OREANDA-NEWS. Erickson recorded net revenue of $46.8 million for the first quarter of 2016, compared to net revenue of $66.2 million for the first quarter of 2015. First quarter 2016 loss from operations was $13.1 million, an improvement of $52.1 million compared with $65.2 million for the same period in 2015, which included goodwill and asset impairments of $57.0 million. First quarter 2016 Adjusted EBITDA was a loss of $3.1 million compared to Adjusted EBITDA of $2.2 million for the same period in 2015.

Commercial Aviation Services revenues decreased $6.3 million, to $19.9 million in the first quarter of 2016 from $26.3 million in the first quarter of 2015 primarily due to the overall decline in global oil and gas exploration combined with lower firefighting activity in Australia, which experienced a milder fire season. We did however see improvements in timber harvesting activity in Canada, as well as higher revenues generated from a European firefighting contract that was not in place during the first quarter of 2015. Infrastructure construction revenues were relatively flat on a year-over-year basis.

Global Defense and Security revenues decreased $13.8 million to $19.1 million for the first quarter of 2016 from $32.9 million in the first quarter of 2015 due to contracts ending and, to a lesser degree, a reduction in scope of U.S. Department of Defense activity.

Manufacturing and MRO revenues increased by $0.8 million to $7.8 million compared to $7.0 million for the first quarter of 2015. This increase was primarily driven by revenue derived from the refurbishment of two MH-53E Sea Dragons for the U.S. Navy.

Closing Comments
“The transformation program we have initiated and the subsequent work to turn around our business continues. The initiatives we put in place to manage cash and liquidity have served us well. Our business development and sales efforts remain concentrated on uncovering new opportunities that will develop into revenue, and we are maintaining our focus on exceeding customer expectations and upholding stringent safety standards. We are working hard to improve efficiencies from a cost standpoint, which includes the ongoing fleet rationalization process. These efforts will help lead our transition to a growing, profitable enterprise,” concluded Jeff Roberts.

Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this press release contains certain non-GAAP financial measures, including EBITDA, Adjusted EBITDA, Adjusted EBITDAR, and free cash flows. While non-GAAP financial measures are not superior to or a substitute for the comparable GAAP measures, Erickson believes certain non-GAAP information is useful to investors for historical comparison purposes and because it provides additional information on the performance of the Company’s business. Erickson management also uses these non-GAAP financial measures to assess the Company’s financial and operating performance and to compare that performance against results from prior periods and the performance of Erickson’s competitors. Erickson management also uses this information in its financial and operating decision-making.

Conference Call Jeff Roberts, the Company’s President and Chief Executive Officer, and Eric Struik, the Company’s Chief Financial Officer, will host a conference call at 11:00 a.m. ET on Thursday, May 5, 2016 to discuss the results, followed by a question and answer session for the investment community. To access the call, dial toll-free 1-888-329-8877 or 1-719-457-2664 (international).

To listen to a telephonic replay of the conference call, dial toll-free 1-877-870-5176 or 1-858-384-5517 (international) and enter pass code 4024627. The replay will be available beginning at 8:00 p.m. ET on May 5, 2016 and will last through 11:59 p.m. ET on May 19, 2016.

Erickson is a leading global provider of aviation services specializing in government services, manufacturing and MRO, and commercial services such as firefighting, energy construction, timber harvesting, HVAC & specialty, and oil and gas. As of March 31, 2016, Erickson’s fleet consisted of 74 rotary-wing (light, medium, and heavy) and fixed-wing aircraft, including 20 heavy-lift S-64 Aircranes. Founded in 1971, Erickson is headquartered in Portland, Oregon, USA, and maintains operations in North America, South America, Europe, the Middle East, Africa, Asia Pacific, and Australia.

ERICKSON INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
 
(In thousands. except share and per share data)
(Unaudited)
 
  March 31,
 2016		   December 31,
 2015
ASSETS      
Current assets:      
Cash and cash equivalents $ 3,291     $ 2,129  
Restricted cash 228     373  
Accounts receivable, net 34,983     40,520  
Prepaid expenses and other current assets 3,784     5,233  
Total current assets 42,286     48,255  
Aircraft, net 185,746     186,132  
Aircraft parts, net 140,068     139,609  
Aircraft held for sale 10,465     12,348  
Property, plant and equipment, net 25,163     25,553  
Other assets 9,320     10,261  
Other intangible assets, net 15,250     15,787  
Goodwill, net 164,111     163,708  
Total assets $ 592,409     $ 601,653  
LIABILITIES AND EQUITY      
Current liabilities:      
Accounts payable $ 13,742     $ 13,660  
Current portion of long-term debt 8,294     8,205  
Accrued expenses and other current liabilities 25,720     17,828  
Total current liabilities 47,756     39,693  
Credit Facility 105,064     96,165  
Long-term debt, less current portion 362,088     364,782  
Other liabilities 13,327     11,720  
Total liabilities 528,235     512,360  
Equity:      
Erickson Incorporated:      
Common stock; $0.0001 par value; 110,000,000 shares authorized; 13,895,421 issued and outstanding as of March 31, 2016 and December 31, 2015 1     1  
Additional paid-in capital 181,353     181,259  
Accumulated deficit (110,885 )   (84,901 )
Accumulated other comprehensive loss, net of tax (7,012 )   (7,789 )
Total Erickson Incorporated shareholders’ equity 63,457     88,570  
Noncontrolling interests’ equity 717     723  
Total equity 64,174     89,293  
Total liabilities and equity $ 592,409     $ 601,653