Operating expenses were $5.1 million higher reflecting a one-time charge of $2.0 million related to operating leases on certain helicopters configured for air medical services. Additionally, personnel costs increased $1.6 million primarily due to increased activity, and repairs and maintenance expenses were $1.2 million higher as a result of the timing of repairs in 2013. Of the $15.1 million in total repairs and maintenance expenses in the current quarter, approximately $1.7 million related to helicopters undergoing major overhauls.

Administrative and general expenses were $0.7 million lower in the current quarter primarily due to a decrease in bad debt expense of $2.6 million related to the recognition of the bankruptcy of a customer in the prior year quarter. This decrease was partially offset by an increase in costs associated with being an independent public company and an increase in compensation and employee costs, primarily the result of share-based compensation related to incentive equity awards granted following our spin-off from SEACOR Holdings Inc. ("SEACOR").

Depreciation expense was $11.3 million in the current quarter, an increase of $0.4 million, primarily due to fleet additions.

Gains on asset dispositions were $2.6 million in the current quarter. These amounts included a gain on the sale of one S76C++ medium helicopter and two S76A++ medium helicopters offset by a loss on the sale of one S76A++ helicopter.

Sequential Quarter Results

Third quarter operating revenues increased $6.8 million compared to the second quarter ended June 30, 2013. Third quarter net income increased $0.1 million. Operating income and Adjusted EBITDA for the third quarter increased by $0.4 million and $2.2 million, respectively. The increases in net income, operating income and Adjusted EBITDA were primarily due to an increase in revenue from oil and gas activities in the third quarter, which included the impact of our EC225 helicopters returning to service in the U.S. Gulf of Mexico. Excluding the impact of gains on asset dispositions of $2.6 million and $4.5 million in the third and second quarter, respectively, Adjusted EBITDA increased by $4.1 million or 22% from $18.8 million to $22.9 million.

Nine Month Results

The Company reported net income for the nine months ended September 30, 2013 of $17.0 million on operating revenues of $223.0 million compared to net income of $4.2 million on operating revenues of $202.0 million in the prior year period. Operating income and Adjusted EBITDA for the current nine months were $36.6 million and $75.3 million, respectively, compared to operating income of $22.3 million and Adjusted EBITDA of $57.7 million in the prior year period. Repairs and maintenance expenses increased $11.3 million primarily due to the timing of repairs in 2013 and the absence of the benefit from vendor credits recognized in the prior year period. Results for the nine months ended September 30, 2013 included $17.8 million in gains on asset dispositions compared with $3.5 million in gains in the same period a year ago. Earnings from equity investments were $1.8 million in the nine months ended September 30, 2013, an increase of $7.2 million compared to the prior year period loss of $5.4 million, primarily due to the recognition of a loss of $0.6 million and an impairment charge of $5.9 million, net of tax, on our investment in our Brazilian joint venture in the first quarter of 2012.

EC225 Helicopters

In 2012, multiple ditchings of EC225 helicopters led major global operators to suspend EC225 helicopter operations. Eurocopter, manufacturer of the EC225 helicopters, through an internal investigation identified the root cause of the service failures and implemented engineering solutions, prevention and detection measures to remedy the matters that led to the suspension. On July 10, 2013, the European Aviation Safety Agency approved these measures, and the United Kingdom Civil Aviation Authority lifted operational restrictions. The Civil Aviation Authority of Norway followed suit on July 19, 2013. These measures and related regulatory approvals facilitated the full return to service of the EC225 helicopters on a worldwide basis. The Company's EC225 helicopters in the U.S. Gulf of Mexico returned to service in the current quarter, and our EC225 helicopters on contract-lease to our Brazilian joint venture were also cleared for service.

Equipment Acquisitions

During the quarter ended September 30, 2013, the Company's capital expenditures were $17.6 million, which consisted primarily of deposits on future helicopter deliveries. The Company records helicopter acquisitions in property and equipment and places helicopters in service once all completion work has been finalized and the helicopters are ready for use. The Company placed one additional medium helicopter in service during the current quarter.

Capital Commitments

The Company's unfunded capital commitments as of September 30, 2013 consisted primarily of orders for helicopters and totaled $239.7 million, of which $28.0 million is payable during the remainder of 2013 with the balance payable through 2017. The Company also had $2.0 million of deposits paid on options not yet exercised. The Company may terminate $177.6 million of its total commitments (inclusive of deposits paid on options not yet exercised) without further liability other than liquidated damages of $12.2 million in the aggregate.

Included in these capital commitments are agreements to purchase ten AW189 heavy helicopters, three AW139 medium helicopters, and five AW169 light twin helicopters. The AW189 helicopters are scheduled to be delivered beginning in late 2014 through 2017. Two of the AW139 helicopters are scheduled to be delivered by year-end 2013, and one is scheduled for delivery in mid-2014. Delivery dates for the AW169 helicopters have yet to be determined. In addition, we had outstanding options to purchase up to an additional ten AW189 helicopters and five AW139 helicopters.

Subsequent to September 30, 2013, the Company exercised an option to acquire an additional AW139 helicopter, which is scheduled to be delivered in the first quarter of 2014. Upon exercise of this option, the unfunded capital commitment for this AW139 helicopter was $13.8 million.

Liquidity Update

As of September 30, 2013, the Company had a cash balance of $22.5 million, escrow deposits of $9.9 million and remaining availability under our senior secured revolving credit facility of $176.3 million. The escrow deposits related to the sale of one S76C++ helicopter and two S76A++ helicopters, which closed in September 2013 and were treated as tax-free like-kind exchanges under Section 1031 for tax purposes with the proceeds held by a qualified intermediary. A qualified property has been identified to complete the like-kind exchanges under Section 1031.

Conference Call

Management will conduct a conference call starting at 10:00 a.m. ET (9:00 a.m. CT) on Wednesday, November 13, 2013, to review the results for the third quarter ended September 30, 2013. The conference call can be accessed as follows:

All callers will need to reference the access code 92845564

Within the U.S.:
Operator Assisted Toll-Free Dial-In Number: (866) 607-0535

Outside the U.S.:
Operator Assisted International Dial-In Number: (832) 445-1827

Replay
A telephone replay will be available through November 30, 2013 and may be accessed by calling (855) 859-2056 for domestic callers or (404) 537-3406 for international callers. An audio replay will also be available on the Company's website at www.eragroupinc.com shortly after the call and will be accessible for approximately 90 days.

About Era Group

Era Group is one of the largest helicopter operators in the world and the longest serving helicopter transport operator in the U.S. In addition to servicing its U.S. customers, Era Group also provides helicopters and related services to third-party helicopter operators and customers in other countries, including Brazil, Canada, India, Mexico, Norway, Spain, Sweden, the United Kingdom and Uruguay. Era Group's helicopters are primarily used to transport personnel to, from and between offshore installations, drilling rigs and platforms.

This release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements concerning management's expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of results to differ materially from any future results, performance or achievements discussed or implied by such forward-looking statements. Such risks, uncertainties and other important factors include, among others the effect of the Spin-off, including the ability of the Company to recognize the expected benefits from the Spin-off and the Company's dependence on SEACOR's performance under various agreements; decreased demand and loss of revenues resulting from developments that may adversely impact the offshore oil and gas industry, including the issuance of new safety and environmental guidelines or regulations that could increase the costs of exploration and production, reduce the area of operations and result in permitting delays, U.S. government implemented moratoriums directing operators to cease certain drilling activities and any extension of such moratoriums that may result in unplanned customer suspensions, cancellations, rate reductions or non-renewals of aviation equipment contracts or failures to finalize commitments to contract aviation equipment; safety issues experienced by a particular helicopter model that could result in customers refusing to use that helicopter model or a regulatory body grounding that helicopter model, which could also permanently devalue that helicopter model; the cyclical nature of the oil and gas industry; increased U.S. and foreign government legislation and regulation, including environmental and aviation laws and regulations, and the Company's compliance therewith and the costs thereof; dependence on the activity in the U.S. Gulf of Mexico and Alaska and the Company's ability to expand into other markets; liability, legal fees and costs in connection with providing emergency response services, including involvement in response to the oil spill that resulted from the sinking of the Deepwater Horizon in April 2010; decreased demand for the Company's services as a result of declines in the global economy; declines in valuations in the global financial markets and a lack of liquidity in the credit sectors, including, interest rate fluctuations, availability of credit, inflation rates, change in laws, trade barriers, commodity prices and currency exchange fluctuations; activity in foreign countries and changes in foreign political, military and economic conditions; the failure to maintain an acceptable safety record; the dependence on small number of customers; consolidation of the Company's customer base; industry fleet capacity; restrictions imposed by the U.S. federal aviation laws and regulations on the amount of foreign ownership of the Company's common stock; operational risks; risks associated with our debt structure; operational and financial difficulties of our joint ventures and partners; effects of adverse weather conditions and seasonality; adequacy of insurance coverage; the attraction and retention of qualified personnel; and various other matters and factors, many of which are beyond the Company's control. In addition, these statements constitute Era Group's cautionary statements under the Private Securities Litigation Reform Act of 1995. It is not possible to predict or identify all such factors. Consequently, the foregoing should not be considered a complete discussion of all potential risks or uncertainties. The words "estimate," "project," "intend," "believe," "plan" and similar expressions are intended to identify forward-looking statements. Forward-looking statements speak only as of the date of the document in which they are made. Era Group disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in Era Group's expectations or any change in events, conditions or circumstances on which the forward-looking statement is based. The forward-looking statements in this release should be evaluated together with the many uncertainties that affect Era Group's businesses, particularly those mentioned under "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2012, in our subsequent Quarterly Reports on Form 10-Q and in our periodic reporting on From 8-K (if any), which are incorporated by reference.

For additional information concerning Era Group, contact Christopher Bradshaw at (281) 606-4871 or visit Era Group's website at www.eragroupinc.com.

Our management uses EBITDA and Adjusted EBITDA to assess the performance and operating results of our business. EBITDA is defined as Earnings before Interest (includes interest income, interest expense and interest expense on advances from SEACOR), Taxes, Depreciation and Amortization. Adjusted EBITDA is defined as EBITDA further adjusted for SEACOR Management Fees and certain other items that occur during the reported period. We include EBITDA and Adjusted EBITDA to provide investors with a supplemental measure of our operating performance. We also present Adjusted EBITDAR, which is defined as Adjusted EBITDA further adjusted for rent expense (included as components of operating expense and general and administrative) because we believe that research analysts and investment bankers use this metric to assess our and others in our peer group's performance. Neither EBITDA, Adjusted EBITDA nor Adjusted EBITDAR is a recognized term under generally accepted accounting principles in the U.S. ("GAAP"). Accordingly, they should not be used as an indicator of, or an alternative to, net income as a measure of operating performance. In addition, EBITDA, Adjusted EBITDA and Adjusted EBITDAR are not intended to be measures of free cash flow available for management's discretionary use, as they do not consider certain cash requirements, such as debt service requirements. Because the definitions of EBITDA, Adjusted EBITDA and Adjusted EBITDAR (or similar measures) may vary among companies and industries, they may not be comparable to other similarly titled measures used by other companies.

The following table provides a reconciliation of Net Income, the most directly comparable GAAP measure, to EBITDA, Adjusted EBITDA and Adjusted EBITDAR.

(1) Special items include the following:

• Severance expense of $0.7 million for the three and nine months ended September 30, 2012, due to prior changes in executive management;

• Expenses incurred in connection with our abandoned initial public offering of $0.3 million for the three months ended September 30, 2012 and $2.9 million for the nine months ended September 30, 2012;

• An impairment charge of $5.9 million, net of tax, for the nine months ended September 30, 2012, on our investment in Aeróleo Taxi Aéreo S/A; and

• A one-time charge of $2.0 million related to operating leases on certain air medical helicopters for the three and nine months ended September 30, 2013.

(1) Includes all owned, joint ventured, leased-in and managed helicopters.