PHI, Inc. Announces Results for the Third Quarter Ended September 30, 2014

PHI, Inc. (The Nasdaq Global Market: PHII (voting) PHIIK (non-voting)) today reported financial results for the quarter ended September 30, 2014.

Consolidated operating revenues for the three months ended September 30, 2014 were $216.3 million, compared to $200.8 million for the three months ended September 30, 2013, an increase of $15.5 million. Oil and Gas operating revenues were $133.8 million for the three months ended September 30, 2014, compared to $126.0 million for the three months ended September 30, 2013, an increase of $7.8 million. The increase in this segment’s operating revenues is primarily due to increased heavy aircraft flight revenues resulting predominately from increased flight hours for these aircraft as well as incremental rate increases implemented over the past year. Operating revenues in the Air Medical segment were $79.1 million for the three months ended September 30, 2014, compared to $73.2 million for the three months ended September 30, 2013, an increase of $5.9 million. The increase in this segment’s operating revenues is primarily attributable to an expansion of our traditional provider operations, as well as increased revenues from our independent provider programs driven principally by rate increases over the past year. Technical Services revenues were $3.5 million for the three months ended September 30, 2014, compared to $1.6 million for the three months ended September 30, 2013. The increase in the segment’s operating revenues was driven by an expansion of technical services provided to a government customer under a project that we expect to complete by the end of 2014.

Oil and Gas segment profit was $27.5 million for the quarter ended September 30, 2014, compared to segment profit of $25.0 million for the quarter ended September 30, 2013. The increase in segment profit was due to increased revenues, which were only partially offset by increased segment expenses. These revenue increases are attributable primarily to the above-described increase in heavy aircraft flight revenues.

Air Medical segment profit was $15.7 million for the quarter ended September 30, 2014, compared to a segment profit of $11.8 million for the quarter ended September 30, 2013. The increase in profit is primarily attributable to the increased revenues described above, which were partially offset by the increased aircraft operating expenses.

Technical Services segment had a net loss of $0.3 million for the three months ended September 30, 2014, compared to a net loss of less than $0.1 million for the three months ended September 30, 2013.

Consolidated net earnings for the three months ended September 30, 2014 was $17.2 million, compared to net earnings of $13.8 million for the three months ended September 30, 2013. The increase in net earnings for the quarter ended September 30, 2014 is attributable to the increased profits in the Oil and Gas and Air Medical segments and a $0.6 million reduction in interest expense, partially offset by a reduction in gains on asset dispositions.

For additional information, please see (i) the attachments hereto, including a reconciliation statement which provides supplemental information reconciling our GAAP net earnings to net earnings before non-recurring items and (ii) the Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2014 that we filed today with the U.S. Securities and Exchange Commission.

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).

Summarized financial information concerning our reportable operating segments for the quarters and nine months ended September 30, 2014 and 2013 is as follows: