PHI, Inc. Announces Results for the Third Quarter Ended September 30, 2018 LAFAYETTE, La.
PHI, Inc. (The Nasdaq Select Global Market: PHII (voting) PHIIK
(non-voting)) today reported financial results for the quarter ended
September 30, 2018.
Consolidated operating revenues for the quarter ended September 30, 2018
were $168.8 million, compared to $150.2 million for the quarter ended
September 30, 2017, an increase of $18.6 million. Oil and Gas segment
operating revenues increased $17.6 million for the quarter ended
September 30, 2018. This increase is attributable principally to revenue
derived from our recently-acquired HNZ offshore business and from an
increase in revenues in our legacy international operations. Air Medical
segment operating revenues remained unchanged at $70.2 million for the
quarter ended September 30, 2018 and September 30, 2017. Technical
Services segment operating revenues increased $1.1 million. Consolidated
net loss for the quarter ended September 30, 2018 was $11.5 million
compared to net loss of $3.3 million for the quarter ended September 30,
2017.
Oil and Gas segment loss was $5.8 million for the quarter ended
September 30, 2018, compared to a loss of $6.9 million for the quarter
ended September 30, 2017. The $1.1 million decrease in segment loss is
primarily attributable to profit from our HNZ offshore business and PHI
legacy international operations, as well as cost reductions in our
legacy Gulf of Mexico operations.
Air Medical segment profit was $6.2 million for the quarter ended
September 30, 2018, compared to a segment profit of $16.0 million for
the quarter ended September 30, 2017. The $9.8 million decrease in
profit is primarily attributable to increased employee compensation
costs and decreased transports at our existing bases. The decline in
transports for existing bases is primarily due to weather-related issues.
Technical Services segment profit was less than $0.1 million for both
the quarters ended September 30, 2018 and September 30, 2017.
Unallocated selling, general and administrative costs were $7.9 million
for the quarter ended September 30, 2018 compared to $6.8 million for
the quarter ended September 30, 2017. The $1.1 million increase was
principally attributable to increase in legal and consulting fees.
For additional information, please see (i) the attachments hereto and
(ii) Form 10-Q for the quarter ended September 30, 2018 that we filed
today with the U.S. Securities and Exchange Commission.
Forward-Looking Statements
Except for historical and factual information, the matters set forth in
this release are forward-looking statements as defined by the federal
securities laws, and are subject to the “safe harbor” protections
thereunder. These forward-looking statements are not guarantees of
future results, and are based on our current expectations only, are
inherently speculative, and are subject to a number of assumptions,
risks and uncertainties, many of which are beyond our control. Actual
events and results may differ materially from those anticipated,
estimated, projected, or implied by us if one or more of these risks or
uncertainties materialize, or if our underlying assumptions prove
incorrect. Factors that could affect actual results include but are not
limited to our ability to refinance our short-term debt, adverse changes
in our access to credit markets, and to the other risks referenced in
our filings with the U.S. Securities and Exchange Commission (the
“SEC”). For all the reasons set forth above and in our SEC reports, you
are cautioned not to place undue reliance upon any of our
forward-looking statements included in this release, which speak only as
of the date made. We undertake no obligation to publicly update or
revise any of our forward-looking statements for any reason, whether as
a result of new information, future events or developments, changed
circumstances, or otherwise.
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 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)
(Unaudited)
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Quarter Ended September 30,
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Nine Months Ended September 30,
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2018
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2017
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2018
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2017
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Operating revenues, net
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$
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168,787
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$
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150,167
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$
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498,400
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$
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431,209
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Expenses:
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Direct expenses
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160,200
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136,786
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471,509
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400,250
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Selling, general and administrative expenses
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16,255
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11,401
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46,199
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38,691
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Total operating expenses
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176,455
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148,187
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517,708
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438,941
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(Gain) loss on disposal of assets
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—
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(4
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)
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708
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3
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Equity in (gain) loss of unconsolidated affiliate, net
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(118
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)
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(438
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)
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(162
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)
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1,556
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Operating (loss) income
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(7,550
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)
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2,422
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(19,854
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)
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(9,291
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)
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Interest expense
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8,357
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8,027
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24,894
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24,305
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Other income – net
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(1,845
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)
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(706
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)
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(436
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)
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(2,474
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)
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6,512
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7,321
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24,458
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21,831
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Loss before income taxes
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(14,062
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)
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(4,899
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)
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(44,312
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)
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(31,122
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Income tax benefit
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(2,531
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)
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(1,622
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)
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(8,705
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)
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(9,324
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)
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Net loss
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$
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(11,531
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)
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$
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(3,277
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)
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$
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(35,607
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)
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$
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(21,798
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)
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Weighted average shares outstanding:
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Basic
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15,816
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15,799
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15,811
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15,750
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Diluted
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15,816
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15,799
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15,811
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15,750
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Net loss per share:
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Basic
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$
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(0.73
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)
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$
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(0.21
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)
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$
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(2.25
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)
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$
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(1.38
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)
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Diluted
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$
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(0.73
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)
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$
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(0.21
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)
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$
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(2.25
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)
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$
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(1.38
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)
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A-1
Summarized financial information concerning our reportable operating
segments for the quarters and nine months ended September 30, 2018 and
2017 is as follows:
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Quarter Ended September 30,
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Nine Months Ended September 30,
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2018
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2017
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2018
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2017
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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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93,338
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$
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75,700
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$
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286,046
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$
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222,098
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Air Medical
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70,192
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70,280
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194,331
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192,840
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Technical Services
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5,257
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4,187
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18,023
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16,271
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Total operating revenues, net
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168,787
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150,167
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498,400
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431,209
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Segment direct expenses
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Oil and Gas (1)
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94,832
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81,467
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285,818
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236,878
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Air Medical
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60,358
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51,120
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170,966
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152,363
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Technical Services
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4,892
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3,761
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14,563
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12,565
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Total direct expenses
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160,082
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136,348
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471,347
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401,806
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Segment selling, general and administrative expenses
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Oil and Gas
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4,321
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1,148
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13,642
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4,501
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Air Medical
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3,666
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3,136
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10,087
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9,280
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Technical Services
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356
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338
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1,066
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1,032
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Total selling, general and administrative expenses
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8,343
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4,622
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24,795
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14,813
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Total segment direct and selling, general and administrative expenses
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168,425
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140,970
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496,142
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416,619
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Net segment (loss) profit
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Oil and Gas
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(5,815
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)
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(6,915
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)
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(13,414
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)
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(19,281
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)
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Air Medical
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6,168
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16,024
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13,278
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31,197
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Technical Services
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9
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88
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2,394
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2,674
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Total net segment profit
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362
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9,197
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2,258
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14,590
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Other, net (3)
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1,845
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710
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(272
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)
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2,471
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Unallocated selling, general and administrative costs (1) (4)
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(7,912
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)
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(6,779
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)
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(21,404
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)
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(23,878
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)
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Interest expense
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(8,357
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)
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(8,027
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)
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(24,894
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)
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(24,305
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)
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(Loss) earnings before income taxes
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$
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(14,062
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)
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$
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(4,899
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)
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$
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(44,312
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)
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$
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(31,122
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)
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(1)
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Includes equity in (earnings) of unconsolidated affiliates, net.
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(2)
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These financial measures have not been prepared in accordance with
generally accepted accounting principles (“GAAP”) and have not been
audited or reviewed by our independent registered public accounting
firm. These financial measures are therefore considered non-GAAP
financial measures. Management believes these non-GAAP financial
measures provide meaningful supplemental information regarding our
results of operations. A description of the adjustments to and
reconciliations of these non-GAAP financial measures to the most
comparable GAAP financial measures is as follows:
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Quarter Ended
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Nine Months Ended
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September 30,
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September 30,
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2018
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2017
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2018
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2017
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Total net segment profit
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$
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362
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$
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9,197
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$
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2,258
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$
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14,590
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Other, net
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1,845
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710
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(272
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)
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2,471
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Unallocated selling, general and administrative costs
|
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(7,912
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)
|
|
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(6,779
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)
|
|
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(21,404
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)
|
|
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(23,878
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)
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Interest expense
|
|
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(8,357
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)
|
|
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(8,027
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)
|
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(24,894
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)
|
|
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(24,305
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)
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(Loss) earnings before income taxes
|
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$
|
(14,062
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)
|
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$
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(4,899
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)
|
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$
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(44,312
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)
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$
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(31,122
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)
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(3)
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Consists of (gains) losses on disposition of property and equipment
and other income.
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(4)
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Represents corporate overhead expenses not allocable to segments.
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A-2
View source version on businesswire.com: https://www.businesswire.com/news/home/20181109005593/en/ Copyright Business Wire 2018
Source: Business Wire
(November 9, 2018 - 5:31 PM EST)
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