LAFAYETTE, La. -- (Business Wire)
PHI, Inc. (“PHI”) (The Nasdaq Global Market: PHII (voting) PHIIK
(non-voting)) today reported financial results for the year ended
December 31, 2011.
Oil and Gas operating revenues increased $10.0 million, related
primarily to increased heavy aircraft flight hours and revenues. This
increase was offset in part by a decrease in revenues for light and
medium aircraft. Although there was an increase in revenue in the Oil
and Gas segment, flight hours and revenue for deepwater drilling support
began to achieve the same level of activity as before the Macondo
incident only in the fourth quarter of 2011. Flight hours were 111,546
for 2011, compared to 114,122 for the same period in 2010.
Net Oil and Gas segment profit was $41.6 million for the year ended
December 31, 2011, compared to $50.7 million for the year ended December
31, 2010. Revenue in the first three quarters of 2011 was adversely
affected by decreased deepwater drilling activity caused by the Macondo
oil spill in 2010. Deepwater drilling permits began to be issued and
affect our customers in approximately April 2011 and permitting activity
has improved since that time. There was also an increase in direct
expense of $20.2 million, as discussed in our Form 10-K.
Operating revenues in the Air Medical segment increased $11.2 million
primarily due to increased revenues for hospital based contracts of $8.0
million due to increased flight hours for those contracts. There was
also an increase in revenues of $3.2 million in the independent provider
programs due to an improved payor mix and rate increases implemented in
2010 and 2011. Patient transports were 17,638 for 2011, compared to
18,480 for 2010, a decrease of 842 transports. Flight hours were 33,650
for 2011, compared to 33,222 for 2010.
Net segment profit for the Air Medical segment was $15.0 million for the
year ended December 31, 2011, compared to $10.2 million for the year
ended December 31, 2010. The increase in segment profit in the Air
Medical segment was primarily due to increased revenues related to
increased activity on hospital contracts and rate increases, offset in
part by increased direct expenses of $6.1 million. Operating income for
2010 includes a credit of $3.1 million related to termination of a
manufacturer’s warranty program in 2010.
Technical Services revenues were $12.6 million for 2011, compared to
$11.0 million for 2010. Direct expenses in our Technical Services
segment were $8.0 million for 2011 compared to $8.2 million for 2010.
Our Technical Services segment’s operating income was $4.5 million for
2011, compared to operating income of $2.7 million for 2010.
Consolidated operating revenues for 2011 were $539.6 million, compared
to $517.0 million for 2010, an increase of $22.6 million, or 4%. Oil and
Gas operating revenues increased $10.0 million and operating revenues in
the Air Medical segment increased $11.2 million, as discussed above.
Flight hours for the year ended December 31, 2011 were 146,706 compared
to 149,020 for the year ended December 31, 2010.
Consolidated net earnings for 2011 were $4.9 million, compared to net
earnings of $7.1 million for 2010. Earnings before tax for 2011 were
$8.1 million compared to earnings before tax of $14.6 million in 2010.
Earnings per diluted share were $0.31 for 2011 compared to earnings per
diluted share of $0.46 for 2010. The decrease in earnings is due
primarily to the decrease in Oil and Gas segment profit of $10.0
million. As mentioned above, although there was an increase in revenue
in the Oil and Gas segment, flight hours and revenue for deepwater
drilling support began to achieve the same level of activity as before
the Macondo incident only in the fourth quarter of 2011. There was also
an increase in selling, general and administrative expense of $4.3
million further discussed in the Company’s Form 10-K. Interest expense
increased $8.6 million from $19.4 million in 2010 to $28.0 million in
2011, due to the issuance of the 8.625% Senior Notes. Earnings for 2010
included a credit of $4.3 million in direct expense related to
termination of a manufacturer’s warranty program on certain aircraft,
and a $9.5 million pre-tax charge related to the early redemption of our
7.125% Senior Notes.
Certain statements in this release constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of
1995. The words “forecast,” “anticipate,” “estimate,” “project,”
“intend,” “expect,” “should,” “believe,” and similar expressions are
intended to identify forward-looking statements. These forward-looking
statements are subject to known and unknown risks, uncertainties and
other factors that could cause the Company’s actual results, performance
(financial or operating) or achievements to differ materially from the
results, performance (financial or operating) or achievements expressed
or implied by such forward-looking statements. These factors include
adverse weather, competition, the level of activity in the oil and gas
industry (particularly in the Gulf of Mexico) and our ability to
continue to grow patient transport volumes. These and other factors are
more fully discussed in the Company’s SEC filings under “Risk Factors.”
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).
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PHI, INC. AND SUBSIDIARIES Consolidated Statements of Operations (Thousands of dollars and shares, except per share data) |
| | | | | |
|
| | Year Ended | | Year Ended | | Year Ended |
| | December 31, | | December 31, | | December 31, |
| | 2011 | | 2010 | | 2009 |
| | | | | |
|
Operating revenues, net
| |
$
|
539,626
| | |
$
|
516,935
| |
$
|
487,175
|
(Loss) gain on disposition of assets, net
| | |
(302
|
)
| | |
239
| | |
111
|
Other, principally interest income
| |
|
845
|
| |
|
178
| |
|
225
|
| |
|
540,169
|
| |
|
517,352
| |
|
487,511
|
| | | | | |
|
Expenses:
| | | | | | |
Direct expenses
| | |
469,740
| | | |
443,702
| | |
418,627
|
Selling, general and administrative expenses
| | |
34,369
| | | |
30,147
| | |
31,006
|
Interest expense
| | |
27,974
| | | |
19,389
| | |
16,037
|
Loss on debt restructuring
| |
|
--
|
| |
|
9,521
| |
|
--
|
| |
|
532,083
|
| |
|
502,759
| |
|
465,670
|
| | | | | |
|
Earnings before income taxes
| | |
8,086
| | | |
14,593
| | |
21,841
|
Income tax expense
| |
|
3,234
|
| |
|
7,476
| |
|
8,873
|
Net earnings
| |
$
|
4,852
|
| |
$
|
7,117
| |
$
|
12,968
|
| | | | | |
|
| | | | | |
|
Earnings per share:
| | | | | | |
Basic
| |
$
|
0.32
| | |
$
|
0.46
| |
$
|
0.85
|
Diluted
| |
$
|
0.31
| | |
$
|
0.46
| |
$
|
0.85
|
| | | | | |
|
Weighted average shares outstanding:
| | | | | | |
Basic
| | |
15,312
| | | |
15,312
| | |
15,307
|
Diluted
| | |
15,497
| | | |
15,337
| | |
15,307
|
| | | | | |
|
|
| |
Summarized financial information concerning the Company’s
reportable operating segments for the years ended December 31,
2011, 2010, and 2009:
|
| |
|
| | Year Ended |
| | December 31, |
| | 2011 |
| 2010 |
| 2009 |
| |
(Thousands of dollars)
|
Segment operating revenues
| | | | | | |
Oil and Gas
| |
$
|
355,406
| | |
$
|
345,402
| | |
$
|
316,198
| |
Air Medical
| | |
171,669
| | | |
160,517
| | | |
160,113
| |
Technical Services
| |
|
12,551
|
| |
|
11,016
|
| |
|
10,864
|
|
Total operating revenues
| |
|
539,626
|
| |
|
516,935
|
| |
|
487,175
|
|
| | | | | |
|
Segment direct expenses
| | | | | | |
Oil and Gas
| | |
310,281
| | | |
290,106
| | | |
263,818
| |
Air Medical
| | |
151,503
| | | |
145,356
| | | |
147,630
| |
Technical Services
| |
|
7,956
|
| |
|
8,240
|
| |
|
7,179
|
|
Total direct expenses
| | |
469,740
| | | |
443,702
| | | |
418,627
| |
| | | | | |
|
Segment selling, general and administrative expenses
| | | | | | |
Oil and Gas
| | |
3,506
| | | |
4,594
| | | |
3,636
| |
Air Medical
| | |
5,198
| | | |
4,987
| | | |
6,484
| |
Technical Services
| |
|
53
|
| |
|
31
|
| |
|
51
|
|
Total selling, general and administrative expenses
| |
|
8,757
|
| |
|
9,612
|
| |
|
10,171
|
|
Total segment direct and selling, general and administrative expenses
| |
|
478,497
|
| |
|
453,314
|
| |
|
428,798
|
|
| | | | | |
|
Net segment profit
| | | | | | |
Oil and Gas
| | |
41,619
| | | |
50,702
| | | |
48,744
| |
Air Medical
| | |
14,968
| | | |
10,174
| | | |
5,999
| |
Technical Services
| |
|
4,542
|
| |
|
2,745
|
| |
|
3,634
|
|
Total
| | |
61,129
| | | |
63,621
| | | |
58,377
| |
| | | | | |
|
Other, net
| | |
543
| | | |
417
| | | |
336
| |
Unallocated selling, general and administrative expenses
| | |
(25,612
|
)
| | |
(20,535
|
)
| | |
(20,835
|
)
|
Interest expense
| | |
(27,974
|
)
| | |
(19,389
|
)
| | |
(16,037
|
)
|
Loss on debt restructuring
| |
|
--
|
| |
|
(9,521
|
)
| |
|
--
|
|
Earnings before income taxes
| |
$
|
8,086
|
| |
$
|
14,593
|
| |
$
|
21,841
|
|
| | | | | |
|
Flight hours
| | | | | | |
Oil and Gas
| | |
111,546
| | | |
114,122
| | | |
111,527
| |
Air Medical
| | |
33,650
| | | |
33,222
| | | |
33,483
| |
Technical Services
| |
|
1,510
|
| |
|
1,676
|
| |
|
1,304
|
|
Total
| |
|
146,706
|
| |
|
149,020
|
| |
|
146,314
|
|
| | | | | |
|
Air Medical Transports
| |
|
17,638
|
| |
|
18,480
|
| |
|
19,798
|
|
| | | | | |
|
Aircraft operated at period end
| | | | | | |
Oil and Gas
| | |
167
| | | |
162
| | | |
164
| |
Air Medical
| | |
86
| | | |
89
| | | |
85
| |
Technical Services
| |
|
6
|
| |
|
5
|
| |
|
6
|
|
Total
| |
|
259
|
| |
|
256
|
| |
|
255
|
|
| | | | | |
|
Contacts:
PHI, Inc.
Michael J. McCann, 337-235-2452
Chief Financial
Officer
Source: PHI, Inc.
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