PHI, Inc. Announces Results for the Year Ended December 31, 2015

PHI, Inc. (The Nasdaq Global Market: PHII (voting) PHIIK (non-voting)) today reported financial results for the year ended December 31, 2015.

Consolidated operating revenues for the year ended December 31, 2015 decreased $32.0 million compared to the year ended December 31, 2014. Oil and Gas segment revenues decreased $57.3 million related primarily to decreased aircraft flight revenues resulting predominately from less aircraft on contract and decreased flight hours. Operating revenues in the Air Medical segment increased $12.6 million, due principally to increased revenues attributable to our independent provider programs, driven principally by increased transports and the full year impact of rate increases implemented in the first half of 2014. Technical Services segment revenues increased $12.7 million due primarily to an increase of technical services provided to a third party customer. Consolidated net earnings for the year ended December 31, 2015 was $26.9 million, compared to net earnings of $32.7 million for the year ended December 31, 2014.

Oil and Gas segment profit was $41.3 million for 2015, compared to segment profit of $100.6 million for 2014. The decrease in segment profit was due to decreased revenues and increased direct expenses. These revenue decreases resulted from decreases in light and medium aircraft flight hours, and a decrease in the number of aircraft on contract.

Air Medical segment profit was $55.8 million for 2015, compared to segment profit of $46.8 million for 2014. The increase in profit is primarily attributable to the increased revenues resulting from our independent provider programs.

Technical Services segment’s profit was $1.9 million, compared to segment profit of $4.1 million for 2014. The decrease of $2.2 million is attributable to a loss on the above-described project attributable to higher than expected labor hours incurred.

We have diligently strived to manage our Oil and Gas operations during the market downturn by offering long-time employees voluntary early retirement packages, deferring capital expenditures as much as possible, and placing additional controls on our expenditures. We plan to continue these efforts as long as the downturn continues in an effort to manage our business prudently.

In the Air Medical segment, we are reacting to organic growth both domestic and international to utilize our surplus aircraft on opportunities that could enhance and further diversify our revenue base.

For additional information, please see (i) the attachments hereto and (ii) the Annual Report on Form 10-K for the year ended December 31, 2015 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).

Summarized financial information concerning the Company’s reportable operating segments for the years ended December 31, 2015, 2014, and 2013:

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