Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 02, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | ERA GROUP INC. | |
Entity Central Index Key | 1,525,221 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 21,761,823 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Current assets: | |||
Cash and cash equivalents (including $1,007 and $1,699 from VIEs in 2018 and 2017, respectively)(1) | [1] | $ 47,631 | $ 13,583 |
Receivables: | |||
Trade, operating, net of allowance for doubtful accounts of $854 and $1,196 in 2018 and 2017, respectively (including $5,834 and $5,854 from VIEs in 2018 and 2017, respectively) | 35,655 | 33,840 | |
Trade, dry-leasing | 3,833 | 5,124 | |
Tax receivables (including $3,117 and $2,828 from VIEs in 2018 and 2017, respectively) | 3,117 | 2,829 | |
Other (including $51 and $257 from VIEs in 2018 and 2017, respectively) | 2,701 | 1,623 | |
Inventories, net (including $31 and $39 from VIEs in 2018 and 2017, respectively) | 20,157 | 21,112 | |
Prepaid expenses (including $130 and $40 from VIEs in 2018 and 2017, respectively) | 2,367 | 1,203 | |
Restricted cash | 0 | 3,250 | |
Escrow deposits | 3,250 | ||
Total current assets | 115,461 | 82,564 | |
Property and equipment (including $2,477 and $1,951 from VIEs in 2018 and 2017, respectively) | 927,477 | 972,942 | |
Accumulated depreciation (including $443 and $487 from VIEs in 2018 and 2017, respectively) | (314,736) | (299,028) | |
Property and equipment, net | 612,741 | 673,914 | |
Equity investments and advances | 26,600 | 30,056 | |
Intangible assets | 1,111 | 1,122 | |
Other assets (including $84 and $61 from VIEs in 2018 and 2017, respectively) | 18,421 | 4,441 | |
Total assets | 774,334 | 792,097 | |
Current liabilities: | |||
Accounts payable and accrued expenses (including $1,519 and $1,807 from VIEs in 2018 and 2017, respectively) | 10,438 | 16,421 | |
Accrued wages and benefits (including $1,541 and $1,397 from VIEs in 2018 and 2017, respectively) | 8,605 | 8,264 | |
Accrued interest | 3,404 | 606 | |
Accrued income taxes | 2,993 | 28 | |
Accrued other taxes (including $361 and $600 from VIEs in 2018 and 2017, respectively) | 2,396 | 1,810 | |
Accrued contingencies (including $1,014 and $858 from VIEs in 2018 and 2017, respectively) | 1,014 | 859 | |
Current portion of long-term debt (including $495 and $1,073 from VIEs in 2018 and 2017, respectively) | 2,158 | 2,736 | |
Other current liabilities (including $0 and $8 from VIEs in 2018 and 2017, respectively) | 1,033 | 1,720 | |
Total current liabilities | 32,041 | 32,444 | |
Long-term debt (including $0 and $1,903 from VIEs in 2018 and 2017, respectively) | 160,476 | 202,174 | |
Deferred income taxes | 108,138 | 106,598 | |
Other liabilities | 1,753 | 1,434 | |
Total liabilities | 302,408 | 342,650 | |
Commitments and contingencies (see Note 8) | |||
Redeemable noncontrolling interest | 3,456 | 3,766 | |
Equity: | |||
Common stock, $0.01 par value, 60,000,000 shares authorized; 21,763,250 and 21,319,150 outstanding in 2018 and 2017, respectively, exclusive of treasury shares | 219 | 215 | |
Additional paid-in capital | 447,013 | 443,944 | |
Retained earnings | 24,079 | 4,363 | |
Treasury shares, at cost; 215,141 shares in 2018 and 2017 | (2,951) | (2,951) | |
Accumulated other comprehensive income, net of tax | 110 | 110 | |
Total equity | 468,470 | 445,681 | |
Total liabilities, redeemable noncontrolling interest and stockholders’ equity | $ 774,334 | $ 792,097 | |
[1] | Refer to footnote 5 for more detail on variable interest entities (“VIE”) |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Allowance for doubtful accounts, trade receivables | $ 854 | $ 1,196 | |
Cash and cash equivalents (including $1,007 and $1,699 from VIEs in 2018 and 2017, respectively)(1) | [1] | 47,631 | 13,583 |
Trade, operating, net of allowance for doubtful accounts of $854 and $1,196 in 2018 and 2017, respectively (including $5,834 and $5,854 from VIEs in 2018 and 2017, respectively) | 35,655 | 33,840 | |
Tax receivables (including $3,117 and $2,828 from VIEs in 2018 and 2017, respectively) | 3,117 | 2,829 | |
Other (including $51 and $257 from VIEs in 2018 and 2017, respectively) | 2,701 | 1,623 | |
Inventories, net (including $31 and $39 from VIEs in 2018 and 2017, respectively) | 20,157 | 21,112 | |
Prepaid expenses (including $130 and $40 from VIEs in 2018 and 2017, respectively) | 2,367 | 1,203 | |
Property and equipment (including $2,477 and $1,951 from VIEs in 2018 and 2017, respectively) | 927,477 | 972,942 | |
Accumulated depreciation (including $467 and $487 from VIEs in 2018 and 2017, respectively) | 314,736 | 299,028 | |
Other assets (including $84 and $61 from VIEs in 2018 and 2017, respectively) | 18,421 | 4,441 | |
Accounts payable and accrued expenses (including $1,519 and $1,807 from VIEs in 2018 and 2017, respectively) | 10,438 | 16,421 | |
Accrued wages and benefits (including $1,541 and $1,397 from VIEs in 2018 and 2017, respectively) | 8,605 | 8,264 | |
Accrued other taxes (including $361 and $600 from VIEs in 2018 and 2017, respectively) | 2,396 | 1,810 | |
Accrued contingencies (including $1,014 and $858 from VIEs in 2018 and 2017, respectively) | 1,014 | 859 | |
Current portion of long-term debt (including $495 and $1,073 from VIEs in 2018 and 2017, respectively) | 2,158 | 2,736 | |
Other current liabilities (including $0 and $8 from VIEs in 2018 and 2017, respectively) | 1,033 | 1,720 | |
Long-term debt (including $0 and $1,903 from VIEs in 2018 and 2017, respectively) | $ 160,476 | $ 202,174 | |
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) | 21,763,250 | 21,319,150 | |
Treasury shares (in shares) | 215,141 | 215,141 | |
Variable Interest Entity, Primary Beneficiary | |||
Cash and cash equivalents (including $1,007 and $1,699 from VIEs in 2018 and 2017, respectively)(1) | $ 1,007 | $ 1,699 | |
Trade, operating, net of allowance for doubtful accounts of $854 and $1,196 in 2018 and 2017, respectively (including $5,834 and $5,854 from VIEs in 2018 and 2017, respectively) | 5,834 | 5,854 | |
Tax receivables (including $3,117 and $2,828 from VIEs in 2018 and 2017, respectively) | 3,117 | 2,828 | |
Other (including $51 and $257 from VIEs in 2018 and 2017, respectively) | 51 | 257 | |
Inventories, net (including $31 and $39 from VIEs in 2018 and 2017, respectively) | 31 | 39 | |
Prepaid expenses (including $130 and $40 from VIEs in 2018 and 2017, respectively) | 130 | 40 | |
Property and equipment (including $2,477 and $1,951 from VIEs in 2018 and 2017, respectively) | 2,477 | 1,951 | |
Accumulated depreciation (including $467 and $487 from VIEs in 2018 and 2017, respectively) | 443 | 487 | |
Other assets (including $84 and $61 from VIEs in 2018 and 2017, respectively) | 84 | 61 | |
Accounts payable and accrued expenses (including $1,519 and $1,807 from VIEs in 2018 and 2017, respectively) | 1,519 | 1,807 | |
Accrued wages and benefits (including $1,541 and $1,397 from VIEs in 2018 and 2017, respectively) | 1,541 | 1,397 | |
Accrued other taxes (including $361 and $600 from VIEs in 2018 and 2017, respectively) | 361 | 600 | |
Accrued contingencies (including $1,014 and $858 from VIEs in 2018 and 2017, respectively) | 1,014 | 858 | |
Current portion of long-term debt (including $495 and $1,073 from VIEs in 2018 and 2017, respectively) | 495 | 1,073 | |
Other current liabilities (including $0 and $8 from VIEs in 2018 and 2017, respectively) | 0 | 8 | |
Long-term debt (including $0 and $1,903 from VIEs in 2018 and 2017, respectively) | $ 0 | $ 1,903 | |
[1] | Refer to footnote 5 for more detail on variable interest entities (“VIE”) |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues: | ||||
Total revenues | $ 54,610 | $ 61,385 | $ 169,660 | $ 173,790 |
Costs and expenses: | ||||
Operating | 36,513 | 43,987 | 114,505 | 123,079 |
Administrative and general | 8,837 | 10,928 | 35,714 | 31,211 |
Depreciation and amortization | 9,541 | 12,103 | 30,011 | 35,635 |
Total costs and expenses | 54,891 | 67,018 | 180,230 | 189,925 |
Gains (losses) on asset dispositions, net | (148) | (122) | 2,269 | 5,048 |
Litigation settlement proceeds | 42,000 | 0 | 42,000 | 0 |
Loss on impairment | 0 | (117,018) | 0 | (117,018) |
Operating income (loss) | 41,571 | (122,773) | 33,699 | (128,105) |
Other income (expense): | ||||
Interest income | 732 | 206 | 1,224 | 641 |
Interest expense | (3,549) | (4,097) | (11,646) | (11,620) |
Foreign currency gains (losses), net | (94) | 12 | (1,095) | (96) |
Gain on debt extinguishment | 0 | 0 | 175 | 0 |
Other, net | 15 | (33) | 21 | (29) |
Total other income (expense) | (2,896) | (3,912) | (11,321) | (11,104) |
Income (loss) before income taxes and equity earnings | 38,675 | (126,685) | 22,378 | (139,209) |
Income tax expense | 7,861 | (45,237) | 4,549 | (48,066) |
Income (loss) before equity earnings | 30,814 | (81,448) | 17,829 | (91,143) |
Equity earnings, net of tax | 465 | 233 | 1,577 | 1,069 |
Net income (loss) | 31,279 | (81,215) | 19,406 | (90,074) |
Net loss (income) attributable to noncontrolling interest in subsidiary | 10 | (233) | 310 | 219 |
Net income (loss) attributable to Era Group Inc. | $ 31,289 | $ (81,448) | $ 19,716 | $ (89,855) |
Income (loss) per common share, basic (in dollars per share) | $ 1.44 | $ (3.91) | $ 0.91 | $ (4.34) |
Income (loss) per common share, diluted (in dollars per share) | $ 1.44 | $ (3.91) | $ 0.91 | $ (4.34) |
Weighted average common shares outstanding - basic (in shares) | 21,215,576 | 20,844,376 | 21,139,212 | 20,715,686 |
Weighted average common shares outstanding - diluted (in shares) | 20,844,376 | 20,715,686 | ||
Operating revenues | ||||
Revenues: | ||||
Total revenues | $ 51,894 | $ 58,753 | $ 161,116 | $ 161,077 |
Dry-leasing revenues | ||||
Revenues: | ||||
Total revenues | $ 2,716 | $ 2,632 | $ 8,544 | $ 12,713 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 31,279 | $ (81,215) | $ 19,406 | $ (90,074) |
Other comprehensive loss: | ||||
Foreign currency translation adjustments | 0 | 0 | (5) | (2) |
Total other comprehensive loss | 0 | 0 | (5) | (2) |
Comprehensive income (loss) | 31,279 | (81,215) | 19,401 | (90,076) |
Comprehensive loss (income) attributable to noncontrolling interest in subsidiary | 10 | (233) | 310 | 219 |
Comprehensive income (loss) attributable to Era Group Inc. | $ 31,289 | $ (81,448) | $ 19,711 | $ (89,857) |
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, 2016 | $ 468,417 | $ 211 | $ 438,489 | $ 32,524 | $ (2,899) | $ 92 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Restricted stock grants | 3 | (3) | ||||
Employee Stock Purchase Plan | 836 | 1 | 835 | |||
Share award amortization | 3,604 | 3,604 | ||||
Cancellation of restricted stock | 0 | 23 | (23) | |||
Net income (loss) | (90,074) | |||||
Purchase of treasury shares | (52) | (52) | ||||
Net income (loss) | (90,074) | |||||
Net income (loss) attributable to redeemable noncontrolling interest | 219 | 219 | ||||
Currency translation adjustments, net of tax | (2) | (2) | ||||
Ending Balance at Sep. 30, 2017 | 382,948 | 215 | 442,948 | (57,331) | (2,974) | 90 |
Beginning Balance at Dec. 31, 2016 | 4,221 | |||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||
Net loss attributable to redeemable noncontrolling interest | (219) | |||||
Ending Balance at Sep. 30, 2017 | 4,002 | |||||
Beginning Balance at Jun. 30, 2017 | 463,049 | 215 | 441,595 | 24,117 | (2,968) | 90 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Employee Stock Purchase Plan | 373 | 373 | ||||
Share award amortization | 975 | 975 | ||||
Cancellation of restricted stock | 0 | 5 | ||||
Net income (loss) | (81,215) | |||||
Net income (loss) | (81,216) | |||||
Net income (loss) attributable to redeemable noncontrolling interest | (233) | (233) | ||||
Ending Balance at Sep. 30, 2017 | 382,948 | 215 | 442,948 | (57,331) | (2,974) | 90 |
Beginning Balance at Jun. 30, 2017 | 3,769 | |||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||
Net loss attributable to redeemable noncontrolling interest | 233 | |||||
Ending Balance at Sep. 30, 2017 | 4,002 | |||||
Beginning Balance at Dec. 31, 2017 | 445,681 | 215 | 443,944 | 4,363 | (2,951) | 110 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Restricted stock grants | 3 | (3) | ||||
Employee Stock Purchase Plan | 893 | 1 | 892 | |||
Share award amortization | 2,180 | 2,180 | ||||
Net income (loss) | 19,406 | |||||
Net income (loss) | 19,406 | |||||
Net income (loss) attributable to redeemable noncontrolling interest | 310 | 310 | ||||
Ending Balance at Sep. 30, 2018 | 468,470 | 219 | 447,013 | 24,079 | (2,951) | 110 |
Beginning Balance at Dec. 31, 2017 | 3,766 | |||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||
Net loss attributable to redeemable noncontrolling interest | (310) | |||||
Ending Balance at Sep. 30, 2018 | 3,456 | |||||
Beginning Balance at Jun. 30, 2018 | 436,048 | 219 | 445,885 | (7,210) | (2,951) | 105 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Employee Stock Purchase Plan | 409 | 0 | 409 | |||
Share award amortization | 719 | 719 | ||||
Net income (loss) | 31,279 | |||||
Net income (loss) | 31,279 | 31,279 | ||||
Net income (loss) attributable to redeemable noncontrolling interest | 10 | 10 | ||||
Currency translation adjustments, net of tax | 5 | 5 | ||||
Ending Balance at Sep. 30, 2018 | 468,470 | $ 219 | $ 447,013 | $ 24,079 | $ (2,951) | $ 110 |
Beginning Balance at Jun. 30, 2018 | 3,466 | |||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||
Net loss attributable to redeemable noncontrolling interest | (10) | |||||
Ending Balance at Sep. 30, 2018 | $ 3,456 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 19,406 | $ (90,074) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 30,011 | 35,635 |
Share-based compensation | 2,180 | 3,604 |
Bad debt expense, net | 0 | 47 |
Interest income | (614) | 0 |
Non-cash penalty and interest expenses | 607 | 0 |
Gains on asset dispositions, net | (2,269) | (5,048) |
Debt discount amortization | 188 | 174 |
Amortization of deferred financing costs | 1,173 | 850 |
Foreign currency losses, net | 1,097 | 47 |
Gain on debt extinguishment, net | (175) | 0 |
Loss on impairment | 0 | 117,018 |
Deferred income tax benefit | 1,541 | (48,057) |
Equity earnings, net of tax | (1,577) | (1,069) |
Changes in operating assets and liabilities: | ||
Increase in receivables | (2,390) | (5,107) |
Decrease in prepaid expenses and other assets | 393 | 828 |
Increase in accounts payable, accrued expenses and other liabilities | 781 | 9,080 |
Net cash provided by operating activities | 50,352 | 17,928 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (7,686) | (13,121) |
Proceeds from disposition of property and equipment | 29,520 | 5,690 |
Investments in and advances to equity investees | 0 | (126) |
Dividends received from equity investees | 1,000 | 0 |
Principal payments on notes due from equity investees | 401 | 564 |
Principal payments on third party notes receivable | 620 | 94 |
Net cash provided by (used in) investing activities | 23,855 | (6,899) |
Cash flows from financing activities: | ||
Proceeds from Revolving Credit Facility | 0 | 9,000 |
Long-term debt issuance costs | (1,295) | 0 |
Payments on long-term debt | (42,562) | (24,745) |
Proceeds from share award plans | 893 | 836 |
Purchase of treasury shares | 0 | (52) |
Net cash used in financing activities | (42,964) | (14,961) |
Effects of exchange rate changes on cash and cash equivalents | (445) | 101 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 30,798 | (3,831) |
Cash, cash equivalents and restricted cash, beginning of period | 16,833 | 30,727 |
Cash, cash equivalents and restricted cash, end of period | 47,631 | 26,896 |
Supplemental cash flow information: | ||
Cash paid for interest | 7,867 | 8,249 |
Interest capitalized during the period | 97 | 451 |
Interest, net of amounts capitalized | 7,770 | 7,798 |
Cash paid for income taxes | $ 63 | $ 427 |
BASIS OF PRESENTATION AND ACCOU
BASIS OF PRESENTATION AND ACCOUNTING POLICY | 9 Months Ended |
Sep. 30, 2018 | |
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 and nine months ended September 30, 2018 and 2017 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 September 30, 2018 , its results of operations for the three and nine months ended September 30, 2018 and 2017 , its comprehensive income for the three and nine months ended September 30, 2018 and 2017 , its changes in equity for the three and nine months ended September 30, 2018 , and 2017, and its cash flows for the nine months ended September 30, 2018 and 2017 . 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, 2017 . 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 November to February, as daylight hours decrease. The Company’s Alaskan operations also see an increase during May to September, as its firefighting operations occur during this time and daylight hours are significantly longer. 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. Aeróleo Taxi Aereo S/A (“Aeróleo”) is a VIE of which the Company is the primary beneficiary. All significant inter-company accounts and transactions are eliminated in consolidation. Reclassification. Certain amounts reported for prior periods in the consolidated financial statements have been reclassified to conform with the current period’s presentation. Supplemental Cash Flow Information. The following table sets forth the Company’s reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Statement of Cash Flows (in thousands): September 30, 2018 December 31, 2017 September 30, 2017 December 31, 2016 Cash and cash equivalents $ 47,631 $ 13,583 $ 26,896 $ 26,950 Restricted cash (1) — 3,250 — 3,777 Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows $ 47,631 $ 16,833 $ 26,896 $ 30,727 (1) Restricted cash represents amounts deposited in escrow accounts at the end of each period. Escrow deposits are shown as a separate line item in the consolidated balance sheet. 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. Trade Receivables . Customers are primarily international, independent and major integrated exploration, development and production companies, international helicopter operators and the U.S. government. Customers are typically granted credit on a short-term basis, and related credit risks are considered minimal. The Company routinely reviews its trade receivables and makes provisions for probable doubtful accounts; however, those provisions are estimates. Actual results could differ from those estimates, and those differences may be material. New Accounting Standards - Adopted. The Company adopted the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers,” and its amendments issued by the provisions of ASU No. 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” ASU No. 2016-10, “Identifying Performance Obligations and Licensing,” ASU No. 2016-12, “Narrow-Scope Improvements and Practical Expedients,” and ASU No. 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue From Contracts with Customers,” collectively Accounting Standards Codification (ASC) Topic 606 beginning January 1, 2018. ASC Topic 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from all contracts with customers except where revenues are in scope of another accounting standard. The ASU superseded the revenue recognition requirements in ASC Topic 605, “Revenue Recognition,” and most industry-specific guidance. ASC Topic 606 sets forth a five-step model for determining when and how revenue is recognized. Under the model, an entity will be required to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods and services. The adoption of ASC Topic 606 did not have a material impact on the Company’s consolidated financial statements. See Note 10 - Revenues for additional information relating to Revenue from Contracts with Customers. The Company adopted the provisions of FASB ASU No. 2016-15, “Classification of Certain Cash Receipts and Cash Payments,” beginning January 1, 2018. This ASU clarifies how certain cash receipts and cash payments should be classified and presented in the statement of cash flows. The Company has made an accounting policy election to classify distributions received from equity method investees using the nature of the distribution approach which classifies distributions received from investees as either cash inflows from operating activities or cash inflows from investing activities based on the nature of the activities of the investee that generated the distribution. Adoption of this ASU did not have a material impact on the Company’s historical financial statements. In October 2016, the FASB issued ASU 2016-16 - Income Taxes , which requires entities to recognize income tax consequences of intra-entity transfers of assets, other than inventory, when the transfer occurs rather than when the asset is sold to a third party as is the case under current GAAP. ASU 2016-16 will be effective for annual reporting periods beginning after December 15, 2017 including interim periods within that period. The Company adopted ASU 2016-16 effective January 1, 2018, and such adoption did not have a material impact on its consolidated financial statements. The Company adopted the provisions of FASB ASU No. 2016-18, “Restricted Cash,” beginning January 1, 2018. This ASU requires amounts deemed restricted cash be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows, and presentation should permit a reconciliation when cash, cash equivalents and restricted cash are presented in more than one line item on the balance sheet. The Company had amounts deposited in escrow accounts as discussed further below in Note 3. These amounts are deemed restricted cash and are included in the “Escrow deposits” line of our consolidated balance sheet. The impact of adopting this ASU has been included as adjustments in the prior period statement of cash flows. In May 2017, the FASB issued ASU 2017-09 - Compensation - Stock Compensation: Scope of Modification Accounting , which is designed to reduce diversity in practice and complexity when accounting for changes in the terms of a share-based payment award. ASU 2017-09 will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that period, and early adoption is permitted for any interim period for which financial statements have not yet been issued. The Company adopted ASU 2017-09 effective January 1, 2018, and such adoption did not have a material impact on its consolidated financial statements. New Accounting Standards - Not Yet Adopted. In February 2016, the FASB issued ASU No. 2016-02, “Leases” (ASU No. 2016-02), which establishes comprehensive accounting and financial reporting requirements for leasing arrangements. This ASU supersedes the existing requirements in FASB ASC Topic 840, “Leases,” and requires lessees to recognize substantially all lease assets and lease liabilities on the balance sheet. The provisions of ASU No. 2016-02 also modify the definition of a lease and outline requirements for recognition, measurement, presentation and disclosure of leasing arrangements by both lessees and lessors. The ASU is effective for interim and annual periods beginning after December 15, 2018, and early adoption of the standard is permitted. Entities are required to adopt the ASU using a modified retrospective approach, subject to certain optional practical expedients, and apply the provisions of ASU No. 2016-02 to leasing arrangements existing at or entered into after the earliest comparative period presented in the financial statements. In July 2018 the ASU No. 2016-02 was further amended by the provisions of ASU No. 2018-11, “Targeted Improvements” to Topic 842 whereby the FASB decided to provide an alternate transition method by allowing entities to initially apply the new leases standard at the adoption date (such as January 1, 2019, for calendar year-end public business entities) and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption consistent with preparers’ requests. The Company currently plans to adopt this standard in the first quarter of 2019 using the current-period adjustment method and will recognize a cumulative-effect adjustment to the opening balance of retained earnings in that period. The Company has identified the relevant lease contracts and the review and evaluation of these is substantially complete. While the Company’s evaluation of ASU 2016-02 is still ongoing, the Company expects the adoption of the ASU will have a material impact on the consolidated balance sheet. The Company will elect an optional practical expedient to retain its current classification of leases, and as a result, anticipates that the initial impact of adopting this new standard on its consolidated statement of income and consolidated statement of cash flows will not be material. 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 is permitted. Entities are required to adopt ASU No. 2016-13 using a modified retrospective approach, subject to certain limited exceptions. The Company is currently evaluating the potential impact of the adoption of this ASU on its consolidated financial statements. In August 2018, the FASB issued ASU-2018-15, “Intangibles-Goodwill and Other-Internal-Use Software” (Subtopic 350-40), providing guidance addressing a customer's accounting for implementation costs incurred in a cloud computing arrangement (“CCA”) that is considered a service contract. Under the new guidance, implementation costs for a CCA should be evaluated for capitalization using the same approach as implementation costs associated with internal-use software and should be expensed over the term of the hosting arrangement, which includes any reasonably certain renewal periods. The new guidance is effective for fiscal years beginning after December 15, 2019 for calendar year-end public business entities. Early adoption is permitted, including adoption in any interim period. The Company is evaluating the potential impact of the adoption of ASU-2018-15 on its consolidated financial statements. In August 2018, the FASB issued ASU-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. ASU-2018-13 will be effective for interim and annual periods beginning December 15, 2019. The Company has not adopted ASU-2018-13 and believes such adoption will not have a material impact on its consolidated financial statements. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 and December 31, 2017 , 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 September 30, 2018 and December 31, 2017 were as follows (in thousands): Carrying Amount Level 1 Level 2 Level 3 September 30, 2018 LIABILITIES Long-term debt, including current portion $ 162,634 $ — $ 163,638 $ — December 31, 2017 LIABILITIES Long-term debt, including current portion $ 204,910 $ — $ 203,938 $ — 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. |
ESCROW DEPOSITS
ESCROW DEPOSITS | 9 Months Ended |
Sep. 30, 2018 | |
Escrow Deposits [Abstract] | |
ESCROW DEPOSITS | ESCROW DEPOSITS Prior to the change in the U.S. tax code at the end of 2017, the Company, periodically, entered into Qualified Exchange Accommodation Agreements with third parties to meet the like-kind exchange requirements of Section 1031 of the Internal Revenue Code1986, as amended (the “Code”) and the provisions of Revenue Procedure 2000-37. In accordance with these provisions, the Company was permitted to deposit proceeds from the sale of assets into escrow accounts for the purpose of acquiring other assets and qualifying for the temporary deferral of taxable gains realized. Consequently, the Company established escrow accounts with financial institutions for the deposit of funds received on sales of equipment, which were designated for replacement property within a specified period of time. As of December 31, 2017 , the Company had $3.3 million deposited in a like-kind exchange escrow account. During the nine months ended September 30, 2018 , the Company used $2.8 million of the balance to make a final payment on a S92 heavy helicopter which completed the like-kind exchange transaction, and the remaining $0.5 million was returned to the Company. |
ACQUISITIONS AND DISPOSITIONS
ACQUISITIONS AND DISPOSITIONS | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
ACQUISITIONS AND DISPOSITIONS | ACQUISITIONS AND DISPOSITIONS Capital Expenditures. During the nine months ended September 30, 2018 , capital expenditures were $7.7 million and consisted primarily of helicopter acquisitions, spare helicopter parts, and leasehold improvements. During the nine months ended September 30, 2018 and 2017 , the Company capitalized interest of $0.1 million and $0.5 million , respectively. As of September 30, 2018 and December 31, 2017 , construction in progress, which is a component of property and equipment, included capitalized interest of $0.7 million and $1.9 million , respectively. A summary of changes to the Company’s operating helicopter fleet is as follows: Equipment Additions - During the nine months ended September 30, 2018 , the Company placed one S92 heavy helicopter into service. During the nine months ended September 30, 2017 , the Company placed two AW189 heavy helicopters and one S92 heavy helicopter 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 nine months ended September 30, 2018 , the Company sold or otherwise disposed of twenty helicopters, two operating facilities, and related property and equipment for proceeds of $29.5 million and receivables of $14.3 million , payable over a two year period, resulting in gains of $2.3 million . Included in the proceeds of $29.5 million was $1.2 million related to the sales-type leases of five H225 heavy helicopters, for which a $3.6 million loss was recognized at the lease commencement. During the nine months ended September 30, 2017 , the Company sold or otherwise disposed of property and equipment for proceeds of $5.7 million and recognized gains of $5.0 million . |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES Aeróleo. The Company acquired a 50% economic and 20% voting interest in Aeróleo in 2011. As a result of liquidity issues experienced by Aeróleo, it is unable to adequately finance its activities without additional financial support from the Company, making it a VIE. The Company has the ability to direct the activities that most significantly affect Aeróleo’s financial performance, making the Company the primary beneficiary. As a result, the Company consolidates Aeróleo’s financial results. The Company’s condensed consolidated balance sheets at September 30, 2018 and December 31, 2017 include assets of Aeróleo totaling $11.4 million and $11.5 million , respectively. The distribution of these assets to Era Group and its subsidiaries other than Aeróleo is subject to restrictions. The Company’s condensed consolidated balance sheets at September 30, 2018 and December 31, 2017 include liabilities of Aeróleo of $4.9 million and $7.6 million , respectively. The creditors for such liabilities do not have recourse to Era Group or its subsidiaries other than Aeróleo. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES During the three months ended September 30, 2018 , the Company recorded an income tax expense of $7.9 million , of which $ 3.0 million is current tax expense, resulting in an effective tax rate of 20.3% . During the three months ended September 30, 2017 , the Company recorded an income tax benefit of $45.2 million , resulting in an effective tax rate of 35.7% . During the nine months ended September 30, 2018 , the Company recorded an income tax expense of $4.5 million , resulting in an effective tax rate of 20.3% . During the nine months ended September 30, 2017 , the Company recorded an income tax benefit of $48.1 million , resulting in an effective tax rate of 34.5% . During the nine months ended September 30, 2018 , and 2017 , there were no new uncertain tax positions identified. The Company’s 2015 federal income tax return is currently under examination by the Internal Revenue Service. 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 September 30, 2018 and December 31, 2017 , the gross amount of liability for accrued interest and penalties related to unrecognized tax benefits was $0.1 million . As of September 30, 2018, the Company considers the accounting for the transition tax and other items to remain incomplete due to the forthcoming guidance and its ongoing analysis of its tax positions. As of September 30, 2018, the Company has not elected an accounting policy for the newly enacted global intangible low-taxed income (“GILTI”). Recent FASB guidance indicates that accounting for GILTI either as part of deferred taxes or as a period cost are both applicable methods. Once further information is gathered and interpretation and analysis of the tax legislation evolves, the Company will make an appropriate accounting election. The Company expects to complete its analysis within the measurement period in accordance with SAB 118. |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT The Company’s borrowings as of September 30, 2018 and December 31, 2017 were as follows (in thousands): September 30, 2018 December 31, 2017 7.750% Senior Notes (excluding unamortized discount) $ 144,828 $ 144,828 Senior secured revolving credit facility — 39,000 Promissory notes 20,395 21,642 Other 495 2,976 Total principal balance on borrowings 165,718 208,446 Portion due within one year (2,158 ) (2,736 ) Unamortized debt issuance costs (1,803 ) (2,067 ) Unamortized discount, net (1,281 ) (1,469 ) Long-term debt $ 160,476 $ 202,174 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 and has increased by 50 basis points at each tier from the previous amendment. The applicable margin as of September 30, 2018 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 September 30, 2018 , 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 September 30, 2018 , Era Group had no outstanding borrowings under the Revolving Credit Facility and issued letters of credit of $1.1 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. Aeróleo Debt. During the nine months ended September 30, 2018 , the Company did not enter into any new debt arrangements in Brazil. During the nine months ended September 30, 2017 , the Company settled certain tax disputes for installment payments in Brazil totaling $0.2 million . Such amounts are included in other debt in the table above and bear interest at a rate equal to the overnight rate as published by the Central Bank of Brazil. During 2017, the Company settled certain tax disputes in Brazil under the Tax Regularization Settlement Special Program (known as Programa Especial de Regularização Tributária or “PERT”) and has agreed to make installment payments on the amounts due to the applicable taxing authorities. The installments are payable in Brazilian reals, and bear interest at a rate equal to the overnight rate as published by the Central Bank of Brazil and will be paid over the next ten months as of September 30, 2018 . Such amounts are included in other debt in the table above. During the nine months ended September 30, 2018 , the Company made payments, including scheduled payments, of $2.3 million . Promissory Notes. During the nine months ended September 30, 2018 and 2017 , the Company made scheduled payments on other long-term debt of $1.2 million and $1.2 million , respectively. During the nine months ended September 30, 2018 , the Company amended the promissory notes to remove one helicopter and add two helicopters for a total of three helicopters providing cross-collateralization such that each helicopter now secures both promissory notes. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Fleet. During the nine months ended September 30, 2018 , the Company canceled two helicopter purchase agreements and recognized $0.5 million of penalties on cancellation. The Company’s unfunded capital commitments as of September 30, 2018 consisted primarily of agreements to purchase helicopters and totaled $82.3 million , which is payable beginning in 2019 and through 2020 . 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 in 2019 and 2020 . 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 2020 and 2021 . Brazilian Tax Disputes. The Company is disputing assessments of approximately $9.6 million in taxes, penalties and interest levied by the municipal authorities of Rio de Janeiro (for the period between 2000 to 2005), Macaé (for the period between 2001 to 2006), and Cabo Frio (for the period 2012) (collectively, the “Municipal Assessments”). The Company believes that, based on its interpretation of tax legislation supported by clarifying guidance provided by the Supreme Court of Brazil with respect to the issue in a 2006 ruling, it is in compliance with all applicable tax legislation, has paid all applicable taxes, penalties and interest and plans to defend these claims vigorously at the administrative levels in each jurisdiction. In the event the Municipal Assessments are upheld at the last administrative level, it may be necessary for the Company to deposit the amounts at issue as security to pursue further appeals. At September 30, 2018 , it is not possible to determine the outcome of the Municipal Assessments, but the Company does not expect that the outcome would have a material adverse effect on its business, financial position or results of operations. In addition, it is not possible to reasonably estimate the likelihood or potential amount of assessments that may be issued for any subsequent periods. The Company is disputing responsibility for $2.5 million of employer social security contributions required to have been remitted by one of its customers relating to the period from 1995 to 1998. Although the Company may be deemed co-responsible for such remittances under the local regulatory regime, the customer’s payments to the Company against presented invoices were made net of the specific remittances required to have been made by the customer and at issue in the claim. As such, the Company plans to defend this claim vigorously. At September 30, 2018 , it is not possible to determine the outcome of this matter, but the Company does not expect that the outcome would have a material adverse effect on its business, financial position or results of operations. The Company is disputing certain penalties that are being assessed by the State of Rio de Janeiro in respect of the Company’s alleged failure to submit accurate documentation and to fully comply with filing requirements with respect to certain value-added taxes. The Company elected to make payments of $0.2 million in installments over time to satisfy a portion of these penalties. Upon confirming with the asserting authority that the originally proposed penalties of $1.6 million with respect to the balance of the assessments were calculated based on amounts containing a typographical error, the aggregate penalties that remain in dispute total $0.5 million . At September 30, 2018 , it is not possible to determine the outcome of this matter, but the Company does not expect that the outcome would have a material adverse effect on its business, financial position or results of operations. The Company is disputing the imposition of $0.2 million in fines levied by the Brazilian customs authorities. These fines relate to the Company’s alleged failure to comply with certain deadlines under the temporary regime pursuant to which it imports helicopters into Brazil. In order to dispute such fines and pursue its legal remedies within the judicial system, the Company deposited certain amounts at issue as security into an escrow account with the presiding judge in the matters who controls the release of such funds pending the outcome. The Company believes its documentation evidences its timely compliance with the relevant deadlines. As such, the Company plans to defend these claims vigorously. At September 30, 2018 , it is not possible to determine the outcome of these matters, but the Company does not expect that the outcome would have a material adverse effect on its business, financial position or results of operations. The Company is disputing fines of $0.3 million sought by taxing authorities in Brazil following the final adjudication to disallow certain tax credits applied by the Company to offset certain social tax liabilities. The fine is calculated as 50% of the incremental tax liability resulting from the disallowance of the tax credits and has been applied without taking into account the circumstances relating to the disallowance of such tax credits. The constitutionality of such fines is under review by the Supreme Court in Brazil. There are a number of cases in which taxpayers have received favorable rulings due to the lack of constitutionality of the law. As such, the Company plans to defend this claim vigorously. At September 30, 2018 , it is not possible to determine the outcome, but the Company does not expect that it would have a material adverse impact on its business, financial position or results of operations. The Company is disputing contingent fees of $0.5 million sought by its former tax consultant that have been calculated based on unrealized tax savings attributed to the consultant’s suggested tax strategies. The Company contends that fees are due only upon realized tax savings. At September 30, 2018 , it is not possible to determine the outcome of these matters, but the Company does not expect that the outcome would have a material adverse effect on its business, financial position or results of operations. In the normal course of business, the Company may become involved in various employment-related litigation matters. At September 30, 2018 , it is not possible to determine the outcome of several of these claims wherein an aggregate amount equal to the Company’s established accrual is being sought. The Company does not expect that the outcome with respect to such claims would have a material adverse effect on its business, financial position or results of operations. The Company is also disputing claims from the Brazilian tax authorities with respect to federal customs taxes levied upon the helicopters leased by the Company and imported into Brazil under a temporary regime and subject to reexport. In order to dispute such assessments and pursue its available legal remedies within the judicial system, the Company deposited the amounts at issue as security into an escrow account that serves as security and with the presiding judge in the matters controlling the release of such funds. The Company believes that, based on its interpretation of tax legislation and well established aviation industry practice, it is not required to pay such taxes and plans to defend these claims vigorously. At September 30, 2018 , it is not possible to determine the outcome of this matter, but the Company does not expect that the outcome would have a material adverse effect on its business, financial position or results of operations. As it relates to the specific cases referred to above, the Company currently anticipates that any administrative fine or penalty ultimately would not have a material effect on its business, financial position or results of operations. The Company has deposited $6.7 million into escrow accounts controlled by the court with respect to certain of the cases described above and has fully reserved such amounts subject to final determination and the judicial release of such escrow deposits. These estimated liabilities are based on the Company’s 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. Other. On November 21, 2016, the Company filed a lawsuit in the District Court of Dallas County, Texas against Airbus Helicopters, Inc. and Airbus Helicopters S.A.S. (collectively, “Airbus”) alleging breaches of various contracts between us, fraudulent inducement and unjust enrichment in connection with the sale by Airbus of H225 model helicopters to the Company. On October 26, 2017, the Company added claims against Airbus for fraud and negligent misrepresentation, and on December 28, 2017, the Company amended its complaint to seek damages attributable to the impact of Airbus’ unlawful acts on the value of a H225 that the Company purchased from another helicopter operator. On July 3, 2018, the Company entered into a litigation settlement agreement (the “Settlement Agreement”) with Airbus to settle all claims made by the Company against Airbus related to Airbus' marketing and sale, and the Company's purchase, of eleven H225 model helicopters. Pursuant to the Settlement Agreement, Airbus has agreed to pay the Company $42.0 million in cash and provide it with certain trade account credits that the Company may use for up to five years. The Company has agreed to release Airbus from any and all liabilities, claims, counterclaims, demands, complaints, costs, losses and expenses relating to the action and to dismiss the action with prejudice without any party admitting fault. From time to time, the Company is involved in various legal actions incidental to its business, including actions relating to employee claims, actions relating to medical malpractice claims, various tax issues, grievance hearings before labor regulatory agencies, and miscellaneous third party tort actions. The outcome of these proceedings is not predictable. However, based on current circumstances, the Company does not believe that the ultimate resolution of these proceedings, after considering available defenses and any insurance coverage or indemnification rights, will have a material adverse effect on its financial position, results of operations or cash flows. |
EARNINGS (LOSS) PER COMMON SHAR
EARNINGS (LOSS) PER COMMON SHARE | 9 Months Ended |
Sep. 30, 2018 | |
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 and nine months ended September 30, 2018 and 2017 were as follows (in thousands, except share and per share data): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Net income (loss) attributable to Era Group Inc. $ 31,289 $ (81,448 ) $ 19,716 $ (89,855 ) Less: Net income attributable to participating securities 714 — 425 — Net income (loss) attributable to fully vested common stock $ 30,575 $ (81,448 ) $ 19,291 $ (89,855 ) Weighted average common shares outstanding: Basic 21,215,576 20,844,376 21,139,212 20,715,686 Diluted (1) 21,239,189 20,844,376 21,156,466 20,715,686 Income (loss) per common share: Basic $ 1.44 $ (3.91 ) $ 0.91 $ (4.34 ) Diluted $ 1.44 $ (3.91 ) $ 0.91 $ (4.34 ) ____________________ (1) Excludes weighted average common shares of 224,769 and 275,824 for the three months ended September 30, 2018 and 2017 , respectively, and 223,921 and 278,740 for the nine months ended September 30, 2018 and 2017 , respectively, for certain share awards as the effect of their inclusion would have been antidilutive. |
REVENUES
REVENUES | 9 Months Ended |
Sep. 30, 2018 | |
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. 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 entity 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 Nine Months Ended 2018 2017 2018 2017 Operating revenues: United States $ 38,229 $ 41,989 $ 117,673 $ 112,862 Foreign 13,665 16,764 43,443 48,215 Total operating revenues $ 51,894 $ 58,753 $ 161,116 $ 161,077 The following table presents the Company’s revenues earned by service line: Three Months Ended Nine Months Ended 2018 2017 2018 2017 Revenues: Oil and gas flight services: U.S. $ 35,473 $ 36,567 $ 109,778 $ 98,914 International 13,665 16,764 43,443 48,215 Total oil and gas 49,138 53,331 153,221 147,129 Emergency response services 2,756 2,487 7,895 8,877 Flightseeing — 2,935 — 5,071 Total operating revenues $ 51,894 $ 58,753 $ 161,116 $ 161,077 Dry-leasing revenues: U.S. 1,142 486 2,984 1,015 International 1,574 2,146 5,560 11,698 Total revenues $ 54,610 $ 61,385 $ 169,660 $ 173,790 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. 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 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. Practical Expedients and Exemptions The Company does not incur any material incremental costs to obtain or fulfill customer contracts that require capitalization under the new revenue standard and has elected the practical expedient afforded by the new revenue standard to expense such costs as incurred upon adoption. These costs are included as operating expenses in the consolidated statements of operations. The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which it recognizes revenue at the amount to which it has the right to invoice for services performed. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS The Company leases office space from SEACOR Holdings Inc. (“SEACOR”) whose CEO is Chairman of the Company’s board of directors. During each of the three months ended September 30, 2018 and 2017 , the Company incurred $0.1 million in rent and utilities, and during each of the nine months ended September 30, 2018 and 2017 , the Company incurred $0.3 million in rent and utilities. Such costs are included in administrative and general expense in the condensed consolidated statements of operations. The Company purchased products and services from its Dart Holding Company Ltd. (“Dart”) joint venture totaling $0.4 million and $0.1 million during the three months ended September 30, 2018 and 2017 , respectively. The Company purchased products from Dart totaling $1.7 million and $0.4 million during the nine months ended September 30, 2018 and 2017 , respectively. The Company also has a note receivable from Dart which had balances of $2.4 million and $2.9 million as of September 30, 2018 and December 31, 2017 , respectively. Purchases from Dart are included in operating expenses on the consolidated statements of income, and the note receivable is included in equity investments and advances on the consolidated balance sheets. During the three months ended September 30, 2018 , the Company received dividends of $1.0 million from Dart. During the three months ended September 30, 2018 and 2017 , the Company incurred fees of less than $0.1 million and $0.1 million , respectively, for simulator services from its Era Training Center, LLC (“ETC”) joint venture, and during each of the three months ended September 30, 2018 and 2017 , the Company provided helicopter, management and other services to ETC of less than $0.1 million . During the nine months ended September 30, 2018 and 2017 , the Company incurred fees of $0.2 million and $0.5 million , respectively, for simulator services from ETC, and during each of the nine months ended September 30, 2018 and 2017 the Company provided helicopter, management and other services to ETC of $0.1 million and $0.2 million , respectively. Revenues from ETC are recorded in operating revenues, and expenses incurred are recorded in operating expenses on the consolidated statements of operations. During the three months ended September 30, 2018, the Company entered into an agreement to dissolve ETC in exchange for the settlement of an existing promissory note with an outstanding principal amount of $3.6 million by acquiring the assets of the joint venture. The agreement included the sale of three simulators to the Company for $2.9 million , partial ownership in a fourth simulator for $0.4 million and a note receivable from the Company’s partner in ETC for $0.4 million . |
SHARE BASED COMPENSATION
SHARE BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [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 nine months ended September 30, 2018 were as follows: Number of Shares Weighted Average Grant Price Non-vested as of December 31, 2017 382,873 $ 12.68 Restricted stock awards granted: Non-employee directors 37,272 $ 9.00 Employees 291,599 $ 9.00 Vested (201,059 ) $ 14.05 Forfeited (500 ) $ 9.66 Non-vested as of September 30, 2018 510,185 $ 9.77 The total fair value of shares vested during the nine months ended September 30, 2018 and 2017 , determined using the closing price on the grant date, was $2.8 million and $4.7 million , respectively. Stock Options. The Company did not grant any stock options during the nine months ended September 30, 2018 . Employee Stock Purchase Plan (“ESPP”). During the nine months ended September 30, 2018 , the Company issued 114,385 shares under the ESPP. As of September 30, 2018 , 222,378 shares remain available for issuance under the ESPP. Total share-based compensation expense, which includes stock options, restricted stock and the ESPP, was $2.2 million and $3.6 million for the nine months ended September 30, 2018 and 2017 , respectively. |
GUARANTORS OF SECURITIES
GUARANTORS OF SECURITIES | 9 Months Ended |
Sep. 30, 2018 | |
Guarantees [Abstract] | |
GUARANTORS OF SECURITIES | GUARANTORS OF SECURITIES On December 7, 2012, Era Group issued the 7.750% Senior Notes. Era Group’s payment obligations under the 7.750% Senior Notes are jointly and severally guaranteed by all of its existing 100% owned U.S. subsidiaries that guarantee the Revolving Credit Facility and any future U.S. subsidiaries that guarantee the Revolving Credit Facility or other material indebtedness Era Group may incur in the future (the “Guarantors”). All Guarantors currently guarantee the Revolving Credit Facility, and the guarantees of the Guarantors are full and unconditional and joint and several. As a result of the agreement by these subsidiaries to guarantee the 7.750% Senior Notes, the Company is presenting the following condensed consolidating balance sheets and statements of operations, comprehensive income and cash flows for Era Group (“Parent”), the Guarantors and the Company’s other subsidiaries (“Non-guarantors”). These statements should be read in conjunction with the unaudited condensed consolidated financial statements of the Company. The supplemental condensed consolidating financial information has been prepared pursuant to the rules and regulations for condensed financial information and does not include all disclosures included in annual financial statements. Supplemental Condensed Consolidating Balance Sheet as of September 30, 2018 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands, except share data) ASSETS Current assets: Cash and cash equivalents $ 46,351 $ — $ 1,280 $ — $ 47,631 Receivables: Trade, operating, net of allowance for doubtful accounts of $854 — 29,135 6,520 — 35,655 Trade, dry-leasing — 3,833 — — 3,833 Tax receivable — — 3,117 — 3,117 Other — 2,154 547 — 2,701 Inventories, net — 20,124 33 — 20,157 Prepaid expenses 501 1,560 306 — 2,367 Total current assets 46,852 56,806 11,803 — 115,461 Property and equipment — 910,730 16,747 — 927,477 Accumulated depreciation — (311,342 ) (3,394 ) — (314,736 ) Property and equipment, net — 599,388 13,353 — 612,741 Equity investments and advances — 26,600 — — 26,600 Investments in consolidated subsidiaries 165,005 — — (165,005 ) — Intangible assets — — 1,111 — 1,111 Deferred income taxes 21,185 — — (21,185 ) — Intercompany receivables 375,131 — — (375,131 ) — Other assets 1,398 16,939 84 — 18,421 Total assets $ 609,571 $ 699,733 $ 26,351 $ (561,321 ) $ 774,334 LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable and accrued expenses $ 130 $ 8,606 $ 1,702 $ — $ 10,438 Accrued wages and benefits — 7,008 1,597 — 8,605 Accrued interest 3,337 67 — — 3,404 Accrued income taxes 2,970 — 23 — 2,993 Accrued other taxes 244 1,791 361 — 2,396 Accrued contingencies — — 1,014 — 1,014 Current portion of long-term debt — 1,663 495 — 2,158 Other current liabilities 817 199 17 — 1,033 Total current liabilities 7,498 19,334 5,209 — 32,041 Long-term debt 133,743 26,733 — — 160,476 Deferred income taxes — 128,073 1,250 (21,185 ) 108,138 Intercompany payables — 322,117 53,047 (375,164 ) — Other liabilities — 1,753 — — 1,753 Total liabilities 141,241 498,010 59,506 (396,349 ) 302,408 Redeemable noncontrolling interest — 3 3,453 — 3,456 Equity: Common stock, $0.01 par value, 60,000,000 shares authorized; 21,761,823 outstanding, exclusive of treasury shares 219 — — — 219 Additional paid-in capital 447,014 100,305 4,562 (104,868 ) 447,013 Retained earnings 24,048 101,305 (41,170 ) (60,104 ) 24,079 Treasury shares, at cost, 215,141 shares (2,951 ) — — — (2,951 ) Accumulated other comprehensive income, net of tax 110 — — 110 Total equity 468,330 201,720 (36,608 ) (164,972 ) 468,470 Total liabilities, redeemable noncontrolling interest and stockholders’ equity $ 609,571 $ 699,733 $ 26,351 $ (561,321 ) $ 774,334 Supplemental Condensed Consolidating Balance Sheet as of December 31, 2017 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands, except share data) ASSETS Current assets: Cash and cash equivalents $ 10,800 $ — $ 2,783 $ — $ 13,583 Receivables: Trade, operating, net of allowance for doubtful accounts of $1,196 — 27,968 5,872 — 33,840 Trade, dry-leasing — 5,124 — — 5,124 Tax receivables — — 2,829 — 2,829 Other — 1,126 497 — 1,623 Inventories, net — 20,746 366 — 21,112 Prepaid expenses 349 721 133 — 1,203 Escrow deposits — 3,250 — — 3,250 Total current assets 11,149 58,935 12,480 — 82,564 Property and equipment — 956,918 16,024 — 972,942 Accumulated depreciation — (296,573 ) (2,455 ) — (299,028 ) Net property and equipment — 660,345 13,569 — 673,914 Equity investments and advances — 30,056 — — 30,056 Investments in consolidated subsidiaries 161,350 — — (161,350 ) — Intangible assets — — 1,122 — 1,122 Deferred income taxes 19,600 — — (19,600 ) — Intercompany receivables 426,806 — — (426,806 ) — Other assets 1,011 3,370 60 — 4,441 Total assets $ 619,916 $ 752,706 $ 27,231 $ (607,756 ) $ 792,097 LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable and accrued expenses $ 638 $ 13,655 $ 2,128 $ — $ 16,421 Accrued wages and benefits — 6,804 1,460 — 8,264 Accrued interest 549 57 — — 606 Accrued income taxes — 24 4 — 28 Accrued other taxes 18 1,192 600 — 1,810 Accrued contingencies — — 859 — 859 Current portion of long-term debt — 1,663 1,073 — 2,736 Other current liabilities 848 835 37 — 1,720 Total current liabilities 2,053 24,230 6,161 — 32,444 Long-term debt 172,292 27,979 1,903 — 202,174 Deferred income taxes — 124,948 1,250 (19,600 ) 106,598 Intercompany payables — 381,660 45,146 (426,806 ) — Other liabilities — 1,435 (1 ) — 1,434 Total liabilities 174,345 560,252 54,459 (446,406 ) 342,650 Redeemable noncontrolling interest — 4 3,762 — 3,766 Equity: Common stock, $0.01 par value, 60,000,000 shares authorized; 21,319,150 shares outstanding, exclusive of treasury shares 215 — — — 215 Additional paid-in capital 443,944 100,306 4,562 (104,868 ) 443,944 Retained earnings 4,363 92,034 (35,552 ) (56,482 ) 4,363 Treasury shares, at cost, 215,141 shares (2,951 ) — — — (2,951 ) Accumulated other comprehensive income, net of tax — 110 — — 110 Total equity 445,571 192,450 (30,990 ) (161,350 ) 445,681 Total liabilities, redeemable noncontrolling interest and stockholders’ equity $ 619,916 $ 752,706 $ 27,231 $ (607,756 ) $ 792,097 Supplemental Condensed Consolidating Statements of Operations for the Three Months Ended September 30, 2018 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Revenues $ — $ 48,631 $ 13,623 $ (7,644 ) $ 54,610 Costs and expenses: Operating — 29,888 14,302 (7,677 ) 36,513 Administrative and general 901 6,957 979 — 8,837 Depreciation — 9,316 225 — 9,541 Total costs and expenses 901 46,161 15,506 (7,677 ) 54,891 Losses on asset dispositions, net — (148 ) — — (148 ) Litigation settlement proceeds 42,000 — — — 42,000 Operating income (loss) 41,099 2,322 (1,883 ) 33 41,571 Other income (expense): Interest income 171 448 113 — 732 Interest expense (3,330 ) (204 ) (15 ) — (3,549 ) Foreign currency losses, net (10 ) (16 ) (68 ) — (94 ) Other, net — 21 (6 ) — 15 Total other income (expense) (3,169 ) 249 24 — (2,896 ) Income (loss) before income taxes and equity earnings 37,930 2,571 (1,859 ) 33 38,675 Income tax expense 3,928 3,933 — — 7,861 Income (loss) before equity earnings 34,002 (1,362 ) (1,859 ) 33 30,814 Equity in earnings (losses) of subsidiaries (2,747 ) 465 — 2,747 465 Net income (loss) 31,255 (897 ) (1,859 ) 2,780 31,279 Net loss attributable to noncontrolling interest in subsidiary — — 10 — 10 Net income (loss) attributable to Era Group Inc. $ 31,255 $ (897 ) $ (1,849 ) $ 2,780 $ 31,289 Supplemental Condensed Consolidating Statements of Operations for the Three Months Ended September 30, 2017 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Revenues $ — $ 51,919 $ 16,729 $ (7,263 ) $ 61,385 Costs and expenses: Operating — 35,826 15,424 (7,263 ) 43,987 Administrative and general 2,305 7,306 1,317 — 10,928 Depreciation — 11,851 252 — 12,103 Total costs and expenses 2,305 54,983 16,993 (7,263 ) 67,018 Gains on asset dispositions, net — (122 ) — — (122 ) Loss on impairment — (116,586 ) (432 ) — (117,018 ) Operating income (loss) (2,305 ) (119,772 ) (696 ) — (122,773 ) Other income (expense): Interest income 47 102 57 — 206 Interest expense (3,838 ) (170 ) (89 ) — (4,097 ) Foreign currency gains (losses), net 66 85 (139 ) — 12 Other, net — (1 ) (32 ) — (33 ) Total other income (expense) (3,725 ) 16 (203 ) — (3,912 ) Income (loss) before income taxes and equity earnings (6,030 ) (119,756 ) (899 ) — (126,685 ) Income tax expense (benefit) (2,114 ) (43,276 ) 153 — (45,237 ) Income (loss) before equity earnings (3,916 ) (76,480 ) (1,052 ) — (81,448 ) Equity earnings, net of tax — 233 — — 233 Equity in earnings (losses) of subsidiaries (77,532 ) — — 77,532 — Net income (loss) (81,448 ) (76,247 ) (1,052 ) 77,532 (81,215 ) Net loss attributable to noncontrolling interest in subsidiary — — (233 ) — (233 ) Net income (loss) attributable to Era Group Inc. $ (81,448 ) $ (76,247 ) $ (1,285 ) $ 77,532 $ (81,448 ) Supplemental Condensed Consolidating Statements of Operations for the Nine Months Ended September 30, 2018 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Revenues $ — $ 148,512 $ 42,252 $ (21,104 ) $ 169,660 Costs and expenses: Operating — 92,317 43,325 (21,137 ) 114,505 Administrative and general 14,087 18,182 3,445 — 35,714 Depreciation — 29,283 728 — 30,011 Total costs and expenses 14,087 139,782 47,498 (21,137 ) 180,230 Gains on asset dispositions, net — 2,269 — — 2,269 Litigation settlement proceeds 42,000 — — — 42,000 Operating income (loss) 27,913 10,999 (5,246 ) 33 33,699 Other income (expense): Interest income 180 878 166 — 1,224 Interest expense (10,925 ) (595 ) (126 ) — (11,646 ) Foreign currency losses, net (66 ) (141 ) (888 ) — (1,095 ) Gain on debt extinguishment — — 175 — 175 Other, net — 31 (10 ) — 21 Total other income (expense) (10,811 ) 173 (683 ) — (11,321 ) Income (loss) before income taxes and equity earnings 17,102 11,172 (5,929 ) 33 22,378 Income tax expense 1,075 3,474 — — 4,549 Income (loss) before equity earnings 16,027 7,698 (5,929 ) 33 17,829 Equity in earnings (losses) of subsidiaries 3,655 1,577 — (3,655 ) 1,577 Net income (loss) 19,682 9,275 (5,929 ) (3,622 ) 19,406 Net loss attributable to noncontrolling interest in subsidiary — — 310 — 310 Net income (loss) attributable to Era Group Inc. $ 19,682 $ 9,275 $ (5,619 ) $ (3,622 ) $ 19,716 Supplemental Condensed Consolidating Statements of Operations for the Nine Months Ended September 30, 2017 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Revenues $ — $ 151,550 $ 46,132 $ (23,892 ) $ 173,790 Costs and expenses: Operating — 98,117 48,854 (23,892 ) 123,079 Administrative and general 5,280 21,648 4,283 — 31,211 Depreciation — 34,898 737 — 35,635 Total costs and expenses 5,280 154,663 53,874 (23,892 ) 189,925 Gains on asset dispositions, net — 5,048 — — 5,048 Loss on impairment — (116,586 ) (432 ) (117,018 ) Operating income (loss) (5,280 ) (114,651 ) (8,174 ) — (128,105 ) Other income (expense): Interest income 96 320 225 — 641 Interest expense (10,800 ) (627 ) (193 ) — (11,620 ) Foreign currency gains (losses), net 220 253 (569 ) — (96 ) Other, net — — (29 ) — (29 ) Total other income (expense) (10,484 ) (54 ) (566 ) — (11,104 ) Income (loss) before income taxes and equity earnings (15,764 ) (114,705 ) (8,740 ) — (139,209 ) Income tax expense (benefit) (5,297 ) (43,282 ) 513 — (48,066 ) Income (loss) before equity earnings (10,467 ) (71,423 ) (9,253 ) — (91,143 ) Equity earnings, net of tax — 1,069 — — 1,069 Equity in earnings (losses) of subsidiaries (79,388 ) — — 79,388 — Net income (loss) (89,855 ) (70,354 ) (9,253 ) 79,388 (90,074 ) Net loss attributable to noncontrolling interest in subsidiary — — 219 — 219 Net income (loss) attributable to Era Group Inc. $ (89,855 ) $ (70,354 ) $ (9,034 ) $ 79,388 $ (89,855 ) Supplemental Condensed Consolidating Statements of Comprehensive Income for the Three Months Ended September 30, 2018 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Net income (loss) $ 31,255 $ (897 ) $ (1,859 ) $ 2,780 $ 31,279 Comprehensive income (loss) 31,255 (897 ) (1,859 ) 2,780 31,279 Comprehensive income attributable to noncontrolling interest in subsidiary — — 10 — 10 Comprehensive income (loss) attributable to Era Group Inc. $ 31,255 $ (897 ) $ (1,849 ) $ 2,780 $ 31,289 Supplemental Condensed Consolidating Statements of Comprehensive Income for the Three Months Ended September 30, 2017 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Net income (loss) $ (81,448 ) $ (76,247 ) $ (1,052 ) $ 77,532 $ (81,215 ) Comprehensive income (loss) (81,448 ) (76,247 ) (1,052 ) 77,532 (81,215 ) Comprehensive loss attributable to noncontrolling interest in subsidiary — — (233 ) — (233 ) Comprehensive income (loss) attributable to Era Group Inc. $ (81,448 ) $ (76,247 ) $ (1,285 ) $ 77,532 $ (81,448 ) Supplemental Condensed Consolidating Statements of Comprehensive Income for the Nine Months Ended September 30, 2018 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Net income (loss) $ 19,682 $ 9,275 $ (5,929 ) $ (3,622 ) $ 19,406 Other comprehensive loss: Foreign currency translation adjustments — (5 ) — — (5 ) Total other comprehensive loss — (5 ) — — (5 ) Comprehensive income (loss) 19,682 9,270 (5,929 ) (3,622 ) 19,401 Comprehensive loss attributable to noncontrolling interest in subsidiary — — 310 — 310 Comprehensive income (loss) attributable to Era Group Inc. $ 19,682 $ 9,270 $ (5,619 ) $ (3,622 ) $ 19,711 Supplemental Condensed Consolidating Statements of Comprehensive Income for the Nine Months Ended September 30, 2017 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Net income (loss) $ (89,855 ) $ (70,354 ) $ (9,253 ) $ 79,388 $ (90,074 ) Other comprehensive loss: Foreign currency translation adjustments — (2 ) — — (2 ) Total other comprehensive loss — (2 ) — — (2 ) Comprehensive income (loss) (89,855 ) (70,356 ) (9,253 ) 79,388 (90,076 ) Comprehensive loss attributable to noncontrolling interest in subsidiary — — 219 — 219 Comprehensive income (loss) attributable to Era Group Inc. $ (89,855 ) $ (70,356 ) $ (9,034 ) $ 79,388 $ (89,857 ) Supplemental Condensed Consolidating Statements of Cash Flows for the Nine Months Ended September 30, 2018 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Net cash provided by provided by operating activities $ 35,550 $ 13,319 $ 1,483 $ — $ 50,352 Cash flows from investing activities: Purchases of property and equipment — (7,461 ) (225 ) — (7,686 ) Proceeds from disposition of property and equipment — 29,520 — — 29,520 Dividends received from equity investees — 1,000 — — 1,000 Principal payments on notes due from equity investees — 401 — — 401 Principal payments on third party notes receivable — 620 — — 620 Net cash used in investing activities — 24,080 (225 ) — 23,855 Cash flows from financing activities: Long-term debt issuance costs — — — (1,295 ) (1,295 ) Payments on long-term debt — (1,247 ) (2,315 ) (39,000 ) (42,562 ) Proceeds from share award plans — — — 893 893 Borrowings and repayments of intercompany debt — (39,402 ) — 39,402 — Net cash used in financing activities — (40,649 ) (2,315 ) — (42,964 ) Effects of exchange rate changes on cash and cash equivalents — — (445 ) — (445 ) Net increase (decrease) in cash and cash equivalents 35,550 (3,250 ) (1,502 ) — 30,798 Cash, cash equivalents and restricted cash, beginning of period 10,800 3,250 2,783 — 16,833 Cash, cash equivalents and restricted cash, end of period $ 46,350 $ — $ 1,281 $ — $ 47,631 Supplemental Condensed Consolidating Statements of Cash Flows for the Nine Months Ended September 30, 2017 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Net cash provided by (used in) operating activities $ (267 ) $ 17,477 $ 718 $ — $ 17,928 Cash flows from investing activities: Purchases of property and equipment — (13,013 ) (108 ) — (13,121 ) Proceeds from disposition of property and equipment — 5,690 — — 5,690 Investments in and advances to equity investees — (126 ) — — (126 ) Principal payments on notes due from equity investees — 564 — — 564 Principal payments on third party notes receivable — 94 — — 94 Net cash provided by (used in) investing activities — (6,791 ) (108 ) — (6,899 ) Cash flows from financing activities: Proceeds from Revolving Credit Facility — — — 9,000 9,000 Payments on long-term debt — (1,247 ) (498 ) (23,000 ) (24,745 ) Proceeds from share award plans — — — 836 836 Purchase of treasury shares — — — (52 ) (52 ) Borrowings and repayments of intercompany debt — (13,216 ) — 13,216 — Net cash used in financing activities — (14,463 ) (498 ) — (14,961 ) Effects of exchange rate changes on cash and cash equivalents 27 — 74 — 101 Net increase (decrease) in cash and cash equivalents (240 ) (3,777 ) 186 — (3,831 ) Cash, cash equivalents and restricted cash, beginning of period 25,474 3,777 1,476 — 30,727 Cash, cash equivalents and restricted cash, end of period $ 25,234 $ — $ 1,662 $ — $ 26,896 |
BASIS OF PRESENTATION AND ACC_2
BASIS OF PRESENTATION AND ACCOUNTING POLICY (Policy) | 9 Months Ended |
Sep. 30, 2018 | |
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. Aeróleo Taxi Aereo S/A (“Aeróleo”) is a VIE of which the Company is the primary beneficiary. All significant inter-company accounts and transactions are eliminated in consolidation. |
Reclassification | Reclassification. Certain amounts reported for prior periods in the consolidated financial statements have been reclassified to conform with the current period’s presentation. |
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. |
Trade Receivables | Trade Receivables . Customers are primarily international, independent and major integrated exploration, development and production companies, international helicopter operators and the U.S. government. Customers are typically granted credit on a short-term basis, and related credit risks are considered minimal. The Company routinely reviews its trade receivables and makes provisions for probable doubtful accounts; however, those provisions are estimates. Actual results could differ from those estimates, and those differences may be material. |
New Accounting Standards | New Accounting Standards - Adopted. The Company adopted the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers,” and its amendments issued by the provisions of ASU No. 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” ASU No. 2016-10, “Identifying Performance Obligations and Licensing,” ASU No. 2016-12, “Narrow-Scope Improvements and Practical Expedients,” and ASU No. 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue From Contracts with Customers,” collectively Accounting Standards Codification (ASC) Topic 606 beginning January 1, 2018. ASC Topic 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from all contracts with customers except where revenues are in scope of another accounting standard. The ASU superseded the revenue recognition requirements in ASC Topic 605, “Revenue Recognition,” and most industry-specific guidance. ASC Topic 606 sets forth a five-step model for determining when and how revenue is recognized. Under the model, an entity will be required to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods and services. The adoption of ASC Topic 606 did not have a material impact on the Company’s consolidated financial statements. See Note 10 - Revenues for additional information relating to Revenue from Contracts with Customers. The Company adopted the provisions of FASB ASU No. 2016-15, “Classification of Certain Cash Receipts and Cash Payments,” beginning January 1, 2018. This ASU clarifies how certain cash receipts and cash payments should be classified and presented in the statement of cash flows. The Company has made an accounting policy election to classify distributions received from equity method investees using the nature of the distribution approach which classifies distributions received from investees as either cash inflows from operating activities or cash inflows from investing activities based on the nature of the activities of the investee that generated the distribution. Adoption of this ASU did not have a material impact on the Company’s historical financial statements. In October 2016, the FASB issued ASU 2016-16 - Income Taxes , which requires entities to recognize income tax consequences of intra-entity transfers of assets, other than inventory, when the transfer occurs rather than when the asset is sold to a third party as is the case under current GAAP. ASU 2016-16 will be effective for annual reporting periods beginning after December 15, 2017 including interim periods within that period. The Company adopted ASU 2016-16 effective January 1, 2018, and such adoption did not have a material impact on its consolidated financial statements. The Company adopted the provisions of FASB ASU No. 2016-18, “Restricted Cash,” beginning January 1, 2018. This ASU requires amounts deemed restricted cash be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows, and presentation should permit a reconciliation when cash, cash equivalents and restricted cash are presented in more than one line item on the balance sheet. The Company had amounts deposited in escrow accounts as discussed further below in Note 3. These amounts are deemed restricted cash and are included in the “Escrow deposits” line of our consolidated balance sheet. The impact of adopting this ASU has been included as adjustments in the prior period statement of cash flows. In May 2017, the FASB issued ASU 2017-09 - Compensation - Stock Compensation: Scope of Modification Accounting , which is designed to reduce diversity in practice and complexity when accounting for changes in the terms of a share-based payment award. ASU 2017-09 will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that period, and early adoption is permitted for any interim period for which financial statements have not yet been issued. The Company adopted ASU 2017-09 effective January 1, 2018, and such adoption did not have a material impact on its consolidated financial statements. New Accounting Standards - Not Yet Adopted. In February 2016, the FASB issued ASU No. 2016-02, “Leases” (ASU No. 2016-02), which establishes comprehensive accounting and financial reporting requirements for leasing arrangements. This ASU supersedes the existing requirements in FASB ASC Topic 840, “Leases,” and requires lessees to recognize substantially all lease assets and lease liabilities on the balance sheet. The provisions of ASU No. 2016-02 also modify the definition of a lease and outline requirements for recognition, measurement, presentation and disclosure of leasing arrangements by both lessees and lessors. The ASU is effective for interim and annual periods beginning after December 15, 2018, and early adoption of the standard is permitted. Entities are required to adopt the ASU using a modified retrospective approach, subject to certain optional practical expedients, and apply the provisions of ASU No. 2016-02 to leasing arrangements existing at or entered into after the earliest comparative period presented in the financial statements. In July 2018 the ASU No. 2016-02 was further amended by the provisions of ASU No. 2018-11, “Targeted Improvements” to Topic 842 whereby the FASB decided to provide an alternate transition method by allowing entities to initially apply the new leases standard at the adoption date (such as January 1, 2019, for calendar year-end public business entities) and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption consistent with preparers’ requests. The Company currently plans to adopt this standard in the first quarter of 2019 using the current-period adjustment method and will recognize a cumulative-effect adjustment to the opening balance of retained earnings in that period. The Company has identified the relevant lease contracts and the review and evaluation of these is substantially complete. While the Company’s evaluation of ASU 2016-02 is still ongoing, the Company expects the adoption of the ASU will have a material impact on the consolidated balance sheet. The Company will elect an optional practical expedient to retain its current classification of leases, and as a result, anticipates that the initial impact of adopting this new standard on its consolidated statement of income and consolidated statement of cash flows will not be material. 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 is permitted. Entities are required to adopt ASU No. 2016-13 using a modified retrospective approach, subject to certain limited exceptions. The Company is currently evaluating the potential impact of the adoption of this ASU on its consolidated financial statements. In August 2018, the FASB issued ASU-2018-15, “Intangibles-Goodwill and Other-Internal-Use Software” (Subtopic 350-40), providing guidance addressing a customer's accounting for implementation costs incurred in a cloud computing arrangement (“CCA”) that is considered a service contract. Under the new guidance, implementation costs for a CCA should be evaluated for capitalization using the same approach as implementation costs associated with internal-use software and should be expensed over the term of the hosting arrangement, which includes any reasonably certain renewal periods. The new guidance is effective for fiscal years beginning after December 15, 2019 for calendar year-end public business entities. Early adoption is permitted, including adoption in any interim period. The Company is evaluating the potential impact of the adoption of ASU-2018-15 on its consolidated financial statements. In August 2018, the FASB issued ASU-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. ASU-2018-13 will be effective for interim and annual periods beginning December 15, 2019. The Company has not adopted ASU-2018-13 and believes such adoption will not have a material impact on its consolidated financial statements. |
BASIS OF PRESENTATION AND ACC_3
BASIS OF PRESENTATION AND ACCOUNTING POLICY (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The following table sets forth the Company’s reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Statement of Cash Flows (in thousands): September 30, 2018 December 31, 2017 September 30, 2017 December 31, 2016 Cash and cash equivalents $ 47,631 $ 13,583 $ 26,896 $ 26,950 Restricted cash (1) — 3,250 — 3,777 Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows $ 47,631 $ 16,833 $ 26,896 $ 30,727 (1) Restricted cash represents amounts deposited in escrow accounts at the end of each period. Escrow deposits are shown as a separate line item in the consolidated balance sheet. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 and December 31, 2017 were as follows (in thousands): Carrying Amount Level 1 Level 2 Level 3 September 30, 2018 LIABILITIES Long-term debt, including current portion $ 162,634 $ — $ 163,638 $ — December 31, 2017 LIABILITIES Long-term debt, including current portion $ 204,910 $ — $ 203,938 $ — |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s borrowings as of September 30, 2018 and December 31, 2017 were as follows (in thousands): September 30, 2018 December 31, 2017 7.750% Senior Notes (excluding unamortized discount) $ 144,828 $ 144,828 Senior secured revolving credit facility — 39,000 Promissory notes 20,395 21,642 Other 495 2,976 Total principal balance on borrowings 165,718 208,446 Portion due within one year (2,158 ) (2,736 ) Unamortized debt issuance costs (1,803 ) (2,067 ) Unamortized discount, net (1,281 ) (1,469 ) Long-term debt $ 160,476 $ 202,174 |
EARNINGS (LOSS) PER COMMON SH_2
EARNINGS (LOSS) PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 and nine months ended September 30, 2018 and 2017 were as follows (in thousands, except share and per share data): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Net income (loss) attributable to Era Group Inc. $ 31,289 $ (81,448 ) $ 19,716 $ (89,855 ) Less: Net income attributable to participating securities 714 — 425 — Net income (loss) attributable to fully vested common stock $ 30,575 $ (81,448 ) $ 19,291 $ (89,855 ) Weighted average common shares outstanding: Basic 21,215,576 20,844,376 21,139,212 20,715,686 Diluted (1) 21,239,189 20,844,376 21,156,466 20,715,686 Income (loss) per common share: Basic $ 1.44 $ (3.91 ) $ 0.91 $ (4.34 ) Diluted $ 1.44 $ (3.91 ) $ 0.91 $ (4.34 ) ____________________ (1) Excludes weighted average common shares of 224,769 and 275,824 for the three months ended September 30, 2018 and 2017 , respectively, and 223,921 and 278,740 for the nine months ended September 30, 2018 and 2017 , respectively, for certain share awards as the effect of their inclusion would have been antidilutive. |
REVENUES (Tables)
REVENUES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 Nine Months Ended 2018 2017 2018 2017 Operating revenues: United States $ 38,229 $ 41,989 $ 117,673 $ 112,862 Foreign 13,665 16,764 43,443 48,215 Total operating revenues $ 51,894 $ 58,753 $ 161,116 $ 161,077 The following table presents the Company’s revenues earned by service line: Three Months Ended Nine Months Ended 2018 2017 2018 2017 Revenues: Oil and gas flight services: U.S. $ 35,473 $ 36,567 $ 109,778 $ 98,914 International 13,665 16,764 43,443 48,215 Total oil and gas 49,138 53,331 153,221 147,129 Emergency response services 2,756 2,487 7,895 8,877 Flightseeing — 2,935 — 5,071 Total operating revenues $ 51,894 $ 58,753 $ 161,116 $ 161,077 Dry-leasing revenues: U.S. 1,142 486 2,984 1,015 International 1,574 2,146 5,560 11,698 Total revenues $ 54,610 $ 61,385 $ 169,660 $ 173,790 |
SHARE BASED COMPENSATION (Table
SHARE BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share Based Compensation Plans | The number of shares and weighted average grant price of restricted stock awards during the nine months ended September 30, 2018 were as follows: Number of Shares Weighted Average Grant Price Non-vested as of December 31, 2017 382,873 $ 12.68 Restricted stock awards granted: Non-employee directors 37,272 $ 9.00 Employees 291,599 $ 9.00 Vested (201,059 ) $ 14.05 Forfeited (500 ) $ 9.66 Non-vested as of September 30, 2018 510,185 $ 9.77 |
GUARANTORS OF SECURITIES (Table
GUARANTORS OF SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Guarantees [Abstract] | |
Condensed Balance Sheet | Supplemental Condensed Consolidating Balance Sheet as of September 30, 2018 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands, except share data) ASSETS Current assets: Cash and cash equivalents $ 46,351 $ — $ 1,280 $ — $ 47,631 Receivables: Trade, operating, net of allowance for doubtful accounts of $854 — 29,135 6,520 — 35,655 Trade, dry-leasing — 3,833 — — 3,833 Tax receivable — — 3,117 — 3,117 Other — 2,154 547 — 2,701 Inventories, net — 20,124 33 — 20,157 Prepaid expenses 501 1,560 306 — 2,367 Total current assets 46,852 56,806 11,803 — 115,461 Property and equipment — 910,730 16,747 — 927,477 Accumulated depreciation — (311,342 ) (3,394 ) — (314,736 ) Property and equipment, net — 599,388 13,353 — 612,741 Equity investments and advances — 26,600 — — 26,600 Investments in consolidated subsidiaries 165,005 — — (165,005 ) — Intangible assets — — 1,111 — 1,111 Deferred income taxes 21,185 — — (21,185 ) — Intercompany receivables 375,131 — — (375,131 ) — Other assets 1,398 16,939 84 — 18,421 Total assets $ 609,571 $ 699,733 $ 26,351 $ (561,321 ) $ 774,334 LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable and accrued expenses $ 130 $ 8,606 $ 1,702 $ — $ 10,438 Accrued wages and benefits — 7,008 1,597 — 8,605 Accrued interest 3,337 67 — — 3,404 Accrued income taxes 2,970 — 23 — 2,993 Accrued other taxes 244 1,791 361 — 2,396 Accrued contingencies — — 1,014 — 1,014 Current portion of long-term debt — 1,663 495 — 2,158 Other current liabilities 817 199 17 — 1,033 Total current liabilities 7,498 19,334 5,209 — 32,041 Long-term debt 133,743 26,733 — — 160,476 Deferred income taxes — 128,073 1,250 (21,185 ) 108,138 Intercompany payables — 322,117 53,047 (375,164 ) — Other liabilities — 1,753 — — 1,753 Total liabilities 141,241 498,010 59,506 (396,349 ) 302,408 Redeemable noncontrolling interest — 3 3,453 — 3,456 Equity: Common stock, $0.01 par value, 60,000,000 shares authorized; 21,761,823 outstanding, exclusive of treasury shares 219 — — — 219 Additional paid-in capital 447,014 100,305 4,562 (104,868 ) 447,013 Retained earnings 24,048 101,305 (41,170 ) (60,104 ) 24,079 Treasury shares, at cost, 215,141 shares (2,951 ) — — — (2,951 ) Accumulated other comprehensive income, net of tax 110 — — 110 Total equity 468,330 201,720 (36,608 ) (164,972 ) 468,470 Total liabilities, redeemable noncontrolling interest and stockholders’ equity $ 609,571 $ 699,733 $ 26,351 $ (561,321 ) $ 774,334 Supplemental Condensed Consolidating Balance Sheet as of December 31, 2017 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands, except share data) ASSETS Current assets: Cash and cash equivalents $ 10,800 $ — $ 2,783 $ — $ 13,583 Receivables: Trade, operating, net of allowance for doubtful accounts of $1,196 — 27,968 5,872 — 33,840 Trade, dry-leasing — 5,124 — — 5,124 Tax receivables — — 2,829 — 2,829 Other — 1,126 497 — 1,623 Inventories, net — 20,746 366 — 21,112 Prepaid expenses 349 721 133 — 1,203 Escrow deposits — 3,250 — — 3,250 Total current assets 11,149 58,935 12,480 — 82,564 Property and equipment — 956,918 16,024 — 972,942 Accumulated depreciation — (296,573 ) (2,455 ) — (299,028 ) Net property and equipment — 660,345 13,569 — 673,914 Equity investments and advances — 30,056 — — 30,056 Investments in consolidated subsidiaries 161,350 — — (161,350 ) — Intangible assets — — 1,122 — 1,122 Deferred income taxes 19,600 — — (19,600 ) — Intercompany receivables 426,806 — — (426,806 ) — Other assets 1,011 3,370 60 — 4,441 Total assets $ 619,916 $ 752,706 $ 27,231 $ (607,756 ) $ 792,097 LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable and accrued expenses $ 638 $ 13,655 $ 2,128 $ — $ 16,421 Accrued wages and benefits — 6,804 1,460 — 8,264 Accrued interest 549 57 — — 606 Accrued income taxes — 24 4 — 28 Accrued other taxes 18 1,192 600 — 1,810 Accrued contingencies — — 859 — 859 Current portion of long-term debt — 1,663 1,073 — 2,736 Other current liabilities 848 835 37 — 1,720 Total current liabilities 2,053 24,230 6,161 — 32,444 Long-term debt 172,292 27,979 1,903 — 202,174 Deferred income taxes — 124,948 1,250 (19,600 ) 106,598 Intercompany payables — 381,660 45,146 (426,806 ) — Other liabilities — 1,435 (1 ) — 1,434 Total liabilities 174,345 560,252 54,459 (446,406 ) 342,650 Redeemable noncontrolling interest — 4 3,762 — 3,766 Equity: Common stock, $0.01 par value, 60,000,000 shares authorized; 21,319,150 shares outstanding, exclusive of treasury shares 215 — — — 215 Additional paid-in capital 443,944 100,306 4,562 (104,868 ) 443,944 Retained earnings 4,363 92,034 (35,552 ) (56,482 ) 4,363 Treasury shares, at cost, 215,141 shares (2,951 ) — — — (2,951 ) Accumulated other comprehensive income, net of tax — 110 — — 110 Total equity 445,571 192,450 (30,990 ) (161,350 ) 445,681 Total liabilities, redeemable noncontrolling interest and stockholders’ equity $ 619,916 $ 752,706 $ 27,231 $ (607,756 ) $ 792,097 |
Condensed Income Statement | Supplemental Condensed Consolidating Statements of Operations for the Three Months Ended September 30, 2018 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Revenues $ — $ 48,631 $ 13,623 $ (7,644 ) $ 54,610 Costs and expenses: Operating — 29,888 14,302 (7,677 ) 36,513 Administrative and general 901 6,957 979 — 8,837 Depreciation — 9,316 225 — 9,541 Total costs and expenses 901 46,161 15,506 (7,677 ) 54,891 Losses on asset dispositions, net — (148 ) — — (148 ) Litigation settlement proceeds 42,000 — — — 42,000 Operating income (loss) 41,099 2,322 (1,883 ) 33 41,571 Other income (expense): Interest income 171 448 113 — 732 Interest expense (3,330 ) (204 ) (15 ) — (3,549 ) Foreign currency losses, net (10 ) (16 ) (68 ) — (94 ) Other, net — 21 (6 ) — 15 Total other income (expense) (3,169 ) 249 24 — (2,896 ) Income (loss) before income taxes and equity earnings 37,930 2,571 (1,859 ) 33 38,675 Income tax expense 3,928 3,933 — — 7,861 Income (loss) before equity earnings 34,002 (1,362 ) (1,859 ) 33 30,814 Equity in earnings (losses) of subsidiaries (2,747 ) 465 — 2,747 465 Net income (loss) 31,255 (897 ) (1,859 ) 2,780 31,279 Net loss attributable to noncontrolling interest in subsidiary — — 10 — 10 Net income (loss) attributable to Era Group Inc. $ 31,255 $ (897 ) $ (1,849 ) $ 2,780 $ 31,289 Supplemental Condensed Consolidating Statements of Operations for the Three Months Ended September 30, 2017 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Revenues $ — $ 51,919 $ 16,729 $ (7,263 ) $ 61,385 Costs and expenses: Operating — 35,826 15,424 (7,263 ) 43,987 Administrative and general 2,305 7,306 1,317 — 10,928 Depreciation — 11,851 252 — 12,103 Total costs and expenses 2,305 54,983 16,993 (7,263 ) 67,018 Gains on asset dispositions, net — (122 ) — — (122 ) Loss on impairment — (116,586 ) (432 ) — (117,018 ) Operating income (loss) (2,305 ) (119,772 ) (696 ) — (122,773 ) Other income (expense): Interest income 47 102 57 — 206 Interest expense (3,838 ) (170 ) (89 ) — (4,097 ) Foreign currency gains (losses), net 66 85 (139 ) — 12 Other, net — (1 ) (32 ) — (33 ) Total other income (expense) (3,725 ) 16 (203 ) — (3,912 ) Income (loss) before income taxes and equity earnings (6,030 ) (119,756 ) (899 ) — (126,685 ) Income tax expense (benefit) (2,114 ) (43,276 ) 153 — (45,237 ) Income (loss) before equity earnings (3,916 ) (76,480 ) (1,052 ) — (81,448 ) Equity earnings, net of tax — 233 — — 233 Equity in earnings (losses) of subsidiaries (77,532 ) — — 77,532 — Net income (loss) (81,448 ) (76,247 ) (1,052 ) 77,532 (81,215 ) Net loss attributable to noncontrolling interest in subsidiary — — (233 ) — (233 ) Net income (loss) attributable to Era Group Inc. $ (81,448 ) $ (76,247 ) $ (1,285 ) $ 77,532 $ (81,448 ) Supplemental Condensed Consolidating Statements of Operations for the Nine Months Ended September 30, 2018 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Revenues $ — $ 148,512 $ 42,252 $ (21,104 ) $ 169,660 Costs and expenses: Operating — 92,317 43,325 (21,137 ) 114,505 Administrative and general 14,087 18,182 3,445 — 35,714 Depreciation — 29,283 728 — 30,011 Total costs and expenses 14,087 139,782 47,498 (21,137 ) 180,230 Gains on asset dispositions, net — 2,269 — — 2,269 Litigation settlement proceeds 42,000 — — — 42,000 Operating income (loss) 27,913 10,999 (5,246 ) 33 33,699 Other income (expense): Interest income 180 878 166 — 1,224 Interest expense (10,925 ) (595 ) (126 ) — (11,646 ) Foreign currency losses, net (66 ) (141 ) (888 ) — (1,095 ) Gain on debt extinguishment — — 175 — 175 Other, net — 31 (10 ) — 21 Total other income (expense) (10,811 ) 173 (683 ) — (11,321 ) Income (loss) before income taxes and equity earnings 17,102 11,172 (5,929 ) 33 22,378 Income tax expense 1,075 3,474 — — 4,549 Income (loss) before equity earnings 16,027 7,698 (5,929 ) 33 17,829 Equity in earnings (losses) of subsidiaries 3,655 1,577 — (3,655 ) 1,577 Net income (loss) 19,682 9,275 (5,929 ) (3,622 ) 19,406 Net loss attributable to noncontrolling interest in subsidiary — — 310 — 310 Net income (loss) attributable to Era Group Inc. $ 19,682 $ 9,275 $ (5,619 ) $ (3,622 ) $ 19,716 Supplemental Condensed Consolidating Statements of Operations for the Nine Months Ended September 30, 2017 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Revenues $ — $ 151,550 $ 46,132 $ (23,892 ) $ 173,790 Costs and expenses: Operating — 98,117 48,854 (23,892 ) 123,079 Administrative and general 5,280 21,648 4,283 — 31,211 Depreciation — 34,898 737 — 35,635 Total costs and expenses 5,280 154,663 53,874 (23,892 ) 189,925 Gains on asset dispositions, net — 5,048 — — 5,048 Loss on impairment — (116,586 ) (432 ) (117,018 ) Operating income (loss) (5,280 ) (114,651 ) (8,174 ) — (128,105 ) Other income (expense): Interest income 96 320 225 — 641 Interest expense (10,800 ) (627 ) (193 ) — (11,620 ) Foreign currency gains (losses), net 220 253 (569 ) — (96 ) Other, net — — (29 ) — (29 ) Total other income (expense) (10,484 ) (54 ) (566 ) — (11,104 ) Income (loss) before income taxes and equity earnings (15,764 ) (114,705 ) (8,740 ) — (139,209 ) Income tax expense (benefit) (5,297 ) (43,282 ) 513 — (48,066 ) Income (loss) before equity earnings (10,467 ) (71,423 ) (9,253 ) — (91,143 ) Equity earnings, net of tax — 1,069 — — 1,069 Equity in earnings (losses) of subsidiaries (79,388 ) — — 79,388 — Net income (loss) (89,855 ) (70,354 ) (9,253 ) 79,388 (90,074 ) Net loss attributable to noncontrolling interest in subsidiary — — 219 — 219 Net income (loss) attributable to Era Group Inc. $ (89,855 ) $ (70,354 ) $ (9,034 ) $ 79,388 $ (89,855 ) |
Condensed Statement of Comprehensive Income | Supplemental Condensed Consolidating Statements of Comprehensive Income for the Three Months Ended September 30, 2018 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Net income (loss) $ 31,255 $ (897 ) $ (1,859 ) $ 2,780 $ 31,279 Comprehensive income (loss) 31,255 (897 ) (1,859 ) 2,780 31,279 Comprehensive income attributable to noncontrolling interest in subsidiary — — 10 — 10 Comprehensive income (loss) attributable to Era Group Inc. $ 31,255 $ (897 ) $ (1,849 ) $ 2,780 $ 31,289 Supplemental Condensed Consolidating Statements of Comprehensive Income for the Three Months Ended September 30, 2017 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Net income (loss) $ (81,448 ) $ (76,247 ) $ (1,052 ) $ 77,532 $ (81,215 ) Comprehensive income (loss) (81,448 ) (76,247 ) (1,052 ) 77,532 (81,215 ) Comprehensive loss attributable to noncontrolling interest in subsidiary — — (233 ) — (233 ) Comprehensive income (loss) attributable to Era Group Inc. $ (81,448 ) $ (76,247 ) $ (1,285 ) $ 77,532 $ (81,448 ) Supplemental Condensed Consolidating Statements of Comprehensive Income for the Nine Months Ended September 30, 2018 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Net income (loss) $ 19,682 $ 9,275 $ (5,929 ) $ (3,622 ) $ 19,406 Other comprehensive loss: Foreign currency translation adjustments — (5 ) — — (5 ) Total other comprehensive loss — (5 ) — — (5 ) Comprehensive income (loss) 19,682 9,270 (5,929 ) (3,622 ) 19,401 Comprehensive loss attributable to noncontrolling interest in subsidiary — — 310 — 310 Comprehensive income (loss) attributable to Era Group Inc. $ 19,682 $ 9,270 $ (5,619 ) $ (3,622 ) $ 19,711 Supplemental Condensed Consolidating Statements of Comprehensive Income for the Nine Months Ended September 30, 2017 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Net income (loss) $ (89,855 ) $ (70,354 ) $ (9,253 ) $ 79,388 $ (90,074 ) Other comprehensive loss: Foreign currency translation adjustments — (2 ) — — (2 ) Total other comprehensive loss — (2 ) — — (2 ) Comprehensive income (loss) (89,855 ) (70,356 ) (9,253 ) 79,388 (90,076 ) Comprehensive loss attributable to noncontrolling interest in subsidiary — — 219 — 219 Comprehensive income (loss) attributable to Era Group Inc. $ (89,855 ) $ (70,356 ) $ (9,034 ) $ 79,388 $ (89,857 ) |
Condensed Cash Flow Statement | Supplemental Condensed Consolidating Statements of Cash Flows for the Nine Months Ended September 30, 2018 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Net cash provided by provided by operating activities $ 35,550 $ 13,319 $ 1,483 $ — $ 50,352 Cash flows from investing activities: Purchases of property and equipment — (7,461 ) (225 ) — (7,686 ) Proceeds from disposition of property and equipment — 29,520 — — 29,520 Dividends received from equity investees — 1,000 — — 1,000 Principal payments on notes due from equity investees — 401 — — 401 Principal payments on third party notes receivable — 620 — — 620 Net cash used in investing activities — 24,080 (225 ) — 23,855 Cash flows from financing activities: Long-term debt issuance costs — — — (1,295 ) (1,295 ) Payments on long-term debt — (1,247 ) (2,315 ) (39,000 ) (42,562 ) Proceeds from share award plans — — — 893 893 Borrowings and repayments of intercompany debt — (39,402 ) — 39,402 — Net cash used in financing activities — (40,649 ) (2,315 ) — (42,964 ) Effects of exchange rate changes on cash and cash equivalents — — (445 ) — (445 ) Net increase (decrease) in cash and cash equivalents 35,550 (3,250 ) (1,502 ) — 30,798 Cash, cash equivalents and restricted cash, beginning of period 10,800 3,250 2,783 — 16,833 Cash, cash equivalents and restricted cash, end of period $ 46,350 $ — $ 1,281 $ — $ 47,631 Supplemental Condensed Consolidating Statements of Cash Flows for the Nine Months Ended September 30, 2017 Parent Guarantors Non-guarantors Eliminations Consolidated (in thousands) Net cash provided by (used in) operating activities $ (267 ) $ 17,477 $ 718 $ — $ 17,928 Cash flows from investing activities: Purchases of property and equipment — (13,013 ) (108 ) — (13,121 ) Proceeds from disposition of property and equipment — 5,690 — — 5,690 Investments in and advances to equity investees — (126 ) — — (126 ) Principal payments on notes due from equity investees — 564 — — 564 Principal payments on third party notes receivable — 94 — — 94 Net cash provided by (used in) investing activities — (6,791 ) (108 ) — (6,899 ) Cash flows from financing activities: Proceeds from Revolving Credit Facility — — — 9,000 9,000 Payments on long-term debt — (1,247 ) (498 ) (23,000 ) (24,745 ) Proceeds from share award plans — — — 836 836 Purchase of treasury shares — — — (52 ) (52 ) Borrowings and repayments of intercompany debt — (13,216 ) — 13,216 — Net cash used in financing activities — (14,463 ) (498 ) — (14,961 ) Effects of exchange rate changes on cash and cash equivalents 27 — 74 — 101 Net increase (decrease) in cash and cash equivalents (240 ) (3,777 ) 186 — (3,831 ) Cash, cash equivalents and restricted cash, beginning of period 25,474 3,777 1,476 — 30,727 Cash, cash equivalents and restricted cash, end of period $ 25,234 $ — $ 1,662 $ — $ 26,896 |
BASIS OF PRESENTATION AND ACC_4
BASIS OF PRESENTATION AND ACCOUNTING POLICY Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Cash and cash equivalents | $ 47,631 | [1] | $ 13,583 | [1] | $ 26,896 | $ 26,950 |
Restricted cash | 0 | 3,250 | 0 | 3,777 | ||
Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows | $ 47,631 | $ 16,833 | $ 26,896 | $ 30,727 | ||
[1] | Refer to footnote 5 for more detail on variable interest entities (“VIE”) |
FAIR VALUE MEASUREMENTS - Estim
FAIR VALUE MEASUREMENTS - Estimated Fair Value Of Other Financial Assets And Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current portion | $ 162,633,627 | $ 204,910 |
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 | 163,638,045 | 203,938 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current portion | $ 0 | $ 0 |
ESCROW DEPOSITS - Narrative (De
ESCROW DEPOSITS - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Deposits in like-kind exchange escrow accounts | $ 3,300 | ||
Purchases of property and equipment | $ 7,686 | $ 13,121 | |
Escrow deposit, returned to the company | 500 | ||
S92 Heavy Helicopters | |||
Property, Plant and Equipment [Line Items] | |||
Purchases of property and equipment | $ 2,800 |
ACQUISITIONS AND DISPOSITIONS (
ACQUISITIONS AND DISPOSITIONS (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)operating_facilityhelicopter | Sep. 30, 2017USD ($)helicopter | Dec. 31, 2017USD ($) | |
Property, Plant and Equipment [Line Items] | |||||
Purchases of property and equipment | $ 7,686 | $ 13,121 | |||
Interest capitalized during the period | $ 97 | 451 | |||
Number of helicopter dispositions | helicopter | 20 | ||||
Number of operating facilities dispositions | operating_facility | 2 | ||||
Proceeds from disposition of property and equipment | $ 29,520 | 5,690 | |||
Receivables held-for-sale, amount | $ 14,300 | 14,300 | |||
Gain on disposition of property plant equipment | 2,300 | ||||
Sales-type lease, revenue | 1,200 | ||||
Gains on asset dispositions, net | (148) | $ (122) | 2,269 | $ 5,048 | |
Construction in Progress | |||||
Property, Plant and Equipment [Line Items] | |||||
Interest capitalized in property and equipment | $ 700 | 700 | $ 1,900 | ||
AW189 Heavy Helicopters | |||||
Property, Plant and Equipment [Line Items] | |||||
Number of helicopter acquisitions | helicopter | 2 | ||||
S92 Heavy Helicopters | |||||
Property, Plant and Equipment [Line Items] | |||||
Purchases of property and equipment | $ 2,800 | ||||
Number of helicopter acquisitions | helicopter | 1 | 1 | |||
H225 Helicopters | |||||
Property, Plant and Equipment [Line Items] | |||||
Number of helicopter dispositions | helicopter | 5 | ||||
Sales-type lease, loss | $ 3,600 |
VARIABLE INTEREST ENTITIES - Na
VARIABLE INTEREST ENTITIES - Narrative (Details) - Aeroleo - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2011 |
Variable Interest Entity [Line Items] | |||
Economic interest percent | 50.00% | ||
Voting interest percent | 20.00% | ||
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | $ 11.4 | $ 11.5 | |
Liabilities | $ 4.9 | $ 7.6 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense | $ 7,861 | $ (45,237) | $ 4,549 | $ (48,066) | |
Current income tax exoebse | $ 3,000 | ||||
Effective tax rate | 20.30% | 35.70% | 20.30% | 34.50% | |
Unrecognized tax benefits | $ 100 | $ 100 | $ 100 |
LONG-TERM DEBT - Schedule of Lo
LONG-TERM DEBT - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total principal balance on borrowings | $ 165,718 | $ 208,446 |
Portion due within one year | (2,158) | (2,736) |
Unamortized debt issuance costs | (1,803) | (2,067) |
Unamortized discount, net | (1,281) | (1,469) |
Long-term debt | 160,476 | 202,174 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Total principal balance on borrowings | 144,828 | 144,828 |
Senior secured revolving credit facility | ||
Debt Instrument [Line Items] | ||
Total principal balance on borrowings | 0 | 39,000 |
Promissory notes | ||
Debt Instrument [Line Items] | ||
Total principal balance on borrowings | 20,395 | 21,642 |
Other | ||
Debt Instrument [Line Items] | ||
Total principal balance on borrowings | $ 495 | $ 2,976 |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) | Dec. 07, 2012USD ($) | Sep. 30, 2018USD ($)helicopter | Sep. 30, 2017USD ($) | Mar. 07, 2018USD ($) | Mar. 06, 2018USD ($) |
Debt Instrument [Line Items] | |||||
Payments of debt issuance costs | $ 1,295,000 | ||||
Payments on long-term debt | $ 42,562,000 | $ 24,745,000 | |||
Number of helicopters sold | helicopter | 1 | ||||
Number of helicopters added | helicopter | 2 | ||||
Number of helicopters | helicopter | 3 | ||||
7.750% Senior Notes (excluding unamortized discount) | 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 | $ 1,200,000 | (1,200,000) | |||
Senior secured revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing amount | $ 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% | ||||
Letters of credit outstanding | $ 1,100,000 | ||||
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% | ||||
Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing amount | $ 50,000,000 | ||||
Foreign Tax Authority | Aeroleo | |||||
Debt Instrument [Line Items] | |||||
Taxes, penalties and interest | $ 200,000 | ||||
Tax Disputes | Brazil | Minimum | |||||
Debt Instrument [Line Items] | |||||
Duration of repayment for tax dispute (in months) | 10 months | ||||
Tax Disputes | Brazil | Maximum | |||||
Debt Instrument [Line Items] | |||||
Payments on long-term debt | $ 2,300,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Jul. 03, 2018USD ($)helicopter | Sep. 30, 2018USD ($)helicopter | Sep. 30, 2018USD ($)helicopter | Dec. 31, 2017USD ($) |
Loss Contingencies [Line Items] | ||||
Number of helicopter purchase agreements cancelled | helicopter | 2 | |||
Penalties on cancellation | $ 500 | |||
Unfunded capital commitments | $ 82,300 | 82,300 | ||
Deposits paid | 1,300 | 1,300 | ||
Liquidated damages | 2,100 | 2,100 | ||
Other current assets | $ 3,250 | |||
Damages paid, value | $ 42,000 | |||
Period to use trade account credits | 5 years | |||
Contingent Fees Sought by Former Tax Consultant | Pending Litigation | ||||
Loss Contingencies [Line Items] | ||||
Taxes, penalties and interest | 500 | |||
Unfavorable Regulatory Action | Brazilian Customs Authorities Claims | Pending Litigation | ||||
Loss Contingencies [Line Items] | ||||
Taxes, penalties and interest | 200 | |||
Foreign Tax Authority | Municipal Tax Authorities of Rio de Janeiro and Macae | Aeroleo | ||||
Loss Contingencies [Line Items] | ||||
Taxes, penalties and interest | 9,600 | |||
Foreign Tax Authority | Foreign Tax Authority | Aeroleo | Brazilian Tax Dispute with Respect to Employer Social Security Contributions | ||||
Loss Contingencies [Line Items] | ||||
Taxes, penalties and interest | 2,500 | |||
Foreign Tax Authority | Foreign Tax Authority | Aeroleo | Other Litigation Matters | ||||
Loss Contingencies [Line Items] | ||||
Other current assets | 6,700 | 6,700 | ||
Foreign Tax Authority | State of Rio de Janeiro | Aeroleo | ||||
Loss Contingencies [Line Items] | ||||
Taxes, penalties and interest | $ 500 | |||
Installment payments | 200 | |||
Damages dismissed | 1,600 | |||
Brazil Taxing Authorities | Tax Disputes over Tax Credits Applied to Offset Social Tax Liability | Pending Litigation | ||||
Loss Contingencies [Line Items] | ||||
Taxes, penalties and interest | $ 300 | |||
AW189 Heavy Helicopters | ||||
Loss Contingencies [Line Items] | ||||
Number of helicopters | helicopter | 3 | 3 | ||
Number of additional helicopters | helicopter | 10 | 10 | ||
AW169 Light Twin Helicopters | ||||
Loss Contingencies [Line Items] | ||||
Number of helicopters | helicopter | 5 | 5 | ||
H225 Helicopters | ||||
Loss Contingencies [Line Items] | ||||
Number of helicopters | helicopter | 11 |
EARNINGS (LOSS) PER COMMON SH_3
EARNINGS (LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Net income (loss) attributable to Era Group Inc. | $ 31,289 | $ (81,448) | $ 19,716 | $ (89,855) | ||
Less: Net income attributable to participating securities | 714 | 0 | 425 | 0 | ||
Net income (loss) attributable to fully vested common stock | $ 30,575 | $ (81,448) | $ 19,291 | $ (89,855) | ||
Weighted average common shares outstanding: | ||||||
Weighted average common shares outstanding - basic (in shares) | 21,215,576 | 20,844,376 | 21,139,212 | 20,715,686 | ||
Weighted average common shares outstanding - diluted (in shares) | 20,844,376 | 20,715,686 | ||||
Income (loss) per common share: | ||||||
Income (loss) per common share, basic (in dollars per share) | $ 1.44 | $ (3.91) | $ 0.91 | $ (4.34) | ||
Income (loss) per common share, diluted (in dollars per share) | $ 1.44 | $ (3.91) | $ 0.91 | $ (4.34) | ||
Stock Options and Restricted Stock | ||||||
Weighted average common shares outstanding: | ||||||
Weighted average common shares outstanding - diluted (in shares) | 21,239,189 | [1] | 20,844,376 | 21,156,466 | [1] | 20,715,686 |
Income (loss) per common share: | ||||||
Unvested restricted common shares (in shares) | 224,769 | 275,824 | 223,921 | 278,740 | ||
[1] | Excludes weighted average common shares of 224,769 and 275,824 for the three months ended September 30, 2018 and 2017, respectively, and 223,921 and 278,740 for the nine months ended September 30, 2018 and 2017, respectively, for certain share awards as the effect of their inclusion would have been antidilutive. |
REVENUES - Operating Revenue (D
REVENUES - Operating Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 54,610 | $ 61,385 | $ 169,660 | $ 173,790 |
Dry-leasing | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,142 | 486 | 2,984 | 1,015 |
Dry-leasing | Foreign | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,574 | 2,146 | 5,560 | 11,698 |
Operating Income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 51,894 | 58,753 | 161,116 | 161,077 |
Operating Income | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 38,229 | 41,989 | 117,673 | 112,862 |
Operating Income | Foreign | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 13,665 | 16,764 | 43,443 | 48,215 |
Operating Income | Oil and Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 49,138 | 53,331 | 153,221 | 147,129 |
Operating Income | Oil and Gas | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 35,473 | 36,567 | 109,778 | 98,914 |
Operating Income | Oil and Gas | Foreign | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 13,665 | 16,764 | 43,443 | 48,215 |
Operating Income | Emergency response services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,756 | 2,487 | 7,895 | 8,877 |
Operating Income | Flightseeing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 0 | $ 2,935 | $ 0 | $ 5,071 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($)simulator | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Related Party Transaction [Line Items] | |||||
Dividends received from equity investees | $ 1,000 | $ 0 | |||
Dart | |||||
Related Party Transaction [Line Items] | |||||
Amount of purchased products | $ 400 | $ 100 | 1,700 | 400 | |
Note receivable | 2,400 | 2,400 | $ 2,900 | ||
Dividends received from equity investees | 1,000 | ||||
Training Services | Era Training Center, LLC | |||||
Related Party Transaction [Line Items] | |||||
Payments for services | 100 | 100 | |||
Era Training Center | Era Training Center, LLC | |||||
Related Party Transaction [Line Items] | |||||
Note receivable | 400 | 400 | |||
Settlement of promissory note | $ 3,600 | ||||
Number of flight simulators | simulator | 3 | ||||
Revenue from related parties | $ 2,900 | ||||
Partial ownership in further simulator | 400 | ||||
Era Training Center | Training Services | Era Training Center, LLC | |||||
Related Party Transaction [Line Items] | |||||
Expenses from transactions with related party | 200 | 500 | |||
Era Training Center | Helicopter, Management and Other Services | Era Training Center, LLC | |||||
Related Party Transaction [Line Items] | |||||
Expenses from transactions with related party | 100 | 100 | 100 | $ 200 | |
General and Administrative Expense | SEACOR | |||||
Related Party Transaction [Line Items] | |||||
Expenses from transactions with related party | $ 100 | $ 100 | $ 300 |
SHARE BASED COMPENSATION (Detai
SHARE BASED COMPENSATION (Details) - Restricted Stock | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Non-vested, beginning balance, shares | shares | 382,873 |
Vested, shares | shares | (201,059) |
Forfeited, shares | shares | (500) |
Non-vested, ending balance, shares | shares | 510,185 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Non-vested, beginning balance, Weighted Average Grant Price (USD per share) | $ / shares | $ 12.68 |
Vested, Weighted Average Grant Price (USD per share) | $ / shares | 14.05 |
Forfeited, Weighted Average Grant Price (USD per share) | $ / shares | 9.66 |
Non-vested, ending balance, Weighted Average Grant Price (USD per share) | $ / shares | $ 9.77 |
Non-employee directors | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Restricted stock awards granted, shares | shares | 37,272 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Restricted stock awards granted Weighted Average Grant Price (USD per share) | $ / shares | $ 9 |
Employees | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Restricted stock awards granted, shares | shares | 291,599 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Restricted stock awards granted Weighted Average Grant Price (USD per share) | $ / shares | $ 9 |
SHARE BASED COMPENSATION - Narr
SHARE BASED COMPENSATION - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in period (in shares) | 0 | |
Share-based compensation | $ 2,180 | $ 3,604 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of shares vested | $ 2,800 | 4,700 |
2013 Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares issued under ESPP (in shares) | 114,385 | |
Number of shares available for grant (in shares) | 222,378 | |
Share-based compensation | $ 2,200 | $ 3,600 |
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 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | ||
Current assets: | ||||||||
Cash and cash equivalents | $ 47,631 | [1] | $ 13,583 | [1] | $ 26,896 | $ 26,950 | ||
Receivables: | ||||||||
Trade, operating, net of allowance for doubtful accounts of $854 | 35,655 | 33,840 | ||||||
Trade, dry-leasing | 3,833 | 5,124 | ||||||
Tax receivables | 3,117 | 2,829 | ||||||
Other | 2,701 | 1,623 | ||||||
Inventories, net | 20,157 | 21,112 | ||||||
Prepaid expenses | 2,367 | 1,203 | ||||||
Escrow deposits | 3,250 | |||||||
Total current assets | 115,461 | 82,564 | ||||||
Property and equipment | 927,477 | 972,942 | ||||||
Accumulated depreciation | (314,736) | (299,028) | ||||||
Property and equipment, net | 612,741 | 673,914 | ||||||
Equity investments and advances | 26,600 | 30,056 | ||||||
Investments in consolidated subsidiaries | 0 | 0 | ||||||
Intangible assets | 1,111 | 1,122 | ||||||
Deferred income taxes | 0 | 0 | ||||||
Intercompany receivables | 0 | 0 | ||||||
Other assets | 18,421 | 4,441 | ||||||
Total assets | 774,334 | 792,097 | ||||||
Current liabilities: | ||||||||
Accounts payable and accrued expenses | 10,438 | 16,421 | ||||||
Accrued wages and benefits | 8,605 | 8,264 | ||||||
Accrued interest | 3,404 | 606 | ||||||
Accrued income taxes | 2,993 | 28 | ||||||
Accrued other taxes | 2,396 | 1,810 | ||||||
Accrued contingencies | 1,014 | 859 | ||||||
Current portion of long-term debt | 2,158 | 2,736 | ||||||
Other current liabilities | 1,033 | 1,720 | ||||||
Total current liabilities | 32,041 | 32,444 | ||||||
Long-term debt (including $0 and $1,903 from VIEs in 2018 and 2017, respectively) | 160,476 | 202,174 | ||||||
Deferred income taxes | 108,138 | 106,598 | ||||||
Intercompany payables | 0 | 0 | ||||||
Other liabilities | 1,753 | 1,434 | ||||||
Total liabilities | 302,408 | 342,650 | ||||||
Redeemable noncontrolling interest | 3,456 | $ 3,466 | 3,766 | 4,002 | $ 3,769 | 4,221 | ||
Equity: | ||||||||
Common stock, $0.01 par value, 60,000,000 shares authorized; 21,763,250 and 21,319,150 outstanding in 2018 and 2017, respectively, exclusive of treasury shares | 219 | 215 | ||||||
Additional paid-in capital | 447,013 | 443,944 | ||||||
Retained earnings | 24,079 | 4,363 | ||||||
Treasury shares, at cost; 215,141 shares in 2018 and 2017 | (2,951) | (2,951) | ||||||
Accumulated other comprehensive income, net of tax | 110 | 110 | ||||||
Total equity | 468,470 | $ 436,048 | 445,681 | $ 382,948 | $ 463,049 | $ 468,417 | ||
Total liabilities, redeemable noncontrolling interest and stockholders’ equity | 774,334 | 792,097 | ||||||
Reportable Legal Entities | Parent | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 46,351 | |||||||
Receivables: | ||||||||
Trade, operating, net of allowance for doubtful accounts of $854 | 0 | 0 | ||||||
Trade, dry-leasing | 0 | 0 | ||||||
Tax receivables | 0 | 0 | ||||||
Other | 0 | 0 | ||||||
Inventories, net | 0 | 0 | ||||||
Prepaid expenses | 501 | 349 | ||||||
Escrow deposits | 0 | |||||||
Total current assets | 46,852 | 11,149 | ||||||
Property and equipment | 0 | 0 | ||||||
Accumulated depreciation | 0 | 0 | ||||||
Property and equipment, net | 0 | 0 | ||||||
Equity investments and advances | 0 | 0 | ||||||
Investments in consolidated subsidiaries | 165,005 | 161,350 | ||||||
Intangible assets | 0 | 0 | ||||||
Deferred income taxes | 21,185 | 19,600 | ||||||
Intercompany receivables | 375,131 | 426,806 | ||||||
Other assets | 1,398 | 1,011 | ||||||
Total assets | 609,571 | 619,916 | ||||||
Current liabilities: | ||||||||
Accounts payable and accrued expenses | 130 | 638 | ||||||
Accrued wages and benefits | 0 | 0 | ||||||
Accrued interest | 3,337 | 549 | ||||||
Accrued income taxes | 2,970 | 0 | ||||||
Accrued other taxes | 244 | 18 | ||||||
Accrued contingencies | 0 | 0 | ||||||
Current portion of long-term debt | 0 | 0 | ||||||
Other current liabilities | 817 | 848 | ||||||
Total current liabilities | 7,498 | 2,053 | ||||||
Long-term debt (including $0 and $1,903 from VIEs in 2018 and 2017, respectively) | 133,743 | 172,292 | ||||||
Deferred income taxes | 0 | 0 | ||||||
Intercompany payables | 0 | 0 | ||||||
Other liabilities | 0 | 0 | ||||||
Total liabilities | 141,241 | 174,345 | ||||||
Redeemable noncontrolling interest | 0 | 0 | ||||||
Equity: | ||||||||
Common stock, $0.01 par value, 60,000,000 shares authorized; 21,763,250 and 21,319,150 outstanding in 2018 and 2017, respectively, exclusive of treasury shares | 219 | 215 | ||||||
Additional paid-in capital | 447,014 | 443,944 | ||||||
Retained earnings | 24,048 | 4,363 | ||||||
Treasury shares, at cost; 215,141 shares in 2018 and 2017 | (2,951) | (2,951) | ||||||
Accumulated other comprehensive income, net of tax | 0 | |||||||
Total equity | 468,330 | 445,571 | ||||||
Total liabilities, redeemable noncontrolling interest and stockholders’ equity | 609,571 | 619,916 | ||||||
Reportable Legal Entities | Guarantors | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 0 | 0 | ||||||
Receivables: | ||||||||
Trade, operating, net of allowance for doubtful accounts of $854 | 29,135 | 27,968 | ||||||
Trade, dry-leasing | 3,833 | 5,124 | ||||||
Tax receivables | 0 | 0 | ||||||
Other | 2,154 | 1,126 | ||||||
Inventories, net | 20,124 | 20,746 | ||||||
Prepaid expenses | 1,560 | 721 | ||||||
Escrow deposits | 3,250 | |||||||
Total current assets | 56,806 | 58,935 | ||||||
Property and equipment | 910,730 | 956,918 | ||||||
Accumulated depreciation | (311,342) | (296,573) | ||||||
Property and equipment, net | 599,388 | 660,345 | ||||||
Equity investments and advances | 26,600 | 30,056 | ||||||
Investments in consolidated subsidiaries | 0 | 0 | ||||||
Intangible assets | 0 | 0 | ||||||
Deferred income taxes | 0 | 0 | ||||||
Intercompany receivables | 0 | 0 | ||||||
Other assets | 16,939 | 3,370 | ||||||
Total assets | 699,733 | 752,706 | ||||||
Current liabilities: | ||||||||
Accounts payable and accrued expenses | 8,606 | 13,655 | ||||||
Accrued wages and benefits | 7,008 | 6,804 | ||||||
Accrued interest | 67 | 57 | ||||||
Accrued income taxes | 0 | 24 | ||||||
Accrued other taxes | 1,791 | 1,192 | ||||||
Accrued contingencies | 0 | 0 | ||||||
Current portion of long-term debt | 1,663 | 1,663 | ||||||
Other current liabilities | 199 | 835 | ||||||
Total current liabilities | 19,334 | 24,230 | ||||||
Long-term debt (including $0 and $1,903 from VIEs in 2018 and 2017, respectively) | 26,733 | 27,979 | ||||||
Deferred income taxes | 128,073 | 124,948 | ||||||
Intercompany payables | 322,117 | 381,660 | ||||||
Other liabilities | 1,753 | 1,435 | ||||||
Total liabilities | 498,010 | 560,252 | ||||||
Redeemable noncontrolling interest | 3 | 4 | ||||||
Equity: | ||||||||
Common stock, $0.01 par value, 60,000,000 shares authorized; 21,763,250 and 21,319,150 outstanding in 2018 and 2017, respectively, exclusive of treasury shares | 0 | 0 | ||||||
Additional paid-in capital | 100,305 | 100,306 | ||||||
Retained earnings | 101,305 | 92,034 | ||||||
Treasury shares, at cost; 215,141 shares in 2018 and 2017 | 0 | 0 | ||||||
Accumulated other comprehensive income, net of tax | 110 | 110 | ||||||
Total equity | 201,720 | 192,450 | ||||||
Total liabilities, redeemable noncontrolling interest and stockholders’ equity | 699,733 | 752,706 | ||||||
Reportable Legal Entities | Non-guarantors | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 1,280 | |||||||
Receivables: | ||||||||
Trade, operating, net of allowance for doubtful accounts of $854 | 6,520 | 5,872 | ||||||
Trade, dry-leasing | 0 | 0 | ||||||
Tax receivables | 3,117 | 2,829 | ||||||
Other | 547 | 497 | ||||||
Inventories, net | 33 | 366 | ||||||
Prepaid expenses | 306 | 133 | ||||||
Escrow deposits | 0 | |||||||
Total current assets | 11,803 | 12,480 | ||||||
Property and equipment | 16,747 | 16,024 | ||||||
Accumulated depreciation | (3,394) | (2,455) | ||||||
Property and equipment, net | 13,353 | 13,569 | ||||||
Equity investments and advances | 0 | 0 | ||||||
Investments in consolidated subsidiaries | 0 | 0 | ||||||
Intangible assets | 1,111 | 1,122 | ||||||
Deferred income taxes | 0 | 0 | ||||||
Intercompany receivables | 0 | 0 | ||||||
Other assets | 84 | 60 | ||||||
Total assets | 26,351 | 27,231 | ||||||
Current liabilities: | ||||||||
Accounts payable and accrued expenses | 1,702 | 2,128 | ||||||
Accrued wages and benefits | 1,597 | 1,460 | ||||||
Accrued interest | 0 | 0 | ||||||
Accrued income taxes | 23 | 4 | ||||||
Accrued other taxes | 361 | 600 | ||||||
Accrued contingencies | 1,014 | 859 | ||||||
Current portion of long-term debt | 495 | 1,073 | ||||||
Other current liabilities | 17 | 37 | ||||||
Total current liabilities | 5,209 | 6,161 | ||||||
Long-term debt (including $0 and $1,903 from VIEs in 2018 and 2017, respectively) | 0 | 1,903 | ||||||
Deferred income taxes | 1,250 | 1,250 | ||||||
Intercompany payables | 53,047 | 45,146 | ||||||
Other liabilities | 0 | (1) | ||||||
Total liabilities | 59,506 | 54,459 | ||||||
Redeemable noncontrolling interest | 3,453 | 3,762 | ||||||
Equity: | ||||||||
Common stock, $0.01 par value, 60,000,000 shares authorized; 21,763,250 and 21,319,150 outstanding in 2018 and 2017, respectively, exclusive of treasury shares | 0 | 0 | ||||||
Additional paid-in capital | 4,562 | 4,562 | ||||||
Retained earnings | (41,170) | (35,552) | ||||||
Treasury shares, at cost; 215,141 shares in 2018 and 2017 | 0 | 0 | ||||||
Accumulated other comprehensive income, net of tax | 0 | 0 | ||||||
Total equity | (36,608) | (30,990) | ||||||
Total liabilities, redeemable noncontrolling interest and stockholders’ equity | 26,351 | 27,231 | ||||||
Eliminations | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 0 | |||||||
Receivables: | ||||||||
Trade, operating, net of allowance for doubtful accounts of $854 | 0 | 0 | ||||||
Trade, dry-leasing | 0 | 0 | ||||||
Tax receivables | 0 | 0 | ||||||
Other | 0 | 0 | ||||||
Inventories, net | 0 | 0 | ||||||
Prepaid expenses | 0 | 0 | ||||||
Escrow deposits | 0 | |||||||
Total current assets | 0 | 0 | ||||||
Property and equipment | 0 | 0 | ||||||
Accumulated depreciation | 0 | 0 | ||||||
Property and equipment, net | 0 | 0 | ||||||
Equity investments and advances | 0 | 0 | ||||||
Investments in consolidated subsidiaries | (165,005) | (161,350) | ||||||
Intangible assets | 0 | 0 | ||||||
Deferred income taxes | (21,185) | (19,600) | ||||||
Intercompany receivables | (375,131) | (426,806) | ||||||
Other assets | 0 | 0 | ||||||
Total assets | (561,321) | (607,756) | ||||||
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 (including $0 and $1,903 from VIEs in 2018 and 2017, respectively) | 0 | 0 | ||||||
Deferred income taxes | (21,185) | (19,600) | ||||||
Intercompany payables | (375,164) | (426,806) | ||||||
Other liabilities | 0 | 0 | ||||||
Total liabilities | (396,349) | (446,406) | ||||||
Redeemable noncontrolling interest | 0 | 0 | ||||||
Equity: | ||||||||
Common stock, $0.01 par value, 60,000,000 shares authorized; 21,763,250 and 21,319,150 outstanding in 2018 and 2017, respectively, exclusive of treasury shares | 0 | 0 | ||||||
Additional paid-in capital | (104,868) | (104,868) | ||||||
Retained earnings | (60,104) | (56,482) | ||||||
Treasury shares, at cost; 215,141 shares in 2018 and 2017 | 0 | 0 | ||||||
Accumulated other comprehensive income, net of tax | 0 | 0 | ||||||
Total equity | (164,972) | (161,350) | ||||||
Total liabilities, redeemable noncontrolling interest and stockholders’ equity | $ (561,321) | $ (607,756) | ||||||
[1] | Refer to footnote 5 for more detail on variable interest entities (“VIE”) |
GUARANTORS OF SECURITIES (Con_2
GUARANTORS OF SECURITIES (Condensed Balance Sheet) (Phantom) (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Guarantees [Abstract] | ||
Allowance for doubtful accounts, trade receivables | $ 854 | $ 1,196 |
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) | 21,763,250 | 21,319,150 |
Treasury shares (in shares) | 215,141 | 215,141 |
GUARANTORS OF SECURITIES (Con_3
GUARANTORS OF SECURITIES (Condensed Income Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | $ 54,610 | $ 61,385 | $ 169,660 | $ 173,790 |
Costs and expenses: | ||||
Operating | 36,513 | 43,987 | 114,505 | 123,079 |
Administrative and general | 8,837 | 10,928 | 35,714 | 31,211 |
Depreciation | 9,541 | 12,103 | 30,011 | 35,635 |
Total costs and expenses | 54,891 | 67,018 | 180,230 | 189,925 |
Gains on asset dispositions, net | (148) | (122) | 2,269 | 5,048 |
Loss on impairment | 0 | (117,018) | 0 | (117,018) |
Litigation settlement proceeds | 42,000 | 0 | 42,000 | 0 |
Operating income (loss) | 41,571 | (122,773) | 33,699 | (128,105) |
Other income (expense): | ||||
Interest income | 732 | 206 | 1,224 | 641 |
Interest expense | (3,549) | (4,097) | (11,646) | (11,620) |
Foreign currency gains (losses), net | (94) | 12 | (1,095) | (96) |
Gain on debt extinguishment | 0 | 0 | 175 | 0 |
Other, net | 15 | (33) | 21 | (29) |
Total other income (expense) | (2,896) | (3,912) | (11,321) | (11,104) |
Income (loss) before income taxes and equity earnings | 38,675 | (126,685) | 22,378 | (139,209) |
Income tax expense | 7,861 | (45,237) | 4,549 | (48,066) |
Income (loss) before equity earnings | 30,814 | (81,448) | 17,829 | (91,143) |
Equity earnings, net of tax | 465 | 233 | 1,577 | 1,069 |
Equity in earnings (losses) of subsidiaries | 465 | 0 | 1,577 | 0 |
Net income (loss) | 31,279 | (81,215) | 19,406 | (90,074) |
Net loss (income) attributable to non-controlling interest in subsidiary | 10 | (233) | 310 | 219 |
Net income (loss) attributable to Era Group Inc. | 31,289 | (81,448) | 19,716 | (89,855) |
Reportable Legal Entities | Parent | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Costs and expenses: | ||||
Operating | 0 | 0 | 0 | 0 |
Administrative and general | 901 | 2,305 | 14,087 | 5,280 |
Depreciation | 0 | 0 | 0 | 0 |
Total costs and expenses | 901 | 2,305 | 14,087 | 5,280 |
Gains on asset dispositions, net | 0 | 0 | 0 | 0 |
Loss on impairment | 0 | 0 | ||
Litigation settlement proceeds | 42,000 | 42,000 | ||
Operating income (loss) | 41,099 | (2,305) | 27,913 | (5,280) |
Other income (expense): | ||||
Interest income | 171 | 47 | 180 | 96 |
Interest expense | (3,330) | (3,838) | (10,925) | (10,800) |
Foreign currency gains (losses), net | (10) | 66 | (66) | 220 |
Gain on debt extinguishment | 0 | |||
Other, net | 0 | 0 | 0 | 0 |
Total other income (expense) | (3,169) | (3,725) | (10,811) | (10,484) |
Income (loss) before income taxes and equity earnings | 37,930 | (6,030) | 17,102 | (15,764) |
Income tax expense | 3,928 | (2,114) | 1,075 | (5,297) |
Income (loss) before equity earnings | 34,002 | (3,916) | 16,027 | (10,467) |
Equity earnings, net of tax | 0 | 0 | ||
Equity in earnings (losses) of subsidiaries | (2,747) | (77,532) | 3,655 | (79,388) |
Net income (loss) | 31,255 | (81,448) | 19,682 | (89,855) |
Net loss (income) attributable to non-controlling interest in subsidiary | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Era Group Inc. | 31,255 | (81,448) | 19,682 | (89,855) |
Reportable Legal Entities | Guarantors | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 48,631 | 51,919 | 148,512 | 151,550 |
Costs and expenses: | ||||
Operating | 29,888 | 35,826 | 92,317 | 98,117 |
Administrative and general | 6,957 | 7,306 | 18,182 | 21,648 |
Depreciation | 9,316 | 11,851 | 29,283 | 34,898 |
Total costs and expenses | 46,161 | 54,983 | 139,782 | 154,663 |
Gains on asset dispositions, net | (148) | (122) | 2,269 | 5,048 |
Loss on impairment | (116,586) | (116,586) | ||
Litigation settlement proceeds | 0 | 0 | ||
Operating income (loss) | 2,322 | (119,772) | 10,999 | (114,651) |
Other income (expense): | ||||
Interest income | 448 | 102 | 878 | 320 |
Interest expense | (204) | (170) | (595) | (627) |
Foreign currency gains (losses), net | (16) | 85 | (141) | 253 |
Gain on debt extinguishment | 0 | |||
Other, net | 21 | (1) | 31 | 0 |
Total other income (expense) | 249 | 16 | 173 | (54) |
Income (loss) before income taxes and equity earnings | 2,571 | (119,756) | 11,172 | (114,705) |
Income tax expense | 3,933 | (43,276) | 3,474 | (43,282) |
Income (loss) before equity earnings | (1,362) | (76,480) | 7,698 | (71,423) |
Equity earnings, net of tax | 233 | 1,069 | ||
Equity in earnings (losses) of subsidiaries | 465 | 0 | 1,577 | 0 |
Net income (loss) | (897) | (76,247) | 9,275 | (70,354) |
Net loss (income) attributable to non-controlling interest in subsidiary | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Era Group Inc. | (897) | (76,247) | 9,275 | (70,354) |
Reportable Legal Entities | Non-guarantors | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 13,623 | 16,729 | 42,252 | 46,132 |
Costs and expenses: | ||||
Operating | 14,302 | 15,424 | 43,325 | 48,854 |
Administrative and general | 979 | 1,317 | 3,445 | 4,283 |
Depreciation | 225 | 252 | 728 | 737 |
Total costs and expenses | 15,506 | 16,993 | 47,498 | 53,874 |
Gains on asset dispositions, net | 0 | 0 | 0 | 0 |
Loss on impairment | (432) | (432) | ||
Litigation settlement proceeds | 0 | 0 | ||
Operating income (loss) | (1,883) | (696) | (5,246) | (8,174) |
Other income (expense): | ||||
Interest income | 113 | 57 | 166 | 225 |
Interest expense | (15) | (89) | (126) | (193) |
Foreign currency gains (losses), net | (68) | (139) | (888) | (569) |
Gain on debt extinguishment | 175 | |||
Other, net | (6) | (32) | (10) | (29) |
Total other income (expense) | 24 | (203) | (683) | (566) |
Income (loss) before income taxes and equity earnings | (1,859) | (899) | (5,929) | (8,740) |
Income tax expense | 0 | 153 | 0 | 513 |
Income (loss) before equity earnings | (1,859) | (1,052) | (5,929) | (9,253) |
Equity earnings, net of tax | 0 | 0 | ||
Equity in earnings (losses) of subsidiaries | 0 | 0 | 0 | 0 |
Net income (loss) | (1,859) | (1,052) | (5,929) | (9,253) |
Net loss (income) attributable to non-controlling interest in subsidiary | 10 | (233) | 310 | 219 |
Net income (loss) attributable to Era Group Inc. | (1,849) | (1,285) | (5,619) | (9,034) |
Eliminations | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | (7,644) | (7,263) | (21,104) | (23,892) |
Costs and expenses: | ||||
Operating | (7,677) | (7,263) | (21,137) | (23,892) |
Administrative and general | 0 | 0 | 0 | 0 |
Depreciation | 0 | 0 | 0 | 0 |
Total costs and expenses | (7,677) | (7,263) | (21,137) | (23,892) |
Gains on asset dispositions, net | 0 | 0 | 0 | 0 |
Loss on impairment | 0 | |||
Litigation settlement proceeds | 0 | 0 | ||
Operating income (loss) | 33 | 0 | 33 | 0 |
Other income (expense): | ||||
Interest income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Foreign currency gains (losses), net | 0 | 0 | 0 | 0 |
Gain on debt extinguishment | 0 | |||
Other, net | 0 | 0 | 0 | 0 |
Total other income (expense) | 0 | 0 | 0 | 0 |
Income (loss) before income taxes and equity earnings | 33 | 0 | 33 | 0 |
Income tax expense | 0 | 0 | 0 | 0 |
Income (loss) before equity earnings | 33 | 0 | 33 | 0 |
Equity earnings, net of tax | 0 | 0 | ||
Equity in earnings (losses) of subsidiaries | 2,747 | 77,532 | (3,655) | 79,388 |
Net income (loss) | 2,780 | 77,532 | (3,622) | 79,388 |
Net loss (income) attributable to non-controlling interest in subsidiary | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Era Group Inc. | $ 2,780 | $ 77,532 | $ (3,622) | $ 79,388 |
GUARANTORS OF SECURITIES (Con_4
GUARANTORS OF SECURITIES (Condensed Statement of Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Condensed Statement of Income Captions [Line Items] | ||||
Net income (loss) | $ 31,279 | $ (81,215) | $ 19,406 | $ (90,074) |
Other comprehensive loss: | ||||
Foreign currency translation adjustments | 0 | 0 | (5) | (2) |
Total other comprehensive loss | 0 | 0 | (5) | (2) |
Comprehensive income (loss) | 31,279 | (81,215) | 19,401 | (90,076) |
Comprehensive income (loss) attributable to non-controlling interest in subsidiary | 10 | (233) | 310 | 219 |
Comprehensive income (loss) attributable to Era Group Inc. | 31,289 | (81,448) | 19,711 | (89,857) |
Reportable Legal Entities | Parent | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income (loss) | 31,255 | (81,448) | 19,682 | (89,855) |
Other comprehensive loss: | ||||
Foreign currency translation adjustments | 0 | 0 | ||
Total other comprehensive loss | 0 | 0 | ||
Comprehensive income (loss) | 31,255 | (81,448) | 19,682 | (89,855) |
Comprehensive income (loss) attributable to non-controlling interest in subsidiary | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Era Group Inc. | 31,255 | (81,448) | 19,682 | (89,855) |
Reportable Legal Entities | Guarantors | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income (loss) | (897) | (76,247) | 9,275 | (70,354) |
Other comprehensive loss: | ||||
Foreign currency translation adjustments | (5) | (2) | ||
Total other comprehensive loss | (5) | (2) | ||
Comprehensive income (loss) | (897) | (76,247) | 9,270 | (70,356) |
Comprehensive income (loss) attributable to non-controlling interest in subsidiary | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Era Group Inc. | (897) | (76,247) | 9,270 | (70,356) |
Reportable Legal Entities | Non-guarantors | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income (loss) | (1,859) | (1,052) | (5,929) | (9,253) |
Other comprehensive loss: | ||||
Foreign currency translation adjustments | 0 | 0 | ||
Total other comprehensive loss | 0 | 0 | ||
Comprehensive income (loss) | (1,859) | (1,052) | (5,929) | (9,253) |
Comprehensive income (loss) attributable to non-controlling interest in subsidiary | 10 | (233) | 310 | 219 |
Comprehensive income (loss) attributable to Era Group Inc. | (1,849) | (1,285) | (5,619) | (9,034) |
Eliminations | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income (loss) | 2,780 | 77,532 | (3,622) | 79,388 |
Other comprehensive loss: | ||||
Foreign currency translation adjustments | 0 | 0 | ||
Total other comprehensive loss | 0 | 0 | ||
Comprehensive income (loss) | 2,780 | 77,532 | (3,622) | 79,388 |
Comprehensive income (loss) attributable to non-controlling interest in subsidiary | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Era Group Inc. | $ 2,780 | $ 77,532 | $ (3,622) | $ 79,388 |
GUARANTORS OF SECURITIES (Con_5
GUARANTORS OF SECURITIES (Condensed Cash Flow Statement) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by provided by operating activities | $ 50,352 | $ 17,928 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (7,686) | (13,121) |
Proceeds from disposition of property and equipment | 29,520 | 5,690 |
Dividends received from equity investees | 1,000 | 0 |
Investments in and advances to equity investees | 0 | (126) |
Principal payments on notes due from equity investees | 401 | 564 |
Principal payments on third party notes receivable | 620 | 94 |
Net cash provided by (used in) investing activities | 23,855 | (6,899) |
Cash flows from financing activities: | ||
Long-term debt issuance costs | (1,295) | |
Payments on long-term debt | (42,562) | (24,745) |
Proceeds from Revolving Credit Facility | 0 | 9,000 |
Proceeds from share award plans | 893 | 836 |
Purchase of treasury shares | 0 | (52) |
Borrowings and repayments of intercompany debt | 0 | 0 |
Net cash used in financing activities | (42,964) | (14,961) |
Effects of exchange rate changes on cash and cash equivalents | (445) | 101 |
Net increase (decrease) in cash and cash equivalents | 30,798 | (3,831) |
Cash, cash equivalents and restricted cash, beginning of period | 16,833 | 30,727 |
Cash, cash equivalents and restricted cash, end of period | 47,631 | 26,896 |
Reportable Legal Entities | Parent | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by provided by operating activities | 35,550 | (267) |
Cash flows from investing activities: | ||
Purchases of property and equipment | 0 | 0 |
Proceeds from disposition of property and equipment | 0 | 0 |
Dividends received from equity investees | 0 | |
Investments in and advances to equity investees | 0 | |
Principal payments on notes due from equity investees | 0 | 0 |
Principal payments on third party notes receivable | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Long-term debt issuance costs | 0 | |
Payments on long-term debt | 0 | 0 |
Proceeds from Revolving Credit Facility | 0 | |
Proceeds from share award plans | 0 | 0 |
Purchase of treasury shares | 0 | |
Borrowings and repayments of intercompany debt | 0 | 0 |
Net cash used in financing activities | 0 | 0 |
Effects of exchange rate changes on cash and cash equivalents | 0 | 27 |
Net increase (decrease) in cash and cash equivalents | 35,550 | (240) |
Cash, cash equivalents and restricted cash, beginning of period | 10,800 | 25,474 |
Cash, cash equivalents and restricted cash, end of period | 46,350 | 25,234 |
Reportable Legal Entities | Guarantors | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by provided by operating activities | 13,319 | 17,477 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (7,461) | (13,013) |
Proceeds from disposition of property and equipment | 29,520 | 5,690 |
Dividends received from equity investees | 1,000 | |
Investments in and advances to equity investees | (126) | |
Principal payments on notes due from equity investees | 401 | 564 |
Principal payments on third party notes receivable | 620 | 94 |
Net cash provided by (used in) investing activities | 24,080 | (6,791) |
Cash flows from financing activities: | ||
Long-term debt issuance costs | 0 | |
Payments on long-term debt | (1,247) | (1,247) |
Proceeds from Revolving Credit Facility | 0 | |
Proceeds from share award plans | 0 | 0 |
Purchase of treasury shares | 0 | |
Borrowings and repayments of intercompany debt | (39,402) | (13,216) |
Net cash used in financing activities | (40,649) | (14,463) |
Effects of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | (3,250) | (3,777) |
Cash, cash equivalents and restricted cash, beginning of period | 3,250 | 3,777 |
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 provided by operating activities | 1,483 | 718 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (225) | (108) |
Proceeds from disposition of property and equipment | 0 | 0 |
Dividends received from equity investees | 0 | |
Investments in and advances to equity investees | 0 | |
Principal payments on notes due from equity investees | 0 | 0 |
Principal payments on third party notes receivable | 0 | 0 |
Net cash provided by (used in) investing activities | (225) | (108) |
Cash flows from financing activities: | ||
Long-term debt issuance costs | 0 | |
Payments on long-term debt | (2,315) | (498) |
Proceeds from Revolving Credit Facility | 0 | |
Proceeds from share award plans | 0 | 0 |
Purchase of treasury shares | 0 | |
Borrowings and repayments of intercompany debt | 0 | 0 |
Net cash used in financing activities | (2,315) | (498) |
Effects of exchange rate changes on cash and cash equivalents | (445) | 74 |
Net increase (decrease) in cash and cash equivalents | (1,502) | 186 |
Cash, cash equivalents and restricted cash, beginning of period | 2,783 | 1,476 |
Cash, cash equivalents and restricted cash, end of period | 1,281 | 1,662 |
Eliminations | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by provided by operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Purchases of property and equipment | 0 | 0 |
Proceeds from disposition of property and equipment | 0 | 0 |
Dividends received from equity investees | 0 | |
Investments in and advances to equity investees | 0 | |
Principal payments on notes due from equity investees | 0 | 0 |
Principal payments on third party notes receivable | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Long-term debt issuance costs | (1,295) | |
Payments on long-term debt | (39,000) | (23,000) |
Proceeds from Revolving Credit Facility | 9,000 | |
Proceeds from share award plans | 893 | 836 |
Purchase of treasury shares | (52) | |
Borrowings and repayments of intercompany debt | 39,402 | 13,216 |
Net cash used in financing activities | 0 | 0 |
Effects of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash, cash equivalents and restricted cash, beginning of period | 0 | 0 |
Cash, cash equivalents and restricted cash, end of period | $ 0 | $ 0 |