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,
2012.
Oil and Gas segment revenues were $115.0 million for the three months
ended September 30, 2012, compared to $96.6 million for the three months
ended September 30, 2011, an increase of $18.4 million. Flight hours
were 31,608 for the current quarter compared to 29,901 for the same
quarter in the prior year. The increase in revenue 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 Deepwater Horizon incident.
Our Oil and Gas segment profit was $19.4 million for the quarter ended
September 30, 2012, compared to $13.5 million for the quarter ended
September 30, 2011. Operating margins (segment profit divided by
operating revenues) were 17% for the three months ended September 30,
2012, compared to 14% for the three months ended September 30, 2011. The
increase in segment profit of $5.9 million was primarily due to
increased revenues of $18.4 million, partially offset by increased
direct expenses of $12.4 million. The Oil and Gas segment revenues are
primarily driven by contracted aircraft and flight hours. Costs are
primarily fixed, and are driven by the number of aircraft, and a portion
is variable which is driven by flight hours.
Air Medical segment revenues were $54.0 million for the three months
ended September 30, 2012, compared to $46.9 million for the three months
ended September 30, 2011, an increase of $7.1 million. The increase was
primarily due to increased revenue of $6.0 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 $1.1
million due primarily to revenue recorded in the quarter related to
mobilization of aircraft for the SRCA project. Total patient transports
were 4,986 for the three months ended September 30, 2012, compared to
4,881 for the three months ended September 30, 2011.
Our Air Medical segment’s profit was $7.0 million for the quarter ended
September 30, 2012, compared to $6.1 million for the quarter ended
September 30, 2011. Operating margins were 13% for the three months
ended September 30, 2012, and the three months ended September 30, 2011.
The improvement in segment profit was primarily due to an increase in
transports, increase in rates in 2011 and 2012, closure of unprofitable
bases, and cost reductions. Earnings for the three months ended
September 30, 2012 also included a net loss before tax of $2.8 million
for the SRCA project due to operational delays in startup of the
project. We expect the SRCA project to generate slightly positive
earnings for 2012 due to revenue operations increasing throughout the
fourth quarter for aircraft and contracted ground resources.
Technical Services revenues were $1.9 million for the three months ended
September 30, 2012, compared to $2.1 million for the three months ended
September 30, 2011. Direct expenses in our Technical Services segment
were $1.8 million for the three months ended September 30, 2012, and for
the three months ended September 30, 2011. Our Technical Services
segment’s profit was $0.1 million for the three months ended September
30, 2012, compared to $0.3 million for the three months ended September
30, 2011.
Oil and Gas segment revenues were $312.3 million for the nine months
ended September 30, 2012, compared to $264.3 million for the nine months
ended September 30, 2011, an increase of $48.0 million. Flight hours
were 88,155 for the nine months ended September 30, 2012, compared to
84,151 for the same period in 2011. The increase in Oil and Gas revenues
was related primarily to increased medium and heavy aircraft flight
hours and revenue due to increased deepwater drilling activity in the
Gulf of Mexico. In 2011, there was no significant deepwater drilling
activity following the Macondo incident in 2010.
Our Oil and Gas segment profit was $45.7 million for the nine months
ended September 30, 2012, compared to $30.0 million for the nine months
ended September 30, 2011. The $15.7 million increase was due to the
increase in revenues of $48.0 million, partially offset by an increase
in direct expenses of $32.2 million. Operating margins were 15% for the
nine months ended September 30, 2012, compared to 11% for the nine
months ended September 30, 2011. The increase in segment profit and
margin is primarily due to increased medium and heavy aircraft revenue
attributable to increased deepwater drilling activity in the Gulf of
Mexico, as discussed above.
Air Medical segment revenues were $150.6 million for the nine months
ended September 30, 2012, compared to $129.5 million for the nine months
ended September 30, 2011, an increase of $21.1 million or 17%. Revenues
in the independent provider programs increased $17.7 million, primarily
due to increased patient transports, improvement in the payor mix, and
rate increases implemented in the prior and current years. Revenues
related to hospital based contracts increased $3.3 million, including
revenue of $1.5 million recorded in the nine month period related to
aircraft mobilization for the SRCA project. Patient transports were
13,954 for the nine months ended September 30, 2012, compared to 13,441
for the nine months ended September 30, 2011, an increase of 513
transports. Flight hours were 26,329 for the nine months ended September
30, 2012, compared to 25,682 for the nine months ended September 30,
2011.
Our Air Medical segment profit was $20.2 million for the nine months
ended September 30, 2012, compared to $11.5 million for the nine months
ended September 30, 2011. Operating margins were 13% and 9% for the nine
months ended September 30, 2012 and 2011, respectively. The increase in
segment profit was primarily due to an increase in transports, increase
in rates in 2011 and 2012, closure of unprofitable bases, and cost
reductions. Earnings for the nine months ended September 30, 2012 also
included a net loss before tax of $3.7 million for the SRCA project due
only to operational delays in startup of the project.
Technical Services revenues were $6.6 million for the nine months ended
September 30, 2012, compared to $7.4 million for the nine months ended
September 30, 2011. Direct expenses in our Technical Services segment
were $5.4 million for the nine months ended September 30, 2012, compared
to $5.6 million for the nine months ended September 30, 2011. Our
Technical Services segment’s profit was $1.2 million for the nine months
ended September 30, 2012, compared to $1.8 million for the nine months
ended September 30, 2011. Operating margins were 19% for the nine months
ended September 30, 2012, compared to 24% for the nine months ended
September 30, 2011.
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) |
|
Summarized financial information concerning our reportable
operating segments for the quarters and nine months ended
September 30, 2012 and 2011 is as follows:
|
|
|
|
| Quarter Ended |
|
| Nine Months Ended |
| | | September 30, | | | September 30, |
| | | 2012 |
|
| 2011 | | | 2012 |
|
| 2011 |
| | |
(Thousands of dollars)
| | |
(Thousands of dollars)
|
Segment operating revenues
| | | | | | | | | | | | |
Oil and Gas
| | |
$
|
114,949
| | | |
$
|
96,611
| | | |
$
|
312,322
| | | |
$
|
264,292
| |
Air Medical
| | | |
54,004
| | | | |
46,894
| | | | |
150,557
| | | | |
129,490
| |
Technical Services
| | |
|
1,904
|
| | |
|
2,071
|
| | |
|
6,583
|
| | |
|
7,410
|
|
Total operating revenues
| | |
|
170,857
|
| | |
|
145,576
|
| | |
|
469,462
|
| | |
|
401,192
|
|
| | | | | | | | | | | |
|
Segment direct expenses
| | | | | | | | | | | | |
Oil and Gas
| | | |
94,563
| | | | |
82,196
| | | | |
263,829
| | | | |
231,573
| |
Air Medical
| | | |
45,308
| | | | |
39,673
| | | | |
125,311
| | | | |
115,093
| |
Technical Services
| | |
|
1,835
|
| | |
|
1,753
|
| | |
|
5,356
|
| | |
|
5,605
|
|
Total direct expenses
| | |
|
141,706
|
| | |
|
123,622
|
| | |
|
394,496
|
| | |
|
352,271
|
|
| | | | | | | | | | | |
|
Segment selling, general and administrative expenses
| | | | | | | | | | | | |
Oil and Gas
| | | |
1,002
| | | | |
905
| | | | |
2,810
| | | | |
2,670
| |
Air Medical
| | | |
1,698
| | | | |
1,109
| | | | |
5,073
| | | | |
2,896
| |
Technical Services
| | |
|
--
|
| | |
|
8
|
| | |
|
1
|
| | |
|
27
|
|
Total selling, general and administrative expenses
| | |
|
2,700
|
| | |
|
2,022
|
| | |
|
7,884
|
| | |
|
5,593
|
|
Total direct and selling, general and administrative expenses
| | |
|
144,406
|
| | |
|
125,644
|
| | |
|
402,380
|
| | |
|
357,864
|
|
| | | | | | | | | | | |
|
Net segment profit
| | | | | | | | | | | | |
Oil and Gas
| | | |
19,384
| | | | |
13,510
| | | | |
45,683
| | | | |
30,049
| |
Air Medical
| | | |
6,998
| | | | |
6,112
| | | | |
20,173
| | | | |
11,501
| |
Technical Services
| | |
|
69
|
| | |
|
310
|
| | |
|
1,226
|
| | |
|
1,778
|
|
Total
| | |
|
26,451
|
| | |
|
19,932
|
| | |
|
67,082
|
| | |
|
43,328
|
|
| | | | | | | | | | | |
|
Other, net
| | | |
(439
|
)
| | | |
(588
|
)
| | | |
614
| | | | |
271
| |
Unallocated selling, general and administrative costs
| | | |
(7,084
|
)
| | | |
(6,378
|
)
| | | |
(20,408
|
)
| | | |
(20,086
|
)
|
Interest expense
| | |
|
(7,488
|
)
| | |
|
(6,997
|
)
| | |
|
(22,128
|
)
| | |
|
(20,790
|
)
|
Earnings before income taxes
| | |
$
|
11,440
|
| | |
$
|
5,969
|
| | |
$
|
25,160
|
| | |
$
|
2,723
|
|
| | | | | | | | | | | | | | | | | | | |
|
|
The following tables present certain non-financial operational
statistics for the quarters and nine months ended September 30,
2012 and 2011:
|
|
|
|
| Quarter Ended |
|
| Nine Months Ended |
| | | September 30, | | | September 30, |
| | | 2012 |
|
| 2011 | | | 2012 |
|
| 2011 |
| | | | | | | | | | | |
|
Operating revenues, net
| | |
$
|
170,857
| | | |
$
|
145,576
| | | |
$
|
469,462
| | | |
$
|
401,192
| |
| | | | | | | | | | | |
|
Expenses:
| | | | | | | | | | | | |
Direct expenses
| | | |
141,706
| | | | |
123,622
| | | | |
394,496
| | | | |
352,271
| |
Selling, general and administrative expenses
| | | |
9,784
| | | | |
8,400
| | | | |
28,292
| | | | |
25,679
| |
Loss on disposal of assets, net
| | |
|
701
|
| | |
|
638
|
| | |
|
11
|
| | |
|
415
|
|
| | |
|
152,191
|
| | |
|
132,660
|
| | |
|
422,799
|
| | |
|
378,365
|
|
Operating income
| | | |
18,666
| | | | |
12,916
| | | | |
46,663
| | | | |
22,827
| |
| | | | | | | | | | | |
|
Interest expense
| | | |
7,488
| | | | |
6,997
| | | | |
22,128
| | | | |
20,790
| |
Other (income) expense, net
| | |
|
(262
|
)
| | |
|
(50
|
)
| | |
|
(625
|
)
| | |
|
(686
|
)
|
| | |
|
7,226
|
| | |
|
6,947
|
| | |
|
21,503
|
| | |
|
20,104
|
|
| | | | | | | | | | | |
|
Earnings before income taxes
| | | |
11,440
| | | | |
5,969
| | | | |
25,160
| | | | |
2,723
| |
Income tax expense
| | |
|
5,056
|
| | |
|
2,387
|
| | |
|
10,544
|
| | |
|
1,089
|
|
Net earnings
| | |
$
|
6,384
|
| | |
$
|
3,582
|
| | |
$
|
14,616
|
| | |
$
|
1,634
|
|
| | | | | | | | | | | |
|
Weighted average shares outstanding:
| | | | | | | | | | | | |
Basic
| | | |
15,312
| | | | |
15,312
| | | | |
15,312
| | | | |
15,312
| |
Diluted
| | | |
15,522
| | | | |
15,474
| | | | |
15,481
| | | | |
15,474
| |
| | | | | | | | | | | |
|
Net earnings per share:
| | | | | | | | | | | | |
Basic
| | |
$
|
0.42
| | | |
$
|
0.23
| | | |
$
|
0.96
| | | |
$
|
0.11
| |
Diluted
| | |
$
|
0.41
| | | |
$
|
0.23
| | | |
$
|
0.94
| | | |
$
|
0.11
| |
Contacts:
PHI, Inc.
Michael J. McCann, 337-235-2452
Chief
Financial Officer
Source: PHI, Inc.
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