Era Group Inc. (NYSE:ERA) Q2 2017 Earnings Conference Call - Final Transcript

Aug 09, 2017 • 10:00 am ET

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Era Group Inc. (NYSE:ERA) Q2 2017 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, and welcome to the Era Group Reports Second Quarter 2017 Results Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Shefali Shah. Please go ahead.

Executive
Shefali Shah

Thank you, Evan. Good morning. Thank you for joining Era's Second Quarter 2017 Earnings Call. I'm here today with our President and CEO, Chris Bradshaw; our VP and CFO, Jennifer Whalen; our SVP, Commercial, Paul White; our SVP, Operations and Fleet Management, Stuart Stavley; and our FP&A Manager, Seema Parikh [Phonetic].

If you have not already done so, you may access our most recent earnings press release and presentation slides on our website, erahelicopters.com, or the SEC website, sec.gov.

Forward-looking statements expressed on this call are subject to a number of risks, uncertainties and other factors, including those described in our most recent annual report on Form 10-K and the other filings we make with the SEC. These risks, uncertainties and other factors could cause actual results to differ materially from those expressed in the forward-looking statements. In addition, we will discuss certain non-GAAP financial measures such as EBITDA and adjusted EBITDA. Please refer to our earnings press release or the presentation slides for the calculation of these measures and the appropriate GAAP reconciliation.

I'd now like to turn the call over to our President and CEO. Chris?

Executive
Christopher Bradshaw

Thank you, Shefali, and welcome to the call, everyone. As always, I will begin our prepared remarks with a note on safety, which is Era's most important core value and our highest operational priority. We are pleased to report that Era achieved our goals of zero air accidents and zero OSHA recordable incidents through the first seven months of 2017. The hard-working men and women of Era have continued to demonstrate teamwork and a commitment to excellence throughout the offshore industry downturn, and I want to thank them for their dedication and focus in achieving our key objectives.

The next topic is an update on the operational status of H225 and AS332 L2 model helicopters, which continues to be a major safety-related issue, impacting the offshore helicopter industry, following the fatal accident off the coast of Norway in April 2016. The root cause of the accident remains under investigation via the AIBN. Last month, the Civil Aviation Authorities in Norway and the United Kingdom, the major European markets for the H225, published new directives that set forth the requirements with respect to the return to service of these helicopter models, including an operator's compliance with relevant EASA directives and the development of a detailed safety case, as a part of the return to service plan that must be approved by the relevant regulatory authority.

By way of reminder, the aviation authorities in the markets in which we historically operated H225s lifted their operational suspensions in the fourth quarter of last year. While the regulators have published directives permitting a return to service, we believe H225 helicopters have only returned to service in offshore oil and gas missions