Erickson Air-Crane Inc.
) incurred first quarter 2014 adjusted loss of 52 cents per share
as against a profit of 1 cent per share in the year-ago quarter.
The quarterly figure lagged the break-even Zacks Consensus Estimate
by a wide margin.
This evoked a negative market reaction with the shares losing 4.46%
to close at $15.00 on May 9.
Erickson Air-Crane registered quarterly revenues of $74.0 million,
up 100.5% from the year-ago level of $36.9 million. The improved
result was driven by strategic acquisitions, partially offset by
lower revenues for infrastructure construction and firefighting.
However, the quarterly figure failed to meet the Zacks Consensus
Estimate of $75.0 million by 1.3%.
Sales in the reported quarter increased 218.0% to $55.9 million
from $17.6 million in the first quarter 2013 due to contributions
from acquisitions, offset by lower firefighting revenues in
Sales decreased 5.5% to $18.3 million from $19.3 million in the
first quarter 2013 due to lower timber harvesting revenues
primarily in Malaysia together with lower North American
infrastructure construction primarily due to bad weather. Partial
offsets were increases in South American infrastructure
construction and higher revenues in MRO as compared to the
Highlights of the Release
On the cost front, total operating expenses were $11.1 million in
the reported quarter, up 15.5% year over year. Cost of revenues
also surged 138.2% to $65.9 million from $27.7 million in the first
quarter of 2013.
Adjusted EBITDA was $5.8 million, down 17.2% from the year-ago
quarter. Operating loss in the reported quarter was $2.8 million
versus $0.3 million in the year ago quarter.
Erickson entered into new multi-year contracts with Hunt Oil
Exploration and Production Company of Peru, L.L.C., Sucursal de
Peru ("Hunt Oil") during the first quarter. Through this contract
the company expects to generate a strong revenue stream in South
America. Thanks to this contract and other new multi-year
contracts, the company reported a moderate backlog of $494.0
million at the end of the first three months of 2014.
Erickson ended the first quarter 2014 with cash and cash
equivalents of approximately $3.2 million, compared with $1.9
million at the end of Dec 31, 2013.
Long-term debt (excluding current portion) increased marginally to
$16.2 million at the end of Mar 31, 2014 from $16.1 million at 2013
Erickson reaffirmed its 2014 guidance supported by the solid first
quarter 2014 backlog. It maintained its prior revenue guidance
range of $385.0 million to $405.0 million and adjusted EBITDA
guidance range of $100.0 million to $110.0 million. The guidance
for earnings per share is also maintained in the range of 95 cents
to $1.35 based on 13.8 million of expected shares outstanding.
Lockheed Martin Corp.
) announced first quarter 2014 earnings of $2.87 per share,
surpassing the Zacks Consensus Estimate of $2.52 by 13.9%.
) reported first quarter 2014 adjusted earnings of $1.76 per share,
beating the Zacks Consensus Estimate of $1.54 by 14.3%.
) first-quarter 2014 earnings of 34 cents per American Depository
Shares (ADS) spiked 78.9% from 19 cents per ADS in the prior-year
The company presently carries a Zacks Rank #3 (Hold).
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