LAFAYETTE, La.--(BUSINESS WIRE)--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 $0.8 million decrease in revenue is due primarily to a decrease of technical services provided to a third party customer whose service requirements typically vary from period to period.
For additional information, please see (i) the attachments hereto and (ii) Form 10-Q for the quarter ended March 31, 2018 that we filed today with the U.S. Securities and Exchange Commission.
PHI provides helicopter transportation and related services to a broad range of customers including the oil and gas and air medical industries, and also provides third-party maintenance services to select customers. PHI Voting Common Stock and Non-Voting Common Stock are traded on The NASDAQ Global Market (symbols PHII and PHIIK).
PHI, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(Thousands of dollars and shares, except per share data)
|Operating revenues, net||$||160,370||$||134,618|
|Selling, general and administrative expenses||15,459||13,044|
|Total operating expenses||171,685||149,557|
|Loss (gain) on disposal of assets||879||—|
|Equity in loss (earnings) of unconsolidated affiliates, net||37||1,003|
|Operating (loss) income||(12,231||)||(15,942||)|
|Other income – net||1,045||(1,064||)|
|Loss before income taxes||(21,473||)||(23,073||)|
|Income tax benefit||(4,490||)||(7,825||)|
|Weighted average shares outstanding:|
|Net loss per share:|
Unaudited summarized financial information concerning our reportable operating segments for the quarters ended March 31, 2018 and 2017 is as follows:
|(Thousands of dollars)|
|Segment operating revenues, net|
|Oil and Gas||$||95,640||$||71,731|
|Total operating revenues, net||160,370||134,618|
|Segment direct expenses (1)|
|Oil and Gas (2)||96,544||81,728|
|Total segment direct expenses||156,263||137,516|
|Segment selling, general and administrative expenses|
|Oil and Gas||4,921||1,720|
|Total segment selling, general and administrative expenses||8,458||4,939|
|Total segment expenses||164,721||142,455|
|Net segment (loss) profit|
|Oil and Gas||(5,825||)||(11,717||)|
|Total net segment profit||(4,351||)||(7,837||)|
|Other, net (3)||(1,924||)||1,064|
|Unallocated selling, general and administrative costs (1)||(7,001||)||(8,105||)|
|(Loss) earnings before income taxes||$||(21,473||)||$||(23,073||)|
(1) Included in segment direct expenses and unallocated selling, general, and administrative costs are the depreciation and amortization expense amounts below:
|(Thousands of dollars)|
|Segment Direct Expense:|
|Oil and Gas||$||11,783||$||9,862|
(2) Includes Equity in loss of unconsolidated affiliate.
(3) Consists of gains on disposition of property and equipment and other income.