LAFAYETTE, La.--(BUSINESS WIRE)--
PHI, Inc. (The Nasdaq Global Market: PHII (voting) PHIIK (non-voting)) today reported financial results for the quarter ended March 31, 2013.
Consolidated operating revenues for the three months ended March 31, 2013 increased $40.9 million compared to the three months ended March 31, 2012. Our Oil and Gas medium and heavy aircraft flight hours and revenues increased primarily due to increased deepwater drilling activity. Operating revenues in the Air Medical segment increased $21.2 million primarily due to increased revenues attributable to our Middle East program which began operations in late 2012. Operating revenues in the independent provider programs also increased due to improved payor mix, rate increases implemented over the past year, and increased patient transports.
Consolidated net earnings for the three months ended March 31, 2013 was $8.8 million compared to net earnings of $2.2 million for the three months ended March 31, 2012. Earnings before income taxes for the three months ended March 31, 2013 was $14.7 million compared to earnings before tax of $3.6 million for the same period in 2012. Earnings per diluted share was $0.57 for the current quarter compared to earnings per diluted share of $0.14 for the prior year quarter.
Oil and Gas segment revenues were $112.8 million for the three months ended March 31, 2013, compared to $93.0 million for the three months ended March 31, 2012, an increase of $19.8 million. Flight hours were 26,826 for the current quarter compared to 25,714 for the same quarter in the prior year. The increase in revenue is primarily due to increased medium and heavy aircraft flight hours and, to a lesser degree, increases in rates.
Oil and Gas segment’s profit was $19.0 million for the quarter ended March 31, 2013, compared to segment profit of $12.0 million for the quarter ended March 31, 2012. The increase in segment profit was due to increased revenues partially offset by increased direct expenses. The increase in segment profit is resulting from increased medium and heavy aircraft utilization. The Oil and Gas segment revenues are primarily driven by contracted aircraft and flight hours. Costs are primarily fixed and are driven by the number of aircraft deployed, with a variable portion that is driven by flight hours.
Air Medical segment revenues were $63.4 million for the three months ended March 31, 2013, compared to $42.2 million for the three months ended March 31, 2012, an increase of $21.2 million due to the addition of our Middle East program and increased patient transports and rate increases. Patient transports were 4,106 for the three months ended March 31, 2013, compared to 4,046 for the same period in the prior year. The increase of 60 patient transports was attributable to the addition of new bases under our independent provider program in late 2012.
Air Medical segment’s profit was $7.6 million for the quarter ended March 31, 2013, compared to a segment profit of $3.3 million for the quarter ended March 31, 2012. The increase in profit are primarily attributable to the addition of traditional programs, as well as increases in our independent provider programs primarily attributable to rate increases and improved payor mix.
Technical Services revenues decreased $0.2 million for the three months ended March 31, 2013, compared to the same period in 2012, primarily due to lower project activity. Direct expenses increased $0.3 million primarily due to labor cost increases on our Antarctica project. Profit in this segment decreased from $1.4 million to $0.9 million due to lower maintenance activity and cost increases.
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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PHI, INC. AND SUBSIDIARIES |
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| Quarter Ended | ||||||||||
| March 31, | ||||||||||
| 2013 | 2012 | |||||||||
| Operating revenues, net | $ | 178,968 | $ | 138,051 | ||||||
| Expenses: | ||||||||||
| Direct expenses | 148,203 | 118,698 | ||||||||
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Selling, general and administrative expenses |
8,266 | 8,840 | ||||||||
| Total operating expenses | 156,469 | 127,538 | ||||||||
| Loss (gain) on disposal of assets, net | 25 | (11 | ) | |||||||
|
Equity in loss of unconsolidated affiliate |
487 | -- | ||||||||
| Operating income | 21,987 | 10,524 | ||||||||
| Interest expense | 7,409 | 7,200 | ||||||||
| Other (income) expense, net | (152 | ) | (306 | ) | ||||||
| 7,257 | 6,894 | |||||||||
| Earnings before income taxes | 14,730 | 3,630 | ||||||||
| Income tax expense | 5,892 | 1,452 | ||||||||
| Net earnings | $ | 8,838 | $ | 2,178 | ||||||
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Weighted average shares outstanding: |
||||||||||
| Basic | 15,474 | 15,312 | ||||||||
| Diluted | 15,502 | 15,575 | ||||||||
| Net earnings per share: | ||||||||||
| Basic | $ | 0.57 | $ | 0.14 | ||||||
| Diluted | $ | 0.57 | $ | 0.14 | ||||||
Summarized financial information concerning our reportable operating segments for the quarters ended March 31, 2013 and 2012 is as follows:
| Quarter Ended | ||||||||||
| March 31, | ||||||||||
| 2013 | 2012 | |||||||||
| (Thousands of dollars) | ||||||||||
| Segment operating revenues | ||||||||||
| Oil and Gas | $ | 112,831 | $ | 92,952 | ||||||
| Air Medical | 63,387 | 42,154 | ||||||||
| Technical Services | 2,750 | 2,945 | ||||||||
| Total operating revenues | 178,968 | 138,051 | ||||||||
| Segment direct expenses | ||||||||||
| Oil and Gas | 92,873 | 80,014 | ||||||||
| Air Medical | 53,996 | 37,156 | ||||||||
| Technical Services | 1,821 | 1,528 | ||||||||
| Total segment direct expenses | 148,690 | 118,698 | ||||||||
| Segment selling, general and administrative expenses | ||||||||||
| Oil and Gas | 913 | 897 | ||||||||
| Air Medical | 1,840 | 1,655 | ||||||||
| Technical Services | -- | 5 | ||||||||
| Total selling, general and administrative expenses | 2,753 | 2,557 | ||||||||
| Total direct and selling, general and administrative expenses | 151,443 | 121,255 | ||||||||
| Net segment profit | ||||||||||
| Oil and Gas | 19,045 | 12,041 | ||||||||
| Air Medical | 7,551 | 3,343 | ||||||||
| Technical Services | 929 | 1,412 | ||||||||
| Total net segment profit | 27,525 | 16,796 | ||||||||
| Other, net | 127 | 317 | ||||||||
| Unallocated selling, general and administrative costs | (5,513 | ) | (6,283 | ) | ||||||
| Interest expense | (7,409 | ) | (7,200 | ) | ||||||
| Earnings before income taxes | $ | 14,730 | $ | 3,630 | ||||||
Trudy McConnaughhay, 337-235-2452
Chief Financial Officer
