Erickson Air-Crane Incorporated (NASDAQ: EAC) (“Erickson Air-Crane” or the “Company”), a leading operator and the manufacturer of the powerful heavy-lift helicopter, the Erickson S-64 Aircrane, today announced that the NATO Maintenance and Supply Agency (“NAMSA”), which provides various logistics services for NATO nations, has, as the prime contracting party, awarded the Company a three year contract to supply aerial firefighting services in Greece for the 2012 to 2014 firefighting seasons, which may be extended for a further two years at NAMSA’s option. Under the contract Erickson will receive payments with respect to the provision of its helicopters amounting to $8.9 million per year or $44.4 million over the life of the contract, if extended. Erickson is entitled to receive additional amounts depending on the level of flight hours activity experienced by the helicopters during the term of the contract.
The aerial firefighting services are to be provided by three heavy-lift Aircrane helicopters already deployed in Europe. Payment terms on amounts billed under the contract are 60 days from the end of month of invoice, paid directly by NAMSA in USD.
“We are very pleased to be a supplier to NAMSA and to assist them in protecting the people, property and natural resources of Greece from the dangers of fire, something we have done in partnership with the Hellenic Fire Brigade for more than ten years,” said Udo Rieder, President and CEO of Erickson Air-Crane.
Business Outlook and BacklogAs a result of the award of this contract, the Company’s backlog increases by $44.4 million, of which $8.9 million is expected to be filled in 2012. The Company’s reiterates its forecast for the second quarter ending June 30, 2012 and fiscal year ending December 31, 2012, which had assumed the signing of the NAMSA contract. Conference Call The Company will host a conference call to discuss this contract at 5:00 p.m. Eastern Time on Tuesday, May 29, 2012.
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