PHi reports results for nine months to 30th September

PHi reports results for nine months to 30th September 8 Nov, 11, Source: PHi

PHI, Inc.  today reported financial results for the quarter ended September 30, 2011.

Oil and Gas segment revenues were $96.6 million for the quarter ended September 30, 2011, compared to $89.8 million for the quarter ended September 30, 2010, an increase of $6.8 million. Flight hours were 29,901 for the current quarter compared to 30,119 for the same quarter in the prior year. The increase in revenue is primarily due to increased heavy aircraft flight hours and revenues. Also contributing to the revenue increase was increased medium aircraft ad hoc flights in the month of September for hurricane evacuations in the Gulf of Mexico.

Air Medical segment revenues were $46.9 million for the quarter ended September 30, 2011, compared to $44.3 million for the quarter ended September 30, 2010, and increase of $2.6 million. The increase was primarily due to increased revenue of $2.5 million related to hospital based contracts. Revenues for the independent provider programs increased $0.1 million. Total patient transports were 4,881 for the quarter ended September 30, 2011, compared to 5,149 for the quarter ended September 30, 2010, a decrease of 268 transports.

Technical Services revenues were $2.1 million for the quarter ended September 30, 2011, compared to $1.6 million for the quarter ended September 30, 2010.

Consolidated operating revenues for the quarter ended September 30, 2011 were $145.6 million, compared to $135.7 million for the quarter ended September 30, 2010, an increase of $9.9 million. Flight hours for the quarter ended September 30, 2011 were 39,223 compared to 39,192 for the quarter ended September 30, 2010.

Net income for the quarter ended September 30, 2011 was $3.6 million, or $0.23 per diluted share, compared to a net loss of $2.4 million for the quarter ended September 30, 2010, or $0.16 per diluted share. Pre-tax earnings were $6.0 million for the quarter ended September 30, 2011, compared to a pre-tax loss of $1.4 million for the same period in 2010. Interest expense increased $2.8 million from $4.2 million in the third quarter of 2010 to $7.0 million in the third quarter of 2011, due to the issuance of the 8.625% Senior Notes. Included in the quarter ended September 30, 2010 was a pre-tax charge of $9.5 million related to the early redemption of our 7.125% Senior Notes and a $1.5 million charge to tax expense, primarily related to an increase in our valuation allowance for foreign tax credits.

Year to date operating revenues for September 30, 2011 were $401.2 million, compared to $396.9 million for the nine months ended September 30, 2010, an increase of $4.3 million. Oil and Gas operating revenues decreased $5.2 million for the nine months ended September 30, 2011, related primarily to decreased medium aircraft flight hours and revenues resulting mainly from the continuing impact on our business of the Deepwater Horizon incident. Operating revenues in the Air Medical segment increased $8.6 million primarily due to increased revenues for hospital based contracts of $5.6 million due to increased flight hours for those contracts. There was also an increase in revenues of $3.0 million in the independent provider programs primarily due to an improved payor mix and rate increases implemented in the prior year.

Flight hours for the nine months ended September 30, 2011 were 110,395 compared to 114,061 for the nine months ended September 30, 2010. Oil and Gas segment’s flight hours decreased 4,146 hours due to a decrease in deepwater drilling activity in the Gulf of Mexico. Air Medical segment flight hours increased 432 hours for the nine months ended September 30, 2011, due to increased flight activity in hospital based contracts. Individual patient transports in the Air Medical segment were 13,441 for the nine months ended September 30, 2011, compared to transports of 14,124 for the nine months ended September 30, 2010, a decrease of 683 transports.

Net earnings for the nine months ended September 30, 2011 was $1.6 million, or $0.11 per diluted share, compared to net earnings of $8.6 million for the nine months ended September 30, 2010, or $0.56 per diluted share. Pre-tax earnings were $2.7 million for the nine months ended September 30, 2011, compared to pre-tax earnings of $17.0 million for the same period in 2010. The decrease in earnings is due primarily to a decrease in Oil and Gas segment profit of $14.2 million. In addition, the decrease is due to an increase in unallocated selling, general and administrative expense of $4.7 million. Interest expense was $20.8 million for the first nine months of 2011, compared to $12.4 million for the first nine months of 2010, an increase of $8.4 million due to the issuance of the 8.625% Senior Notes. Earnings for the nine months ended September 30, 2010 included a credit of $4.3 million in direct expense related to termination of a manufacturer’s warranty program on certain aircraft, and a $9.5 million pre-tax charge related to the early redemption of our 7.125% Senior Notes and a $1.5 million charge to tax expense, primarily related to an increase in our valuation allowance for foreign tax credits.

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).

Full numbers at http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20111107006806&div=-904361578

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