PHI, Inc. (The Nasdaq Global Market: PHII (voting) PHIIK (non-voting)) today reported financial results for the quarter ended September 30, 2015.
Consolidated operating revenues for the three months ended September 30, 2015 were $214.7 million, compared to $216.3 million for the three months ended September 30, 2014, a decrease of $1.6 million. Oil and Gas segment operating revenues decreased $12.6 million for the quarter ended September 30, 2015, related primarily to decreased aircraft flight revenues for light and medium model types resulting predominately from fewer aircraft on contract and decreased flight hours. Operating revenues in our Air Medical segment increased $6.4 million due principally to increased revenues attributable to our independent provider programs, primarily by an increase in transports. Technical Services revenues were $8.0 million for the three months ended September 30, 2015, compared to $3.5 million for the three months ended September 30, 2014. The increase in revenue is due primarily to an increase of technical services provided to a third party customer. The current projects with this customer are expected to be completed in the fourth quarter of 2015, after which additional projects are expected to begin and continue through 2016.
Oil and Gas segment profit was $10.3 million for the quarter ended September 30, 2015, compared to segment profit of $27.5 million for the quarter ended September 30, 2014. The decrease in segment profit is due to decreased revenues and increased expenses.
Air Medical segment profit was $17.7 million for the quarter ended September 30, 2015, compared to a segment profit of $15.7 million for the quarter ended September 30, 2014. The increase in segment profit is primarily attributable to the increased revenues described above, partially offset by increased operating expenses.
Technical Services segment earnings were $0.6 million for the three months ended September 30, 2015, compared to segment loss of $0.3 million for the three months ended September 30, 2014. Direct expenses increased $3.4 million compared to the prior year quarter. The increase in segment profit is attributable to the increased revenues.
Consolidated net earnings for the three months ended September 30, 2015 was $7.7 million compared to net earnings of $17.2 million for the three months ended September 30, 2014. Earnings before income taxes for the three months ended September 30, 2015 was $14.3 million compared to earnings before income tax of $28.3 million for the same period in 2014. Earnings per diluted share were $0.49 for the current quarter compared to earnings per diluted share of $1.10 for the prior year quarter. The decrease in net earnings for the quarter ended September 30, 2015 is principally attributable to the decreased profits in our Oil and Gas segment, partially offset by increased profits in our Air Medical and Technical Services segments.
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 | Nine Months Ended | |||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
| Operating revenues, net | $ | 214,733 | $ | 216,294 | $ | 617,477 | $ | 625,510 | ||||||||||||||
| Expenses: | ||||||||||||||||||||||
| Direct expenses | 182,064 | 170,531 | 520,099 | 499,541 | ||||||||||||||||||
Selling, general and administrative expenses | 11,575 | 10,903 | 34,859 | 31,891 | ||||||||||||||||||
| Total operating expenses | 193,639 | 181,434 | 554,958 | 531,432 | ||||||||||||||||||
| (Gain) loss on disposal of assets | (165 | ) | 56 | (238 | ) | 1,371 | ||||||||||||||||
Equity in loss (income) of unconsolidated affiliate | 75 | (319 | ) | 249 | (213 | ) | ||||||||||||||||
| Operating income | 21,184 | 35,123 | 62,508 | 92,920 | ||||||||||||||||||
| Interest expense | 7,366 | 7,084 | 21,691 | 22,121 | ||||||||||||||||||
| Loss on debt extinguishment | -- | -- | -- | 29,833 | ||||||||||||||||||
| Other income, net | (472 | ) | (238 | ) | (1,501 | ) | (498 | ) | ||||||||||||||
| 6,894 | 6,846 | 20,190 | 51,456 | |||||||||||||||||||
| Earnings before income taxes | 14,290 | 28,277 | 42,318 | 41,464 | ||||||||||||||||||
| Income tax expense | 6,621 | 11,028 | 17,832 | 16,168 | ||||||||||||||||||
| Net earnings | $ | 7,669 | $ | 17,249 | $ | 24,486 | $ | 25,296 | ||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||||
| Basic | 15,587 | 15,483 | 15,558 | 15,483 | ||||||||||||||||||
| Diluted | 15,652 | 15,727 | 15,640 | 15,646 | ||||||||||||||||||
| Net earnings per share: | ||||||||||||||||||||||
| Basic | $ | 0.49 | $ | 1.11 | $ | 1.57 | $ | 1.63 | ||||||||||||||
| Diluted | $ | 0.49 | $ | 1.10 | $ | 1.57 | $ | 1.62 | ||||||||||||||
A-1 | ||||||||||||||||||||||
Unaudited summarized financial information concerning our reportable operating segments for the quarters and nine months ended September 30, 2015 and 2014 is as follows: | ||||||||||||||||||||||
| Quarter Ended | Nine Months Ended | |||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
| (Thousands of dollars) | (Thousands of dollars) | |||||||||||||||||||||
| Segment operating revenues | ||||||||||||||||||||||
| Oil and Gas | $ | 121,190 | $ | 133,763 | $ | 354,425 | $ | 387,782 | ||||||||||||||
| Air Medical | 85,516 | 79,080 | 239,543 | 226,459 | ||||||||||||||||||
| Technical Services | 8,027 | 3,451 | 23,509 | 11,269 | ||||||||||||||||||
| Total operating revenues, net | 214,733 | 216,294 | 617,477 | 625,510 | ||||||||||||||||||
| Segment direct expenses | ||||||||||||||||||||||
Oil and Gas (1) | 109,500 | 105,252 | 310,093 | 306,076 | ||||||||||||||||||
| Air Medical | 65,474 | 61,215 | 189,089 | 183,320 | ||||||||||||||||||
| Technical Services | 7,165 | 3,745 | 21,166 | 9,932 | ||||||||||||||||||
| Total direct expenses | 182,139 | 170,212 | 520,348 | 499,328 | ||||||||||||||||||
| Segment selling, general and administrative expenses | ||||||||||||||||||||||
| Oil and Gas | 1,397 | 1,047 | 3,831 | 3,570 | ||||||||||||||||||
| Air Medical | 2,302 | 2,212 | 7,458 | 7,301 | ||||||||||||||||||
| Technical Services | 230 | -- | 552 | 3 | ||||||||||||||||||
| Total segment selling, general and administrative expenses | 3,929 | 3,259 | 11,841 | 10,874 | ||||||||||||||||||
| Total segment expenses | 186,068 | 173,471 | 532,189 | 510,202 | ||||||||||||||||||
| Net segment profit (loss) | ||||||||||||||||||||||
| Oil and Gas | 10,293 | 27,464 | 40,501 | 78,136 | ||||||||||||||||||
| Air Medical | 17,740 | 15,653 | 42,996 | 35,838 | ||||||||||||||||||
| Technical Services | 632 | (294 | ) | 1,791 | 1,334 | |||||||||||||||||
| Total | 28,665 | 42,823 | 85,288 | 115,308 | ||||||||||||||||||
Other, net (2) | 637 | 182 | 1,739 | (873 | ) | |||||||||||||||||
| Unallocated selling, general and administrative costs | (7,646 | ) | (7,644 | ) | (23,018 | ) | (21,017 | ) | ||||||||||||||
| Interest expense | (7,366 | ) | (7,084 | ) | (21,691 | ) | (22,121 | ) | ||||||||||||||
| Loss on debt extinguishment | -- | -- | -- | (29,833 | ) | |||||||||||||||||
| Earnings before income taxes | $ | 14,290 | $ | 28,277 | $ | 42,318 | $ | 41,464 | ||||||||||||||
______________ | ||||||||||||||||||||||
(1) Includes Equity in loss (increase) of unconsolidated affiliate. | ||||||||||||||||||||||
(2) Consists of gains on disposition of property and equipment, and other income. | ||||||||||||||||||||||
A-2 | ||||||||||||||||||||||
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Contacts:
Trudy McConnaughhay, 337-235-2452
Chief Financial
Officer
