Era Group Inc (ERA) saw its loss widen to $5.62 million, or $0.27 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $3.82 million, or $0.19 a share. Revenue during the quarter dropped 12.87 percent to $54.53 million from $62.58 million in the previous year period. Operating margin for the quarter stood at negative 9.27 percent as compared to a negative 1.29 percent for the previous year period.
Operating loss for the quarter was $5.06 million, compared with an operating loss of $0.80 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $7 million compared with $12.25 million in the prior year period. At the same time, adjusted EBITDA margin contracted 673 basis points in the quarter to 12.84 percent from 19.57 percent in the last year period.
“Against the challenging conditions of the persistent downturn in the offshore oil and gas market, Era continued to generate positive operating cash flow even during what is historically our weakest seasonal quarter,” said Chris Bradshaw, president and chief executive officer of Era Group Inc. “In addition, first quarter EBITDA was adversely impacted by $1.2 million of extraordinary legal and audit fees.”
Working capital declines
Era Group Inc has witnessed a decline in the working capital over the last year. It stood at $70.64 million as at Mar. 31, 2017, down 11.80 percent or $9.45 million from $80.09 million on Mar. 31, 2016. Current ratio was at 3.55 as on Mar. 31, 2017, down from 3.79 on Mar. 31, 2016. Days sales outstanding went up to 81 days for the quarter compared with 76 days for the same period last year.
Debt comes down
Era Group Inc has recorded a decline in total debt over the last one year. It stood at $228.14 million as on Mar. 31, 2017, down 14.19 percent or $37.74 million from $265.88 million on Mar. 31, 2016. Total debt was 24.11 percent of total assets as on Mar. 31, 2017, compared with 26.66 percent on Mar. 31, 2016. Debt to equity ratio was at 0.49 as on Mar. 31, 2017, down from 0.57 as on Mar. 31, 2016.
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