PHI, Inc. Announces Results for the First Quarter Ended March 31, 2018

LAFAYETTE, La.--()--PHI, Inc. (The Nasdaq Select Global Market: PHII (voting) PHIIK (non-voting)) today reported financial results for the quarter ended March 31, 2018.

Consolidated operating revenues for the three months ended March 31, 2018 were $160.4 million, compared to $134.6 million for the three months ended March 31, 2017, an increase of $25.8 million. Oil and Gas segment operating revenues increased $23.9 million for the three months ended March 31, 2018. This increase is attributable principally to revenue derived from our newly-acquired HNZ offshore business and secondarily from an increase in revenues from our legacy Oil and Gas operations. Air Medical segment operating revenues increased $1.7 million due principally to increase in revenue from our independent provider operations due to increased patient transports. Technical Services segment operating revenues increased $0.2 million due primarily to an increase in technical services provided to a third party customer.

Oil and Gas segment loss was $5.8 million for the three months ended March 31, 2018, compared to a loss of $11.7 million for the three months ended March 31, 2017. The $5.9 million decrease in segment loss is primarily attributable to a $23.9 million increase in revenues, partially offset by $18.0 million increase in expenses.

Air Medical segment loss was less than $0.1 million for the three months ended March 31, 2018, compared to a segment profit of $1.6 million for the three months ended March 31, 2017. The $1.6 million decrease in profit is primarily attributable to increased employee compensation costs, partially offset by the increased revenues.

Technical Services segment profit was $1.5 million for the three months ended March 31, 2018, compared to $2.3 million for the three months ended March 31, 2017. The $0.8 million decrease in revenue is due primarily to a decrease of technical services provided to a third party customer whose service requirements typically vary from period to period.

For additional information, please see (i) the attachments hereto and (ii) Form 10-Q for the quarter ended March 31, 2018 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

(Thousands of dollars and shares, except per share data)

 
   

Quarter Ended
March 31,

2018     2017
Operating revenues, net $ 160,370 $ 134,618
Expenses:
Direct expenses 156,226 136,513
Selling, general and administrative expenses   15,459     13,044  
Total operating expenses 171,685 149,557
Loss (gain) on disposal of assets 879
Equity in loss (earnings) of unconsolidated affiliates, net   37     1,003  
Operating (loss) income (12,231 ) (15,942 )
Interest expense 8,197 8,195
Other income – net   1,045     (1,064 )
  9,242     7,131  
Loss before income taxes (21,473 ) (23,073 )
Income tax benefit   (4,490 )   (7,825 )
Net loss $ (16,983 ) $ (15,248 )
Weighted average shares outstanding:
Basic 15,806 15,689
Diluted 15,806 15,689
Net loss per share:
Basic $ (1.07 ) $ (0.97 )
Diluted $ (1.07 ) $ (0.97 )
 

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Unaudited summarized financial information concerning our reportable operating segments for the quarters ended March 31, 2018 and 2017 is as follows:

   

Quarter Ended
March 31,

2018     2017
(Thousands of dollars)
Segment operating revenues, net
Oil and Gas $ 95,640 $ 71,731
Air Medical 56,988 55,338
Technical Services   7,742     7,549  
Total operating revenues, net   160,370     134,618  
Segment direct expenses (1)
Oil and Gas (2) 96,544 81,728
Air Medical 53,832 50,842
Technical Services   5,887     4,946  
Total segment direct expenses 156,263 137,516
Segment selling, general and administrative expenses
Oil and Gas 4,921 1,720
Air Medical 3,167 2,881
Technical Services   370     338  
Total segment selling, general and administrative expenses   8,458     4,939  
Total segment expenses   164,721     142,455  
Net segment (loss) profit
Oil and Gas (5,825 ) (11,717 )
Air Medical (11 ) 1,615
Technical Services   1,485     2,265  
Total net segment profit (4,351 ) (7,837 )
 
Other, net (3) (1,924 ) 1,064
Unallocated selling, general and administrative costs (1) (7,001 ) (8,105 )
Interest expense   (8,197 )   (8,195 )
(Loss) earnings before income taxes $ (21,473 ) $ (23,073 )
 

(1) Included in segment direct expenses and unallocated selling, general, and administrative costs are the depreciation and amortization expense amounts below:

   

Depreciation and
Amortization Expense

Quarter Ended
March 31,
2018     2017
(Thousands of dollars)
 
Segment Direct Expense:
Oil and Gas $ 11,783 $ 9,862
Air Medical 5,624 5,477
Technical Services   145   146
Total $ 17,552 $ 15,485
   
Unallocated SG&A $ 1,915 $ 1,360
 

(2) Includes Equity in loss of unconsolidated affiliate.

(3) Consists of gains on disposition of property and equipment and other income.

A-2

Contacts

PHI, Inc.
Trudy McConnaughhay, 337-235-2452
Chief Financial Officer

Contacts

PHI, Inc.
Trudy McConnaughhay, 337-235-2452
Chief Financial Officer