10-Aug-2015 Source: Erickson
Erickson Incorporated (NASDAQ:EAC) (“Erickson,” the “Company,” “we,” “us” and “our”), a leading provider of aviation services and products to a worldwide mix of commercial and government customers, today announced second quarter 2015 financial results.
Jeff Roberts, Chief Executive Officer of Erickson, commented, “Our second quarter results were below expectations as a result of challenges in the oil and gas market, our government business, and a slower than expected start to the firefighting season. Aggressive management of operating expenses, working capital, and capital expenditures partially offset these headwinds. We are re-investing some of these savings into the front end of our business and implementing transformative changes to our operating model. This new operating model will enhance our competitive position, generate sustainable free cash flow, and drive value for our stakeholders.”
Second Quarter Results
Revenue for the quarter ended June 30, 2015 was $69.3 million, a decline of $11.6 million compared to prior year. The Company benefited from year-over-year growth in its Manufacturing & MRO business and aircraft sales. These gains were outweighed by continued softness in Government Aviation and, to a lesser extent, a modest decline in Commercial Aviation.
Second quarter 2015 operating income was $0.2 million as compared to the prior year loss of $17.4 million; adjusted operating income, which excludes acquisition, integration and restructuring expenses, as well as non-cash asset impairment, was also $0.2 million, as compared to $4.6 million in the prior year period.
Second quarter Adjusted EBITDA was $10.3 million as compared to the prior year period Adjusted EBITDA of $13.8 million. Adjusted EBITDAR was $14.5 million in the second quarter of 2015 as compared to $19.0 million in the prior year’s second quarter.
During the second quarter of 2015, the Company reduced capital spending to $6.2 million as compared to $19.7 million in the prior year period. Operating Cash Flow improved $22.6 million, to a use of $3.8 million compared to a use of $26.5 million in the prior year’s second quarter.
As of June 30, 2015, the Company had $113.7 million drawn on its revolving credit facility (excluding the letters of credit) and $1.8 million in cash on its balance sheet.
About Erickson Incorporated
Erickson is a leading global provider of aviation services and operates, maintains and manufactures utility aircraft to safely transport people and cargo around the world. The Company is self-reliant, multifaceted and operates in remote locations under challenging conditions specializing in Government Services, Manufacturing and MRO, and Commercial Services (comprised of firefighting, HVAC, power line, construction, timber harvesting, oil and gas and specialty lift). With roots dating back to 1960, Erickson operates a fleet of approximately 80 aircraft, is headquartered in Portland, Oregon, USA, and operates in North America, South America, Europe, the Middle East, Africa, Asia Pacific, and Australia. For more information, please visit our new website at www.ericksonaviation.com.
Financial statements can be found here