PHI, Inc. (“PHI”) (The Nasdaq Global Market: PHII (voting) PHIIK (non-voting)) today reported financial results for the year ended December 31, 2013.

Consolidated operating revenues for the year ended December 31, 2013 were $856.5 million, an increase of $209.8 million over the year ended December 31, 2012. Oil and Gas segment revenues were $489.0 million for 2013, compared to $424.5 million for 2012, an increase of $64.5 million. Oil and Gas Segment flight hours were 114,180 for the 2013, compared to 116,840 for 2012. The decline in flight hours is attributable to lower demand for our light and medium aircraft, partially offset by an increase in heavy aircraft flight hours. The increase in segment revenue is primarily due to increased heavy aircraft flight hours, primarily driven by the continuing improvement in the Gulf of Mexico deepwater drilling activity, and to incremental rate increases implemented over the past year. Air Medical segment revenues were $277.9 million for 2013, compared to $211.2 million 2012, an increase of $66.7 million, reflecting an increase in our traditional provider programs. Patient transports were 17,980 for 2013, compared to 18,490 for the prior year. Nonetheless, operating revenues in the independent provider programs also increased due to improved payor mix, and rate increases implemented over the past year.

Consolidated net earnings for 2013 were $59.0 million, compared to net earnings of $18.1 million for 2012. Earnings before tax for 2013 were $90.1 million compared to earnings before tax of $34.0 million in 2012. Included in earnings before tax is a net gain on the disposition of assets and impairments of $15.0 million. Earnings per diluted share were $3.77 for 2013 compared to earnings per diluted share of $1.17 for 2012.

Oil and Gas segment profit was $91.7 million for 2013, compared to segment profit of $60.4 million for 2012. The increase in segment profit was due to increased revenues, which were only partially offset by increased direct expenses. These revenue increases resulted from the above-described increases in heavy aircraft flight hours and incremental rate increases across all aircraft models implemented over the past year.

Air Medical segment profit was $37.1 million for 2013, compared to segment profit of $27.9 million for 2012. The increase in profit is primarily attributable to an expansion in the number of markets served by our traditional provider programs.

Technical Services revenues were $89.6 million for 2013, compared to $11.0 million for 2012, an increase of $78.6 million. Substantially all of this increase is attributable to the proceeds associated with selling to an Air Medical traditional provider seven aircraft that we purchased and completed prior to such sale. Direct expenses increased $80.2 million primarily due to costs associated with completing those aircraft prior to sale. These sales are one-time increases in the revenues and costs of our Technical Services segment and will only recur if our contract is amended to add additional aircraft. Notwithstanding these large non-recurring transactions, profit in this segment decreased by $1.6 million, from $3.0 million for 2012 to $1.4 million for 2013 due to lower project activity for other customers and cost increases.

We continue to focus on effective organic growth in our Oil & Gas and Air Medical divisions in areas that meet our internal guidelines.

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).

Full financial statements can be found here