PHi announces results for Q2 ended 30 June 2012

PHi announces results for Q2 ended 30 June 2012 14 Aug, 12, Source: PHi

PHI, Inc. (The Nasdaq Global Market: PHII (voting) PHIIK (non-voting)) today reported financial results for the quarter ended June 30, 2012.

Oil and Gas segment revenues were $104.4 million for the three months ended June 30, 2012, compared to $90.2 million for the three months ended June 30, 2011, an increase of $14.2 million. Flight hours were 30,833 for the current quarter, compared to 29,997 for the same quarter in the prior year. The increase in revenues is primarily due to increased medium and heavy aircraft flight hours and revenues, due to an increase in deepwater drilling activity compared to the same period in 2011 when there was no significant deepwater drilling activity due to the Macondo incident.

Our Oil and Gas segment profit was $14.3 million for the quarter ended June 30, 2012, compared to $9.5 million for the quarter ended June 30, 2011. Operating margins (segment profit divided by operating revenues) were 14% for the three months ended June 30, 2012, compared to 11% for the three months ended June 30, 2011. The increase in segment profit of $4.8 million was primarily due to increased revenues of $14.2 million, partially offset by increased direct expenses of $9.5 million as further discussed in our Form 10Q for the quarter ended June 30, 2012.

Air Medical segment revenues were $54.4 million for the three months ended June 30, 2012, compared to $44.2 million for the three months ended June 30, 2011, an increase of $10.2 million. The increase was primarily due to increased revenue of $8.8 million in the independent provider programs related to improved payor mix, rate increases implemented in 2011 and 2012, and increased patient transports. Operating revenues related to hospital based contracts increased $1.3 million. Total patient transports were 4,922 for the three months ended June 30, 2012, compared to 4,525 for the three months ended June 30, 2011.

Our Air Medical segment profit was $9.8 million for the quarter ended June 30, 2012, compared to $4.6 million for the quarter ended June 30, 2011. Operating margins were 18% for the three months ended June 30, 2012, compared to 10% for the three months ended June 30, 2011. The improvement in Air Medical segment operating income is due to the increase in transports, increases in rates in 2011 and 2012, closure of unprofitable bases, and cost reductions.

Technical Services revenues were $1.7 million for the three months ended June 30, 2012, compared to $1.6 million for the three months ended June 30, 2011. Direct expenses in our Technical Services segment were $2.0 million for the three months ended June 30, 2012, compared to $1.9 million for the three months ended June 30, 2011. Our Technical Services segment’s operating loss was $0.3 million for the three months ended June 30, 2012 and for the three months ended June 30, 2011.

Combined operating revenues for the three months ended June 30, 2012 were $160.6 million, compared to $136.0 million for the three months ended June 30, 2011, an increase of $24.6 million.

Combined net income for the three months ended June 30, 2012 was $6.1 million, compared to net income of $0.7 million for the three months ended June 30, 2011. Earnings before income taxes for the three months ended June 30, 2012 was $10.1 million, compared to earnings before tax of $1.2 million for the same period in 2011. Earnings per diluted share were $0.39 for the current quarter, compared to earnings per diluted share of $0.05 for the prior year quarter. The increase in earnings before taxes for the quarter ended June 30, 2012 is primarily due to increased revenues and segment operating profit in the Oil and Gas and Air Medical segments as discussed above.

In April 2012, our subsidiary PHI Air Medical, L.L.C. entered into a three-year contract with the Saudi Red Crescent Authority (“SRCA”) to provide helicopter emergency medical services in the Kingdom of Saudi Arabia. The contract calls for us to place eight medium aircraft in service during 2012, along with support staff, and to operate and maintain the aircraft for the contract term. In connection with the contract, we have entered into an aircraft purchase agreement, pursuant to which we would purchase and then sell seven new aircraft to the company that will lease them to the SRCA, after we complete and configure the aircraft for use in emergency medical services. Funds for the purchase of the aircraft have been deposited into an escrow account by the company that will lease the aircraft to SRCA. The SRCA project is expected to commence flight operations in September 2012, with two aircraft in service at that time. For additional information, please see our Form 10Q for the quarter ended June 30, 2012.

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 press statement including Financial Statements see here

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