LAFAYETTE, La. -- (Business Wire)
PHI, Inc. (The Nasdaq Global Market: PHII (voting) PHIIK (non-voting))
today reported financial results for the quarter ended June 30, 2012.
Oil and Gas segment revenues were $104.4 million for the three months
ended June 30, 2012, compared to $90.2 million for the three months
ended June 30, 2011, an increase of $14.2 million. Flight hours were
30,833 for the current quarter, compared to 29,997 for the same quarter
in the prior year. The increase in revenues is primarily due to
increased medium and heavy aircraft flight hours and revenues, due to an
increase in deepwater drilling activity compared to the same period in
2011 when there was no significant deepwater drilling activity due to
the Macondo incident.
Our Oil and Gas segment profit was $14.3 million for the quarter ended
June 30, 2012, compared to $9.5 million for the quarter ended June 30,
2011. Operating margins (segment profit divided by operating revenues)
were 14% for the three months ended June 30, 2012, compared to 11% for
the three months ended June 30, 2011. The increase in segment profit of
$4.8 million was primarily due to increased revenues of $14.2 million,
partially offset by increased direct expenses of $9.5 million as further
discussed in our Form 10Q for the quarter ended June 30, 2012.
Air Medical segment revenues were $54.4 million for the three months
ended June 30, 2012, compared to $44.2 million for the three months
ended June 30, 2011, an increase of $10.2 million. The increase was
primarily due to increased revenue of $8.8 million in the independent
provider programs related to improved payor mix, rate increases
implemented in 2011 and 2012, and increased patient transports.
Operating revenues related to hospital based contracts increased $1.3
million. Total patient transports were 4,922 for the three months ended
June 30, 2012, compared to 4,525 for the three months ended June 30,
2011.
Our Air Medical segment profit was $9.8 million for the quarter ended
June 30, 2012, compared to $4.6 million for the quarter ended June 30,
2011. Operating margins were 18% for the three months ended June 30,
2012, compared to 10% for the three months ended June 30, 2011. The
improvement in Air Medical segment operating income is due to the
increase in transports, increases in rates in 2011 and 2012, closure of
unprofitable bases, and cost reductions.
Technical Services revenues were $1.7 million for the three months ended
June 30, 2012, compared to $1.6 million for the three months ended June
30, 2011. Direct expenses in our Technical Services segment were $2.0
million for the three months ended June 30, 2012, compared to $1.9
million for the three months ended June 30, 2011. Our Technical Services
segment’s operating loss was $0.3 million for the three months ended
June 30, 2012 and for the three months ended June 30, 2011.
Combined operating revenues for the three months ended June 30, 2012
were $160.6 million, compared to $136.0 million for the three months
ended June 30, 2011, an increase of $24.6 million.
Combined net income for the three months ended June 30, 2012 was $6.1
million, compared to net income of $0.7 million for the three months
ended June 30, 2011. Earnings before income taxes for the three months
ended June 30, 2012 was $10.1 million, compared to earnings before tax
of $1.2 million for the same period in 2011. Earnings per diluted share
were $0.39 for the current quarter, compared to earnings per diluted
share of $0.05 for the prior year quarter. The increase in earnings
before taxes for the quarter ended June 30, 2012 is primarily due to
increased revenues and segment operating profit in the Oil and Gas and
Air Medical segments as discussed above.
In April 2012, our subsidiary PHI Air Medical, L.L.C. entered into a
three-year contract with the Saudi Red Crescent Authority (“SRCA”) to
provide helicopter emergency medical services in the Kingdom of Saudi
Arabia. The contract calls for us to place eight medium aircraft in
service during 2012, along with support staff, and to operate and
maintain the aircraft for the contract term. In connection with the
contract, we have entered into an aircraft purchase agreement, pursuant
to which we would purchase and then sell seven new aircraft to the
company that will lease them to the SRCA, after we complete and
configure the aircraft for use in emergency medical services. Funds for
the purchase of the aircraft have been deposited into an escrow account
by the company that will lease the aircraft to SRCA. The SRCA project is
expected to commence flight operations in September 2012, with two
aircraft in service at that time. For additional information, please see
our Form 10Q for the quarter ended June 30, 2012.
PHI provides helicopter transportation and related services to a broad
range of customers including the oil and gas industry, air medical
industry 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 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Thousands of dollars and shares, except per share data) (Unaudited) |
|
| |
|
| |
| | Quarter Ended | | | Six Months Ended |
| | June 30, | | | June 30, |
| | 2012 |
|
| 2011 | | | 2012 |
|
| 2011 |
|
| | | | | | | | | | |
|
Operating revenues, net
| |
$
|
160,554
| | |
$
|
135,976
| | |
$
|
298,605
| | |
$
|
255,616
| |
Gain on dispositions of assets, net
| | |
679
| | | |
77
| | | |
690
| | | |
223
| |
Other, principally interest income
| |
|
57
| | |
|
93
| | |
|
363
| | |
|
636
|
|
| |
|
161,290
| | |
|
136,146
| | |
|
299,658
| | |
|
256,475
|
|
| | | | | | | | | | |
|
Expenses:
| | | | | | | | | | | |
Direct expenses
| | |
134,092
| | | |
120,443
| | | |
252,790
| | | |
228,649
| |
Selling, general and administrative expenses
| | |
9,668
| | | |
7,736
| | | |
18,508
| | | |
17,279
| |
Interest expense
| |
|
7,440
| | |
|
6,761
| | |
|
14,640
| | |
|
13,793
|
|
| |
|
151,200
| | |
|
134,940
| | |
|
285,938
| | |
|
259,721
|
|
| | | | | | | | | | |
|
Earnings (loss) before income taxes
| | |
10,090
| | | |
1,206
| | | |
13,720
| | | |
(3,246
|
)
|
Income tax expense (benefit)
| |
|
4,036
| | |
|
483
| | |
|
5,488
| | |
|
(1,298
|
)
|
Net earnings (loss)
| |
$
|
6,054
| | |
$
|
723
| | |
$
|
8,232
| | |
$
|
(1,948
|
)
|
| | | | | | | | | | |
|
Weighted average shares
| | | | | | | | | | | |
outstanding:
| | | | | | | | | | | |
Basic
| | |
15,312
| | | |
15,312
| | | |
15,312
| | | |
15,312
| |
Diluted
| | |
15,550
| | | |
15,474
| | | |
15,486
| | | |
15,312
| |
| | | | | | | | | | |
|
Net earnings (loss) per share:
| | | | | | | | | | | |
Basic
| |
$
|
0.40
| | |
$
|
0.05
| | |
$
|
0.54
| | |
$
|
(0.13
|
)
|
Diluted
| |
$
|
0.39
| | |
$
|
0.05
| | |
$
|
0.53
| | |
$
|
(0.13
|
)
|
Summarized financial information concerning our reportable operating
segments for the quarters and six months ended June 30, 2012 and 2011 is
as follows:
|
| Quarter Ended |
| Six Months Ended |
| | June 30, | | June 30, |
| | 2012 |
|
| 2011 |
| | 2012 |
|
| 2011 |
|
| |
(Thousands of dollars)
| |
(Thousands of dollars)
|
Segment operating revenues
| | | | | | | | |
Oil and Gas
| |
$
|
104,421
| | |
$
|
90,200
| | |
$
|
197,373
| | |
$
|
167,681
| |
Air Medical
| | |
54,399
| | | |
44,214
| | | |
96,553
| | | |
82,596
| |
Technical Services
| |
|
1,734
|
| |
|
1,562
|
| |
|
4,679
|
| |
|
5,340
|
|
Total operating revenues
| |
|
160,554
|
| |
|
135,976
|
| |
|
298,605
|
| |
|
255,616
|
|
| | | | | | | |
|
Segment direct expenses
| | | | | | | | |
Oil and Gas
| | |
89,252
| | | |
79,779
| | | |
169,266
| | | |
149,377
| |
Air Medical
| | |
42,847
| | | |
38,793
| | | |
80,003
| | | |
75,420
| |
Technical Services
| |
|
1,989
|
| |
|
1,871
|
| |
|
3,521
|
| |
|
3,852
|
|
Total direct expenses
| |
|
134,088
|
| |
|
120,443
|
| |
|
252,790
|
| |
|
228,649
|
|
| | | | | | | |
|
Segment selling, general and administrative expenses
| | | | | | | | |
Oil and Gas
| | |
911
| | | |
883
| | | |
1,808
| | | |
1,764
| |
Air Medical
| | |
1,720
| | | |
856
| | | |
3,375
| | | |
1,788
| |
Technical Services
| |
|
--
|
| |
|
6
|
| |
|
1
|
| |
|
19
|
|
Total selling, general and administrative expenses
| |
|
2,631
|
| |
|
1,745
|
| |
|
5,184
|
| |
|
3,571
|
|
Total direct and selling, general and administrative expenses
| |
|
136,719
|
| |
|
122,188
|
| |
|
257,974
|
| |
|
232,221
|
|
| | | | | | | |
|
Net segment profit (loss)
| | | | | | | | |
Oil and Gas
| | |
14,258
| | | |
9,538
| | | |
26,299
| | | |
16,539
| |
Air Medical
| | |
9,832
| | | |
4,565
| | | |
13,175
| | | |
5,388
| |
Technical Services
| |
|
(255
|
)
| |
|
(315
|
)
| |
|
1,157
|
| |
|
1,469
|
|
Total
| |
|
23,835
|
| |
|
13,788
|
| |
|
40,631
|
| |
|
23,396
|
|
| | | | | | | |
|
Other, net
| | |
736
| | | |
170
| | | |
1,053
| | | |
859
| |
Unallocated selling, general and administrative costs
| | |
(7,041
|
)
| | |
(5,991
|
)
| | |
(13,324
|
)
| | |
(13,708
|
)
|
Interest expense
| |
|
(7,440
|
)
| |
|
(6,761
|
)
| |
|
(14,640
|
)
| |
|
(13,793
|
)
|
Earnings (loss) before income taxes
| |
$
|
10,090
|
| |
$
|
1,206
|
| |
$
|
13,720
|
| |
$
|
(3,246
|
)
|
The following tables present certain non-financial operational
statistics for the quarters and six months ended June 30, 2012 and 2011:
|
| Quarter Ended |
| Six Months Ended |
| | June 30, | | June 30, |
| | 2012 |
| 2011 | | 2012 |
| 2011 |
Flight hours: | | | | | | | | |
Oil and Gas
| |
30,833
| |
29,997
| |
56,547
| |
54,250
|
Air Medical
| |
9,347
| |
8,737
| |
17,148
| |
16,360
|
Technical Services
| |
--
| |
--
| |
550
| |
562
|
Total
| |
40,180
| |
38,734
| |
74,245
| |
71,172
|
| | | | | | | |
|
Air Medical Transports | |
4,922
| |
4,525
| |
8,968
| |
8,560
|
| | | | | | | |
|
| | | | | | June 30, |
| | | | | | 2012 | | 2011 |
Aircraft operated at period end: | | | | | | | | |
Oil and Gas
| | | | | |
164
| |
164
|
Air Medical
| | | | | |
93
| |
88
|
Technical Services
| | | | | |
6
| |
5
|
Total
| | | | | |
263
| |
257
|
Contacts:
PHI, Inc.
Michael J. McCann, Chief Financial Officer, 337-235-2452
Source: PHI, Inc.
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