Is Evergreen International Airlines planning to close its doors on November 30? The company says no but is exploring other options
Evergreen International Airlines (McMinnville, Oregon and Marana, Arizona) despite a public denial by its founder and CEO that the rumors are false, it has been reported in the local Oregon media as planning to lay off 131 employees and ceased operations on November 30. The company recently sold off its helicopter division as we reported as it attempts to reorganize and seek new “strategic alternatives” and partners.
It is unclear if the Evergreen Wings and Waves Waterpark and the Evergreen Aviation and Space Museum would also be affected if any final decision is made.
Read the full report from the The Oregonian: CLICK HERE
The company is privately held and issued this statement:
As has been previously reported in the press, Evergreen’s business has been adversely impacted over the past several years by decreased demand in military spending and weakness in global economic markets. Management has moved to aggressively address these challenges, including through the divestiture of businesses and assets and the significant reduction of secured debt. Evergreen is in discussions with its significant constituencies and is exploring available strategic alternatives with those constituencies. While Evergreen generally does not comment on market rumor or conjecture, rumors that a decision has been made to cease operations at this time are false. Evergreen remains committed to continuing to address the current business environment with its customers.
Delford M. Smith
Chief Executive Officer,
Evergreen International Aviation, Inc.
Copyright Photo: Stefan Sjogren/AirlinersGallery.com. Evergreen International Airlines’ Boeing 747-230F N490EV (msn 24138) touches down in Stockholm (Arlanda).
Erickson Air-Crane Incorporated (Portland, Oregon), a leading operator and the manufacturer of the powerful Erickson S-64 Aircrane heavy-lift helicopter, has announced that it has executed a stock purchase agreement for the purchase of Evergreen Helicopters, Inc. (EHI) (McMinnville, Oregon) from Evergreen International Aviation, Inc.
EHI is a diversified global provider of air transport services for cargo and personnel to government and commercial customers. EHI was founded by aviation pioneer Mr. Delford Smith. At closing, this transaction would provide Erickson Air-Crane with an incremental fleet of 64 aircraft, consisting of both helicopters and fixed-wing airplanes. This diverse fleet serves a wide range of customers, including significant passenger transport and airlift services for the US military. EHI’s operations span the globe, including a presence in North America, the Middle East, Africa, and Asia Pacific.
In calendar year 2012 EHI’s unaudited revenue was $196.0 million and Adjusted EBITDA was $56.2 million, representing an Adjusted EBITDA margin of over 25%. The Company noted that when calculating EBITDA, EHI, in line with certain other aviation companies, adds back the amortization of certain capitalized overhaul costs. We are conforming our Adjusted EBITDA presentation, and adding back amortization of certain capitalized overhaul costs. For purposes of comparability, our 2012 Adjusted EBITDA, which was reported as $44.5 million, is $57.2 million under the new presentation. There is no change to the Company’s reported 2012 income statement or net cash flows due to this change in non-GAAP presentation. For a reconciliation of this non-GAAP financial measure, see “Reconciliation of Non-GAAP Financial Measures” in this press release.
Udo Rieder, President and Chief Executive Officer of Erickson Air-Crane, said, “We are very excited to be on the cusp of truly transforming our business. We are successfully transcending our market position as a leader in heavy-lift operations to build a diverse, global aviation services provider. Our combined company will offer a comprehensive set of capabilities, a world-class customer base, a diverse portfolio of aircraft, and the ability to service nearly every corner of the globe.”
Under the terms of the purchase agreement, EHI is being acquired from EIA for $250.0 million, consisting of $185.0 million in cash, $17.5 million in unsecured promissory notes issued by Erickson Air-Crane, and approximately four million mandatorily convertible preferred shares of Erickson Air-Crane valued at $47.5 million (based on an agreed value of $11.85 per share). The preferred shares are convertible, at the option of the Company, into an equal number of common shares, subject to shareholder approval under NASDAQ marketplace rules, which the Company intends to seek following the closing of the EHI acquisition. In addition, up to $26.3 million in contingent consideration may be payable by Erickson Air-Crane (in cash or promissory notes) to EIA based on certain revenue targets for the calendar years 2013, 2014 and 2015. Successful completion of the acquisition is contingent upon the Company obtaining financing, and subject to other customary closing conditions.
Rieder remarked, “At a purchase price multiple of less than 5.0x EHI’s 2012 Adjusted EBITDA, the acquisition of EHI is expected to be immediately accretive to EAC’s earnings per share.”
The transaction is expected to close during the second quarter of 2013.
Evergreen International Aviation, Inc. continues to operate Evergreen International Airlines (Marana). Delford M. Smith originally founded the company as Evergreen Helicopters in 1960.
Delta Air Lines’ (Atlanta) first Boeing 747 is now a permanent part of the Evergreen Wings and Waves Waterpark in McMinnville, Oregon.
Copyright Photo: TMK Photography. Please click on the photo for the full story of this new attraction.
Evergreen International Airlines’ (Marana) crewmembers, represented by the Air Line Pilots Association, Int’l (ALPA), voted for a strike if an agreement is not reached with their management. In a recent strike ballot issued by the union leadership to the pilot group, 97 percent of crewmembers voted in favor of a lawful strike, should it become necessary to conclude a fair collective agreement with Evergreen management according to ALPA. More than 86 percent of eligible pilots participated in the polling. The pilots have been in negotiations since 2005.
The parties are tentatively scheduled to go back to the negotiating table in February and remain under the jurisdiction of the National Mediation Board (NMB). A strike could ensue only after the NMB releases the parties into economic self-help after the expiration of a 30-day cooling-off period.
Copyright Photo: Tony Storck. Please click on the photo for additional aircraft details.
Evergreen International Airlines Boeing 747-230B (SF) N487EV (msn 23286) LAX (Roy Lock), originally uploaded by Airliners Gallery.
Evergreen International Airlines (Marana) is facing a possible strike by its pilots. The Master Executive Council (MEC) has announced that they are conducting a strike ballot of the membership to be prepared for all possible contingencies should negotiations fail.
EIA crewmembers, who are represented by the Air Line Pilots Association, Int’l (ALPA), have been negotiating with the company for a new contract for over six years.
Evergreen crewmembers previously turned down a tentative agreement in August. The failed agreement was largely a renewal of the current collective bargaining agreement, which has been in place since 1999. The strike ballot will open on December 1 and close January 7. If it passes, it would authorize the EIA MEC to declare a strike once the pilot group is given permission to do so by the National Mediation Board (NMB).
ALPA can request a proffer of arbitration from the NMB at any time. If the NMB issues a proffer, either party can reject arbitration. In that event, a 30-day cooling-off period would commence, after which crewmembers could legally engage in the first-ever pilot strike at Evergreen.
Copyright Photo: Roy Lock. Please click on the photo for more information on the company.
Evergreen International Airlines (Marana) crewmembers, represented by the Air Line Pilots Association, Int’l (ALPA), rejected a tentative collective bargaining agreement with management. Ninety-two percent of EIA crewmembers participated in the ratification process. Ninety-six percent of voting members cast ballots against accepting the tentative agreement.
ALPA and management negotiated for two-and-a-half years. Prior to the Evergreen crewmembers joining ALPA in 2007, negotiations were extended for over three years between the crewmembers’ independent union, The Aviators Group, and management. Mediated talks began in 2005 under the supervision of the National Mediation Board (NMB). The tentative agreement was reached in April 2010.
Copyright Photo: Bernhard Ross. Ex-Delta Boeing 747-132 N479EV (msn 19898) now known as the “Evergreen Supertanker” shows off its forest firefighting capabilities at the Hahn Airport near Frankfurt.
Evergreen International Airlines Boeing 747-230F N490EV (msn 24138) JFK (Jay Selman), originally uploaded by Airliners Gallery.
Evergreen International Airlines (Marana) crewmembers, represented by the Air Line Pilots Association, Int’l (ALPA) reached a tentative agreement that will result in a new contract if ratified by the crewmembers. Mediated contract talks ended on April 16 when the pilots’ negotiating committee achieved the tentative agreement with their management.
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Copyright Photo: Jay Selman. Boeing 747-230F N490EV (msn 24138) prepares to land at New York (JFK).
Evergreen International Airlines (Marana) is requesting concessions from its pilots and flight engineers. The pilots, represented by ALPA, are reviewing the request based on the union’s own internal economic analysis of the company’s current financial status. EIA management is seeking concessions from the pilots and flight engineers, who continue to work under 1999 wages and work rules. According to ALPA, the crewmembers are being asked to accept significant changes to a number of important work rules in light of the company’s “financial crisis,” as current circumstances were described in a recent letter from EIA’s president.
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Evergreen International Airlines (Marana) is not happy with Boeing awarding the Boeing 747 Dreamlifter contract to arch rival Atlas Air (New York-JFK). Evergreen has taken Boeing to court and is seeking $175 million in damages.
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