Erickson Air-Crane Inc.
) announced fourth quarter 2012 adjusted loss of 3 cents per
share lagging the Zacks Consensus Estimate of earnings of 14
cents per share.
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Including expenses of 2 cents per share related to the Air
Amazonia acquisition and a charge of 5 cents per share related to
the previously disclosed dispute with the Greek tax authorities,
GAAP loss per share reported by the company was 10 cents.
In full-year 2012, earnings per share were $1.56 per share,
missing the Zacks Consensus Estimate of $1.76 per share.
Erickson Air-Crane clocked quarterly revenues of $39.1 million,
up 27.2% year over year. The figure also surpassed the Zacks
Consensus Estimate of $38 million. The top-line increase was
driven by higher segment revenue.
In 2012, the company generated revenues of $180.8 million, up
18.4% year over year. The increase in revenue was driven by new
firefighting contracts, an active fire season and the company's
expansion of infrastructure construction, especially in support
of the oil-and-gas market in South America. The figure was almost
in line with the Zacks Consensus Estimate of $180 million.
In the fourth quarter of 2012, revenues from Aerial Services were
$31.4 million, up 14.4% year over year while Manufacturing / MRO
segment generated revenues of $7.73 million, up133.3% year over
In the quarter under review, total operating expenses were $9
million, down 15.7% year over year. Adjusted EBITDA was $4.5
million versus a negative figure of $1.7 million in the year-ago
Operating income in the reported quarter was $1.5 million versus
an operating loss of $3.6 million. Other income (expense), net in
the quarter under review was ($0.802) million versus $0.476
million in the year-ago quarter. Therefore, the company reported
a net loss of $0.9 million versus a profit of $8.6 million a year
Erickson Air-Crane Inc. ended full year 2012 with cash and cash
equivalents of approximately $1.47 million, compared with $0.268
million at the end of full year 2011. Long-term debt fell to
$26.7 million at the end of full year 2012 from $124.0 million at
the end of full year 2011.
In 2012, net cash provided by (used in) operating activities was
$28.2 million versus ($20.7) million in 2011. Capital expenditure
in 2012 was $22.7 million versus $11.4 million at the end of
Erickson Air-Crane's earnings failed to meet the Zacks Consensus
Estimate. However, the top-line beat the Zacks Consensus Estimate
driven by new firefighting contracts and organic growth.
In 2012, the company completed the purchase of the Sun Bird
Aircraft and associated spare parts inventory and accessories
from SDG&E, a subsidiary of
). The Sun Bird is an Erickson model S-64F Aircrane that was
originally purchased by SDG&E from Erickson Air-Crane in
2009. This transaction will allow the company to take advantage
of market opportunities in 2013 and beyond in the oil-and-gas and
power line construction sectors of the business in South America
Also, the company is expected to complete the acquisition of Air
Amazonia's aerial services business from HRT Participacoes em
Petroleo, S.A. in the near term. These acquisitions, going
forward, continue to strengthen Erickson's leading position in
the heavy-lift market.
However, expected cutbacks in the U.S. defense budgets and
political uncertainty remain a matter of concern for Erickson
Air-Crane. The company presently retains a Zacks Rank #3 (Hold).
Stocks worthy of consideration in the aerospace and defense
The Boeing Company
Lockheed Martin Corporation
), all with a Zacks Rank #2 (Buy).
Erickson Air-Crane Inc. manufactures and operates Erickson S-64
Aircrane (S-64) heavy-lift helicopters. The company operates
through two segments: Aerial Services and Aircraft Manufacturing
and Maintenance, Repair, and Overhaul (Manufacturing/MRO).