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8-K - FORM 8-K - ERICKSON INC. | d505825d8k.htm |
EX-99.1 - EX-99.1 - ERICKSON INC. | d505825dex991.htm |
Announcing Signed Purchase Agreement for Evergreen Helicopters, Inc.
March 19, 2013
Disclaimer
This presentation may contain forward-looking statements that involve substantial risks and uncertainties. All statements other than statements of historical fact, such as statements regarding our growth opportunities, our potential acquisitions, our future operations, financial position and revenues, other financial guidance, and our other prospects, plans and management objectives, are forward-looking statements. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. There are a number of important factors that could cause our actual results to differ materially from those indicated by these forward-looking statements. We disclose many of these risk factors in our most recent annual report on Form 10-K and the registration statement we filed with the Securities and Exchange Commission. All of the information provided in this presentation is as of todays date and we undertake no duty to update this information.
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Company Overview
Emerging as a Diversified, Global Aviation Services Provider
Management, Operations and Balance Sheet Support Rapid Growth
Two Announced Acquisitions that Transform the Company
Leader In Heavy-Lift
Acquisitions Provide Scale & Diversification
Construction
Oil and Gas
Air Amazonia
Evergreen
Revenue = ~$430 million
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EAC 11 Months Post-IPO : Strong Results and Powerful Growth Initiatives
Full Year 2012 Revenues Increased 18% to a $181 million
2012 Operating Income and EBITDA Approximately Double Compared to 2011
Full Year 2012 EPS of $1.56 Doubled Initial Guidance of $0.72-$0.82
Business Momentum Seen Extending into Strong First Quarter of 2013
Two Large Accretive, Transformative Acquisitions Expected to Close in 2Q13
Stock Price Up Approximately 75% from April, 2012 IPO to Today
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Key Investment Highlights
Growth Both Organic and Acquisitive
Transformation Strategy Greatly Increased Diversification Superior Operating Profitability Experienced Management
FY12 revenues grew 18% organically to $181 million FY12 PF revenues would be approximately $430 million
Focus on long-term contracts (duration of six Leverage and transcend single-market leadership months or more) Become a diversified global aviation services company
Many contracts include both fixed (daily) and
Utilize access to capital to accelerate growth and returns variable (flight hour-based) revenue
Larger fleet, more aircraft types, wider mission range Global footprint with strong emerging market focus Reduced seasonality and market concentration Base Business EBITDA margin exceeds 25% Acquisition EBITDA margin at ~25% pre-synergies
20+ years average aerospace, military experience
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Acquisition of Evergreen Helicopters, Inc.
Evergreen Helicopters, Inc.
EHI
Transaction Structure
Financials
Global aviation services company
Passenger and cargo transport, medevac, disaster relief, fire fighting, recreation Headquartered in McMinnville, OR; founded in 1960 64 helicopters and fixed-wing aircraft (mix of leased and owned) Diversified government and commercial customer base Approximately 400 full-time employees
$250 million purchase price at closing
$185 million cash
$17.5 million in EAC unsecured note
$47.5 million in EAC convertible preferred stock, approximately 4 million shares 1:1 at $11.85 Up to $26.3 million earn-out based on certain revenue targets for 2013, 2014 and 2015 Expected to close in 2Q 2013
2012 revenues of $196 million
2012 Adjusted EBITDA of $56 million
Target synergy opportunities: deeper customer penetration, improved utilization, and economies of scale Immediately accretive transaction at less than 5.0x 2012 Adjusted EBITDA
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EHI Fleet
Rotary Wing
Fixed Wing
BELL 214ST
AGUSTA WESTLAND AW139
EUROCOPTER AS332L1 SUPER PUMA
BEECH 1900D
CASA 212
BELL 412EP
EUROCOPTER BO-105 CBS
EUROCOPTER SA330J PUMA
LEAR 35A
BELL 212
BELL 206BIII
BELL 206LIII
& IV
EUROCOPTER AS350 B2 & B3
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Air Amazonia Acquisition from HRT
Air Amazonia
Transaction Structure
Aerial Services Contract
Air Amazonia is the helicopter subsidiary of HRT Participações em Petróleo, S.A (former customer of Erickson in Brazil)
Operates in the Amazon Basin, one of the worlds fastest growing oil and gas regions 14 passenger transport and medium-lift aircraft
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S-61, (5) Bell 212, (2) A350 |
101 full-time employees, pilots, mechanics, ground support
$65-$75 million all-cash purchase price
$30 million upfront
$30 million on earlier of Brazilian Part 135 certification or 12-months post-closing
$15 million due 36 months post-closing (including $5 million contingent on cumulative revenue targets and $5 million contingent on services contract renewal) Expected to close in 2Q 2013
Three Year Aerial Services Contract with HRT
50% of fleet capacity at estimated $50 million annual revenue (minimum $45 million)
Option to renew for an additional 3 years
50% of aircraft capacity to redeploy to new customers EBITDA margins expected to be at least 25% Immediately accretive transaction
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Air Amazonia Fleet
(7) |
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Sikorsky S-61 |
(5) |
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Bell 212 |
(2) |
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AS 350Astar |
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Snapshot of EAC, Post-Acquisitions
Diversified, Global Aviation Services Leader
Working in every major end market, on 6 continents
Fleet of 100 aircraft spanning passenger transport to heavy lift
Deep portfolio of customers, expanded suite of growth opportunities
Dramatic Increase in Financial Performance
Pro forma 2012 consolidated annual revenues of ~$430 million
EBITDA margins of ~25% prior to synergy and scale benefits
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Increasing Diversification of Revenue Sources
Increasing End-Market Diversity
Increasing Geographic Diversity
Timber Harvesting 38%
Firefighting 53%
2007
Crewing 10%
Oil & Gas 8%
MFG / MRO 11%
Construction 8%
Firefighting 45%
Timber Harvesting 18%
2012
MRO / Other
12% Firefighting
19%
DoD Related
43%
Oil & Gas 15%
Timber
Harvesting 8%
Construction 3%
2012 PF
Australasia 20%
North America 41%
Europe 39%
2007
South America Australasia 8% 11%
North Europe America 21% 60%
2012
Africa
1%
Middle East
(Afghanistan) North America 30% 33%
South Europe
America 10% 15% Australasia
11%
2012 PF
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Global Reach
Corporate headquarters
EAC Current and Recent Operations EAC Principal Operating Facilities EAC Operating subsidiaries
EHI Current Operations EHI Repair Stations EHI Representatives
EHI support of US Naval operations
Air Amazonia Current Operations
Air Amazonia Operating Sites
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Differentiated and Diverse Business Model
A diverse fleet composition will provide Erickson the ability to offer customers a wide range of capabilities and satisfy mission requirements
FIREFIGHTING
CONSTRUCTION
TIMBER HARVESTING
OIL & GAS
MANUFACTURING
MRO
PASSENGER & CARGO TRANSPORT
PEACEKEEPING & DISASTER RELIEF
SEARCH & RESCUE / MEDEVAC
RECREATION
OIL & GAS
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ERICKSON AIR-CRANE
INCORPORATED