LAFAYETTE, La.--(BUSINESS WIRE)--PHI, Inc. (The Nasdaq Select Global Market: PHII (voting) PHIIK (non-voting)) today reported financial results for the year ended December 31, 2017.
Consolidated operating revenues for the year ended December 31, 2017 were $579.5 million, compared to $634.1 million for the year ended December 31, 2016, a decrease of $54.6 million compared to the year ended December 31, 2016. Oil and Gas segment operating revenues decreased $25.7 million for the year ended December 31, 2017, related primarily to decreased aircraft flight revenues resulting predominately from less aircraft on contract and decreased flight hours. Operating revenues in our Air Medical segment decreased $24.6 million due principally to decreased revenues attributable to overseas operations. Technical Services operating revenues decreased $4.2 million due to a reduction in services provided to a third party customer. Consolidated net income for the year ended December 31, 2017 was $7.5 million compared to a net loss of $26.7 million for the year ended December 31, 2016. The increase in net income is primarily due to the income tax benefit realized in the current year, primarily attributable to a change in the U.S. Federal Corporate income tax law. We had 15.8 million and 15.7 million weighted average diluted common shares outstanding during the years ended December 31, 2017 and 2016, respectively.
Oil and Gas segment loss was $28.8 million for the year ended December 31, 2017, compared to a loss of $27.3 million for the prior year period. The $1.5 million increase in segment loss was primarily due to the decreased revenues, partially offset by decreased expenses.
Air Medical segment profit was $35.8 million for the year ended December 31, 2017, compared to segment profit of $43.0 million for the year ended December 31, 2016. The $7.2 million decrease in segment profit is primarily attributable to the lapse of our overseas contract in late 2016, partially offset by an increase in profits from our U.S.-based programs.
Technical Services segment profit was $5.6 million for the year ended December 31, 2017, compared to $7.1 million for the year ended December 31, 2016. The $1.5 million decrease in segment profit is primarily attributable to a decrease in technical services provided to a third party customer.
For additional information, please see (i) the attachments hereto and (ii) the Annual Report on Form 10-K for the year ended December 31, 2017 that we filed today with the U.S. Securities and Exchange Commission.
PHI provides helicopter transportation and related services to a broad range of customers including the oil and gas and air medical industries, and also provides third-party maintenance services to select customers. PHI Voting Common Stock and Non-Voting Common Stock are traded on The NASDAQ Global Select Market (symbols PHII and PHIIK).
|PHI, INC. AND SUBSIDIARIES|
|Consolidated Statements of Operations|
(Thousands of dollars and shares, except per share data)
|Operating revenues, net||$||579,545||$||634,098||$||804,228|
|Selling, general and administrative expenses||53,817||44,418||46,422|
|Total operating expenses||600,516||636,968||733,472|
|Loss (gain) on disposition of assets, net||298||(3,350||)||339|
|Impairments of assets||368||407||—|
|Equity in loss (profit) of unconsolidated affiliate||385||(151||)||306|
|Other income, net||(2,764||)||(3,271||)||(2,211||)|
|(Loss) earnings before income taxes||(51,441||)||(27,149||)||43,256|
|Income tax (benefit) expense||(58,973||)||(469||)||16,332|
|Net earnings (loss)||$||7,532||$||(26,680||)||$||26,924|
|Earnings (loss) per share:|
|Weighted average shares outstanding:|
Summarized financial information concerning the Company’s reportable operating segments for the years ended December 31, 2017, 2016, and 2015:
|Year Ended December 31,|
|(Thousands of dollars)|
|Segment operating revenues|
|Oil and Gas||$||298,398||$||324,129||$||459,611|
|Total operating revenues||579,545||634,098||804,228|
|Segment direct expenses|
|Oil and Gas (1)||321,272||344,640||411,757|
|Total segment direct expenses||547,084||592,399||687,356|
|Segment selling, general and administrative expenses|
|Oil and Gas||5,899||6,739||6,511|
|Total segment selling, general and administrative expenses||19,746||18,808||17,771|
|Total segment expenses||566,830||611,207||705,127|
|Net segment (loss) profit (2)|
|Oil and Gas||(28,773||)||(27,250||)||41,343|
|Total net segment profit||12,715||22,891||99,101|
|Other, net (3)||2,098||6,214||1,872|
|Unallocated selling, general and administrative expenses||(34,071||)||(25,610||)||(28,651||)|
|(Loss) earnings before income taxes||$||(51,441||)||$||(27,149||)||$||43,256|
Includes equity in gain/loss of unconsolidated affiliate.
Total net segment profit has not been prepared in accordance with generally accepted accounting principles (“GAAP”). Management believes this non-GAAP financial measure provides meaningful supplemental information regarding our results of operations. A description of the adjustments to and reconciliations of total net segment profit to the most comparable GAAP financial measure is as follows:
|Total net segment profit||$||12,716||$||22,891||$||99,101|
|Unallocated selling, general and administrative costs||(34,071||)||(25,610||)||(28,651||)|
|Earnings before income taxes||$||(51,441||)||$||(27,149||)||$||43,256|
Includes gains on disposition of property and equipment, asset impairments, and other income.