LAFAYETTE, La., Nov. 9, 2009 (GLOBE NEWSWIRE) -- PHI, Inc. (Nasdaq:PHII) (voting) (Nasdaq:PHIIK) (non-voting) today reported financial results for the quarter ended September 30, 2009.
Oil and Gas segment revenues were $79.2 million for the three months ended September 30, 2009, compared to $86.7 million for the three months ended September 30, 2008, a decrease of $7.5 million. Operating income was $13.2 million for the three months ended September 30, 2009, compared to $18.3 million for the three months ended September 30, 2008. The decrease in Oil and Gas segment operating revenues and income was due to a decrease in medium aircraft revenues resulting from a decrease in activity on the continental shelf and completion of a foreign contract in 2008. These were offset in part by an increase in deepwater activity and an increase in light aircraft flight hours.
Air Medical segment revenues were $43.3 million for the three months ended September 30, 2009, compared to $47.5 million for the three months ended September 30, 2008, a decrease of $4.2 million. Operating income was $7.5 million for the three months ended September 30, 2009, compared to $4.4 million for the three months ended September 30, 2008. The decrease in Air Medical segment operating revenues was due to a decrease in transport volume related to the economic environment and also the closure of six locations. The improvement in Air Medical operating income was due to reductions in cost, but also due to a pre-tax credit of $3.6 million related to termination of a manufacturer's warranty program.
Technical Services revenues were $1.6 million for the three months ended September 30, 2009, compared to $1.2 million for September 30, 2008. Operating income was $0.4 million for the three months ended September 30, 2009, compared to $0.1 million for the three months ended September 30, 2008.
Consolidated operating revenues for the three months ended September 30, 2009 were $124.2 million, compared to $135.5 million for the three months ended September 30, 2008, a decrease of $11.3 million. Earnings before income taxes for the three months ended September 30, 2009 were $11.6 million compared to $13.2 million for the same period in 2008. Earnings for the quarter ended September 30, 2009 included a pre-tax credit of $4.9 million related to the termination of the warranty program for certain aircraft. There was a $1.6 million credit for termination of a warranty program in the prior year quarter, and a $0.2 million pre-tax gain on disposition of assets. Our net income for the three months ended September 30, 2009 was $7.0 million, or $0.45 per diluted share, compared to $7.9 million, or $0.52 per diluted share, for the three months ended September 30, 2008.
Flight hours for the quarter ended September 30, 2009 were 37,647, compared to 39,483 for the quarter ended September 30, 2008.
Consolidated operating revenues for the nine months ended September 30, 2009 were $364.5 million, compared to $382.7 million for the same period in 2008, a decrease of $18.2 million. The decrease in operating revenues was due to the voluntary grounding of certain aircraft as a result of an accident on January 4, 2009 and also due to a decrease in medium aircraft flight activity on the continental shelf. In addition, the decrease was due to completion of a foreign contract in 2008. These amounts were offset in part by an increase in activity in the deepwater Gulf of Mexico and an increase in light aircraft flight activity.
Our net income for the nine months ended September 30, 2009 was $12.7 million, or $0.83 per diluted share, compared to $20.7 million, or $1.36 per diluted share, for the nine months ended September 30, 2008. Earnings for the nine months ended September 30, 2008 included a pre-tax gain on disposition of assets, net, of $4.2 million and an aggregate $2.1 million pre-tax insurance charge.
Total flight hours were 111,956 for the nine months ended September 30, 2009 compared to 113,620 for the nine months ended September 30, 2008.
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 and the 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,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Operating revenues, net $124,183 $135,460 $364,456 $382,716
Gain on dispositions of
assets, net 7 249 172 4,453
Other, principally interest
income 53 29 181 532
-------- -------- -------- --------
124,243 135,738 364,809 387,701
-------- -------- -------- --------
Expenses:
Direct expenses 100,972 110,370 308,011 318,353
Selling, general and
administrative expenses 7,706 8,368 23,748 23,291
Interest expense 3,976 3,840 11,894 11,528
-------- -------- -------- --------
112,654 122,578 343,653 353,172
-------- -------- -------- --------
Earnings before income taxes 11,589 13,160 21,156 34,529
Income tax expense 4,636 5,263 8,462 13,811
-------- -------- -------- --------
Net earnings $ 6,953 $ 7,897 $ 12,694 $ 20,718
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Weighted average shares
outstanding:
Basic 15,312 15,277 15,306 15,277
Diluted 15,312 15,282 15,306 15,281
Net earnings per share:
Basic $ 0.45 $ 0.52 $ 0.83 $ 1.36
Diluted $ 0.45 $ 0.52 $ 0.83 $ 1.36
Summarized financial information concerning our reportable operating
segments for the quarter and nine months ended September 30, 2009 and
2008 is as follows:
Quarter Ended Nine months Ended
September 30, September 30,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
(Thousands of (Thousands of
dollars) dollars)
Segment operating revenues,
net
Oil and Gas $ 79,216 $ 86,689 $233,011 $243,352
Air Medical 43,321 47,534 125,042 133,105
Technical Services 1,646 1,237 6,403 6,259
-------- -------- -------- --------
Total operating revenues,
net 124,183 135,460 364,456 382,716
-------- -------- -------- --------
Segment direct expenses
Oil and Gas 65,690 68,074 191,937 192,157
Air Medical 34,023 41,125 111,521 121,494
Technical Services 1,259 1,171 4,553 4,702
-------- -------- -------- --------
Total direct expenses 100,972 110,370 308,011 318,353
-------- -------- -------- --------
Segment selling, general and
administrative expenses
Oil and Gas 285 321 991 976
Air Medical 1,795 2,045 4,903 6,237
Technical Services 24 15 41 49
-------- -------- -------- --------
Total selling, general and
administrative expenses 2,104 2,381 5,935 7,262
-------- -------- -------- --------
Total direct and selling,
general and administrative
expenses 103,076 112,751 313,946 325,615
-------- -------- -------- --------
Net segment profit
Oil and Gas 13,241 18,294 40,083 50,219
Air Medical 7,503 4,364 8,618 5,374
Technical Services 363 51 1,809 1,508
-------- -------- -------- --------
Total 21,107 22,709 50,510 57,101
-------- -------- -------- --------
Other, net 60 278 353 4,985
Unallocated selling, general
and administrative costs (5,602) (5,987) (17,813) (16,029)
Interest expense (3,976) (3,840) (11,894) (11,528)
-------- -------- -------- --------
Earnings before income taxes $ 11,589 $ 13,160 $ 21,156 $ 34,529
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Operating Statistics
The following tables present certain non-financial operational
statistics for the quarter and nine months ended September 30, 2009
and 2008:
Quarter Ended Nine months Ended
September 30, September 30,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Flight hours:
Oil and Gas 28,749 29,623 85,470 84,202
Air Medical 8,898 9,860 26,108 28,355
Technical Services -- -- 378 703
-------- -------- -------- --------
Total 37,647 39,483 111,956 113,260
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Air Medical Transports 5,226 6,046 15,529 17,468
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September 30,
------------------
2009 2008
-------- --------
Aircraft operated at period
end:
Oil and Gas 163 152
Air Medical 87 88
Technical Services 4 4
-------- --------
Total 254 244
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