PHI, Inc. Announces Results For The First Quarter Ended March 31, 2016

PHI, Inc. (The Nasdaq Global Market: PHII (voting) PHIIK (non-voting)) today reported financial results for the quarter ended March 31, 2016.

Consolidated operating revenues for the three months ended March 31, 2016 were $164.0 million, compared to $204.2 million for the three months ended March 31, 2016, a decrease of $40.2 million. Oil and Gas segment operating revenues decreased $32.0 million for the quarter ended March 31, 2016, related primarily to decreased aircraft flight revenues for all model types resulting predominately from fewer aircraft on contract and decreased flight hours. Operating revenues in our Air Medical segment decreased $2.3 million due principally to decreased revenues attributable to our traditional provider programs resulting from reduced overseas operations. Technical Services revenues decreased $5.9 million due primarily to a decrease of technical services provided to a third party customer. Consolidated net loss for the three months ended March 31, 2016 was $8.9 million compared to net earnings of $10.4 million for the three months ended March 31, 2015.

Oil and Gas segment loss was $5.0 million for the quarter ended March 31, 2016, compared to segment profit of $18.9 million for the quarter ended March 31, 2015. The decrease in segment profit was due to the above-described decreased revenues, which were only partially offset by decreased expenses attributable to decreased flight hours.

Air Medical segment profit was $10.4 million for the quarter ended March 31, 2016, compared to a segment profit of $9.7 million for the quarter ended March 31, 2015. The $0.7 million increase in profit is primarily attributable to the decreased operating expenses related to lower pilot compensation, maintenance expense and overseas operating costs, partially offset by decreased revenues.

Technical Services segment's profit was $1.7 million for the three months ended March 31, 2016, compared to segment profit of $2.4 million for the three months ended March 31, 2015. The decrease of $0.7 million is attributable to a decrease of services provided to a third party customer.

In response to the downturn in the oil and gas industry, we have been taking the necessary actions to preserve our organization, our assets, and our financial health. Many of these initiatives have been difficult, but necessary, to keep our company in a position to continue to service the industry we have served for over 65 years. We plan to continue these efforts as long as the industry downturn continues in an effort to manage our business as prudently and efficiently as possible.

For additional information, please see (i) the attachments hereto and (ii) Form 10-Q for the quarter ended March 31, 2016 that we filed today with the U.S. Securities and Exchange Commission.

Forward-Looking Statements

Except for historical and factual information, the matters set forth in this release are forward-looking statements as defined by the federal securities laws, and are subject to the "safe harbor" protections thereunder. These forward-looking statements are not guarantees of future results, and are based on our current expectations only, are inherently speculative, and are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control. Actual events and results may differ materially from those anticipated, estimated, projected, or implied by us if one or more of these risks or uncertainties materialize, or if our underlying assumptions prove incorrect. Factors that could affect actual results include but are not limited to our ability to successfully implement or secure the benefits of the above-described initiatives and opportunities, and to the other risks referenced in our filings with the U.S. Securities and Exchange Commission (the "SEC"). For all the reasons set forth above and in our SEC reports, you are cautioned not to place undue reliance upon any of our forward-looking statements included in this release, which speak only as of the date made. We undertake no obligation to publicly update or revise any of our forward-looking statements for any reason, whether as a result of new information, future events or developments, changed circumstances, or otherwise.

PHI provides helicopter transportation and related services to a broad range of customers including the oil and gas and air medical industries, 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

Consolidated Statements of Operations

(Thousands of dollars and shares, except per share data)

(Unaudited)
 
    Quarter Ended
March 31,
2016     2015
 
Operating revenues, net $ 164,016 $ 204,197
 
Expenses:
Direct expenses 152,554 169,207

Selling, general and administrative expenses
  11,673     11,237  
Total operating expenses 164,227 180,444
 
Loss (gain) on disposal of assets 359 (7 )

Equity in loss (income) of unconsolidated affiliate
  --     68  
Operating (loss) income (570 ) 23,692
 
Interest expense 7,533 7,170
Other income - net   (615 )   (462 )
  6,918     6,708  
 
(Loss) earnings before income taxes (7,488 ) 16,984
Income tax expense   1,444     6,621  
Net (loss) earnings $ (8,932 ) $ 10,363  
 

Weighted average shares outstanding:
Basic 15,600 15,579
Diluted 15,600 15,662
 
Net (loss) earnings per share:
Basic $ (0.57 ) $ 0.67
Diluted $ (0.57 ) $ 0.66
 

A-1
 

Unaudited summarized financial information concerning our reportable operating segments for the quarters ended March 31, 2016 and 2015 is as follows:
    Quarter Ended
March 31,
2016     2015
( Thousands of dollars)
Segment operating revenues
Oil and Gas $ 88,437 $ 120,396
Air Medical 70,060 72,385
Technical Services   5,519     11,416  
Total operating revenues   164,016     204,197  
 
Segment direct expenses
Oil and Gas 91,916 100,331
Air Medical 57,044 60,039
Technical Services   3,594     8,905  
Total segment direct expenses 152,554 169,275
 
Segment selling, general and administrative expenses
Oil and Gas 1,528 1,159
Air Medical 2,595 2,629
Technical Services   224     114  
Total selling, general and administrative expenses   4,347     3,902  
Total direct and selling, general and administrative expenses   156,901     173,177  
 
Net segment (loss) profit
Oil and Gas (5,007 ) 18,906
Air Medical 10,421 9,717
Technical Services   1,701     2,397  
Total net segment profit 7,115 31,020
 
Other, net 256 469
Unallocated selling, general and administrative costs (7,326 ) (7,335 )
Interest expense   (7,533 )   (7,170 )
(Loss) earnings before income taxes $ (7,488 ) $ 16,984  
 

A-2

View source version on businesswire.com: http://www.businesswire.com/news/home/20160509006688/en/

Copyright Business Wire 2010

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX