PHI, Inc. Announces Results for the Second Quarter Ended June 30, 2018
LAFAYETTE, La.--(BUSINESS WIRE)--Aug 9, 2018--PHI, Inc. (The Nasdaq Select Global Market: PHII (voting) PHIIK (non-voting)) today reported financial results for the quarter ended June 30, 2018.
Consolidated operating revenues for the quarter ended June 30, 2018 were $169.2 million, compared to $146.4 million for the quarter ended June 30, 2017, an increase of $22.8 million. Oil and Gas segment operating revenues increased $22.4 million for the quarter ended June 30, 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 remained unchanged at $67.2 million for the quarter ended June 30, 2018 and June 30, 2017. Technical Services segment operating revenues increased $0.5 million due primarily to an increase in revenue from our Helipass operations and a new government contract that began in 2018, partially offset by a decrease in revenue provided to a third party customer whose service requirements typically vary from period to period. Consolidated net loss for the quarter ended June 30, 2018 was $7.1 million compared to a net loss of $3.3 million for the quarter ended June 30, 2017. The $3.3 million net loss for the quarter ended June 30, 2017 included a non-recurring credit of $6.3 million, net of tax, due to the cancellation of a warranty program on some of our medium aircraft.
Oil and Gas segment loss was $1.8 million for the quarter ended June 30, 2018, compared to a loss of $0.6 million for the quarter ended June 30, 2017. The $0.6 million loss for the quarter ended June 30, 2017 included an $8.9 million non-recurring credit for the cancellation of a warranty program on some of our medium aircraft. Excluding the 2017 non-recurring credit, the segment loss decreased $7.8 million. This decrease in segment loss is primarily attributable to profit from our HNZ offshore business and PHI legacy international operations, as well as cost reductions in our legacy Gulf of Mexico operations.
Air Medical segment profit was $7.1 million for the quarter ended June 30, 2018, compared to a segment profit of $13.6 million for the quarter ended June 30, 2017. The $6.5 million decrease in profit is primarily attributable to increased employee compensation costs, and increased variable aircraft costs due to increased flight volume.
Technical Services segment profit was $0.9 million for the quarter ended June 30, 2018, compared to $0.3 million for the quarter ended June 30, 2017. The $0.6 million increase in profit is due primarily to the revenue increases described above and decreased expenses.
Unallocated selling, general and administrative costs were $6.5 million for the quarter ended June 30, 2018 compared to $9.0 million for the quarter ended June 30, 2017. The $2.5 million decrease was principally attributable to a $1.3 million decrease in severance pay and a $0.7 million decrease in legal and consulting fees.
Al Gonsoulin commented, “We are pleased with the recent trends that we have seen in the oil and gas industry and are optimistic that our oil and gas segment is at an inflection point for an upturn in the demand for aviation services. We are also diligently working on a fiscally prudent solution for the refinancing of our bonds that are due in March 2019 and believe that we will ultimately be successful in our efforts.”
For additional information, please see (i) the attachments hereto and (ii) Form 10-Q for the quarter ended June 30, 2018 that we filed today with the U.S. Securities and Exchange Commission.
Except for historical and factual information, the matters set forth in this release are forward-looking statements as defined by the federal securities laws, and are subject to the “safe harbor” protections thereunder. These forward-looking statements are not guarantees of future results, and are based on our current expectations only, are inherently speculative, and are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control. Actual events and results may differ materially from those anticipated, estimated, projected, or implied by us if one or more of these risks or uncertainties materialize, or if our underlying assumptions prove incorrect. Factors that could affect actual results include but are not limited to our ability to refinance our short-term debt, adverse changes in our access to credit markets, and to the other risks referenced in our filings with the U.S. Securities and Exchange Commission (the “SEC”). For all the reasons set forth above and in our SEC reports, you are cautioned not to place undue reliance upon any of our forward-looking statements included in this release, which speak only as of the date made. We undertake no obligation to publicly update or revise any of our forward-looking statements for any reason, whether as a result of new information, future events or developments, changed circumstances, or otherwise.
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).
Summarized financial information concerning our reportable operating segments for the quarters and six months ended June 30, 2018 and 2017 is as follows:
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CONTACT: PHI, Inc.
Trudy McConnaughhay, 337-235-2452
Chief Financial Officer
KEYWORD: UNITED STATES NORTH AMERICA LOUISIANA
INDUSTRY KEYWORD: ENERGY OIL/GAS TRANSPORT AIR MARITIME
SOURCE: PHI, Inc.
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PUB: 08/09/2018 04:58 PM/DISC: 08/09/2018 04:58 PM