August 9, 2019 - 4:30 PM EDT
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PHI, Inc. Announces Results for the Second Quarter Ended June 30, 2019

LAFAYETTE, La.

PHI, Inc. (OTC: PHIIQ (voting) PHIKQ (non-voting)) today reported financial results for the quarter ended June 30, 2019.

Consolidated operating revenues for the quarter ended June 30, 2019 were $165.2 million, compared to $169.3 for the quarter ended June 30, 2018, a decrease of $4.1 million. Oil and Gas segment operating revenues decreased $7.1 million for the quarter ended June 30, 2019. Revenues from our Gulf of Mexico operations decreased $6.0 million, primarily due to fewer aircraft on contract. Revenues from our international Oil and Gas operations decreased $1.1 million primarily due to lower flight hours in Australia, New Zealand, Trinidad, Canada and the cessation of a contract in Papua New Guinea. Air Medical segment operating revenues increased $2.4 million due principally from our newly-opened operating bases of $6.5 million, partially offset by revenue decreases of $4.1 million from existing and closed bases. Technical Services segment operating revenues increased $0.6 million due primarily to an increase in technical services provided to a third party customer.

Oil and Gas segment loss was $3.7 million for the quarter ended June 30, 2019, compared to a loss of $1.8 million for the quarter ended June 30, 2018. The $1.9 million increase in segment loss is primarily attributable to a $7.1 million decrease in revenues, partially offset by a $5.2 million decrease in aggregate segment expenses.

Air Medical segment profit was $6.1 million for the quarter ended June 30, 2019, compared to a segment profit of $7.1 million for the quarter ended June 30, 2018. The $1.0 million decrease in profit is attributable to a decrease in profit from our independent provider model bases of $2.4 million, partially offset by an increase in profit from our traditional bases and other air medical programs, net.

Technical Services segment profit was $1.4 million for the quarter ended June 30, 2019, compared to $0.9 million for the quarter ended June 30, 2018.

As a result of filing the Chapter 11 Cases in mid-March 2019, we incurred net reorganization expenses of $26.5 million during the quarter ended June 30, 2019, most of which related to the payment of professionals. Excluding these one-time charges, the resulting adjusted net loss for the quarter ended June 30, 2019 was $5.6 million, or $0.36 per share.

For additional information, please see (i) the attachments hereto and (ii) Form 10-Q for the quarter ended June 30, 2019 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 in the OTC Markets Pink Sheets (symbols PHIIQ and PHIKQ). 

 
 
 

PHI, INC. AND SUBSIDIARIES
(DEBTOR-IN-POSSESSION)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands of dollars and shares, except per share data)
(Unaudited)

 

 

 

 

 

 

 

 

 

Quarter Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

2019

 

2018

 

2019

 

2018

Operating revenues, net

 

$

165,172

 

 

$

169,243

 

 

$

317,062

 

 

$

329,607

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct expenses

 

 

153,514

 

 

 

155,083

 

 

 

310,390

 

 

 

311,309

 

Selling, general and administrative expenses

 

 

17,591

 

 

 

14,485

 

 

 

42,458

 

 

 

29,944

 

Total operating expenses

 

 

171,105

 

 

 

169,568

 

 

 

352,848

 

 

 

341,253

 

(Gain) loss on disposal of assets

 

 

(95

)

 

 

(171

)

 

 

(44

)

 

 

708

 

Equity in income of unconsolidated affiliate

 

 

(1,039

)

 

 

(81

)

 

 

(2,400

)

 

 

(45

)

Operating loss

 

 

(4,799

)

 

 

(73

)

 

 

(33,342

)

 

 

(12,309

)

Interest expense

 

 

3,927

 

 

 

8,340

 

 

 

12,093

 

 

 

16,537

 

Reorganization items, net

 

 

26,503

 

 

 

 

 

 

28,103

 

 

 

 

Other income, net

 

 

(333

)

 

 

364

 

 

 

(293

)

 

 

1,404

 

 

 

 

30,097

 

 

 

8,704

 

 

 

39,903

 

 

 

17,941

 

Loss before income taxes

 

 

(34,896

)

 

 

(8,777

)

 

 

(73,245

)

 

 

(30,250

)

Income tax (benefit) expense

 

 

(2,819

)

 

 

(1,684

)

 

 

(5,927

)

 

 

(6,175

)

Net loss

 

$

(32,077

)

 

$

(7,093

)

 

$

(67,318

)

 

$

(24,075

)

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

15,825

 

 

 

15,806

 

 

 

15,825

 

 

 

15,806

 

Diluted

 

 

15,825

 

 

 

15,806

 

 

 

15,825

 

 

 

15,806

 

Net loss per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(2.03

)

 

$

(0.45

)

 

$

(4.25

)

 

$

(1.52

)

Diluted

 

$

(2.03

)

 

$

(0.45

)

 

$

(4.25

)

 

$

(1.52

)

 

A-1

 
 
 
 

Unaudited summarized financial information concerning our reportable operating segments for the quarters and six months ended June 30, 2019 and 2018 is as follows:

 

 

Quarter Ended

June 30,

 

Six Months Ended

June 30,

 

 

2019

 

2018

 

2019

 

2018

 

 

(Thousands of dollars)

 

(Thousands of dollars)

Segment operating revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and Gas

 

$

90,023

 

 

$

97,068

 

 

$

174,969

 

 

$

192,702

 

Air Medical

 

 

69,507

 

 

 

67,151

 

 

 

126,153

 

 

 

124,139

 

Technical Services

 

 

5,642

 

 

 

5,024

 

 

 

15,940

 

 

 

12,766

 

Total operating revenues, net

 

 

165,172

 

 

 

169,243

 

 

 

317,062

 

 

 

329,607

 

Segment direct expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and Gas (1)

 

 

89,061

 

 

 

94,442

 

 

 

179,031

 

 

 

190,985

 

Air Medical

 

 

59,310

 

 

 

56,776

 

 

 

116,391

 

 

 

110,608

 

Technical Services

 

 

4,104

 

 

 

3,784

 

 

 

12,568

 

 

 

9,671

 

Total direct expenses

 

 

152,475

 

 

 

155,002

 

 

 

307,990

 

 

 

311,264

 

Segment selling, general and administrative expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and Gas

 

 

4,672

 

 

 

4,400

 

 

 

9,432

 

 

 

9,321

 

Air Medical

 

 

4,141

 

 

 

3,254

 

 

 

7,433

 

 

 

6,421

 

Technical Services

 

 

152

 

 

 

340

 

 

 

300

 

 

 

710

 

Total selling, general and administrative expenses

 

 

8,965

 

 

 

7,994

 

 

 

17,165

 

 

 

16,452

 

Total segment direct and selling, general and administrative expenses

 

 

161,440

 

 

 

162,996

 

 

 

325,155

 

 

 

327,716

 

Net segment (loss) profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and Gas

 

 

(3,710

)

 

 

(1,774

)

 

 

(13,494

)

 

 

(7,604

)

Air Medical

 

 

6,056

 

 

 

7,121

 

 

 

2,329

 

 

 

7,110

 

Technical Services

 

 

1,386

 

 

 

900

 

 

 

3,072

 

 

 

2,385

 

Total net segment profit

 

 

3,732

 

 

 

6,247

 

 

 

(8,093

)

 

 

1,891

 

Other, net (3)

 

 

428

 

 

 

(193

)

 

 

337

 

 

 

(2,112

)

Unallocated selling, general and administrative costs (1) (4)

 

 

(8,626

)

 

 

(6,491

)

 

 

(25,293

)

 

 

(13,492

)

Reorganization items, net

 

 

(26,503

)

 

 

 

 

 

(28,103

)

 

 

 

Interest expense

 

 

(3,927

)

 

 

(8,340

)

 

 

(12,093

)

 

 

(16,537

)

(Loss) earnings before income taxes

 

$

(34,896

)

 

$

(8,777

)

 

$

(73,245

)

 

$

(30,250

)

 
 

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

 

 

Depreciation and Amortization Expense

 

 

Quarter Ended

June 30,

 

Six Months Ended

June 30,

 

 

2019

 

2018

 

2019

 

2018

 

 

(Thousands of dollars)

Segment Direct Expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and Gas

 

$

11,618

 

 

$

11,486

 

 

$

22,896

 

 

$

23,269

 

Air Medical

 

 

5,485

 

 

 

6,091

 

 

 

10,771

 

 

 

11,715

 

Technical Services

 

 

133

 

 

 

142

 

 

 

204

 

 

 

287

 

Total

 

$

17,236

 

 

$

17,719

 

 

$

33,871

 

 

$

35,271

 

Unallocated SG&A

 

$

3,095

 

 

$

1,412

 

 

$

4,904

 

 

$

3,327

 

 

(2) Includes equity in (earnings) of unconsolidated affiliates, net.

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

(4) Represents corporate overhead expenses not allocable to segments.

 
 

A-2

 
 
 
 

Non-GAAP Financial Measures

The following table reconciles the Company’s adjusted net earnings (loss) and the reported net earnings (loss), which is the directly comparable financial results determined in accordance with Generally Accepted Accounting Principles (GAAP).

 
 

Reconciliation of Consolidated Adjusted Net Earnings (Loss)
(in thousands)
(unaudited)

 

 

Quarter ended,

 

June 30, 2019

 

June 30, 2018

 

Consolidated

 

Per Share

 

Consolidated

 

Per Share

Reported net (loss) income from continuing operations

$

(32,077

)

(2.03

)

$

(7,093

)

(0.45

)

Reorganization items

 

26,503

 

1.67

 

 

0

 

0

 

Income taxes

 

0

 

0

 

 

0

 

0

 

Adjusted net loss from continuing operations

$

(5,574

)

(0.36

)

$

(7,093

)

(0.45

)

 

(1) These financial measures are provided to enhance investors’ overall understanding of the Company’s current financial performance.

 
 

A-3

 
 

 

Trudy McConnaughhay
Chief Financial Officer
(337) 235-2452


Source: Business Wire (August 9, 2019 - 4:30 PM EDT)

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