LAFAYETTE, La.--(BUSINESS WIRE)--PHI, Inc. (The Nasdaq Global Market: PHII (voting) PHIIK (non-voting)) today reported financial results for the quarter ended September 30, 2016.
Consolidated operating revenues for the quarter ended September 30, 2016 were $158.1 million, compared to $214.7 million for the quarter ended September 30, 2015, a decrease of $56.6 million. Oil and Gas segment operating revenues decreased $43.6 million for the quarter ended September 30, 2016, related primarily to decreased aircraft flight revenues for all model types resulting predominately from fewer aircraft on contract and decreased flight hours. Air Medical segment operating revenues decreased $11.0 million due principally to decreased traditional provider program revenues resulting from reduced overseas operations. Technical Services segment operating revenues decreased $2.0 million due primarily to a decrease in technical services provided to a third party customer.
Oil and Gas segment loss was $7.0 million for the quarter ended September 30, 2016, compared to segment profit of $10.3 million for the quarter ended September 30, 2015. The decrease in segment profit was due to decreased revenues, which were only partially offset by decreased expenses.
Air Medical segment profit was $14.9 million for the quarter ended September 30, 2016, compared to a segment profit of $17.7 million for the quarter ended September 30, 2015. The $2.8 million decrease in profit is attributable to the decreased operating revenues, partially offset by decreased expenses.
Technical Services segment profit was less than $0.1 million for the quarter ended September 30, 2016, compared to segment profit of $0.6 million for the quarter ended September 30, 2015. The $0.5 million decrease in profit is attributable to decreased revenues described above, partially offset by decreased expenses.
Consolidated operating revenues for the nine months ended September 30, 2016 were $489.2 million, compared to $617.5 million for the nine months ended September 30, 2015, a decrease of $128.3 million. Oil and Gas segment operating revenues decreased $105.3 million for the nine months ended September 30, 2016, related primarily to decreased aircraft flight revenues for all model types resulting predominately from fewer aircraft on contract and decreased flight hours for these aircraft. Air Medical segment operating revenues decreased $19.5 million due principally to decreased traditional provider program revenues resulting from reduced overseas operations. This decrease was partially offset by increased revenues attributable to our independent provider programs, driven principally by increased transports. Technical Services segment operating revenues decreased $3.5 million due to fewer services provided to a third party customer.
Oil and Gas segment loss was $17.8 million for the nine months ended September 30, 2016, compared to segment profit of $40.5 million for the nine months ended September 30, 2015. The decrease in segment profit was due to decreased revenues, which were only partially offset by decreased expenses.
Air Medical segment profit was $39.2 million for the nine months ended September 30, 2016, compared to a segment profit of $43.0 million for the nine months ended September 30, 2015. The decrease in profit is primarily attributable to decreased revenues, which were only partially offset by the decreased aircraft operating expenses.
Technical Services segment profit was $3.8 million for the nine months ended September 30, 2016, compared to $1.8 million for the nine months ended September 30, 2015. The $2.0 million increase in profit is primarily due to decreased expenses, partially offset by decreased revenues described above.
For additional information, please see (i) the attachments hereto and (ii) Form 10-Q for the quarter ended September 30, 2016 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).
| PHI, INC. AND SUBSIDIARIES | ||||||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||||||
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(Thousands of dollars and shares, except per share data) |
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| (Unaudited) | ||||||||||||||||||||
| Quarter Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
| Operating revenues, net | $ | 158,093 | $ | 214,733 | $ | 489,245 | $ | 617,477 | ||||||||||||
| Expenses: | ||||||||||||||||||||
| Direct expenses | 144,938 | 182,064 | 449,909 | 520,099 | ||||||||||||||||
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Selling, general and administrative expenses |
13,381 | 11,575 | 36,832 | 34,859 | ||||||||||||||||
| Total operating expenses | 158,319 | 193,639 | 486,741 | 554,958 | ||||||||||||||||
| Loss (gain) on disposal of assets | 85 | (165 | ) | (3,854 | ) | (238 | ) | |||||||||||||
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Equity in loss of unconsolidated affiliate |
198 | 75 | 274 | 249 | ||||||||||||||||
| Operating (loss) income | (509 | ) | 21,184 | 6,084 | 62,508 | |||||||||||||||
| Interest expense | 7,719 | 7,366 | 22,792 | 21,691 | ||||||||||||||||
| Other income, net | (462 | ) | (472 | ) | (1,571 | ) | (1,501 | ) | ||||||||||||
| 7,257 | 6,894 | 21,221 | 20,190 | |||||||||||||||||
| (Loss) earnings before income taxes | (7,766 | ) | 14,290 | (15,137 | ) | 42,318 | ||||||||||||||
| Income tax (benefit) expense | (2,799 | ) | 6,621 | (5,515 | ) | 17,832 | ||||||||||||||
| Net (loss) earnings | $ | (4,967 | ) | $ | 7,669 | $ | (9,622 | ) | $ | 24,486 | ||||||||||
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Weighted average shares outstanding: |
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| Basic | 15,683 | 15,587 | 15,655 | 15,558 | ||||||||||||||||
| Diluted | 15,683 | 15,652 | 15,655 | 15,640 | ||||||||||||||||
| Net (loss) earnings per share: | ||||||||||||||||||||
| Basic | $ | (0.32 | ) | $ | 0.49 | $ | (0.61 | ) | $ | 1.57 | ||||||||||
| Diluted | $ | (0.32 | ) | $ | 0.49 | $ | (0.61 | ) | $ | 1.57 | ||||||||||
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A-1 |
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Unaudited summarized financial information concerning our reportable operating segments for the quarters and nine months ended September 30, 2016 and 2015 is as follows: |
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| Quarter Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
| (Thousands of dollars) | (Thousands of dollars) | |||||||||||||||||||
| Segment operating revenues | ||||||||||||||||||||
| Oil and Gas | $ | 77,551 | $ | 121,190 | $ | 249,173 | $ | 354,425 | ||||||||||||
| Air Medical | 74,482 | 85,516 | 220,089 | 239,543 | ||||||||||||||||
| Technical Services | 6,060 | 8,027 | 19,983 | 23,509 | ||||||||||||||||
| Total operating revenues, net | 158,093 | 214,733 | 489,245 | 617,477 | ||||||||||||||||
| Segment direct expenses | ||||||||||||||||||||
| Oil and Gas | 82,832 | 109,500 | 262,148 | 310,093 | ||||||||||||||||
| Air Medical | 56,562 | 65,474 | 172,603 | 189,089 | ||||||||||||||||
| Technical Services | 5,742 | 7,165 | 15,432 | 21,166 | ||||||||||||||||
| Total direct expenses | 145,136 | 182,139 | 450,183 | 520,348 | ||||||||||||||||
| Segment selling, general and administrative expenses | ||||||||||||||||||||
| Oil and Gas | 1,705 | 1,397 | 4,838 | 3,831 | ||||||||||||||||
| Air Medical | 3,056 | 2,302 | 8,293 | 7,458 | ||||||||||||||||
| Technical Services | 266 | 230 | 763 | 552 | ||||||||||||||||
| Total segment selling, general and administrative expenses | 5,027 | 3,929 | 13,894 | 11,841 | ||||||||||||||||
| Total segment expenses | 150,163 | 186,068 | 464,077 | 532,189 | ||||||||||||||||
| Net segment (loss) profit | ||||||||||||||||||||
| Oil and Gas | (6,986 | ) | 10,293 | (17,813 | ) | 40,501 | ||||||||||||||
| Air Medical | 14,864 | 17,740 | 39,193 | 42,996 | ||||||||||||||||
| Technical Services | 52 | 632 | 3,788 | 1,791 | ||||||||||||||||
| Total | 7,930 | 28,665 | 25,168 | 85,288 | ||||||||||||||||
| Other, net | 377 | 637 | 5,425 | 1,739 | ||||||||||||||||
| Unallocated selling, general and administrative costs | (8,354 | ) | (7,646 | ) | (22,938 | ) | (23,018 | ) | ||||||||||||
| Interest expense | (7,719 | ) | (7,366 | ) | (22,792 | ) | (21,691 | ) | ||||||||||||
| (Loss) earnings before income taxes | $ | (7,766 | ) | $ | 14,290 | $ | (15,137 | ) | $ | 42,318 | ||||||||||
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A-2 |
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