands)
Net income (loss)
$
(1,194
)
 
$
7,598

 
$
(1,934
)
 
$
(5,827
)
 
$
(1,357
)
Other comprehensive loss:
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments

 
(5
)
 

 

 
(5
)
Income tax benefit

 

 

 

 

Total other comprehensive loss

 
(5
)
 

 

 
(5
)
Comprehensive income (loss)
(1,194
)
 
7,593

 
(1,934
)
 
(5,827
)
 
(1,362
)
Comprehensive loss attributable to noncontrolling interest in subsidiary

 

 
163

 

 
163

Comprehensive income (loss) attributable to Era Group Inc.
$
(1,194
)
 
$
7,593

 
$
(1,771
)
 
$
(5,827
)
 
$
(1,199
)

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 loss:
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments

 
(2
)
 

 

 
(2
)
Income tax benefit

 

 

 

 

Total other comprehensive 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 Cash Flows for the Three Months Ended March 31, 2018
 
Parent
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Consolidated
 
(in thousands)
Net cash provided by (used in) operating activities
$
3,387

 
$
(5,761
)
 
$
1,344

 
$

 
$
(1,030
)
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Purchases of property and equipment

 
(3,746
)
 
(38
)
 

 
(3,784
)
Proceeds from disposition of property and equipment

 
19,497

 

 

 
19,497

Investments in and advances to equity method investees

 

 

 

 

Principal payments on notes due from equity investees

 
54

 

 

 
54

Principal payments on third party notes receivable

 
76

 

 

 
76

Net cash used in investing activities

 
15,881

 
(38
)
 

 
15,843

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

 
(554
)
 
(1,705
)
 
(12,000
)
 
(14,259
)
Proceeds from issuance of long-term debt

 

 

 

 

Proceeds from Revolving Credit Facility

 

 

 

 

Revolving Credit Facility issuance costs

 

 

 
(1,295
)
 
(1,295
)
Extinguishment of long-term debt

 

 

 

 

Proceeds from share award plans

 

 

 
484

 
484

Purchase of treasury shares

 

 

 

 

Tax expense on vested restricted stock

 

 

 

 

Borrowings and repayments of intercompany debt

 
(12,811
)
 

 
12,811

 

Net cash used in financing activities

 
(13,365
)
 
(1,705
)
 

 
(15,070
)
Effects of exchange rate changes on cash and cash equivalents
8

 
(5
)
 
(26
)
 

 
(23
)
Net increase (decrease) in cash and cash equivalents
3,395

 
(3,250
)
 
(425
)
 

 
(280
)
Cash, cash equivalents and restricted cash, beginning of period
10,800

 
3,250

 
2,783

 

 
16,833

Cash, cash equivalents and restricted cash, end of period
$
14,195

 
$

 
$
2,358

 
$

 
$
16,553


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

Return of helicopter deposit

 
(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

Extinguishment of long-term debt

 

 

 

 

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, cash equivalents and restricted cash, beginning of period
25,474

 
3,777

 
1,476

 

 
30,727

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

 
$
3,777

 
$
1,504

 
$

 
$
30,116