LAFAYETTE, La.--(BUSINESS WIRE)--
PHI, Inc. (The Nasdaq Select Global Market: PHII (voting) PHIIK (non-voting)) today reported financial results for the quarter ended March 31, 2018.
Consolidated operating revenues for the three months ended March 31, 2018 were $160.4 million, compared to $134.6 million for the three months ended March 31, 2017, an increase of $25.8 million. Oil and Gas segment operating revenues increased $23.9 million for the three months ended March 31, 2018. This increase is attributable principally to revenue derived from our newly-acquired HNZ offshore business and secondarily from an increase in revenues from our legacy Oil and Gas operations. Air Medical segment operating revenues increased $1.7 million due principally to increase in revenue from our independent provider operations due to increased patient transports. Technical Services segment operating revenues increased $0.2 million due primarily to an increase in technical services provided to a third party customer.
Oil and Gas segment loss was $5.8 million for the three months ended March 31, 2018, compared to a loss of $11.7 million for the three months ended March 31, 2017. The $5.9 million decrease in segment loss is primarily attributable to a $23.9 million increase in revenues, partially offset by $18.0 million increase in expenses.
Air Medical segment loss was less than $0.1 million for the three months ended March 31, 2018, compared to a segment profit of $1.6 million for the three months ended March 31, 2017. The $1.6 million decrease in profit is primarily attributable to increased employee compensation costs, partially offset by the increased revenues.
Technical Services segment profit was $1.5 million for the three months ended March 31, 2018, compared to $2.3 million for the three months ended March 31, 2017. The $0.8 million decrease in revenue is due primarily to a decrease of technical services provided to a third party customer whose service requirements typically vary from period to period.
For additional information, please see (i) the attachments hereto and (ii) Form 10-Q for the quarter ended March 31, 2018 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 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) |
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Quarter Ended |
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| 2018 | 2017 | |||||||||
| Operating revenues, net | $ | 160,370 | $ | 134,618 | ||||||
| Expenses: | ||||||||||
| Direct expenses | 156,226 | 136,513 | ||||||||
| Selling, general and administrative expenses | 15,459 | 13,044 | ||||||||
| Total operating expenses | 171,685 | 149,557 | ||||||||
| Loss (gain) on disposal of assets | 879 | — | ||||||||
| Equity in loss (earnings) of unconsolidated affiliates, net | 37 | 1,003 | ||||||||
| Operating (loss) income | (12,231 | ) | (15,942 | ) | ||||||
| Interest expense | 8,197 | 8,195 | ||||||||
| Other income – net | 1,045 | (1,064 | ) | |||||||
| 9,242 | 7,131 | |||||||||
| Loss before income taxes | (21,473 | ) | (23,073 | ) | ||||||
| Income tax benefit | (4,490 | ) | (7,825 | ) | ||||||
| Net loss | $ | (16,983 | ) | $ | (15,248 | ) | ||||
| Weighted average shares outstanding: | ||||||||||
| Basic | 15,806 | 15,689 | ||||||||
| Diluted | 15,806 | 15,689 | ||||||||
| Net loss per share: | ||||||||||
| Basic | $ | (1.07 | ) | $ | (0.97 | ) | ||||
| Diluted | $ | (1.07 | ) | $ | (0.97 | ) | ||||
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A-1 |
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Unaudited summarized financial information concerning our reportable operating segments for the quarters ended March 31, 2018 and 2017 is as follows:
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Quarter Ended |
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| 2018 | 2017 | |||||||||
| (Thousands of dollars) | ||||||||||
| Segment operating revenues, net | ||||||||||
| Oil and Gas | $ | 95,640 | $ | 71,731 | ||||||
| Air Medical | 56,988 | 55,338 | ||||||||
| Technical Services | 7,742 | 7,549 | ||||||||
| Total operating revenues, net | 160,370 | 134,618 | ||||||||
| Segment direct expenses (1) | ||||||||||
| Oil and Gas (2) | 96,544 | 81,728 | ||||||||
| Air Medical | 53,832 | 50,842 | ||||||||
| Technical Services | 5,887 | 4,946 | ||||||||
| Total segment direct expenses | 156,263 | 137,516 | ||||||||
| Segment selling, general and administrative expenses | ||||||||||
| Oil and Gas | 4,921 | 1,720 | ||||||||
| Air Medical | 3,167 | 2,881 | ||||||||
| Technical Services | 370 | 338 | ||||||||
| Total segment selling, general and administrative expenses | 8,458 | 4,939 | ||||||||
| Total segment expenses | 164,721 | 142,455 | ||||||||
| Net segment (loss) profit | ||||||||||
| Oil and Gas | (5,825 | ) | (11,717 | ) | ||||||
| Air Medical | (11 | ) | 1,615 | |||||||
| Technical Services | 1,485 | 2,265 | ||||||||
| Total net segment profit | (4,351 | ) | (7,837 | ) | ||||||
| Other, net (3) | (1,924 | ) | 1,064 | |||||||
| Unallocated selling, general and administrative costs (1) | (7,001 | ) | (8,105 | ) | ||||||
| Interest expense | (8,197 | ) | (8,195 | ) | ||||||
| (Loss) earnings before income taxes | $ | (21,473 | ) | $ | (23,073 | ) | ||||
(1) Included in segment direct expenses and unallocated selling, general, and administrative costs are the depreciation and amortization expense amounts below:
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Depreciation and |
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| Quarter Ended | ||||||||
| March 31, | ||||||||
| 2018 | 2017 | |||||||
| (Thousands of dollars) | ||||||||
| Segment Direct Expense: | ||||||||
| Oil and Gas | $ | 11,783 | $ | 9,862 | ||||
| Air Medical | 5,624 | 5,477 | ||||||
| Technical Services | 145 | 146 | ||||||
| Total | $ | 17,552 | $ | 15,485 | ||||
| Unallocated SG&A | $ | 1,915 | $ | 1,360 | ||||
(2) Includes Equity in loss of unconsolidated affiliate.
(3) Consists of gains on disposition of property and equipment and other income.
A-2
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