PHI, Inc. (The Nasdaq Global Market: PHII (voting) PHIIK (non-voting)) today reported financial results for the quarter ended June 30, 2010.

Oil and Gas segment revenues were $94.7 million for the three months ended June 30, 2010, compared to $79.0 million for the three months ended June 30, 2009, an increase of $15.7 million. Operating income was $18.7 million for the three months ended June 30, 2010, compared to $13.7 million for the three months ended June 30, 2009.

As a result of the Deepwater Horizon incident, we have experienced increased flight hours associated with work at the well site and expect this to continue until such time as activities at the well site are completed. There is also additional flight activity associated with clean-up work and expect this to continue until such time as those activities are also completed. Offsetting these increased flight hours are decreased flight hours resulting from the suspension of deepwater drilling activities in the Gulf of Mexico. Many of the deepwater drilling rigs we have been servicing are still on location (although not drilling), and therefore we are still conducting crew changes to those rigs. It is not possible to estimate how long these rigs will remain in their current status, but if these drilling rigs demobilize or leave the Gulf of Mexico, there will be a further adverse affect to our flight activity. These issues are more fully discussed in our Form 10-Q for June 30, 2010.

Air Medical segment revenues were $43.1 million for the three months ended June 30, 2010, compared to $42.6 million for the three months ended June 30, 2009, an increase of $0.5 million. Operating income was $3.7 million for the three months ended June 30, 2010, compared to $2.4 million for the three months ended June 30, 2009.

Technical Services revenues were $1.7 million for the three months ended June 30, 2010 and June 30, 2009. There was an operating loss of $0.1 million for the three months ended June 30, 2010, compared to operating income of $0.4 million for the three months ended June 30, 2009.

Operating revenues for the three months ended June 30, 2010 were $139.6 million, compared to $123.3 million for the three months ended June 30, 2009, an increase of $16.3 million. Our net income for the three months ended June 30, 2010 was $7.0 million, or $0.46 per diluted share, compared to $3.7 million for the three months ended June 30, 2009, or $0.24 per diluted share.

Flight hours for the quarter ended June 30, 2010 were 40,258, compared to 39,246 for the quarter ended June 30, 2009.

Operating revenues for the six months ended June 30, 2010 were $261.2 million, compared to $240.3 million for the same period in 2009, an increase of $20.9 million.

Our net income for the six months ended June 30, 2010 was $11.1 million, or $0.72 per diluted share, compared to $5.7 million for the six months ended June 30, 2009, or $0.38 per diluted share.

Total flight hours were 74,870 for the six months ended June 30, 2010 compared to 74,310 for the six months ended June 30, 2009.

Certain statements in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “forecast,” “anticipate,” “estimate,” “project,” “intend,” “expect,” “should,” “believe,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the Company’s actual results, performance (financial or operating) or achievements to differ materially from the results, performance (financial or operating) or achievements expressed or implied by such forward-looking statements. These factors include adverse weather, competition, the level of activity in the oil and gas industry (particularly in the Gulf of Mexico) and our ability to continue to grow patient transport volumes. These and other factors are more fully discussed in the Company’s SEC filings under “Risk Factors.”

PHI provides helicopter transportation and related services to a broad range of customers including the oil and gas industry, air medical industry and also provides third-party maintenance services to select customers. PHI Voting Common Stock and Non-Voting Common Stock are traded on The Nasdaq Global Market (symbols PHII and PHIIK).

   
PHI, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Thousands of dollars and shares, except per share data)
 
Quarter Ended Six Months Ended
June 30, June 30,
2010   2009 2010   2009
 
Operating revenues, net $ 139,597 $ 123,321 $ 261,206 $ 240,273

Gain (loss) on dispositions of assets, net
117 (107 ) 123 165
Other, principally interest income   5   65     36   128
  139,719   123,279     261,365   240,566
 
Expenses:
Direct expenses 116,101 104,912 220,308 207,039

Selling, general and administrative expenses
7,678 8,218 14,403 16,042
Interest expense   4,183   4,039     8,179   7,918
  127,962   117,169     242,890   230,999
 
Earnings before income taxes 11,757 6,110 18,475 9,567
Income tax expense   4,703   2,444     7,390   3,826
Net earnings $ 7,054 $ 3,666   $ 11,085 $ 5,741
 

Weighted average shares outstanding:
Basic 15,312 15,303 15,312 15,302
Diluted 15,312 15,307 15,312 15,305
 
Net earnings per share:
Basic $ 0.46 $ 0.24 $ 0.72 $ 0.38
Diluted $ 0.46 $ 0.24 $ 0.72 $ 0.38
   

Summarized financial information concerning our reportable operating segments for the quarters and six months ended June 30, 2010 and 2009 is as follows:
 
Quarter Ended Six Months Ended
June 30, June 30,
2010   2009 2010   2009
(Thousands of dollars) (Thousands of dollars)
Segment operating revenues
Oil and Gas $ 94,734 $ 78,970 $ 179,674 $ 153,795
Air Medical 43,101 42,628 76,670 81,721
Technical Services   1,762     1,723     4,862     4,757  
Total operating revenues   139,597     123,321     261,206     240,273  
 
Segment direct expenses
Oil and Gas 75,845 64,963 146,098 126,247
Air Medical 38,385 38,620 70,011 77,498
Technical Services   1,871     1,329     4,199     3,294  
Total direct expenses   116,101     104,912     220,308     207,039  
 
Segment selling, general and administrative expenses
Oil and Gas 157 319 424 706
Air Medical 1,004 1,619 2,299 3,108
Technical Services   7     3     14     17  
Total selling, general and administrative expenses   1,168     1,941     2,737     3,831  
Total direct and selling, general and administrative expenses   117,269     106,853     223,045     210,870  
 
Net segment profit
Oil and Gas 18,732 13,688 33,152 26,842
Air Medical 3,712 2,389 4,360 1,115
Technical Services   (116 )   391     649     1,446  
Total   22,328     16,468     38,161     29,403  
 
Other, net 122 (42 ) 159 293
Unallocated selling, general and administrative costs (6,510 ) (6,277 ) (11,666 ) (12,211 )
Interest expense   (4,183 )   (4,039 )   (8,179 )   (7,918 )
Earnings before income taxes $ 11,757   $ 6,110   $ 18,475   $ 9,567  
   

Operating Statistics
 

The following tables present certain non-financial operational statistics for the quarters and six months ended June 30, 2010 and 2009:
 
Quarter Ended Six Months Ended
June 30, June 30,
2010   2009 2010   2009
Flight hours:
Oil and Gas 31,142 30,241 58,178 56,721
Air Medical 9,116 9,005 16,207 17,211
Technical Services -- -- 485 378
Total 40,258 39,246 74,870 74,310
 
 
Air Medical Transports 5,002 5,345 8,975 10,303
 
June 30,
2010 2009
Aircraft operated at period end:
Oil and Gas 164 158
Air Medical 85 89
Technical Services 4 4
Total 253 251

Copyright Business Wire 2010

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