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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).
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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
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|
|
|
155,083
|
|
|
|
310,390
|
|
|
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311,309
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|
Selling, general and administrative expenses
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|
|
17,591
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|
|
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14,485
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|
|
|
42,458
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|
|
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29,944
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|
Total operating expenses
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|
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171,105
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|
|
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169,568
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|
|
|
352,848
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|
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341,253
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(Gain) loss on disposal of assets
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|
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(95
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)
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|
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(171
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)
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|
|
(44
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)
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|
|
708
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Equity in income of unconsolidated affiliate
|
|
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(1,039
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)
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|
|
(81
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)
|
|
|
(2,400
|
)
|
|
|
(45
|
)
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Operating loss
|
|
|
(4,799
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)
|
|
|
(73
|
)
|
|
|
(33,342
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)
|
|
|
(12,309
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)
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Interest expense
|
|
|
3,927
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|
|
|
8,340
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|
|
|
12,093
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|
|
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16,537
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|
Reorganization items, net
|
|
|
26,503
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|
|
|
—
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|
|
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28,103
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|
|
|
—
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Other income, net
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|
(333
|
)
|
|
|
364
|
|
|
|
(293
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)
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|
|
1,404
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|
|
|
|
30,097
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|
|
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8,704
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|
|
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39,903
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|
|
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17,941
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|
Loss before income taxes
|
|
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(34,896
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)
|
|
|
(8,777
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)
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|
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(73,245
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)
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|
|
(30,250
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)
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Income tax (benefit) expense
|
|
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(2,819
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)
|
|
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(1,684
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)
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|
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(5,927
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)
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|
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(6,175
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)
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Net loss
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$
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(32,077
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)
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$
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(7,093
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)
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$
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(67,318
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)
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|
$
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(24,075
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)
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Weighted average shares outstanding:
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|
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|
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Basic
|
|
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15,825
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|
|
|
15,806
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|
|
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15,825
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|
|
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15,806
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Diluted
|
|
|
15,825
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|
|
|
15,806
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|
|
|
15,825
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|
|
|
15,806
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Net loss per share:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Basic
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$
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(2.03
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)
|
|
$
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(0.45
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)
|
|
$
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(4.25
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)
|
|
$
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(1.52
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)
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Diluted
|
|
$
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(2.03
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)
|
|
$
|
(0.45
|
)
|
|
$
|
(4.25
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)
|
|
$
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(1.52
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)
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A-1
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Unaudited summarized financial information concerning our reportable operating segments for the quarters and six months ended June 30, 2019 and 2018 is as follows:
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Quarter Ended
June 30,
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Six Months Ended
June 30,
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2019
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2018
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2019
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2018
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(Thousands of dollars)
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(Thousands of dollars)
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Segment operating revenues
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Oil and Gas
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$
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90,023
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|
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$
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97,068
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|
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$
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174,969
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|
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$
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192,702
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Air Medical
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69,507
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|
|
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67,151
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|
|
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126,153
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|
|
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124,139
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Technical Services
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|
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5,642
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|
|
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5,024
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|
|
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15,940
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|
|
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12,766
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Total operating revenues, net
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165,172
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|
|
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169,243
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|
|
|
317,062
|
|
|
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329,607
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Segment direct expenses
|
|
|
|
|
|
|
|
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|
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|
|
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Oil and Gas (1)
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89,061
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|
|
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94,442
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|
|
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179,031
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|
|
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190,985
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Air Medical
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59,310
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|
|
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56,776
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|
|
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116,391
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|
|
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110,608
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Technical Services
|
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4,104
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|
|
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3,784
|
|
|
|
12,568
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|
|
|
9,671
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Total direct expenses
|
|
|
152,475
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|
|
|
155,002
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|
|
|
307,990
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|
|
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311,264
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Segment selling, general and administrative expenses
|
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|
|
|
|
|
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|
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|
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Oil and Gas
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4,672
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|
|
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4,400
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|
|
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9,432
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|
|
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9,321
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Air Medical
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4,141
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|
|
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3,254
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7,433
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|
|
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6,421
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Technical Services
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152
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|
|
|
340
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|
|
|
300
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|
710
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Total selling, general and administrative expenses
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8,965
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|
|
|
7,994
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|
|
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17,165
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|
|
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16,452
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Total segment direct and selling, general and administrative expenses
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161,440
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|
|
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162,996
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325,155
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|
|
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327,716
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Net segment (loss) profit
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|
|
|
|
|
|
|
|
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|
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Oil and Gas
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|
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(3,710
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)
|
|
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(1,774
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)
|
|
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(13,494
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)
|
|
|
(7,604
|
)
|
Air Medical
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6,056
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|
|
|
7,121
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|
|
|
2,329
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|
|
|
7,110
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Technical Services
|
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1,386
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|
|
|
900
|
|
|
|
3,072
|
|
|
|
2,385
|
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Total net segment profit
|
|
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3,732
|
|
|
|
6,247
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|
|
|
(8,093
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)
|
|
|
1,891
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Other, net (3)
|
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|
428
|
|
|
|
(193
|
)
|
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|
337
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|
|
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(2,112
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)
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Unallocated selling, general and administrative costs (1) (4)
|
|
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(8,626
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)
|
|
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(6,491
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)
|
|
|
(25,293
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)
|
|
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(13,492
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)
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Reorganization items, net
|
|
|
(26,503
|
)
|
|
|
—
|
|
|
|
(28,103
|
)
|
|
|
—
|
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Interest expense
|
|
|
(3,927
|
)
|
|
|
(8,340
|
)
|
|
|
(12,093
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)
|
|
|
(16,537
|
)
|
(Loss) earnings before income taxes
|
|
$
|
(34,896
|
)
|
|
$
|
(8,777
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)
|
|
$
|
(73,245
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)
|
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$
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(30,250
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)
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(1) Included in direct expenses and unallocated selling, general, and administrative costs are the depreciation and amortization expense amounts below:
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Depreciation and Amortization Expense
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Quarter Ended
June 30,
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Six Months Ended
June 30,
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2019
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2018
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2019
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|
2018
|
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(Thousands of dollars)
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Segment Direct Expense:
|
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|
|
|
|
|
|
|
|
|
|
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|
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Oil and Gas
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$
|
11,618
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|
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$
|
11,486
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|
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$
|
22,896
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|
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$
|
23,269
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|
Air Medical
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5,485
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|
|
|
6,091
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|
|
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10,771
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|
|
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11,715
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|
Technical Services
|
|
|
133
|
|
|
|
142
|
|
|
|
204
|
|
|
|
287
|
|
Total
|
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$
|
17,236
|
|
|
$
|
17,719
|
|
|
$
|
33,871
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|
|
$
|
35,271
|
|
Unallocated SG&A
|
|
$
|
3,095
|
|
|
$
|
1,412
|
|
|
$
|
4,904
|
|
|
$
|
3,327
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|
|
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(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.
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A-2
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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).
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Reconciliation of Consolidated Adjusted Net Earnings (Loss)
(in thousands)
(unaudited)
|
|
|
Quarter ended,
|
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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
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)
|
|
(0.45
|
)
|
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(1) These financial measures are provided to enhance investors’ overall understanding of the Company’s current financial performance.
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A-3
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View source version on businesswire.com: https://www.businesswire.com/news/home/20190809005406/en/ Copyright Business Wire 2019
Source: Business Wire
(August 9, 2019 - 4:30 PM EDT)
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