News

PHI, Inc. Announces Results for the Second Quarter Ended June 30, 2008

LAFAYETTE, La.-(Business Wire)-August 7, 2008 - PHI, Inc. (The Nasdaq Global Market: PHII) (voting)(The Nasdaq Global Market: PHIIK)(non-voting) today reported net earnings of $6.3 million ($0.41 per diluted share) on operating revenues of $130.1 million for the quarter ended June 30, 2008. For the same period of 2007, the Company reported net earnings of $7.2 million ($0.47 per diluted share) on operating revenues of $113.0 million.

Pre-tax earnings were $10.4 million for the quarter ended June 30, 2008, compared to $11.8 million for the same period in 2007. Earnings for the quarter ended June 30, 2008 included a pre-tax gain on disposition of assets, net, of $1.3 million and also included a charge related to our aviation insurance and workers compensation insurances of $2.1 million. Earnings for the quarter ended June 30, 2007 included a pre-tax gain on disposition of assets, net, of $6.1 million.

Flight hours for the quarter ended June 30, 2008 were 39,630, compared to 36,628 for the quarter ended June 30, 2007.

Our operating revenues for the three months ended June 30, 2008, in both our Oil and Gas and Air Medical segments were positively impacted by the previously announced contract awards received near the end of the first quarter. These were discussed in our first quarter Form 10-Q. In addition, during the quarter ended June 30, 2008, we received additional awards which we believe will favorably impact our Oil and Gas segment by approximately 1,500 flight hours per quarter and our Air Medical segment by 150 flight hours per quarter.

For the six months ended June 30, 2008, net earnings were $12.8 million ($0.84 per diluted share) on operating revenues of $247.3 million. For the same period of 2007, the Company reported net earnings of $7.8 million ($0.51 per diluted share) on operating revenues of $214.7 million.

Pre-tax earnings were $21.4 million for the six months ended June 30, 2008, compared to $12.8 million for the same period in 2007. Earnings for the six months ended June 30, 2008 included a pre-tax gain on disposition of assets, net, of $4.2 million and an aggregate insurance charge of $2.1 million as previously mentioned. Earnings for the six months ended June 30, 2007 included a pre-tax gain on disposition of assets, net, of $8.6 million.

Total flight hours were 73,777 for the six months ended June 30, 2008 compared to 70,114 for the six months ended June 30, 2007.

Oil and Gas segment's operating income was $31.9 million for the six months ended June 30, 2008, compared to $17.0 million for the six months ended June 30, 2007. The increase of $14.9 million was primarily due to the increase in operating revenues. Operating income for the Air Medical segment was $1.0 million for the six months ended June 30, 2008, compared to $1.7 million for the six months ended June 30, 2007. The decrease in Air Medical segment's operating income in 2008 compared to 2007 occurred in the second quarter and primarily was due to a charge related to our aviation insurance and workers' compensation of $1.6 million, which is discussed in our Form 10-Q.

Certain statements in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "forecast," "anticipate," "estimate," "project," "intend," "expect," "should," "believe," and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the Company's actual results, performance (financial or operating) or achievements to differ materially from the results, performance (financial or operating) or achievements expressed or implied by such forward-looking statements. These factors include adverse weather, competition, the level of activity in the oil and gas industry (particularly in the Gulf of Mexico) and our ability to continue to grow patient transport volumes. These and other factors are more fully discussed in the Company's SEC filings under "Risk Factors."

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). -0- *T PHI, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Thousands of dollars and shares, except per share data) Quarter Ended Six Months Ended June 30, June 30, ————————- ————————- 2008 2007 2008 2007 ———— ———— ———— ———— Operating revenues $130,111 $112,975 $247,256 $214,728 Gain on disposition of assets, net 1,255 6,074 4,204 8,608 Other 201 1,490 503 3,144 ———— ———— ———— ———— 131,567 120,539 251,963 226,480 ———— ———— ———— ———— Expenses: Direct expenses 109,757 97,119 207,983 190,352 Selling, general and administrative expenses 7,534 7,395 14,923 14,932 Interest expense 3,854 4,260 7,688 8,367 ———— ———— ———— ———— 121,145 108,774 230,594 213,651 ———— ———— ———— ———— Earnings before income taxes 10,422 11,765 21,369 12,829 Income taxes 4,169 4,596 8,548 4,997 ———— ———— ———— ———— Net earnings $ 6,253 $ 7,169 $ 12,821 $ 7,832 ======== ======== ======== ======== Weighted average shares outstanding: Basic 15,277 15,288 15,277 15,288 Diluted 15,286 15,307 15,285 15,307 Net earnings per share Basic $ 0.41 $ 0.47 $ 0.84 $ 0.51 Diluted $ 0.41 $ 0.47 $ 0.84 $ 0.51 *T -0- *T Summarized financial information concerning the Company's reportable operating segments for the quarter and six months ended June 30, 2008 and 2007 is as follows: Quarter Ended Six Months Ended June 30, June 30, —————————- —————————- 2008 2007 2008 2007 ————- ————- ————- ————- (Thousands of (Thousands of dollars) dollars) Segment operating revenues Oil and Gas $ 82,063 $ 71,690 $156,663 $136,990 Air Medical 46,311 39,652 85,571 73,197 Technical Services 1,737 1,633 5,022 4,541 ————- ————- ————- ————- Total operating revenues 130,111 112,975 247,256 214,728 ————- ————- ————- ————- Segment direct expenses Oil and Gas 64,824 61,760 124,083 119,195 Air Medical 43,286 33,813 80,369 67,641 Technical Services 1,647 1,546 3,531 3,516 ————- ————- ————- ————- Total direct expenses 109,757 97,119 207,983 190,352 Segment selling, general and administrative expenses Oil and Gas 342 399 655 790 Air Medical 2,075 1,898 4,192 3,839 Technical Services 8 17 34 25 ————- ————- ————- ————- Total selling, general and administrative expenses 2,425 2,314 4,881 4,654 ————- ————- ————- ————- Total direct and selling, general and administrative expenses 112,182 99,433 212,864 195,006 ————- ————- ————- ————- Net segment profit Oil and Gas 16,897 9,531 31,925 17,005 Air Medical 950 3,941 1,010 1,717 Technical Services 82 70 1,457 1,000 ————- ————- ————- ————- Total 17,929 13,542 34,392 19,722 Other, net 1,456 7,564 4,707 11,752 Unallocated selling, general and administrative costs (5,109) (5,081) (10,042) (10,278) Interest expense (3,854) (4,260) (7,668) (8,367) ————- ————- ————- ————- Earnings before income taxes $ 10,422 $ 11,765 $ 21,369 $ 12,829 ========= ========= ========= ========= *T -0- *T Operating Statistics The following tables present certain non-financial operational statistics for the quarter and six months ended June 30, 2008 and 2007: Quarter Ended Six Months Ended June 30, June 30, ——————- ———————— 2008 2007 2008 2007 ——— ——— ————- ——— Flight hours: Oil and Gas 29,748 28,604 54,579 54,690 Air Medical 9,820 8,024 18,495 15,016 Technical Services 62 — 703 408 ——— ——— ————- ——— Total 39,630 36,628 73,777 70,114 ====== ====== ========= ====== Air Medical Transports 5,942 5,650 11,422 10,572 ====== ====== ========= ====== June 30, ———————— 2008 2007 ————- ——— Aircraft operated at period end: Oil and Gas 147 163 Air Medical 85 73 Technical Services 4 4 ————- ——— Total 236 240 ========= ====== *T

Send this news item to a friend.

Print This Page