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 its financial results for the second quarter and six months ended June 30, 2012.
Second Quarter 2012 Highlights and Recent Events
- Revenue of $37.9 million exceeded guidance of $32 million to $34 million
- Revenue declined 10.9% from $42.5 million in 2011’s second quarter. The first six months of 2012 have experienced a fire season in line with historic averages, while the first six months of 2011 experienced the highest US firefighting activity in more than a decade
- Adjusted EBITDA of $6.7 million exceeded guidance of $3 million to $4 million
- Adjusted EBITDA decreased 30.9% from $9.7 million for the same period last year
- Net income attributable to Erickson Air-Crane Incorporated was $1.1 million, down from $4.3 million for the same period last year
- Backlog at June 30, 2012 was $228.1 million, of which $61.5 million is expected to be filled in 2012
- The Company completed its IPO on the NASDAQ Global Market in April, generating $31.5 million in net proceeds that were used to pay down indebtedness under the Company's revolving credit facility
- The Company was awarded a contract by the NATO Maintenance and Supply Agency (“NAMSA”), to supply three heavy-lift Aircrane helicopters to provide aerial firefighting services in Greece for the 2012 through 2014 firefighting seasons, plus additional customer extension option years for the 2015 and 2016 firefighting seasons. Under the contract Erickson Air-Crane will receive payments with respect to the provision of its helicopters amounting to $8.9 million per year, totaling $44.4 million over the life of the contract if both customer extension option periods are exercised, plus additional payments for firefighting hours flown
- The Company was awarded an additional contract by the US Forest Service to provide aerial firefighting services using one heavy-lift Aircrane helicopter to be based out of Boise, Idaho for the 2012 fire season, with customer extension options for the 2013-2015 fire seasons
“The second quarter was dominated by strong demand for our firefighting services, although less so than in 2011 when US acreage burned by fires through June was the highest in more than a decade. Demand for our construction services was also strong, but buoyancy in both these businesses was somewhat mitigated by softness in logging demand. Overall we were significantly ahead of our revenue guidance for the quarter and our efficiency in operations contributed to a level of profitability that exceeded forecasts. For the first half of the year, our operating strength was evident as revenues were 4% ahead of 2011, and adjusted EBITDA rose 47% to $6.9 million compared to $4.7 million in the first half of 2011,” said Udo Rieder, President and CEO of Erickson Air-Crane.
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