PHi announces results for Q2 ending 30 June 2011

PHi announces results for Q2 ending 30 June 2011 4 Aug, 11, Source: PHi

PHI, Inc. (The Nasdaq Global Market: PHII (voting) PHIIK (non-voting)) today reported financial results for the quarter ended June 30, 2011.

Oil and Gas segment revenues were $90.2 million for the three months ended June 30, 2011, compared to $94.7 million for the three months ended June 30, 2010, a decrease of $4.5 million. Flight hours were 29,997 for the current quarter compared to 31,142 for the same quarter in the prior year. The decrease in revenue is due to decreased medium aircraft revenue due primarily to a decrease in deepwater drilling rig support following the Deepwater Horizon incident and delays in the resumption of drilling due to the new regulatory drilling permit process.

Air Medical segment revenues were $44.2 million for the three months ended June 30, 2011, compared to $43.1 million for the three months ended June 30, 2010, an increase of $1.1 million. The increase was primarily due to increased revenue of $1.3 million related to hospital based contracts. Revenues for the independent provider programs decreased $0.4 million due to decreased transports. Total patient transports were 4,525 for the three months ended June 30, 2011, compared to 5,002 for the three months ended June 30, 2010, a decrease of 477 transports.

Technical Services revenues were $1.6 million for the three months ended June 30, 2011, compared to $1.8 million for the three months ended June 30, 2010. The $0.2 million decrease was a result of decreased customer activity compared to the prior year quarter.

Combined operating revenues for the three months ended June 30, 2011 were $136.0 million, compared to $139.6 million for the three months ended June 30, 2010. Flight hours for the quarter ended June 30, 2011 were 38,734 compared to 40,258 for the quarter ended June 30, 2010.

Our net income for the three months ended June 30, 2011 was $0.7 million, compared to net income of $7.1 million for the three months ended June 30, 2010. Earnings before income taxes for the three months ended June 30, 2011 was $1.2 million compared to $11.8 million earnings before income taxes for the same period in 2010. The decrease in earnings before taxes for the quarter ended June 30, 2011, compared to the quarter ended June 30, 2010, was primarily due to a decrease in Oil and Gas segment earnings of $7.8 million and an increase in interest expense of $2.6 million in the second quarter of 2011, due to the refinancing of our $200 million 7.125% Senior Notes.

Combined operating revenues for the six months ended June 30, 2011 were $255.6 million, compared to $261.2 million for the six months ended June 30, 2010, a decrease of $5.6 million. Oil and Gas operating revenues decreased $12.0 million for the six months ended June 30, 2011, related primarily to decreased medium aircraft revenue due to a decrease in deepwater drilling rig support, related to the Deepwater Horizon incident and delays in the resumption of drilling due to the new regulatory drilling permitting process. Operating revenues in the Air Medical segment increased $5.9 million primarily due to increased hospital based contract revenues ($3.0 million) and increased revenues in the independent provider programs ($2.6 million) due to improved payor mix and rate increases. Total flight hours for the six months ended June 30, 2011 were 71,172, compared to 74,870 for the six months ended June 30, 2010.

Our net loss for the six months ended June 30, 2011 was $1.9 million, compared to net earnings of $11.1 million for the six months ended June 30, 2010. Loss before income taxes for the six months ended June 30, 2011 was $3.2 million, compared to earnings before income taxes of $18.5 million for the same period in 2010. The decrease in earnings before income taxes for the six months ended June 30, 2011, compared to the prior year period was primarily due to a decrease in Oil and Gas segment earnings of $14.5 million, an increase in interest expense of $5.6 million due to the refinancing of our $200 million 7.125% Senior Notes, and an increase in selling, general and administrative expense related to an increase in legal and accounting fees both due to a $1.0 million cost of diligence effort in an unsuccessful acquisition, and $0.7 million related to severance costs.

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).

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