Era Group Inc. Reports Third Quarter 2016 Results, Amendment To Credit Facility And Fleet Update

HOUSTON, Nov. 01, 2016 (GLOBE NEWSWIRE) -- Era Group Inc. (NYSE:ERA) (the "Company") today reported a net loss attributable to the Company of $0.6 million, or $0.03 per diluted share, for its third quarter ended September 30, 2016 ("current quarter") on operating revenues of $65.0 million compared to net income attributable to the Company of $0.9 million, or $0.04 per diluted share, for the quarter ended September 30, 2015 ("prior year quarter") on operating revenues of $69.7 million.

Earnings before interest, taxes, depreciation and amortization ("EBITDA") was $15.3 million in the current quarter compared to $17.1 million in the prior year quarter.  EBITDA adjusted to exclude gains and losses on asset dispositions was $15.6 million in the current quarter compared to $15.3 million in the prior year quarter.  Losses on asset dispositions were $0.2 million in the current quarter compared to gains of $1.8 million in the prior year quarter.

On October 27, 2016, we entered into the third amendment to our Amended and Restated Senior Secured Revolving Credit Facility (the "Facility") that, among other things, revised our maintenance covenants to provide additional flexibility, reduced the aggregate principal amount of the revolving loan commitments under the Facility from $300.0 million to $200.0 million and added a condition to borrowing and a repayment mechanism in connection with cash amounts held in excess of $40.0 million (with customary carve-outs).

We took delivery of one new AW189 heavy helicopter in October and, pursuant to a contractual agreement, expect to take delivery of another new AW189 helicopter before year end, which will increase our AW189 fleet to four helicopters.  We sold two medium helicopters in October and, pursuant to a contractual agreement, expect to sell another medium helicopter before year end.

"Given the uncertainty regarding the timing of a recovery in offshore helicopter demand, we worked closely with our bank group to amend our credit facility to ensure that we continue to have access to ample liquidity for the duration of the downturn," said Chris Bradshaw, President and Chief Executive Officer of Era Group Inc.  "We generated $18 million of cash flows from operations in the third quarter, and we continued to strengthen our balance sheet by paying down $20 million of debt.  At the same time, we believe we are making prudent investments to improve our competitive position for the eventual recovery.  The combination of our helicopter deliveries and divestitures will allow us to continue to upgrade and diversify our fleet with negligible, if any, incremental cash expenditure."

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