LAFAYETTE, La., Nov. 10, 2008 (GLOBE NEWSWIRE) -- PHI, Inc. (Nasdaq:PHII) (voting) (Nasdaq:PHIIK) (non-voting) today reported net earnings of $7.9 million ($0.52 per diluted share) on operating revenues of $135.5 million for the quarter ended September 30, 2008. For the same period of 2007, the Company reported net earnings of $8.6 million ($0.56 per diluted share) on operating revenues of $118.4 million. Pre-tax earnings were $13.2 million for the quarter ended September 30, 2008, compared to $13.8 million for the same period in 2007. The quarter ended September 30, 2008 includes a pretax gain on disposition of assets of $0.2 million, and a pre-tax credit of $1.6 million related to the termination of a manufacturer warranty program for a certain model aircraft. The quarter ended September 30, 2007 includes a pretax gain on disposition of assets of $7.0 million.
Operating revenues for the three months ended September 30, 2008 were $135.5 million, compared to $118.4 million for the three months ended September 30, 2007, an increase of $17.1 million. Oil and Gas operating revenues increased $9.8 million for the quarter ended September 30, 2008, due to an increase in medium and heavy contracted aircraft and increased flight hours. Operating revenues in the Air Medical segment increased $7.7 million in the current quarter, compared to the same quarter in 2007, due to increased patient transports and rates in the independent provider programs and increased hospital-based activity due to additional contract awards.
While flight hours and operating revenues increased in both segments for the quarter ended September 30, 2008, compared to the same quarter 2007, flight hours and operating revenue in our Oil and Gas segment were adversely affected by Hurricanes Gustav and Ike. Following the hurricanes, there was increased flight time as customers were inspecting and repairing their facilities offshore, which in part offset the loss of flight hours from the hurricanes. In addition to affecting flight hours, we incurred damage to some facilities as a result of the hurricanes. This damage is covered by insurance other than deductibles, which is not a material amount.
Net earnings for the nine months ended September 30, 2008 were $20.7 million, or $1.36 per diluted share, compared to $16.5 million for the nine months ended September 30, 2007, or $1.08 per diluted share. Pre-tax earnings were $34.5 million for the nine months ended September 30, 2008, compared to $26.6 million for the same period in 2007. Earnings for the nine months ended September 30, 2008 included a pre-tax gain on disposition of assets, net, of $4.5 million, an aggregate insurance charge of $2.1 million related to accidents in the second quarter discussed in our second quarter Form 10-Q, and a $1.6 million credit due to termination of the warranty program for certain aircraft. Earnings for the nine months ended September 30, 2007 included a pre-tax gain on disposition of assets, net, of $15.6 million.
Operating revenues for the nine months ended September 30, 2008 were $382.7 million, compared to $333.1 million for the same period in 2007, an increase of $49.6 million. Oil and Gas operating revenues increased $29.5 million, due to an increase in medium and heavy contracted aircraft and increased flight hours. Operating revenues in the Air Medical segment increased $20.1 million due to increased patient transports and increased rates in the independent provider programs, and increased hospital-based activity due to additional contract awards.
Flight hours for the nine months ended September 30, 2008 were 113,260, compared to 106,627 for the nine months ended September 30, 2007. The increase was primarily due to increased flight hours associated with increased patient transports in the independent provider programs and increased hospital-based activity in the Air Medical segment and increased heavy and medium aircraft flight hours in the Oil and Gas segment.
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).
PHI, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Thousands of dollars and shares, except per share data)
Quarter Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
2008 2007 2008 2007
-------- -------- -------- --------
Operating revenues $135,460 $118,401 $382,716 $333,129
Gain on disposition of assets,
net 249 6,988 4,453 15,596
Other 29 1,119 532 4,263
-------- -------- -------- --------
135,738 126,508 387,701 352,988
-------- -------- -------- --------
Expenses:
Direct expenses 110,370 101,427 318,353 291,779
Selling, general and
administrative expenses 8,368 7,374 23,291 22,306
Interest expense 3,840 3,895 11,528 12,262
-------- -------- -------- --------
122,578 112,696 353,172 326,347
-------- -------- -------- --------
Earnings before income taxes 13,160 13,812 34,529 26,641
Income taxes 5,263 5,183 13,811 10,180
-------- -------- -------- --------
Net earnings $ 7,897 $ 8,629 $ 20,718 $ 16,461
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Weighted average shares
outstanding:
Basic 15,277 15,288 15,277 15,288
Diluted 15,282 15,306 15,281 15,307
Net earnings per share
Basic $ 0.52 $ 0.56 $ 1.36 $ 1.08
Diluted $ 0.52 $ 0.56 $ 1.36 $ 1.08
Summarized financial information concerning the Company's reportable
operating segments for the quarter and nine months ended September 30,
2008 and 2007 is as follows:
Quarter Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
2008 2007 2008 2007
-------- -------- -------- --------
(Thousands of (Thousands of
dollars) dollars)
Segment operating revenues
Oil and Gas $ 86,689 $ 76,853 $243,352 $213,843
Air Medical 47,534 39,839 133,105 113,036
Technical Services 1,237 1,709 6,259 6,250
-------- -------- -------- --------
Total operating revenues 135,460 118,401 382,716 333,129
-------- -------- -------- --------
Segment direct expenses
Oil and Gas 68,074 65,805 192,157 185,000
Air Medical 41,125 34,579 121,494 102,220
Technical Services 1,171 1,043 4,702 4,559
-------- -------- -------- --------
Total direct expenses 110,370 101,427 318,353 291,779
Segment selling, general and
administrative expenses
Oil and Gas 321 406 976 1,196
Air Medical 2,045 1,882 6,237 5,721
Technical Services 15 12 49 37
-------- -------- -------- --------
Total selling, general and
administrative expenses 2,381 2,300 7,262 6,954
-------- -------- -------- --------
Total direct and selling,
general and administrative
expenses 112,751 103,727 325,615 298,733
-------- -------- -------- --------
Net segment profit
Oil and Gas 18,294 10,642 50,219 27,647
Air Medical 4,364 3,378 5,374 5,095
Technical Services 51 654 1,508 1,654
-------- -------- -------- --------
Total 22,709 14,674 57,101 34,396
Other, net 278 8,107 4,985 19,859
Unallocated selling, general
and administrative costs (5,987) (5,074) (16,029) (15,352)
Interest expense (3,840) (3,895) (11,528) (12,262)
-------- -------- -------- --------
Earnings before income taxes $ 13,160 $ 13,812 $ 34,529 $ 26,641
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Operating Statistics
The following tables present certain non-financial operational
statistics for the quarter and nine months ended September 30, 2008
and 2007:
Quarter Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
2008 2007 2008 2007
-------- -------- -------- --------
Flight hours:
Oil and Gas 29,623 27,893 84,202 82,583
Air Medical 9,860 8,620 28,355 23,636
Technical Services -- -- 703 408
-------- -------- -------- --------
Total 39,483 36,513 113,260 106,627
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Air Medical Transports 6,046 5,891 17,468 16,463
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September 30,
------------------
2008 2007
-------- --------
Aircraft operated at period end:
Oil and Gas 152 161
Air Medical 88 72
Technical Services 4 4
-------- --------
Total 244 237
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