Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | May 01, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-35701 | |
Entity Registrant Name | Era Group Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 72-1455213 | |
Entity Address, Address Line One | 945 Bunker Hill Rd., Suite 650 | |
Entity Address, City or Town | Houston, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77024 | |
City Area Code | 713 | |
Local Phone Number | 369-4700 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | ERA | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 21,525,383 | |
Entity Central Index Key | 0001525221 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 113,518 | $ 117,366 |
Receivables: | ||
Trade, operating, net of allowance for doubtful accounts | 34,102 | 32,730 |
Trade, dry-leasing | 5,754 | 5,234 |
Tax receivables | 2,159 | 2,860 |
Other | 15,006 | 15,421 |
Inventories, net | 19,941 | 20,066 |
Prepaid expenses | 3,412 | 2,184 |
Total current assets | 193,892 | 195,861 |
Property and equipment | 893,585 | 895,063 |
Accumulated depreciation | (345,457) | (338,164) |
Property and equipment, net | 548,128 | 556,899 |
Operating lease right-of-use | 8,672 | 9,468 |
Intangible assets | 92 | 96 |
Other assets | 1,726 | 2,191 |
Total assets | 752,510 | 764,515 |
Current liabilities: | ||
Accounts payable and accrued expenses | 12,475 | 12,923 |
Accrued wages and benefits | 6,565 | 10,554 |
Accrued interest | 3,309 | 520 |
Accrued income taxes | 2,297 | 3,612 |
Accrued other taxes | 1,539 | 937 |
Accrued contingencies | 701 | 598 |
Current portion of long-term debt | 17,901 | 18,317 |
Other current liabilities | 3,310 | 3,315 |
Total current liabilities | 48,097 | 50,776 |
Long-term debt | 142,004 | 141,832 |
Deferred income taxes | 101,984 | 103,793 |
Operating lease liabilities | 7,103 | 7,815 |
Deferred gains and other liabilities | 920 | 745 |
Total liabilities | 300,108 | 304,961 |
Commitments and contingencies (see Note 7) | ||
Redeemable noncontrolling interest | 2,752 | 2,812 |
Equity: | ||
Common stock, $0.01 par value, 60,000,000 shares authorized; 21,756,272 and 21,285,613 outstanding in 2020 and 2019, respectively, exclusive of treasury shares | 230 | 224 |
Additional paid-in capital | 452,701 | 452,009 |
Retained earnings | 7,463 | 14,692 |
Treasury shares, at cost; 1,236,282 and 1,152,826 shares in 2020 and 2019, respectively | (10,744) | (10,183) |
Total equity | 449,650 | 456,742 |
Total liabilities, redeemable noncontrolling interest and stockholders’ equity | $ 752,510 | $ 764,515 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 60,000,000 | 60,000,000 |
Common stock, shares outstanding (in shares) | 21,756,272 | 21,285,613 |
Treasury shares (in shares) | 1,236,282 | 1,152,826 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues: | ||
Total revenues | $ 57,056 | $ 51,293 |
Costs and expenses: | ||
Operating | 38,506 | 36,696 |
Administrative and general | 12,745 | 8,875 |
Depreciation and amortization | 9,507 | 9,450 |
Total costs and expenses | 60,758 | 55,021 |
Loss on asset dispositions, net | (34) | (124) |
Operating loss | (3,736) | (3,852) |
Other income (expense): | ||
Interest income | 749 | 752 |
Interest expense | (3,439) | (3,461) |
Foreign currency losses, net | (1,704) | (126) |
Other, net | 10 | (11) |
Total other income (expense) | (4,384) | (2,846) |
Loss before income taxes and equity earnings | (8,120) | (6,698) |
Income tax benefit | (831) | (1,588) |
Loss before equity earnings | (7,289) | (5,110) |
Equity loss, net of tax | 0 | (975) |
Net loss | (7,289) | (6,085) |
Net loss attributable to noncontrolling interest in subsidiary | 60 | 142 |
Net loss attributable to Era Group Inc. | $ (7,229) | $ (5,943) |
Loss per common share, basic and diluted (in dollars per shares) | $ (0.35) | $ (0.28) |
Weighted average common shares outstanding: | ||
Basic (in shares) | 20,702,670 | 21,323,312 |
Diluted (in shares) | 20,702,670 | 21,323,312 |
Operating revenues | ||
Revenues: | ||
Total revenues | $ 53,980 | $ 47,830 |
Dry-leasing revenues | ||
Revenues: | ||
Total revenues | $ 3,076 | $ 3,463 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (7,289) | $ (6,085) |
Comprehensive loss | (7,289) | (6,085) |
Comprehensive loss attributable to noncontrolling interest in subsidiary | 60 | 142 |
Comprehensive loss attributable to Era Group Inc. | $ (7,229) | $ (5,943) |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Changes in Redeemable Noncontrolling Interest and Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Shares | Accumulated Other Comprehensive Income |
Beginning Balance at Dec. 31, 2018 | $ 3,302 | |||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||
Net loss attributable to redeemable noncontrolling interest | (142) | |||||
Ending Balance at Mar. 31, 2019 | 3,160 | |||||
Beginning Balance at Dec. 31, 2018 | 463,436 | $ 219 | $ 447,298 | $ 18,285 | $ (2,476) | $ 110 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Restricted stock grants | 0 | 4 | (4) | |||
Employee Stock Purchase Plan | 590 | 1 | 589 | |||
Share award amortization | 807 | 807 | ||||
Purchase of treasury shares | (5) | (5) | ||||
Net loss | (6,085) | (6,085) | ||||
Net loss attributable to redeemable noncontrolling interest | 142 | 142 | ||||
Ending Balance at Mar. 31, 2019 | 458,885 | 224 | 448,690 | 12,342 | (2,481) | 110 |
Beginning Balance at Dec. 31, 2019 | 2,812 | |||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||
Net loss attributable to redeemable noncontrolling interest | (60) | |||||
Ending Balance at Mar. 31, 2020 | 2,752 | |||||
Beginning Balance at Dec. 31, 2019 | 456,742 | 224 | 452,009 | 14,692 | (10,183) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Restricted stock grants | 0 | 6 | (6) | |||
Share award amortization | 698 | 698 | ||||
Purchase of treasury shares | (561) | (561) | ||||
Net loss | (7,289) | (7,289) | ||||
Net loss attributable to redeemable noncontrolling interest | 60 | 60 | ||||
Ending Balance at Mar. 31, 2020 | $ 449,650 | $ 230 | $ 452,701 | $ 7,463 | $ (10,744) | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (7,289) | $ (6,085) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 9,507 | 9,450 |
Share-based compensation | 698 | 807 |
Interest income | (112) | (157) |
Loss on asset dispositions, net | 34 | 124 |
Debt discount amortization | 72 | 67 |
Amortization of deferred financing costs | 246 | 239 |
Foreign currency losses, net | 1,648 | 126 |
Deferred income tax (benefit) expense | (1,809) | (3,533) |
Equity earnings, net of tax | 0 | 975 |
Changes in operating assets and liabilities: | ||
(Increase) decrease in receivables | (1,440) | 493 |
(Increase) decrease in prepaid expenses and other assets | (743) | (452) |
Decrease (increase) in accounts payable, accrued expenses and other liabilities | (2,944) | 581 |
Net cash provided by (used in) operating activities | (2,132) | 2,635 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (400) | (1,312) |
Purchase of investments | 0 | (5,000) |
Principal payments on notes due from equity investees | 0 | 2,334 |
Principal payments on third party notes receivable | 55 | 104 |
Net cash used in investing activities | (345) | (3,874) |
Cash flows from financing activities: | ||
Payments on long-term debt | (416) | (542) |
Proceeds from share award plans | 0 | 590 |
Purchase of treasury shares | (561) | (5) |
Net cash provided by (used in) financing activities | (977) | 43 |
Effects of exchange rate changes on cash and cash equivalents | (394) | 55 |
Net decrease in cash, cash equivalents and restricted cash | (3,848) | (1,141) |
Cash, cash equivalents and restricted cash, beginning of period | 117,366 | 50,753 |
Cash, cash equivalents and restricted cash, end of period | 113,518 | 49,612 |
Supplemental cash flow information: | ||
Cash paid for interest | 332 | 353 |
Cash paid for income taxes | $ 2,300 | $ 14 |
BASIS OF PRESENTATION AND ACCOU
BASIS OF PRESENTATION AND ACCOUNTING POLICY | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND ACCOUNTING POLICY | BASIS OF PRESENTATION AND ACCOUNTING POLICY The condensed consolidated financial statements include the accounts of Era Group Inc. and its consolidated subsidiaries. Unless the context otherwise indicates, any reference in this Quarterly Report on Form 10-Q to the “Company” refers to Era Group Inc. and its consolidated subsidiaries, and any reference to “Era Group” refers to Era Group Inc. without its subsidiaries. The condensed consolidated financial information for the three months ended March 31, 2020 and 2019 has been prepared by the Company and has not been audited by its independent registered public accounting firm. In the opinion of management, all adjustments (consisting of normal recurring adjustments) have been made to fairly present the Company’s financial position as of March 31, 2020 , its results of operations for the three months ended March 31, 2020 and 2019 , its comprehensive income for the three months ended March 31, 2020 and 2019 , its changes in equity for the three months ended March 31, 2020 , and 2019 , and its cash flows for the three months ended March 31, 2020 and 2019 . Results of operations for the interim periods presented are not necessarily indicative of operating results for the full year or any future periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”) have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . Certain of the Company’s operations are subject to seasonal factors. Operations in the U.S. Gulf of Mexico are often at their highest levels from April to September, as daylight hours increase, and are at their lowest levels from December through February, as daylight hours decrease. The outbreak of the novel coronavirus (“COVID-19”) caused a significant decrease in oil and natural gas prices resulting from oversupply and demand weakness and also caused significant disruptions and volatility in the global marketplace towards the end the first quarter of 2020. These conditions continued through April 2020 and are expected to continue for at least the near future. These conditions were initially exacerbated by decisions by large oil producing countries that have now been altered, but the resolution has not led to a meaningful increase in oil and gas prices. While the decline in oil and natural gas prices did not have a material impact on the Company’s results of operations or financial condition during the three months ended March 31, 2020, a sustained environment of depressed prices could have a material impact on its business and its liquidity. Basis of Consolidation. The consolidated financial statements include the accounts of Era Group Inc., its wholly and majority-owned subsidiaries and entities that meet the criteria of variable interest entities (“VIEs”) of which the Company is the primary beneficiary. All significant inter-company accounts and transactions are eliminated in consolidation. Revenue Recognition. The Company recognizes revenues for flight services and emergency response services with the passing of each day as the Company has the right to consideration from its customers in an amount that corresponds directly with the value to the Company’s customer of the performance completed to date. Therefore, the Company has elected to exercise the right to invoice practical expedient in its adoption of ASC 606. The right to invoice represents a method for recognizing revenue over time using the output measure of “value to the customer” which is an objective measure of an entity’s performance in a contract. The Company typically invoices its customers on a monthly basis for revenues earned during the prior month with payment terms of 30 days. The Company’s customer arrangements do not contain any significant financing component for its customers. Current Expected Credit Losses (CECL). Customers are primarily international, independent and major integrated exploration, development and production companies, third party helicopter operators and the U.S. government. The Company designates trade receivables as a single pool of assets based on its short-term nature, similar customer base and risk characteristics. Customers are typically granted credit on a short-term basis, and related credit risks are considered minimal. The Company conducts periodic quantitative and qualitative analysis on historic customer payment trends, customer credit ratings and foreseeable economic conditions. Historically, losses on trade receivables have been immaterial and uncorrelated to each other. Based on these circumstances, the Company decides if additional reserve amounts are needed against the trade receivables asset pool, on a case by case basis. Trade receivables are deemed uncollectible and removed from accounts receivable and the allowance for doubtful accounts when collection efforts have been exhausted. As of as of March 31, 2020 , the Company did not reserve any additional amounts for CECL. Leases. The Company determines if an arrangement is a lease at inception or during modification or renewal of an existing lease. Operating leases are maintained for a number of fixed assets including land, hangars, buildings, fuel tanks and tower sites. The right-of-use assets associated with these leases are reflected under long-term assets; the current portion of the long-term payables are reflected under other current liabilities; and the payables on lease agreements past one year are recorded as long-term liabilities on the Company’s consolidated balance sheets. For those contracts with terms of twelve months or less, the lease expense is recognized on a straight-line basis over the lease term and recorded in operating expenses on the consolidated statement of operations. As most of the Company’s leases do not provide an implicit rate, the incremental borrowing rate based on the information available at commencement date is used to determine the present value of future payments. Most of the Company’s lease agreements allow the option of renewal or extension, which are considered a part of the lease term. When it is reasonably certain that a lease will be extended, this is incorporated into the calculations. New Accounting Standards - Adopted. In June 2016, the FASB issued ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments” (ASU No. 2016-13), which sets forth the current expected credit loss model, a new forward-looking impairment model for certain financial instruments based on expected losses rather than incurred losses. The ASU is effective for interim and annual periods beginning after December 15, 2019, and early adoption of the standard was permitted. Entities were required to adopt ASU No. 2016-13 using a modified retrospective approach, subject to certain limited exceptions. Upon evaluating the impact of this ASU, the Company concluded that no additional reserves were necessary as historical losses were immaterial, and, based on the qualitative and quantitative analysis performed in accordance with ASC 326 requirements, the Company determined there was no reasonable expectation of credit losses associated with the Company’s trade receivables in the foreseeable future. The Company adopted ASU No. 2016-13 effective January 1, 2020, and such adoption did not have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurements” (ASU No. 2018-13, update to topic ASC-820), providing guidance for the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period, and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. The Company adopted ASU No. 2018-13 effective January 1, 2020, and such adoption did not have an impact on its consolidated financial statements. New Accounting Standards - Not Yet Adopted. In January 2020, the FASB issued ASU No. 2020-01, “Investments-Equity Securities” Topic 321, “Investments-Equity Method and Joint Ventures” Topic 323 and “Derivatives and Hedging” Topic 815 (ASU No. 2020-01) as an update to ASU No. 2016-01 “Financial Instruments-Overall”, further clarifying the interaction between the accounting for equity securities, equity method investments, and certain derivative instruments. This ASU clarifies that a company should consider observable transactions that require a company to either apply or discontinue the equity method of accounting under Topic 323, for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. With this update, the FASB aims to clarify that, when determining the accounting for certain forward contracts and purchase options a company should now consider, whether upon settlement or exercise, if the underlying securities would be accounted for under the equity method or fair value option. The FASB expects this ASU to reduce diversity in practice and increase comparability of the accounting for these interactions. This ASU is effective for interim and annual periods beginning after December 15, 2020. The Company is evaluating the potential impact of adopting this ASU but does not expect such adoption to have a material impact on its consolidated financial statements. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The fair value of an asset or liability is the price that would be received to sell an asset or transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company utilizes a fair value hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value and defines three levels of inputs that may be used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs derived from observable market data. Level 3 inputs are unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. As of March 31, 2020 and December 31, 2019 , the Company did not have any assets or liabilities that are measured at fair value on a recurring basis. The estimated fair values of the Company’s other financial assets and liabilities as of March 31, 2020 and December 31, 2019 were as follows (in thousands): Carrying Amount Level 1 Level 2 Level 3 March 31, 2020 LIABILITIES Long-term debt, including current portion $ 159,905 $ — $ 155,120 $ — December 31, 2019 LIABILITIES Long-term debt, including current portion $ 160,149 $ — $ 166,691 $ — The carrying values of cash and cash equivalents, receivables and accounts payable approximate fair value. The fair value of the Company’s long-term debt was estimated using discounted cash flow analysis based on estimated current rates for similar types of arrangements. Considerable judgment was required in developing certain of the estimates of fair value, and, accordingly, the estimates presented herein are not necessarily indicative of the amounts that the Company could realize in a current market exchange. Investments. In 2019, the Company purchased $5.0 million of corporate securities and later in 2019, the Company sold these corporate securities for cash proceeds of $4.4 million resulting in a net loss of $0.6 million . |
ACQUISITIONS AND DISPOSITIONS
ACQUISITIONS AND DISPOSITIONS | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
ACQUISITIONS AND DISPOSITIONS | ACQUISITIONS AND DISPOSITIONS Capital Expenditures. During the three months ended March 31, 2020 , capital expenditures were $0.4 million and consisted primarily of helicopter spare parts. During the three months ended March 31, 2020 and 2019 , the Company did no t capitalize any interest. As of March 31, 2020 and December 31, 2019 , construction in progress, which is a component of property and equipment, included capitalized interest of $0.7 million . A summary of changes to the Company’s operating helicopter fleet is as follows: Equipment Additions - During the three months ended March 31, 2020 and 2019 , the Company did no t place any helicopters into service. The Company places helicopters in service once completion work has been finalized and the helicopters are ready for use. Equipment Dispositions - During the three months ended March 31, 2020 and 2019 , the Company did no t sell or dispose of any material assets. During the three months ended March 31, 2020 , the Company parted out one light-twin helicopter, and those parts are now available to repair and maintain other helicopters. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | LEASES The Company leases land, hangars, buildings, fuel tanks and tower sites under operating lease agreements. The Company determines if an arrangement is a lease at inception, and many of these leases offer an option for renewal or extension. The adoption of ASC 842 allows the Company to retain its current classification of leases, and the optional practical expedience rule has allowed the use of the current-period adjustment method to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the current period rather than the restatement of prior year lease amounts. The majority of the bases from which the Company operates are leased, with current remaining terms between one and fifty-nine years . The lease expense on those contracts with initial terms of twelve months or less are recognized on a straight-line basis over the lease term and are not recorded on the balance sheet. The Company does not currently maintain any finance leases and has only operating lease agreements. The Company’s maturity analysis of lease payments under operating leases that have a remaining term in excess of one year as of March 31, 2020 was as follows (in thousands): Minimum Payments 2020 $ 1,657 2021 1,715 2022 1,234 2023 1,186 2024 987 Years subsequent to 2024 8,498 Total future minimum lease payments 15,277 Less: imputed interest 6,452 Present value of lease liabilities $ 8,825 During the three months ended March 31, 2020 and 2019 , the Company recognized $1.0 million and $0.9 million of operating lease expense, respectively. Included in these amounts was $0.4 million and $0.3 million for contracts with remaining terms of less than one year for the three months ended March 31, 2020 and 2019 , respectively. Supplemental balance sheet information related to these leases as of March 31, 2020 and December 31, 2019 were as follows (in thousands): March 31, December 31, Operating lease right-of-use asset $ 8,672 $ 9,468 Other current liabilities $ 1,722 $ 1,773 Long-term lease liabilities 7,103 7,815 Total operating lease liabilities $ 8,825 $ 9,588 Other information related to these leases as of March 31, 2020 and December 31, 2019 were as follows: March 31, December 31, Weighted average remaining lease term 17 years 16 years Weighted average discount rate 6.15 % 6.11 % Cash paid for amounts included in the measurement of lease liabilities was $0.6 million and $0.5 million for the three months ended March 31, 2020 and 2019 , respectively. The Company generates revenues as a lessor from its dry-leasing line of service that require a fixed monthly fee for the customer’s right to use the helicopter and, where applicable, additional charges as compensation for any support the Company may provide to the customer. Revenues from dry-leasing contracts are shown on the face of the statement of operations. In 2018, the Company disposed of six H225 heavy helicopters through sales-type leases. In 2019, the Company completed the final sale of two of these helicopters and received cash proceeds of $5.0 million . During the three months ended March 31, 2020 , the Company recognized $0.3 million of interest income on the remaining leases. As of March 31, 2020 , the Company had remaining receivables of $13.4 million , all of which is due in 2020. These amounts are included in other receivables on the consolidated balance sheet. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES During the three months ended March 31, 2020 and 2019 , the Company recorded an income tax benefit of $0.8 million and $1.6 million , respectively, resulting in an effective tax rate of 10.2% and 23.7% , respectively. During the three months ended March 31, 2020 and 2019 , there were no new uncertain tax positions identified. Amounts accrued for interest and penalties associated with unrecognized income tax benefits are included in other expense on the condensed consolidated statements of operations. As of March 31, 2020 and December 31, 2019 , the gross amount of liability for accrued interest and penalties related to unrecognized tax benefits was less than $0.1 million . On March 27, 2020, Congress enacted the Coronavirus Aid, Relief and Economic Security ("CARES") Act to provide certain relief as a result of the novel coronavirus pandemic (“COVID-19”). The Company is currently evaluating all aspects of the legislation for potential impacts on its financial statements. On January 23, 2020, the Company entered into an agreement to merge (the “Merger”) with Bristow Group, Inc. (“Bristow”). The Merger is intended to qualify as a tax free ‘‘reorganization’’ within the meaning of Section 368(a) of the Internal Revenue Code (the "Code"). Transaction costs associated with the reorganization have been estimated for the three months ended March 31, 2020 , and will be capitalized into the basis of the stock acquired upon execution of the Merger. |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT The Company’s borrowings as of March 31, 2020 and December 31, 2019 were as follows (in thousands): March 31, 2020 December 31, 2019 7.750% Senior Notes (excluding unamortized discount) $ 144,088 $ 144,088 Senior secured revolving credit facility — — Promissory notes 17,901 18,317 Total principal balance on borrowings 161,989 162,405 Portion due within one year (17,901 ) (18,317 ) Unamortized debt issuance costs (1,219 ) (1,320 ) Unamortized discount, net (865 ) (936 ) Long-term debt $ 142,004 $ 141,832 7.750% Senior Notes. On December 7, 2012, Era Group issued $200.0 million aggregate principal amount of its 7.750% senior unsecured notes due December 15, 2022 (the “ 7.750% Senior Notes”) and received net proceeds of $191.9 million . Interest on the 7.750% Senior Notes is payable semi-annually in arrears on June 15 th and December 15 th of each year. Revolving Credit Facility. On March 31, 2014, Era Group entered into the amended and restated senior secured revolving credit facility (the “Amended and Restated Revolving Credit Facility”). On March 7, 2018, Era Group entered into a Consent and Amendment No. 4 to the Amended and Restated Senior Secured Revolving Credit Facility Agreement (the “Amendment No. 4” and the Amended and Restated Revolving Credit Facility, as amended by Amendment No. 4, is referred to herein as the “Revolving Credit Facility”) that, among other things, (a) reduced the aggregate principal amount of revolving loan commitments from $200.0 million to $125.0 million , (b) extended the agreement’s maturity until March 31, 2021, (c) revised the definition of EBITDA to permit an add-back for certain litigation expenses related to the H225 helicopters, and (d) adjusted the maintenance covenant requirements to maintain an interest coverage ratio of not less than 1.75 :1.00 and a senior secured leverage ratio of not more than 3.25 :1.00. The Revolving Credit Facility provides Era Group with the ability to borrow up to $125.0 million , with a sub-limit of up to $50.0 million for letters of credit, and matures in March 2021. Subject to the satisfaction of certain conditions precedent and the agreement by the lenders, the Revolving Credit Facility includes an “accordion” feature which, if exercised, will increase total commitments by up to $50.0 million . Borrowings under the Revolving Credit Facility bear interest at a rate per annum equal to, at Era Group’s election, either a base rate or LIBOR, each as defined in the Revolving Credit Facility, plus an applicable margin. The applicable margin is based on the Company’s ratio of funded debt to EBITDA, as defined in the Revolving Credit Facility, and ranges from 1.25% to 2.50% on the base rate margin and 2.25% to 3.50% on the LIBOR margin. The applicable margin as of March 31, 2020 was 1.50% on the base rate margin and 2.50% on the LIBOR margin. In addition, the Company is required to pay a quarterly commitment fee based on the unfunded portion of the committed amount at a rate based on the Company’s ratio of funded debt to EBITDA, as defined in the Revolving Credit Facility, that ranges from 0.375% to 0.500% . As of March 31, 2020 , the commitment fee was 0.375% . The obligations under the Revolving Credit Facility are secured by a portion of the Company’s helicopter fleet and the Company’s other tangible and intangible assets and are guaranteed by Era Group’s wholly owned U.S. subsidiaries. The Revolving Credit Facility contains various restrictive covenants including an interest coverage ratio, a senior secured leverage ratio and an asset coverage ratio, each as defined in the Revolving Credit Facility, as well as other customary covenants including certain restrictions on the Company’s ability to enter into certain transactions, including those that could result in the incurrence of additional indebtedness and liens, the making of loans, guarantees or investments, sales of assets, payments of dividends or repurchases of capital stock, and entering into transactions with affiliates. As of March 31, 2020 , Era Group had no outstanding borrowings under the Revolving Credit Facility and issued letters of credit of $0.7 million . In connection with Amendment No. 4 entered into in 2018, the Company wrote off previously incurred debt issuance costs of $0.4 million and incurred additional debt issuance costs of $1.3 million . Such costs are included in other assets on the condensed consolidated balance sheets and are amortized to interest expense in the condensed consolidated statements of operations over the life of the Revolving Credit Facility. Promissory Notes. During each of the three months ended March 31, 2020 and 2019 , the Company made scheduled payments on other long-term debt of $0.4 million . The notes require monthly principal and interest payments of $0.1 million with a final payment of $16.8 million , due upon maturity in December 2020. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Fleet. The Company’s unfunded capital commitments as of March 31, 2020 consisted primarily of agreements to purchase helicopters and totaled $79.6 million , which is payable beginning in 2020 through 2021 . The Company also had $1.3 million of deposits paid on options not yet exercised. All of the Company’s capital commitments (inclusive of deposits paid on options not yet exercised) may be terminated without further liability other than aggregate liquidated damages of $2.1 million . Included in these commitments are orders to purchase three AW189 heavy helicopters and five AW169 light twin helicopters. The AW189 helicopters are scheduled to be delivered 2021 . Delivery dates for the AW169 helicopters have yet to be determined. In addition, the Company had outstanding options to purchase up to ten additional AW189 helicopters. If these options are exercised, the helicopters would be scheduled for delivery in 2021 and 2022 . Brazilian Tax Disputes. In connection with its ownership of Aeróleo and its operations in Brazil, the Company has several ongoing legal disputes related to the local, municipal and federal taxation requirements in Brazil, including assessments associated with the import and re-export of its helicopters in Brazil. The legal disputes are related to: (i) municipal tax assessments arising under the authorities in Rio de Janeiro (for the period between 2000 and 2005) and Macaé (for the period between 2001 to 2006) (collectively, the “Municipal Tax Disputes”); (ii) social security contributions that one of its customers was required to remit from 1995 to 1998; (iii) penalties assessed due to its alleged failure to comply with certain deadlines related to the helicopters the Company imports and exports in and out of Brazil; and (iv) fines sought by taxing authorities in Brazil related to its use of certain tax credits used to offset certain social tax liabilities (collectively, the “Tax Disputes”). The aggregate amount at issue for the Tax Disputes is $10.9 million . The Municipal Tax Disputes are the largest contributor to the total amount being sought from Aeróleo, with approximately $8.3 million at issue. In addition to the foregoing Tax Disputes (and unrelated thereto), Aeróleo is engaged in two additional civil litigation matters relating to: (i) a dispute with its former tax consultant who has alleged that $0.7 million is due and payable as a contingency fee related to execution of certain tax strategies; and (ii) a fatal accident that occurred in 1983 that was previously settled with the plaintiffs’ in the U.S. (the “Civil Disputes”). With respect to the fatal accident, the plaintiffs are seeking to collect additional amounts in Brazil despite the previous settlement agreed upon by the parties in the U.S. The Company continues to evaluate and assess various legal strategies for each of the Tax Disputes and the Civil Disputes. As is customary for certain legal matters in Brazil, Aeróleo has already deposited amounts as security into an escrow account to pursue further legal appeals in several of the Tax Disputes and the Civil Disputes. As of March 31, 2020 , the Company has deposited $3.9 million into escrow accounts controlled by the court with respect to the Tax Disputes and the Civil Disputes, and the Company has fully reserved such amounts subject to final determination and the judicial release of such escrow deposits. These estimates are based on its assessment of the nature of these matters, their progress toward resolution, the advice of legal counsel and outside experts as well as management’s intentions and experience. Aeróleo plans to defend the cases vigorously. As of March 31, 2020 , it is not possible to determine the outcome of the Tax Disputes or the Civil Disputes, but the Company does not expect that an outcome would have a material adverse effect on its business, financial position or results of operations. General Litigation and Disputes In the normal course of business, the Company is involved in various litigation matters including, among other things, claims by third parties for alleged property damages and personal injuries. In addition, from time to time, the Company is involved in tax and other disputes with various government agencies. Management has used estimates in determining the Company’s potential exposure to these matters and has recorded reserves in its financial statements related thereto as appropriate. It is possible that a change in its estimates related to these exposures could occur, but the Company does not expect such changes in estimated costs would have a material effect on its business, consolidated financial position or results of operations. |
EARNINGS (LOSS) PER COMMON SHAR
EARNINGS (LOSS) PER COMMON SHARE | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER COMMON SHARE | EARNINGS (LOSS) PER COMMON SHARE Basic earnings per common share of the Company are computed based on the weighted average number of common shares issued and outstanding during the relevant periods. Diluted earnings per common share of the Company are computed based on the weighted average number of common shares issued and outstanding plus the effect of potentially dilutive securities through the application of the if-converted method and/or treasury method. Dilutive securities for this purpose assume all common shares have been issued and outstanding during the relevant periods pursuant to the exercise of outstanding stock options. Computations of basic and diluted earnings per common share of the Company for the three months ended March 31, 2020 and 2019 were as follows (in thousands, except share and per share data): Three Months Ended 2020 2019 Net loss attributable to Era Group Inc. $ (7,229 ) $ (5,943 ) Less: Net income attributable to participating securities — — Net loss attributable to fully vested common stock $ (7,229 ) $ (5,943 ) Weighted average common shares outstanding: Basic 20,702,670 21,323,312 Diluted (1) 20,702,670 21,323,312 Loss per common share, basic and diluted $ (0.35 ) $ (0.28 ) ____________________ (1) Excludes weighted average common shares of 203,612 for each of the three months ended March 31, 2020 and 2019 , for certain share awards as the effect of their inclusion would have been antidilutive. Share Repurchases. On August 14, 2014, the Company’s Board of Directors (the “Board”) approved a share repurchase program authorizing up to $25.0 million of share repurchases. On January 23, 2020, this program was suspended in connection with the entry into the merger agreement with Bristow. In connection with the entry into the merger agreement with Bristow, the Board has authorized a special stock repurchase program that would allow for the purchase of up to $10 million of its common stock from time to time and subject to market conditions on the open market or in privately negotiated transactions. The special repurchase program will end upon the mailing of the joint proxy statement/prospectus for the merger. In April 2020, Era Group repurchased 230,889 shares of common stock in open market transactions for gross consideration of $1.0 million , which is an average cost per share of $4.14 . As of May 1, 2020, $9.0 million remained authorized under the $10.0 million share repurchase program. |
REVENUES
REVENUES | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUE S The Company derives its revenues primarily from oil and gas flight services, emergency response services and leasing activities. Dry-leasing revenues are recognized in accordance with ASC 842. Revenue is recognized when control of the promised goods or services is transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The following table presents the Company’s operating revenues disaggregated by geographical region in which services are provided: Three Months Ended 2020 2019 Operating revenues: U.S. $ 38,992 $ 34,214 International 14,988 13,616 Total operating revenues $ 53,980 $ 47,830 The following table presents the Company’s total revenues earned by service line: Three Months Ended 2020 2019 Revenues: Oil and gas flight services: U.S. $ 37,054 $ 32,466 International 13,281 13,616 Total oil and gas 50,335 46,082 Emergency response services 3,645 1,748 Total operating revenues $ 53,980 $ 47,830 Dry-leasing revenues: U.S. 190 451 International 2,886 3,012 Total revenues $ 57,056 $ 51,293 The Company determines revenue recognition by applying the following steps: 1. Identify the contract with a customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to the performance obligations; and 5. Recognize revenue as the performance obligations are satisfied. The Company earns the majority of its revenue through master service agreements or subscription agreements, which typically include a fixed monthly or daily fee, incremental fees based on hours flown and fees for ancillary items such as fuel, security, charter services, etc. The Company’s arrangements to serve its customers represent a promise to stand ready to provide services at the customer’s discretion. The Company recognizes revenue for flight services and emergency response services with the passing of each day as the Company has the right to consideration from its customers in an amount that corresponds directly with the value to the customer of performance completed to date. The Company typically invoices customers on a monthly basis for revenues earned during the prior month, with payment terms of 30 days. The Company’s customer arrangements do not contain any significant financing component for customers. Amounts for taxes collected from customers and remitted to governmental authorities are reported on a net basis. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS The Company purchased products and services from its Dart Holding Company Ltd. (“Dart”) joint venture totaling $0.6 million during the three months ended March 31, 2019. The Company also had a note receivable from Dart, which had a balance of $2.3 million as of December 31, 2018. The note was paid in full during the first quarter of 2019. Purchases from Dart are included in operating expenses on the consolidated statements of income, and the note receivable was included in equity investments and advances on the consolidated balance sheets. During the three months ended March 31, 2019, the Company in conjunction with its 50% joint venture partner entered into an agreement to sell Dart. The transaction closed on April 1, 2019, for gross proceeds of $38.0 million , including payment of the note receivable in March 2019, and net gains of $10.9 million . |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Restricted Stock Awards. The number of shares and weighted average grant price of restricted stock awards during the three months ended March 31, 2020 were as follows: Number of Shares Weighted Average Grant Price Non-vested as of December 31, 2019 626,399 $ 10.31 Restricted stock awards granted: Non-employee directors 40,430 $ 7.54 Employees 513,685 $ 7.54 Vested (282,263 ) $ 10.44 Non-vested as of March 31, 2020 898,251 $ 8.56 The total fair value of shares vested during the three months ended March 31, 2020 and 2019 , determined using the closing price on the grant date, was $2.9 million and $2.5 million , respectively. Stock Options. The Company did no t grant any stock options during the three months ended March 31, 2020 . Employee Stock Purchase Plan (“ESPP”). In the first quarter of 2020, the Company, in connection with its entry into a definitive agreement to merge with Bristow, suspended the ESPP. Total share-based compensation expense, which includes restricted stock and the ESPP, was $0.7 million and $0.8 million for the three months ended March 31, 2020 and 2019 , respectively. |
GUARANTORS OF SECURITIES
GUARANTORS OF SECURITIES | 3 Months Ended |
Mar. 31, 2020 | |
Guarantees [Abstract] | |
GUARANTORS OF SECURITIES | GUARANTORS OF SECURITIES 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 the Guarantors to guarantee the 7.750% Senior Notes, the Company presents 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 accompanying consolidated financial statements and notes of the Company. Supplemental Condensed Consolidating Balance Sheet as of March 31, 2020 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands, except share data) ASSETS Current assets: Cash and cash equivalents $ 111,654 $ — $ 1,864 $ — $ 113,518 Receivables: Trade, operating, net of allowance for doubtful accounts — 28,738 5,364 — 34,102 Trade, dry-leasing — 5,754 — — 5,754 Tax receivable — 2 2,157 — 2,159 Other — 14,594 412 — 15,006 Inventories, net — 19,927 14 — 19,941 Prepaid expenses 991 2,108 313 — 3,412 Total current assets 112,645 71,123 10,124 — 193,892 Property and equipment — 876,767 16,818 — 893,585 Accumulated depreciation — (340,873 ) (4,584 ) — (345,457 ) Property and equipment, net — 535,894 12,234 — 548,128 Operating lease right-of-use — 7,526 1,146 — 8,672 Investments in consolidated subsidiaries 189,347 — — (189,347 ) — Intangible assets — — 92 — 92 Deferred income taxes 11,711 — — (11,711 ) — Intercompany receivables 285,926 — — (285,926 ) — Other assets 524 873 329 — 1,726 Total assets $ 600,153 $ 615,416 $ 23,925 $ (486,984 ) $ 752,510 LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable and accrued expenses $ 1,239 $ 10,078 $ 1,158 $ — $ 12,475 Accrued wages and benefits 625 4,767 1,173 — 6,565 Accrued interest 3,259 50 — — 3,309 Accrued income taxes 2,273 — 24 — 2,297 Accrued other taxes — 1,201 338 — 1,539 Accrued contingencies — — 701 — 701 Current portion of long-term debt — 17,901 — — 17,901 Other current liabilities 1,126 1,904 280 — 3,310 Total current liabilities 8,522 35,901 3,674 — 48,097 Long-term debt 142,004 — — — 142,004 Deferred income taxes — 112,788 907 (11,711 ) 101,984 Intercompany payables — 220,529 65,417 (285,946 ) — Operating lease liabilities — 6,219 884 — 7,103 Deferred gains and other liabilities — 920 — — 920 Total liabilities 150,526 376,357 70,882 (297,657 ) 300,108 Redeemable noncontrolling interest — — 2,752 — 2,752 Equity: Common stock, $0.01 par value, 60,000,000 shares authorized; 21,756,272 outstanding, exclusive of treasury shares 230 — — — 230 Additional paid-in capital 452,703 100,306 4,562 (104,870 ) 452,701 Retained earnings 7,438 138,753 (54,271 ) (84,457 ) 7,463 Treasury shares, at cost, 1,236,282 shares (10,744 ) — — — (10,744 ) Total equity 449,627 239,059 (49,709 ) (189,327 ) 449,650 Total liabilities, redeemable noncontrolling interest and stockholders’ equity $ 600,153 $ 615,416 $ 23,925 $ (486,984 ) $ 752,510 Supplemental Condensed Consolidating Balance Sheet as of December 31, 2019 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands, except share data) ASSETS Current assets: Cash and cash equivalents $ 114,965 $ — $ 2,401 $ — $ 117,366 Receivables: Trade, operating, net of allowance for doubtful accounts — 27,230 5,500 — 32,730 Trade, dry leasing — 5,234 — — 5,234 Tax receivables — 2 2,858 — 2,860 Other — 15,136 285 — 15,421 Inventories, net — 20,019 47 — 20,066 Prepaid expenses 488 1,480 216 — 2,184 Total current assets 115,453 69,101 11,307 — 195,861 Property and equipment — 878,281 16,782 — 895,063 Accumulated depreciation — (333,788 ) (4,376 ) — (338,164 ) Property and equipment, net — 544,493 12,406 — 556,899 Operating lease right-of-use — 7,694 1,774 — 9,468 Investments in consolidated subsidiaries 190,142 — — (190,142 ) — Intangible assets — — 96 — 96 Deferred income taxes 9,909 — — (9,909 ) — Intercompany receivables 288,023 — — (288,023 ) — Other assets 670 1,082 439 — 2,191 Total assets $ 604,197 $ 622,370 $ 26,022 $ (488,074 ) $ 764,515 LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable and accrued expenses $ 405 $ 10,937 $ 1,581 $ — $ 12,923 Accrued wages and benefits 122 9,065 1,367 — 10,554 Accrued interest 468 52 — — 520 Accrued income taxes 3,595 1 16 — 3,612 Accrued other taxes — 487 450 — 937 Accrued contingencies — — 598 — 598 Current portion of long-term debt — 18,317 — — 18,317 Other current liabilities 1,053 1,866 396 — 3,315 Total current liabilities 5,643 40,725 4,408 — 50,776 Long-term debt 141,832 — — — 141,832 Deferred income taxes — 112,795 907 (9,909 ) 103,793 Intercompany payables — 225,341 62,702 (288,043 ) — Operating lease liabilities — 6,434 1,381 — 7,815 Deferred gains and other liabilities — 745 — — 745 Total liabilities 147,475 386,040 69,398 (297,952 ) 304,961 Redeemable noncontrolling interest — — 2,812 — 2,812 Equity: Common stock, $0.01 par value, 60,000,000 shares authorized; 21,285,613 outstanding, exclusive of treasury shares 224 — — — 224 Additional paid-in capital 452,010 100,307 4,562 (104,870 ) 452,009 Retained earnings 14,671 136,023 (50,750 ) (85,252 ) 14,692 Treasury shares, at cost, 1,152,826 shares (10,183 ) — — — (10,183 ) Total equity 456,722 236,330 (46,188 ) (190,122 ) 456,742 Total liabilities, redeemable noncontrolling interest and stockholders’ equity $ 604,197 $ 622,370 $ 26,022 $ (488,074 ) $ 764,515 Supplemental Condensed Consolidating Statements of Operations for the Three Months Ended March 31, 2020 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Revenues $ — $ 51,918 $ 12,150 $ (7,012 ) $ 57,056 Costs and expenses: Operating — 32,441 13,077 (7,012 ) 38,506 Administrative and general 4,583 7,323 839 — 12,745 Depreciation — 9,295 212 — 9,507 Total costs and expenses 4,583 49,059 14,128 (7,012 ) 60,758 Loss on asset dispositions, net — (34 ) — — (34 ) Operating income (loss) (4,583 ) 2,825 (1,978 ) — (3,736 ) Other income (expense): Interest income 378 337 34 — 749 Interest expense (3,281 ) (158 ) — — (3,439 ) Foreign currency losses, net (24 ) (45 ) (1,635 ) — (1,704 ) Other, net — 12 (2 ) — 10 Total other income (expense) (2,927 ) 146 (1,603 ) — (4,384 ) Income (loss) before income taxes and equity earnings (7,510 ) 2,971 (3,581 ) — (8,120 ) Income tax (benefit) expense (1,072 ) 241 — — (831 ) Income (loss) before equity earnings (6,438 ) 2,730 (3,581 ) — (7,289 ) Equity in earnings (losses) of subsidiaries (795 ) — — 795 — Net income (loss) (7,233 ) 2,730 (3,581 ) 795 (7,289 ) Net loss attributable to noncontrolling interest in subsidiary — — 60 — 60 Net income (loss) attributable to Era Group Inc. $ (7,233 ) $ 2,730 $ (3,521 ) $ 795 $ (7,229 ) Supplemental Condensed Consolidating Statements of Operations for the Three Months Ended March 31, 2019 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Revenues $ — $ 45,314 $ 13,617 $ (7,638 ) $ 51,293 Costs and expenses: Operating — 30,049 14,285 (7,638 ) 36,696 Administrative and general 1,242 6,672 961 — 8,875 Depreciation — 9,197 253 — 9,450 Total costs and expenses 1,242 45,918 15,499 (7,638 ) 55,021 Loss on asset dispositions, net — (124 ) — — (124 ) Operating loss (1,242 ) (728 ) (1,882 ) — (3,852 ) Other income (expense): Interest income 196 504 52 — 752 Interest expense (3,241 ) (213 ) (7 ) — (3,461 ) Foreign currency losses, net (40 ) (49 ) (37 ) — (126 ) Other, net — (1 ) (10 ) — (11 ) Total other income (expense) (3,085 ) 241 (2 ) — (2,846 ) Loss before income taxes and equity earnings (4,327 ) (487 ) (1,884 ) — (6,698 ) Income tax (benefit) expense 336 (1,924 ) — — (1,588 ) Income (loss) before equity earnings (4,663 ) 1,437 (1,884 ) — (5,110 ) Equity in earnings (losses) of subsidiaries (1,280 ) (975 ) — 1,280 (975 ) Net income (loss) (5,943 ) 462 (1,884 ) 1,280 (6,085 ) Net loss attributable to noncontrolling interest in subsidiary — — 142 — 142 Net income (loss) attributable to Era Group Inc. $ (5,943 ) $ 462 $ (1,742 ) $ 1,280 $ (5,943 ) Supplemental Condensed Consolidating Statements of Comprehensive Income for the Three Months Ended March 31, 2020 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Net income (loss) $ (7,233 ) $ 2,730 $ (3,581 ) $ 795 $ (7,289 ) Comprehensive income (loss) (7,233 ) 2,730 (3,581 ) 795 (7,289 ) Comprehensive loss attributable to noncontrolling interest in subsidiary — — 60 — 60 Comprehensive income (loss) attributable to Era Group Inc. $ (7,233 ) $ 2,730 $ (3,521 ) $ 795 $ (7,229 ) Supplemental Condensed Consolidating Statements of Comprehensive Income for the Three Months Ended March 31, 2019 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Net income (loss) $ (5,943 ) $ 462 $ (1,884 ) $ 1,280 $ (6,085 ) Comprehensive income (loss) (5,943 ) 462 (1,884 ) 1,280 (6,085 ) Comprehensive loss attributable to noncontrolling interest in subsidiary — — 142 — 142 Comprehensive income (loss) attributable to Era Group Inc. $ (5,943 ) $ 462 $ (1,742 ) $ 1,280 $ (5,943 ) Supplemental Condensed Consolidating Statements of Cash Flows for the Three Months Ended March 31, 2020 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Net cash provided by (used in) operating activities $ (2,752 ) $ 708 $ (88 ) $ — $ (2,132 ) Cash flows from investing activities: Purchases of property and equipment — (347 ) (53 ) — (400 ) Principal payments on third party notes receivable — 55 — — 55 Net cash used in investing activities — (292 ) (53 ) — (345 ) Cash flows from financing activities: Payments on long-term debt — (416 ) — — (416 ) Purchase of treasury shares (561 ) — — — (561 ) Net cash used in financing activities (561 ) (416 ) — — (977 ) Effects of exchange rate changes on cash and cash equivalents — — (394 ) — (394 ) Net decrease in cash, cash equivalents and restricted cash (3,313 ) — (535 ) — (3,848 ) Cash, cash equivalents and restricted cash, beginning of period 114,971 — 2,395 — 117,366 Cash, cash equivalents and restricted cash, end of period $ 111,658 $ — $ 1,860 $ — $ 113,518 Supplemental Condensed Consolidating Statements of Cash Flows for the Three Months Ended March 31, 2019 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Net cash provided by (used in) operating activities $ 5,477 $ (1,386 ) $ (1,456 ) $ — $ 2,635 Cash flows from investing activities: Purchases of property and equipment — (1,221 ) (91 ) — (1,312 ) Purchase of investments (5,000 ) — — — (5,000 ) Principal payments on notes due from equity investees — 2,334 — — 2,334 Principal payments on third party notes receivable — 104 — — 104 Net cash provided by (used in) investing activities (5,000 ) 1,217 (91 ) — (3,874 ) Cash flows from financing activities: Payments on long-term debt — (416 ) (126 ) — (542 ) Proceeds from share award plans — — — 590 590 Purchase of treasury shares — — — (5 ) (5 ) Borrowings and repayments of intercompany debt — 585 — (585 ) — Net cash provided by (used in) financing activities — 169 (126 ) — 43 Effects of exchange rate changes on cash and cash equivalents — — 55 — 55 Net increase (decrease) in cash, cash equivalents and restricted cash 477 — (1,618 ) — (1,141 ) Cash, cash equivalents and restricted cash, beginning of period 48,396 — 2,357 — 50,753 Cash, cash equivalents and restricted cash, end of period $ 48,873 $ — $ 739 $ — $ 49,612 |
BASIS OF PRESENTATION AND ACC_2
BASIS OF PRESENTATION AND ACCOUNTING POLICY (Policy) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Consolidation | Basis of Consolidation. The consolidated financial statements include the accounts of Era Group Inc., its wholly and majority-owned subsidiaries and entities that meet the criteria of variable interest entities (“VIEs”) of which the Company is the primary beneficiary. All significant inter-company accounts and transactions are eliminated in consolidation. |
Revenue Recognition | Revenue Recognition. The Company recognizes revenues for flight services and emergency response services with the passing of each day as the Company has the right to consideration from its customers in an amount that corresponds directly with the value to the Company’s customer of the performance completed to date. Therefore, the Company has elected to exercise the right to invoice practical expedient in its adoption of ASC 606. The right to invoice represents a method for recognizing revenue over time using the output measure of “value to the customer” which is an objective measure of an entity’s performance in a contract. The Company typically invoices its customers on a monthly basis for revenues earned during the prior month with payment terms of 30 days. The Company’s customer arrangements do not contain any significant financing component for its customers. |
Current Expected Credit Losses (CECL) | Current Expected Credit Losses (CECL). |
Leases | Leases. The Company determines if an arrangement is a lease at inception or during modification or renewal of an existing lease. Operating leases are maintained for a number of fixed assets including land, hangars, buildings, fuel tanks and tower sites. The right-of-use assets associated with these leases are reflected under long-term assets; the current portion of the long-term payables are reflected under other current liabilities; and the payables on lease agreements past one year are recorded as long-term liabilities on the Company’s consolidated balance sheets. For those contracts with terms of twelve months or less, the lease expense is recognized on a straight-line basis over the lease term and recorded in operating expenses on the consolidated statement of operations. As most of the Company’s leases do not provide an implicit rate, the incremental borrowing rate based on the information available at commencement date is used to determine the present value of future payments. Most of the Company’s lease agreements allow the option of renewal or extension, which are considered a part of the lease term. When it is reasonably certain that a lease will be extended, this is incorporated into the calculations. |
New Accounting Standards | New Accounting Standards - Adopted. In June 2016, the FASB issued ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments” (ASU No. 2016-13), which sets forth the current expected credit loss model, a new forward-looking impairment model for certain financial instruments based on expected losses rather than incurred losses. The ASU is effective for interim and annual periods beginning after December 15, 2019, and early adoption of the standard was permitted. Entities were required to adopt ASU No. 2016-13 using a modified retrospective approach, subject to certain limited exceptions. Upon evaluating the impact of this ASU, the Company concluded that no additional reserves were necessary as historical losses were immaterial, and, based on the qualitative and quantitative analysis performed in accordance with ASC 326 requirements, the Company determined there was no reasonable expectation of credit losses associated with the Company’s trade receivables in the foreseeable future. The Company adopted ASU No. 2016-13 effective January 1, 2020, and such adoption did not have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurements” (ASU No. 2018-13, update to topic ASC-820), providing guidance for the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period, and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. The Company adopted ASU No. 2018-13 effective January 1, 2020, and such adoption did not have an impact on its consolidated financial statements. New Accounting Standards - Not Yet Adopted. In January 2020, the FASB issued ASU No. 2020-01, “Investments-Equity Securities” Topic 321, “Investments-Equity Method and Joint Ventures” Topic 323 and “Derivatives and Hedging” Topic 815 (ASU No. 2020-01) as an update to ASU No. 2016-01 “Financial Instruments-Overall”, further clarifying the interaction between the accounting for equity securities, equity method investments, and certain derivative instruments. This ASU clarifies that a company should consider observable transactions that require a company to either apply or discontinue the equity method of accounting under Topic 323, for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. With this update, the FASB aims to clarify that, when determining the accounting for certain forward contracts and purchase options a company should now consider, whether upon settlement or exercise, if the underlying securities would be accounted for under the equity method or fair value option. The FASB expects this ASU to reduce diversity in practice and increase comparability of the accounting for these interactions. This ASU is effective for interim and annual periods beginning after December 15, 2020. The Company is evaluating the potential impact of adopting this ASU but does not expect such adoption to have a material impact on its consolidated financial statements. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Value Of Other Financial Assets And Liabilities | The estimated fair values of the Company’s other financial assets and liabilities as of March 31, 2020 and December 31, 2019 were as follows (in thousands): Carrying Amount Level 1 Level 2 Level 3 March 31, 2020 LIABILITIES Long-term debt, including current portion $ 159,905 $ — $ 155,120 $ — December 31, 2019 LIABILITIES Long-term debt, including current portion $ 160,149 $ — $ 166,691 $ — |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lease Maturity Analysis | The Company’s maturity analysis of lease payments under operating leases that have a remaining term in excess of one year as of March 31, 2020 was as follows (in thousands): Minimum Payments 2020 $ 1,657 2021 1,715 2022 1,234 2023 1,186 2024 987 Years subsequent to 2024 8,498 Total future minimum lease payments 15,277 Less: imputed interest 6,452 Present value of lease liabilities $ 8,825 |
Assets and Liabilities, Lessee | Supplemental balance sheet information related to these leases as of March 31, 2020 and December 31, 2019 were as follows (in thousands): March 31, December 31, Operating lease right-of-use asset $ 8,672 $ 9,468 Other current liabilities $ 1,722 $ 1,773 Long-term lease liabilities 7,103 7,815 Total operating lease liabilities $ 8,825 $ 9,588 |
Lease, Cost | Other information related to these leases as of March 31, 2020 and December 31, 2019 were as follows: March 31, December 31, Weighted average remaining lease term 17 years 16 years Weighted average discount rate 6.15 % 6.11 % |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s borrowings as of March 31, 2020 and December 31, 2019 were as follows (in thousands): March 31, 2020 December 31, 2019 7.750% Senior Notes (excluding unamortized discount) $ 144,088 $ 144,088 Senior secured revolving credit facility — — Promissory notes 17,901 18,317 Total principal balance on borrowings 161,989 162,405 Portion due within one year (17,901 ) (18,317 ) Unamortized debt issuance costs (1,219 ) (1,320 ) Unamortized discount, net (865 ) (936 ) Long-term debt $ 142,004 $ 141,832 |
EARNINGS (LOSS) PER COMMON SH_2
EARNINGS (LOSS) PER COMMON SHARE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings per common share | Computations of basic and diluted earnings per common share of the Company for the three months ended March 31, 2020 and 2019 were as follows (in thousands, except share and per share data): Three Months Ended 2020 2019 Net loss attributable to Era Group Inc. $ (7,229 ) $ (5,943 ) Less: Net income attributable to participating securities — — Net loss attributable to fully vested common stock $ (7,229 ) $ (5,943 ) Weighted average common shares outstanding: Basic 20,702,670 21,323,312 Diluted (1) 20,702,670 21,323,312 Loss per common share, basic and diluted $ (0.35 ) $ (0.28 ) ____________________ (1) Excludes weighted average common shares of 203,612 for each of the three months ended March 31, 2020 and 2019 , for certain share awards as the effect of their inclusion would have been antidilutive. |
REVENUES (Tables)
REVENUES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the Company’s operating revenues disaggregated by geographical region in which services are provided: Three Months Ended 2020 2019 Operating revenues: U.S. $ 38,992 $ 34,214 International 14,988 13,616 Total operating revenues $ 53,980 $ 47,830 The following table presents the Company’s total revenues earned by service line: Three Months Ended 2020 2019 Revenues: Oil and gas flight services: U.S. $ 37,054 $ 32,466 International 13,281 13,616 Total oil and gas 50,335 46,082 Emergency response services 3,645 1,748 Total operating revenues $ 53,980 $ 47,830 Dry-leasing revenues: U.S. 190 451 International 2,886 3,012 Total revenues $ 57,056 $ 51,293 |
SHARE BASED COMPENSATION (Table
SHARE BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share Based Compensation Plans | The number of shares and weighted average grant price of restricted stock awards during the three months ended March 31, 2020 were as follows: Number of Shares Weighted Average Grant Price Non-vested as of December 31, 2019 626,399 $ 10.31 Restricted stock awards granted: Non-employee directors 40,430 $ 7.54 Employees 513,685 $ 7.54 Vested (282,263 ) $ 10.44 Non-vested as of March 31, 2020 898,251 $ 8.56 |
GUARANTORS OF SECURITIES (Table
GUARANTORS OF SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Guarantees [Abstract] | |
Condensed Consolidating Balance Sheet | Supplemental Condensed Consolidating Balance Sheet as of March 31, 2020 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands, except share data) ASSETS Current assets: Cash and cash equivalents $ 111,654 $ — $ 1,864 $ — $ 113,518 Receivables: Trade, operating, net of allowance for doubtful accounts — 28,738 5,364 — 34,102 Trade, dry-leasing — 5,754 — — 5,754 Tax receivable — 2 2,157 — 2,159 Other — 14,594 412 — 15,006 Inventories, net — 19,927 14 — 19,941 Prepaid expenses 991 2,108 313 — 3,412 Total current assets 112,645 71,123 10,124 — 193,892 Property and equipment — 876,767 16,818 — 893,585 Accumulated depreciation — (340,873 ) (4,584 ) — (345,457 ) Property and equipment, net — 535,894 12,234 — 548,128 Operating lease right-of-use — 7,526 1,146 — 8,672 Investments in consolidated subsidiaries 189,347 — — (189,347 ) — Intangible assets — — 92 — 92 Deferred income taxes 11,711 — — (11,711 ) — Intercompany receivables 285,926 — — (285,926 ) — Other assets 524 873 329 — 1,726 Total assets $ 600,153 $ 615,416 $ 23,925 $ (486,984 ) $ 752,510 LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable and accrued expenses $ 1,239 $ 10,078 $ 1,158 $ — $ 12,475 Accrued wages and benefits 625 4,767 1,173 — 6,565 Accrued interest 3,259 50 — — 3,309 Accrued income taxes 2,273 — 24 — 2,297 Accrued other taxes — 1,201 338 — 1,539 Accrued contingencies — — 701 — 701 Current portion of long-term debt — 17,901 — — 17,901 Other current liabilities 1,126 1,904 280 — 3,310 Total current liabilities 8,522 35,901 3,674 — 48,097 Long-term debt 142,004 — — — 142,004 Deferred income taxes — 112,788 907 (11,711 ) 101,984 Intercompany payables — 220,529 65,417 (285,946 ) — Operating lease liabilities — 6,219 884 — 7,103 Deferred gains and other liabilities — 920 — — 920 Total liabilities 150,526 376,357 70,882 (297,657 ) 300,108 Redeemable noncontrolling interest — — 2,752 — 2,752 Equity: Common stock, $0.01 par value, 60,000,000 shares authorized; 21,756,272 outstanding, exclusive of treasury shares 230 — — — 230 Additional paid-in capital 452,703 100,306 4,562 (104,870 ) 452,701 Retained earnings 7,438 138,753 (54,271 ) (84,457 ) 7,463 Treasury shares, at cost, 1,236,282 shares (10,744 ) — — — (10,744 ) Total equity 449,627 239,059 (49,709 ) (189,327 ) 449,650 Total liabilities, redeemable noncontrolling interest and stockholders’ equity $ 600,153 $ 615,416 $ 23,925 $ (486,984 ) $ 752,510 Supplemental Condensed Consolidating Balance Sheet as of December 31, 2019 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands, except share data) ASSETS Current assets: Cash and cash equivalents $ 114,965 $ — $ 2,401 $ — $ 117,366 Receivables: Trade, operating, net of allowance for doubtful accounts — 27,230 5,500 — 32,730 Trade, dry leasing — 5,234 — — 5,234 Tax receivables — 2 2,858 — 2,860 Other — 15,136 285 — 15,421 Inventories, net — 20,019 47 — 20,066 Prepaid expenses 488 1,480 216 — 2,184 Total current assets 115,453 69,101 11,307 — 195,861 Property and equipment — 878,281 16,782 — 895,063 Accumulated depreciation — (333,788 ) (4,376 ) — (338,164 ) Property and equipment, net — 544,493 12,406 — 556,899 Operating lease right-of-use — 7,694 1,774 — 9,468 Investments in consolidated subsidiaries 190,142 — — (190,142 ) — Intangible assets — — 96 — 96 Deferred income taxes 9,909 — — (9,909 ) — Intercompany receivables 288,023 — — (288,023 ) — Other assets 670 1,082 439 — 2,191 Total assets $ 604,197 $ 622,370 $ 26,022 $ (488,074 ) $ 764,515 LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable and accrued expenses $ 405 $ 10,937 $ 1,581 $ — $ 12,923 Accrued wages and benefits 122 9,065 1,367 — 10,554 Accrued interest 468 52 — — 520 Accrued income taxes 3,595 1 16 — 3,612 Accrued other taxes — 487 450 — 937 Accrued contingencies — — 598 — 598 Current portion of long-term debt — 18,317 — — 18,317 Other current liabilities 1,053 1,866 396 — 3,315 Total current liabilities 5,643 40,725 4,408 — 50,776 Long-term debt 141,832 — — — 141,832 Deferred income taxes — 112,795 907 (9,909 ) 103,793 Intercompany payables — 225,341 62,702 (288,043 ) — Operating lease liabilities — 6,434 1,381 — 7,815 Deferred gains and other liabilities — 745 — — 745 Total liabilities 147,475 386,040 69,398 (297,952 ) 304,961 Redeemable noncontrolling interest — — 2,812 — 2,812 Equity: Common stock, $0.01 par value, 60,000,000 shares authorized; 21,285,613 outstanding, exclusive of treasury shares 224 — — — 224 Additional paid-in capital 452,010 100,307 4,562 (104,870 ) 452,009 Retained earnings 14,671 136,023 (50,750 ) (85,252 ) 14,692 Treasury shares, at cost, 1,152,826 shares (10,183 ) — — — (10,183 ) Total equity 456,722 236,330 (46,188 ) (190,122 ) 456,742 Total liabilities, redeemable noncontrolling interest and stockholders’ equity $ 604,197 $ 622,370 $ 26,022 $ (488,074 ) $ 764,515 |
Condensed Consolidating Statements of Operations | Supplemental Condensed Consolidating Statements of Operations for the Three Months Ended March 31, 2020 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Revenues $ — $ 51,918 $ 12,150 $ (7,012 ) $ 57,056 Costs and expenses: Operating — 32,441 13,077 (7,012 ) 38,506 Administrative and general 4,583 7,323 839 — 12,745 Depreciation — 9,295 212 — 9,507 Total costs and expenses 4,583 49,059 14,128 (7,012 ) 60,758 Loss on asset dispositions, net — (34 ) — — (34 ) Operating income (loss) (4,583 ) 2,825 (1,978 ) — (3,736 ) Other income (expense): Interest income 378 337 34 — 749 Interest expense (3,281 ) (158 ) — — (3,439 ) Foreign currency losses, net (24 ) (45 ) (1,635 ) — (1,704 ) Other, net — 12 (2 ) — 10 Total other income (expense) (2,927 ) 146 (1,603 ) — (4,384 ) Income (loss) before income taxes and equity earnings (7,510 ) 2,971 (3,581 ) — (8,120 ) Income tax (benefit) expense (1,072 ) 241 — — (831 ) Income (loss) before equity earnings (6,438 ) 2,730 (3,581 ) — (7,289 ) Equity in earnings (losses) of subsidiaries (795 ) — — 795 — Net income (loss) (7,233 ) 2,730 (3,581 ) 795 (7,289 ) Net loss attributable to noncontrolling interest in subsidiary — — 60 — 60 Net income (loss) attributable to Era Group Inc. $ (7,233 ) $ 2,730 $ (3,521 ) $ 795 $ (7,229 ) Supplemental Condensed Consolidating Statements of Operations for the Three Months Ended March 31, 2019 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Revenues $ — $ 45,314 $ 13,617 $ (7,638 ) $ 51,293 Costs and expenses: Operating — 30,049 14,285 (7,638 ) 36,696 Administrative and general 1,242 6,672 961 — 8,875 Depreciation — 9,197 253 — 9,450 Total costs and expenses 1,242 45,918 15,499 (7,638 ) 55,021 Loss on asset dispositions, net — (124 ) — — (124 ) Operating loss (1,242 ) (728 ) (1,882 ) — (3,852 ) Other income (expense): Interest income 196 504 52 — 752 Interest expense (3,241 ) (213 ) (7 ) — (3,461 ) Foreign currency losses, net (40 ) (49 ) (37 ) — (126 ) Other, net — (1 ) (10 ) — (11 ) Total other income (expense) (3,085 ) 241 (2 ) — (2,846 ) Loss before income taxes and equity earnings (4,327 ) (487 ) (1,884 ) — (6,698 ) Income tax (benefit) expense 336 (1,924 ) — — (1,588 ) Income (loss) before equity earnings (4,663 ) 1,437 (1,884 ) — (5,110 ) Equity in earnings (losses) of subsidiaries (1,280 ) (975 ) — 1,280 (975 ) Net income (loss) (5,943 ) 462 (1,884 ) 1,280 (6,085 ) Net loss attributable to noncontrolling interest in subsidiary — — 142 — 142 Net income (loss) attributable to Era Group Inc. $ (5,943 ) $ 462 $ (1,742 ) $ 1,280 $ (5,943 ) |
Condensed Consolidating Statements of Comprehensive Income | Supplemental Condensed Consolidating Statements of Comprehensive Income for the Three Months Ended March 31, 2020 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Net income (loss) $ (7,233 ) $ 2,730 $ (3,581 ) $ 795 $ (7,289 ) Comprehensive income (loss) (7,233 ) 2,730 (3,581 ) 795 (7,289 ) Comprehensive loss attributable to noncontrolling interest in subsidiary — — 60 — 60 Comprehensive income (loss) attributable to Era Group Inc. $ (7,233 ) $ 2,730 $ (3,521 ) $ 795 $ (7,229 ) Supplemental Condensed Consolidating Statements of Comprehensive Income for the Three Months Ended March 31, 2019 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Net income (loss) $ (5,943 ) $ 462 $ (1,884 ) $ 1,280 $ (6,085 ) Comprehensive income (loss) (5,943 ) 462 (1,884 ) 1,280 (6,085 ) Comprehensive loss attributable to noncontrolling interest in subsidiary — — 142 — 142 Comprehensive income (loss) attributable to Era Group Inc. $ (5,943 ) $ 462 $ (1,742 ) $ 1,280 $ (5,943 ) |
Condensed Consolidating Statements of Cash Flows | Supplemental Condensed Consolidating Statements of Cash Flows for the Three Months Ended March 31, 2020 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Net cash provided by (used in) operating activities $ (2,752 ) $ 708 $ (88 ) $ — $ (2,132 ) Cash flows from investing activities: Purchases of property and equipment — (347 ) (53 ) — (400 ) Principal payments on third party notes receivable — 55 — — 55 Net cash used in investing activities — (292 ) (53 ) — (345 ) Cash flows from financing activities: Payments on long-term debt — (416 ) — — (416 ) Purchase of treasury shares (561 ) — — — (561 ) Net cash used in financing activities (561 ) (416 ) — — (977 ) Effects of exchange rate changes on cash and cash equivalents — — (394 ) — (394 ) Net decrease in cash, cash equivalents and restricted cash (3,313 ) — (535 ) — (3,848 ) Cash, cash equivalents and restricted cash, beginning of period 114,971 — 2,395 — 117,366 Cash, cash equivalents and restricted cash, end of period $ 111,658 $ — $ 1,860 $ — $ 113,518 Supplemental Condensed Consolidating Statements of Cash Flows for the Three Months Ended March 31, 2019 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Net cash provided by (used in) operating activities $ 5,477 $ (1,386 ) $ (1,456 ) $ — $ 2,635 Cash flows from investing activities: Purchases of property and equipment — (1,221 ) (91 ) — (1,312 ) Purchase of investments (5,000 ) — — — (5,000 ) Principal payments on notes due from equity investees — 2,334 — — 2,334 Principal payments on third party notes receivable — 104 — — 104 Net cash provided by (used in) investing activities (5,000 ) 1,217 (91 ) — (3,874 ) Cash flows from financing activities: Payments on long-term debt — (416 ) (126 ) — (542 ) Proceeds from share award plans — — — 590 590 Purchase of treasury shares — — — (5 ) (5 ) Borrowings and repayments of intercompany debt — 585 — (585 ) — Net cash provided by (used in) financing activities — 169 (126 ) — 43 Effects of exchange rate changes on cash and cash equivalents — — 55 — 55 Net increase (decrease) in cash, cash equivalents and restricted cash 477 — (1,618 ) — (1,141 ) Cash, cash equivalents and restricted cash, beginning of period 48,396 — 2,357 — 50,753 Cash, cash equivalents and restricted cash, end of period $ 48,873 $ — $ 739 $ — $ 49,612 |
FAIR VALUE MEASUREMENTS - Estim
FAIR VALUE MEASUREMENTS - Estimated Fair Value Of Other Financial Assets And Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current portion | $ 159,905 | $ 160,149 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current portion | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current portion | 155,120 | 166,691 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current portion | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Fair Value Disclosures [Abstract] | |
Purchase of investments | $ 5 |
Proceeds from sale of investments | 4.4 |
Net loss on investment | $ 0.6 |
ACQUISITIONS AND DISPOSITIONS (
ACQUISITIONS AND DISPOSITIONS (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020USD ($)helicopter | Mar. 31, 2019USD ($)helicopter | Dec. 31, 2019USD ($)helicopter | Dec. 31, 2018helicopter | |
Property, Plant and Equipment [Line Items] | ||||
Purchases of property and equipment | $ | $ 400,000 | $ 1,312,000 | ||
Interest capitalized during the period | $ | $ 0 | $ 0 | ||
Number of helicopter acquisitions | helicopter | 0 | 0 | ||
Number of helicopter dispositions | helicopter | 0 | 0 | 2 | 6 |
Number of helicopters parted out | helicopter | 1 | |||
Construction in Progress | ||||
Property, Plant and Equipment [Line Items] | ||||
Interest capitalized in property and equipment | $ | $ 700,000 | $ 700,000 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020USD ($)helicopter | Mar. 31, 2019USD ($)helicopter | Dec. 31, 2019USD ($)helicopter | Dec. 31, 2018helicopter | |
Property, Plant and Equipment [Line Items] | ||||
Operating lease expense | $ 1 | $ 0.9 | ||
Short-term lease cost | 0.4 | 0.3 | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 0.6 | $ 0.5 | ||
Number of helicopter dispositions | helicopter | 0 | 0 | 2 | 6 |
Interest income | $ 0.3 | |||
Sales-type lease receivables | $ 13.4 | |||
H225 Helicopters | ||||
Property, Plant and Equipment [Line Items] | ||||
Proceeds from disposition of property and equipment | $ 5 | |||
Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Remaining lease term | 1 year | |||
Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Remaining lease term | 59 years |
LEASES - Future Minimum Payment
LEASES - Future Minimum Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 | $ 1,657 | |
2021 | 1,715 | |
2022 | 1,234 | |
2023 | 1,186 | |
2024 | 987 | |
Years subsequent to 2024 | 8,498 | |
Total future minimum lease payments | 15,277 | |
Less: imputed interest | 6,452 | |
Present value of lease liabilities | $ 8,825 | $ 9,588 |
LEASES - Reported Balances (Det
LEASES - Reported Balances (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use asset | $ 8,672 | $ 9,468 |
Other current liabilities | 1,722 | 1,773 |
Long-term lease liabilities | 7,103 | 7,815 |
Total operating lease liabilities | $ 8,825 | $ 9,588 |
LEASES - Other Information (Det
LEASES - Other Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Weighted average remaining lease term | 17 years | 16 years | |
Weighted average discount rate | 6.15% | 6.11% | |
Cash paid for amounts included in the measurement of lease liabilities (in thousands) | $ 0.6 | $ 0.5 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income tax benefit | $ 831 | $ 1,588 | |
Effective tax rate | 10.20% | 23.70% | |
Unrecognized tax benefits | $ 100 | $ 100 |
LONG-TERM DEBT - Schedule of Lo
LONG-TERM DEBT - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total principal balance on borrowings | $ 161,989 | $ 162,405 |
Portion due within one year | (17,901) | (18,317) |
Unamortized debt issuance costs | (1,219) | (1,320) |
Unamortized discount, net | (865) | (936) |
Long-term debt | 142,004 | 141,832 |
7.750% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total principal balance on borrowings | 144,088 | 144,088 |
Senior secured revolving credit facility | ||
Debt Instrument [Line Items] | ||
Total principal balance on borrowings | 0 | 0 |
Promissory notes | ||
Debt Instrument [Line Items] | ||
Total principal balance on borrowings | $ 17,901 | $ 18,317 |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) - USD ($) | Dec. 07, 2012 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 07, 2018 | Mar. 06, 2018 |
7.750% Senior Notes | Senior Unsecured Notes Due December 15, 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 200,000,000 | |||||
Stated interest rate | 7.75% | |||||
Proceeds from issuance of long-term debt | $ 191,900,000 | |||||
Promissory notes | ||||||
Debt Instrument [Line Items] | ||||||
Payments on long-term debt | $ 400,000 | $ 400,000 | ||||
Monthly payment | 100,000 | |||||
Final payment | 16,800,000 | |||||
Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing amount | 50,000,000 | |||||
Senior secured revolving credit facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing amount | 125,000,000 | $ 125,000,000 | $ 200,000,000 | |||
Interest coverage ratio | 175.00% | |||||
Senior secured leverage ratio | 325.00% | |||||
Increase in commitments due to accordion feature | $ 50,000,000 | |||||
Commitment fee basis point | 0.375% | |||||
Outstanding borrowings | $ 0 | |||||
Letters of credit outstanding | $ 700,000 | |||||
Write off of deferred debt issuance cost | $ 400,000 | |||||
Payments of debt issuance costs | $ 1,300,000 | |||||
Senior secured revolving credit facility | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee basis point | 0.375% | |||||
Senior secured revolving credit facility | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee basis point | 0.50% | |||||
Senior secured revolving credit facility | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.50% | |||||
Senior secured revolving credit facility | Base Rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.25% | |||||
Senior secured revolving credit facility | Base Rate | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.50% | |||||
Senior secured revolving credit facility | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.50% | |||||
Senior secured revolving credit facility | London Interbank Offered Rate (LIBOR) | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.25% | |||||
Senior secured revolving credit facility | London Interbank Offered Rate (LIBOR) | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 3.50% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)helicopter | |
Loss Contingencies [Line Items] | |
Unfunded capital commitments | $ 79.6 |
Deposits paid | 1.3 |
Liquidated damages | 2.1 |
Contingent Fees Sought by Former Tax Consultant | Pending Litigation | |
Loss Contingencies [Line Items] | |
Taxes, penalties and interest | 0.7 |
Foreign Tax Authority | Aeroleo | Other Litigation Matters | |
Loss Contingencies [Line Items] | |
Other current assets | 3.9 |
Foreign Tax Authority | State of Rio de Janeiro | |
Loss Contingencies [Line Items] | |
Taxes, penalties and interest | 10.9 |
Foreign Tax Authority | State of Rio de Janeiro | Aeroleo | |
Loss Contingencies [Line Items] | |
Taxes, penalties and interest | $ 8.3 |
AW189 Heavy Helicopters | |
Loss Contingencies [Line Items] | |
Number of helicopters | helicopter | 3 |
Number of additional helicopters | helicopter | 10 |
AW169 Light Twin Helicopters | |
Loss Contingencies [Line Items] | |
Number of helicopters | helicopter | 5 |
EARNINGS (LOSS) PER COMMON SH_3
EARNINGS (LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net loss attributable to Era Group Inc. | $ (7,229) | $ (5,943) |
Less: Net income attributable to participating securities | 0 | 0 |
Net loss attributable to fully vested common stock | $ (7,229) | $ (5,943) |
Weighted average common shares outstanding: | ||
Basic (in shares) | 20,702,670 | 21,323,312 |
Diluted (in shares) | 20,702,670 | 21,323,312 |
Income (loss) per common share: | ||
Loss per common share, basic and diluted (in dollars per shares) | $ (0.35) | $ (0.28) |
Stock Options and Restricted Stock | ||
Income (loss) per common share: | ||
Weighted average antidilutive shares (in shares) | 203,612 |
EARNINGS (LOSS) PER COMMON SH_4
EARNINGS (LOSS) PER COMMON SHARE - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||||
Apr. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | May 01, 2020 | Jan. 24, 2020 | Aug. 14, 2014 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Purchase of treasury shares | $ 561,000 | $ 5,000 | ||||
Board Approved Plan | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Treasury shares authorized to repurchase | $ 10,000,000 | $ 25,000,000 | ||||
Subsequent Event | Board Approved Plan | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Treasury shares (in shares) | 230,889 | |||||
Purchase of treasury shares | $ 1,000,000 | |||||
Treasury stock acquired (in dollars per share) | $ 4.14 | |||||
Remaining treasury shares authorized | $ 9,000,000 |
REVENUES - Operating Revenue (D
REVENUES - Operating Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 57,056 | $ 51,293 |
Dry-leasing | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 190 | 451 |
Dry-leasing | International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 2,886 | 3,012 |
Operating Income | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 53,980 | 47,830 |
Operating Income | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 38,992 | 34,214 |
Operating Income | International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 14,988 | 13,616 |
Operating Income | Oil and Gas | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 50,335 | 46,082 |
Operating Income | Oil and Gas | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 37,054 | 32,466 |
Operating Income | Oil and Gas | International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 13,281 | 13,616 |
Operating Income | Emergency response services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 3,645 | $ 1,748 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | Apr. 01, 2019 | Mar. 31, 2019 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | |||
Proceeds from divestiture of businesses | $ 38 | ||
Gain on disposition of business | $ 10.9 | ||
Dart | |||
Related Party Transaction [Line Items] | |||
Amount of purchased products | $ 0.6 | ||
Note receivable | $ 2.3 |
SHARE BASED COMPENSATION (Detai
SHARE BASED COMPENSATION (Details) - Restricted Stock | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Number of Shares | |
Non-vested, beginning balance (in shares) | shares | 626,399 |
Vested (in shares) | shares | (282,263) |
Non-vested, ending balance (in shares) | shares | 898,251 |
Weighted Average Grant Price | |
Non-vested, beginning balance (USD per share) | $ / shares | $ 10.31 |
Vested (USD per share) | $ / shares | 10.44 |
Non-vested, ending balance (USD per share) | $ / shares | $ 8.56 |
Non-employee directors | |
Number of Shares | |
Restricted stock awards granted (in shares) | shares | 40,430 |
Weighted Average Grant Price | |
Restricted stock awards granted (USD per share) | $ / shares | $ 7.54 |
Employees | |
Number of Shares | |
Restricted stock awards granted (in shares) | shares | 513,685 |
Weighted Average Grant Price | |
Restricted stock awards granted (USD per share) | $ / shares | $ 7.54 |
SHARE BASED COMPENSATION - Narr
SHARE BASED COMPENSATION - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in period (in shares) | 0 | |
Share-based compensation | $ 698 | $ 807 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of shares vested | 2,900 | 2,500 |
2013 Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation | $ 700 | $ 800 |
GUARANTORS OF SECURITIES (Narra
GUARANTORS OF SECURITIES (Narrative) (Details) | Dec. 07, 2012 |
Senior Unsecured Notes Due December 15, 2022 | Senior Notes | |
Debt Instrument [Line Items] | |
Stated interest rate | 7.75% |
GUARANTORS OF SECURITIES (Conde
GUARANTORS OF SECURITIES (Condensed Balance Sheet) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||||
Cash and cash equivalents | $ 113,518 | $ 117,366 | ||
Receivables: | ||||
Trade, operating, net of allowance for doubtful accounts | 34,102 | 32,730 | ||
Trade, dry-leasing | 5,754 | 5,234 | ||
Tax receivables | 2,159 | 2,860 | ||
Other | 15,006 | 15,421 | ||
Inventories, net | 19,941 | 20,066 | ||
Prepaid expenses | 3,412 | 2,184 | ||
Total current assets | 193,892 | 195,861 | ||
Property and equipment | 893,585 | 895,063 | ||
Accumulated depreciation | (345,457) | (338,164) | ||
Property and equipment, net | 548,128 | 556,899 | ||
Operating lease right-of-use | 8,672 | 9,468 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Intangible assets | 92 | 96 | ||
Deferred income taxes | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Other assets | 1,726 | 2,191 | ||
Total assets | 752,510 | 764,515 | ||
Current liabilities: | ||||
Accounts payable and accrued expenses | 12,475 | 12,923 | ||
Accrued wages and benefits | 6,565 | 10,554 | ||
Accrued interest | 3,309 | 520 | ||
Accrued income taxes | 2,297 | 3,612 | ||
Accrued other taxes | 1,539 | 937 | ||
Accrued contingencies | 701 | 598 | ||
Current portion of long-term debt | 17,901 | 18,317 | ||
Other current liabilities | 3,310 | 3,315 | ||
Total current liabilities | 48,097 | 50,776 | ||
Long-term debt | 142,004 | 141,832 | ||
Deferred income taxes | 101,984 | 103,793 | ||
Intercompany payables | 0 | 0 | ||
Operating lease liabilities | 7,103 | 7,815 | ||
Deferred gains and other liabilities | 920 | 745 | ||
Total liabilities | 300,108 | 304,961 | ||
Redeemable noncontrolling interest | 2,752 | 2,812 | $ 3,160 | $ 3,302 |
Equity: | ||||
Common stock | 230 | 224 | ||
Additional paid-in capital | 452,701 | 452,009 | ||
Retained earnings | 7,463 | 14,692 | ||
Treasury shares, at cost | (10,744) | (10,183) | ||
Total equity | 449,650 | 456,742 | $ 458,885 | $ 463,436 |
Total liabilities, redeemable noncontrolling interest and stockholders’ equity | 752,510 | 764,515 | ||
Reportable Legal Entities | Parent | ||||
Current assets: | ||||
Cash and cash equivalents | 111,654 | 114,965 | ||
Receivables: | ||||
Trade, operating, net of allowance for doubtful accounts | 0 | 0 | ||
Trade, dry-leasing | 0 | 0 | ||
Tax receivables | 0 | 0 | ||
Other | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Prepaid expenses | 991 | 488 | ||
Total current assets | 112,645 | 115,453 | ||
Property and equipment | 0 | 0 | ||
Accumulated depreciation | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Operating lease right-of-use | 0 | 0 | ||
Investments in consolidated subsidiaries | 189,347 | 190,142 | ||
Intangible assets | 0 | 0 | ||
Deferred income taxes | 11,711 | 9,909 | ||
Intercompany receivables | 285,926 | 288,023 | ||
Other assets | 524 | 670 | ||
Total assets | 600,153 | 604,197 | ||
Current liabilities: | ||||
Accounts payable and accrued expenses | 1,239 | 405 | ||
Accrued wages and benefits | 625 | 122 | ||
Accrued interest | 3,259 | 468 | ||
Accrued income taxes | 2,273 | 3,595 | ||
Accrued other taxes | 0 | 0 | ||
Accrued contingencies | 0 | 0 | ||
Current portion of long-term debt | 0 | 0 | ||
Other current liabilities | 1,126 | 1,053 | ||
Total current liabilities | 8,522 | 5,643 | ||
Long-term debt | 142,004 | 141,832 | ||
Deferred income taxes | 0 | 0 | ||
Intercompany payables | 0 | 0 | ||
Operating lease liabilities | 0 | 0 | ||
Deferred gains and other liabilities | 0 | 0 | ||
Total liabilities | 150,526 | 147,475 | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Equity: | ||||
Common stock | 230 | 224 | ||
Additional paid-in capital | 452,703 | 452,010 | ||
Retained earnings | 7,438 | 14,671 | ||
Treasury shares, at cost | (10,744) | (10,183) | ||
Total equity | 449,627 | 456,722 | ||
Total liabilities, redeemable noncontrolling interest and stockholders’ equity | 600,153 | 604,197 | ||
Reportable Legal Entities | Guarantors | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Receivables: | ||||
Trade, operating, net of allowance for doubtful accounts | 28,738 | 27,230 | ||
Trade, dry-leasing | 5,754 | 5,234 | ||
Tax receivables | 2 | 2 | ||
Other | 14,594 | 15,136 | ||
Inventories, net | 19,927 | 20,019 | ||
Prepaid expenses | 2,108 | 1,480 | ||
Total current assets | 71,123 | 69,101 | ||
Property and equipment | 876,767 | 878,281 | ||
Accumulated depreciation | (340,873) | (333,788) | ||
Property and equipment, net | 535,894 | 544,493 | ||
Operating lease right-of-use | 7,526 | 7,694 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Intangible assets | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Other assets | 873 | 1,082 | ||
Total assets | 615,416 | 622,370 | ||
Current liabilities: | ||||
Accounts payable and accrued expenses | 10,078 | 10,937 | ||
Accrued wages and benefits | 4,767 | 9,065 | ||
Accrued interest | 50 | 52 | ||
Accrued income taxes | 0 | 1 | ||
Accrued other taxes | 1,201 | 487 | ||
Accrued contingencies | 0 | 0 | ||
Current portion of long-term debt | 17,901 | 18,317 | ||
Other current liabilities | 1,904 | 1,866 | ||
Total current liabilities | 35,901 | 40,725 | ||
Long-term debt | 0 | 0 | ||
Deferred income taxes | 112,788 | 112,795 | ||
Intercompany payables | 220,529 | 225,341 | ||
Operating lease liabilities | 6,219 | 6,434 | ||
Deferred gains and other liabilities | 920 | 745 | ||
Total liabilities | 376,357 | 386,040 | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Equity: | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 100,306 | 100,307 | ||
Retained earnings | 138,753 | 136,023 | ||
Treasury shares, at cost | 0 | 0 | ||
Total equity | 239,059 | 236,330 | ||
Total liabilities, redeemable noncontrolling interest and stockholders’ equity | 615,416 | 622,370 | ||
Reportable Legal Entities | Non-guarantors | ||||
Current assets: | ||||
Cash and cash equivalents | 1,864 | 2,401 | ||
Receivables: | ||||
Trade, operating, net of allowance for doubtful accounts | 5,364 | 5,500 | ||
Trade, dry-leasing | 0 | 0 | ||
Tax receivables | 2,157 | 2,858 | ||
Other | 412 | 285 | ||
Inventories, net | 14 | 47 | ||
Prepaid expenses | 313 | 216 | ||
Total current assets | 10,124 | 11,307 | ||
Property and equipment | 16,818 | 16,782 | ||
Accumulated depreciation | (4,584) | (4,376) | ||
Property and equipment, net | 12,234 | 12,406 | ||
Operating lease right-of-use | 1,146 | 1,774 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Intangible assets | 92 | 96 | ||
Deferred income taxes | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Other assets | 329 | 439 | ||
Total assets | 23,925 | 26,022 | ||
Current liabilities: | ||||
Accounts payable and accrued expenses | 1,158 | 1,581 | ||
Accrued wages and benefits | 1,173 | 1,367 | ||
Accrued interest | 0 | 0 | ||
Accrued income taxes | 24 | 16 | ||
Accrued other taxes | 338 | 450 | ||
Accrued contingencies | 701 | 598 | ||
Current portion of long-term debt | 0 | 0 | ||
Other current liabilities | 280 | 396 | ||
Total current liabilities | 3,674 | 4,408 | ||
Long-term debt | 0 | 0 | ||
Deferred income taxes | 907 | 907 | ||
Intercompany payables | 65,417 | 62,702 | ||
Operating lease liabilities | 884 | 1,381 | ||
Deferred gains and other liabilities | 0 | 0 | ||
Total liabilities | 70,882 | 69,398 | ||
Redeemable noncontrolling interest | 2,752 | 2,812 | ||
Equity: | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 4,562 | 4,562 | ||
Retained earnings | (54,271) | (50,750) | ||
Treasury shares, at cost | 0 | 0 | ||
Total equity | (49,709) | (46,188) | ||
Total liabilities, redeemable noncontrolling interest and stockholders’ equity | 23,925 | 26,022 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Receivables: | ||||
Trade, operating, net of allowance for doubtful accounts | 0 | 0 | ||
Trade, dry-leasing | 0 | 0 | ||
Tax receivables | 0 | 0 | ||
Other | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Prepaid expenses | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property and equipment | 0 | 0 | ||
Accumulated depreciation | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Operating lease right-of-use | 0 | 0 | ||
Investments in consolidated subsidiaries | (189,347) | (190,142) | ||
Intangible assets | 0 | 0 | ||
Deferred income taxes | (11,711) | (9,909) | ||
Intercompany receivables | (285,926) | (288,023) | ||
Other assets | 0 | 0 | ||
Total assets | (486,984) | (488,074) | ||
Current liabilities: | ||||
Accounts payable and accrued expenses | 0 | 0 | ||
Accrued wages and benefits | 0 | 0 | ||
Accrued interest | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Accrued other taxes | 0 | 0 | ||
Accrued contingencies | 0 | 0 | ||
Current portion of long-term debt | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Deferred income taxes | (11,711) | (9,909) | ||
Intercompany payables | (285,946) | (288,043) | ||
Operating lease liabilities | 0 | 0 | ||
Deferred gains and other liabilities | 0 | 0 | ||
Total liabilities | (297,657) | (297,952) | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Equity: | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | (104,870) | (104,870) | ||
Retained earnings | (84,457) | (85,252) | ||
Treasury shares, at cost | 0 | 0 | ||
Total equity | (189,327) | (190,122) | ||
Total liabilities, redeemable noncontrolling interest and stockholders’ equity | $ (486,984) | $ (488,074) |
GUARANTORS OF SECURITIES (Con_2
GUARANTORS OF SECURITIES (Condensed Balance Sheet - Additional Information) (Details) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Guarantees [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 60,000,000 | 60,000,000 |
Common stock, shares outstanding (in shares) | 21,756,272 | 21,285,613 |
Treasury shares (in shares) | 1,236,282 | 1,152,826 |
GUARANTORS OF SECURITIES (Con_3
GUARANTORS OF SECURITIES (Condensed Income Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Condensed Income Statements, Captions [Line Items] | ||
Revenues | $ 57,056 | $ 51,293 |
Costs and expenses: | ||
Operating | 38,506 | 36,696 |
Administrative and general | 12,745 | 8,875 |
Depreciation | 9,507 | 9,450 |
Total costs and expenses | 60,758 | 55,021 |
Loss on asset dispositions, net | (34) | (124) |
Operating loss | (3,736) | (3,852) |
Other income (expense): | ||
Interest income | 749 | 752 |
Interest expense | (3,439) | (3,461) |
Foreign currency losses, net | (1,704) | (126) |
Other, net | 10 | (11) |
Total other income (expense) | (4,384) | (2,846) |
Loss before income taxes and equity earnings | (8,120) | (6,698) |
Income tax (benefit) expense | 831 | 1,588 |
Loss before equity earnings | (7,289) | (5,110) |
Equity in earnings (losses) of subsidiaries | 0 | (975) |
Net loss | (7,289) | (6,085) |
Net loss attributable to noncontrolling interest in subsidiary | 60 | 142 |
Net loss attributable to Era Group Inc. | (7,229) | (5,943) |
Reportable Legal Entities | Parent | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenues | 0 | 0 |
Costs and expenses: | ||
Operating | 0 | 0 |
Administrative and general | 4,583 | 1,242 |
Depreciation | 0 | 0 |
Total costs and expenses | 4,583 | 1,242 |
Loss on asset dispositions, net | 0 | 0 |
Operating loss | (4,583) | (1,242) |
Other income (expense): | ||
Interest income | 378 | 196 |
Interest expense | (3,281) | (3,241) |
Foreign currency losses, net | (24) | (40) |
Other, net | 0 | 0 |
Total other income (expense) | (2,927) | (3,085) |
Loss before income taxes and equity earnings | (7,510) | (4,327) |
Income tax (benefit) expense | 1,072 | (336) |
Loss before equity earnings | (6,438) | (4,663) |
Equity in earnings (losses) of subsidiaries | (795) | (1,280) |
Net loss | (7,233) | (5,943) |
Net loss attributable to noncontrolling interest in subsidiary | 0 | 0 |
Net loss attributable to Era Group Inc. | (7,233) | (5,943) |
Reportable Legal Entities | Guarantors | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenues | 51,918 | 45,314 |
Costs and expenses: | ||
Operating | 32,441 | 30,049 |
Administrative and general | 7,323 | 6,672 |
Depreciation | 9,295 | 9,197 |
Total costs and expenses | 49,059 | 45,918 |
Loss on asset dispositions, net | (34) | (124) |
Operating loss | 2,825 | (728) |
Other income (expense): | ||
Interest income | 337 | 504 |
Interest expense | (158) | (213) |
Foreign currency losses, net | (45) | (49) |
Other, net | 12 | (1) |
Total other income (expense) | 146 | 241 |
Loss before income taxes and equity earnings | 2,971 | (487) |
Income tax (benefit) expense | (241) | 1,924 |
Loss before equity earnings | 2,730 | 1,437 |
Equity in earnings (losses) of subsidiaries | 0 | (975) |
Net loss | 2,730 | 462 |
Net loss attributable to noncontrolling interest in subsidiary | 0 | 0 |
Net loss attributable to Era Group Inc. | 2,730 | 462 |
Reportable Legal Entities | Non-guarantors | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenues | 12,150 | 13,617 |
Costs and expenses: | ||
Operating | 13,077 | 14,285 |
Administrative and general | 839 | 961 |
Depreciation | 212 | 253 |
Total costs and expenses | 14,128 | 15,499 |
Loss on asset dispositions, net | 0 | 0 |
Operating loss | (1,978) | (1,882) |
Other income (expense): | ||
Interest income | 34 | 52 |
Interest expense | 0 | (7) |
Foreign currency losses, net | (1,635) | (37) |
Other, net | (2) | (10) |
Total other income (expense) | (1,603) | (2) |
Loss before income taxes and equity earnings | (3,581) | (1,884) |
Income tax (benefit) expense | 0 | 0 |
Loss before equity earnings | (3,581) | (1,884) |
Equity in earnings (losses) of subsidiaries | 0 | 0 |
Net loss | (3,581) | (1,884) |
Net loss attributable to noncontrolling interest in subsidiary | 60 | 142 |
Net loss attributable to Era Group Inc. | (3,521) | (1,742) |
Eliminations | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenues | (7,012) | (7,638) |
Costs and expenses: | ||
Operating | (7,012) | (7,638) |
Administrative and general | 0 | 0 |
Depreciation | 0 | 0 |
Total costs and expenses | (7,012) | (7,638) |
Loss on asset dispositions, net | 0 | 0 |
Operating loss | 0 | 0 |
Other income (expense): | ||
Interest income | 0 | 0 |
Interest expense | 0 | 0 |
Foreign currency losses, net | 0 | 0 |
Other, net | 0 | 0 |
Total other income (expense) | 0 | 0 |
Loss before income taxes and equity earnings | 0 | 0 |
Income tax (benefit) expense | 0 | 0 |
Loss before equity earnings | 0 | 0 |
Equity in earnings (losses) of subsidiaries | 795 | 1,280 |
Net loss | 795 | 1,280 |
Net loss attributable to noncontrolling interest in subsidiary | 0 | 0 |
Net loss attributable to Era Group Inc. | $ 795 | $ 1,280 |
GUARANTORS OF SECURITIES (Con_4
GUARANTORS OF SECURITIES (Condensed Statement of Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Condensed Statement of Income Captions [Line Items] | ||
Net income (loss) | $ (7,289) | $ (6,085) |
Comprehensive loss | (7,289) | (6,085) |
Comprehensive income (loss) attributable to non-controlling interest in subsidiary | 60 | 142 |
Comprehensive loss attributable to Era Group Inc. | (7,229) | (5,943) |
Reportable Legal Entities | Parent | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income (loss) | (7,233) | (5,943) |
Comprehensive loss | (7,233) | (5,943) |
Comprehensive income (loss) attributable to non-controlling interest in subsidiary | 0 | 0 |
Comprehensive loss attributable to Era Group Inc. | (7,233) | (5,943) |
Reportable Legal Entities | Guarantors | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income (loss) | 2,730 | 462 |
Comprehensive loss | 2,730 | 462 |
Comprehensive income (loss) attributable to non-controlling interest in subsidiary | 0 | 0 |
Comprehensive loss attributable to Era Group Inc. | 2,730 | 462 |
Reportable Legal Entities | Non-guarantors | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income (loss) | (3,581) | (1,884) |
Comprehensive loss | (3,581) | (1,884) |
Comprehensive income (loss) attributable to non-controlling interest in subsidiary | 60 | 142 |
Comprehensive loss attributable to Era Group Inc. | (3,521) | (1,742) |
Eliminations | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income (loss) | 795 | 1,280 |
Comprehensive loss | 795 | 1,280 |
Comprehensive income (loss) attributable to non-controlling interest in subsidiary | 0 | 0 |
Comprehensive loss attributable to Era Group Inc. | $ 795 | $ 1,280 |
GUARANTORS OF SECURITIES (Con_5
GUARANTORS OF SECURITIES (Condensed Cash Flow Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | $ (2,132) | $ 2,635 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (400) | (1,312) |
Purchase of investments | 0 | (5,000) |
Principal payments on notes due from equity investees | 0 | 2,334 |
Principal payments on third party notes receivable | 55 | 104 |
Net cash used in investing activities | (345) | (3,874) |
Cash flows from financing activities: | ||
Payments on long-term debt | (416) | (542) |
Proceeds from share award plans | 0 | 590 |
Purchase of treasury shares | (561) | (5) |
Borrowings and repayments of intercompany debt | 0 | |
Net cash provided by (used in) financing activities | (977) | 43 |
Effects of exchange rate changes on cash and cash equivalents | (394) | 55 |
Net decrease in cash, cash equivalents and restricted cash | (3,848) | (1,141) |
Cash, cash equivalents and restricted cash, beginning of period | 117,366 | 50,753 |
Cash, cash equivalents and restricted cash, end of period | 113,518 | 49,612 |
Reportable Legal Entities | Parent | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (2,752) | 5,477 |
Cash flows from investing activities: | ||
Purchases of property and equipment | 0 | 0 |
Purchase of investments | (5,000) | |
Principal payments on notes due from equity investees | 0 | |
Principal payments on third party notes receivable | 0 | 0 |
Net cash used in investing activities | 0 | (5,000) |
Cash flows from financing activities: | ||
Payments on long-term debt | 0 | 0 |
Proceeds from share award plans | 0 | |
Purchase of treasury shares | (561) | 0 |
Borrowings and repayments of intercompany debt | 0 | |
Net cash provided by (used in) financing activities | (561) | 0 |
Effects of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net decrease in cash, cash equivalents and restricted cash | (3,313) | 477 |
Cash, cash equivalents and restricted cash, beginning of period | 114,971 | 48,396 |
Cash, cash equivalents and restricted cash, end of period | 111,658 | 48,873 |
Reportable Legal Entities | Guarantors | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 708 | (1,386) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (347) | (1,221) |
Purchase of investments | 0 | |
Principal payments on notes due from equity investees | 2,334 | |
Principal payments on third party notes receivable | 55 | 104 |
Net cash used in investing activities | (292) | 1,217 |
Cash flows from financing activities: | ||
Payments on long-term debt | (416) | (416) |
Proceeds from share award plans | 0 | |
Purchase of treasury shares | 0 | 0 |
Borrowings and repayments of intercompany debt | 585 | |
Net cash provided by (used in) financing activities | (416) | 169 |
Effects of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net decrease in cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash, beginning of period | 0 | 0 |
Cash, cash equivalents and restricted cash, end of period | 0 | 0 |
Reportable Legal Entities | Non-guarantors | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (88) | (1,456) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (53) | (91) |
Purchase of investments | 0 | |
Principal payments on notes due from equity investees | 0 | |
Principal payments on third party notes receivable | 0 | 0 |
Net cash used in investing activities | (53) | (91) |
Cash flows from financing activities: | ||
Payments on long-term debt | 0 | (126) |
Proceeds from share award plans | 0 | |
Purchase of treasury shares | 0 | 0 |
Borrowings and repayments of intercompany debt | 0 | |
Net cash provided by (used in) financing activities | 0 | (126) |
Effects of exchange rate changes on cash and cash equivalents | (394) | 55 |
Net decrease in cash, cash equivalents and restricted cash | (535) | (1,618) |
Cash, cash equivalents and restricted cash, beginning of period | 2,395 | 2,357 |
Cash, cash equivalents and restricted cash, end of period | 1,860 | 739 |
Eliminations | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Purchases of property and equipment | 0 | 0 |
Purchase of investments | 0 | |
Principal payments on notes due from equity investees | 0 | |
Principal payments on third party notes receivable | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Payments on long-term debt | 0 | 0 |
Proceeds from share award plans | 590 | |
Purchase of treasury shares | 0 | (5) |
Borrowings and repayments of intercompany debt | (585) | |
Net cash provided by (used in) financing activities | 0 | 0 |
Effects of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net decrease in cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash, beginning of period | 0 | 0 |
Cash, cash equivalents and restricted cash, end of period | $ 0 | $ 0 |