EX-99.1 2 h64865exv99w1.htm EXHIBIT 99.1 exv99w1
         
Exhibit 99.1
         
 
      News Release
 
  CONTACT:   Michael J. McCann
 
      Chief Financial Officer
 
      (337) 235-2452
FOR IMMEDIATE RELEASE
PHI, INC. ANNOUNCES RESULTS FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2008
LAFAYETTE, LA — November 10, 2008 — PHI, Inc. (The Nasdaq Global Market: PHII (voting) PHIIK (non-voting)) today reported net earnings of $7.9 million ($0.52 per diluted share) on operating revenues of $135.5 million for the quarter ended September 30, 2008. For the same period of 2007, the Company reported net earnings of $8.6 million ($0.56 per diluted share) on operating revenues of $118.4 million. Pre-tax earnings were $13.2 million for the quarter ended September 30, 2008, compared to $13.8 million for the same period in 2007. The quarter ended September 30, 2008 includes a pretax gain on disposition of assets of $0.2 million, and a pre-tax credit of $1.6 million related to the termination of a manufacturer warranty program for a certain model aircraft. The quarter ended September 30, 2007 includes a pretax gain on disposition of assets of $7.0 million.
          Operating revenues for the three months ended September 30, 2008 were $135.5 million, compared to $118.4 million for the three months ended September 30, 2007, an increase of $17.1 million. Oil and Gas operating revenues increased $9.8 million for the quarter ended September 30, 2008, due to an increase in medium and heavy contracted aircraft and increased flight hours. Operating revenues in the Air Medical segment increased $7.7 million in the current quarter, compared to the same quarter in 2007, due to increased patient transports and rates in the independent provider programs and increased hospital-based activity due to additional contract awards.
          While flight hours and operating revenues increased in both segments for the quarter ended September 30, 2008, compared to the same quarter 2007, flight hours and operating revenue in our Oil and Gas segment were adversely affected by Hurricanes Gustav and Ike. Following the hurricanes, there was increased flight time as customers were inspecting and repairing their facilities offshore, which in part offset the loss of flight hours from the hurricanes. In addition to affecting flight hours, we incurred damage to some facilities as a result of the hurricanes. This damage is covered by insurance other than deductibles, which is not a material amount.
          Net earnings for the nine months ended September 30, 2008 were $20.7 million, or $1.36 per diluted share, compared to $16.5 million for the nine months ended September 30, 2007, or $1.08 per diluted share. Pre-tax earnings were $34.5 million for the nine months ended September 30, 2008, compared to $26.6 million for the same period in 2007. Earnings for the nine months ended September 30, 2008 included a pre-tax gain on disposition of assets, net, of $4.5 million, an aggregate insurance charge of $2.1 million related to accidents in the second quarter discussed in our second quarter Form 10-Q, and a $1.6 million credit due to termination of the warranty program for certain aircraft. Earnings for the nine months ended September 30, 2007 included a pre-tax gain on disposition of assets, net, of $15.6 million.

 

 

          Operating revenues for the nine months ended September 30, 2008 were $382.7 million, compared to $333.1 million for the same period in 2007, an increase of $49.6 million. Oil and Gas operating revenues increased $29.5 million, due to an increase in medium and heavy contracted aircraft and increased flight hours. Operating revenues in the Air Medical segment increased $20.1 million due to increased patient transports and increased rates in the independent provider programs, and increased hospital-based activity due to additional contract awards.
          Flight hours for the nine months ended September 30, 2008 were 113,260, compared to 106,627 for the nine months ended September 30, 2007. The increase was primarily due to increased flight hours associated with increased patient transports in the independent provider programs and increased hospital-based activity in the Air Medical segment and increased heavy and medium aircraft flight hours in the Oil and Gas segment.
          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).
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PHI, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Thousands of dollars and shares, except per share data)
                                 
    Quarter Ended     Nine Months Ended  
    September 30,     September 30,  
    2008     2007     2008     2007  
Operating revenues
   $ 135,460     $ 118,401     $ 382,716     $ 333,129  
Gain on disposition of assets, net
     249       6,988       4,453       15,596  
Other
     29       1,119       532       4,263  
 
                        
 
     135,738       126,508       387,701       352,988  
 
                        
 
                                
Expenses:
                                
Direct expenses
     110,370       101,427       318,353       291,779  
Selling, general and administrative expenses
     8,368       7,374       23,291       22,306  
Interest expense
     3,840       3,895       11,528       12,262  
 
                        
 
     122,578       112,696       353,172       326,347  
 
                        
 
                                
Earnings before income taxes
     13,160       13,812       34,529       26,641  
Income taxes
     5,263       5,183       13,811       10,180  
 
                        
Net earnings
   $ 7,897     $ 8,629     $ 20,718     $ 16,461  
 
                        
 
                                
Weighted average shares outstanding:
                                
Basic
     15,277       15,288       15,277       15,288  
Diluted
     15,282       15,306       15,281       15,307  
 
                                
Net earnings per share
                                
Basic
   $ 0.52     $ 0.56     $ 1.36     $ 1.08  
Diluted
   $ 0.52     $ 0.56     $ 1.36     $ 1.08  
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Summarized financial information concerning the Company’s reportable operating segments for the quarter and nine months ended September 30, 2008 and 2007 is as follows:
                                 
    Quarter Ended     Nine Months Ended  
    September 30,     September 30,  
    2008     2007     2008     2007  
    (Thousands of dollars)     (Thousands of dollars)  
Segment operating revenues
                                
Oil and Gas
   $ 86,689     $ 76,853     $ 243,352     $ 213,843  
Air Medical
     47,534       39,839       133,105       113,036  
Technical Services
     1,237       1,709       6,259       6,250  
 
                        
Total operating revenues
     135,460       118,401       382,716       333,129  
 
                        
 
                                
Segment direct expenses
                                
Oil and Gas
     68,074       65,805       192,157       185,000  
Air Medical
     41,125       34,579       121,494       102,220  
Technical Services
     1,171       1,043       4,702       4,559  
 
                        
Total direct expenses
     110,370       101,427       318,353       291,779  
 
                                
Segment selling, general and administrative expenses
                                
Oil and Gas
     321       406       976       1,196  
Air Medical
     2,045       1,882       6,237       5,721  
Technical Services
     15       12       49       37  
 
                        
Total selling, general and administrative expenses
     2,381       2,300       7,262       6,954  
 
                        
Total direct and selling, general and administrative expenses
     112,751       103,727       325,615       298,733  
 
                        
 
                                
Net segment profit
                                
Oil and Gas
     18,294       10,642       50,219       27,647  
Air Medical
     4,364       3,378       5,374       5,095  
Technical Services
     51       654       1,508       1,654  
 
                        
Total
     22,709       14,674       57,101       34,396  
 
                                
Other, net
     278       8,107       4,985       19,859  
Unallocated selling, general and administrative costs
     (5,987 )     (5,074 )     (16,029 )     (15,352 )
Interest expense
     (3,840 )     (3,895 )     (11,528 )     (12,262 )
 
                        
Earnings before income taxes
   $ 13,160     $ 13,812     $ 34,529     $ 26,641  
 
                        
# # #

 

 

Operating Statistics
The following tables present certain non-financial operational statistics for the quarter and nine months ended September 30, 2008 and 2007:
                                 
    Quarter Ended   Nine Months Ended
    September 30,   September 30,
    2008   2007   2008   2007
Flight hours:
                                
Oil and Gas
     29,623       27,893       84,202       82,583  
Air Medical
     9,860       8,620       28,355       23,636  
Technical Services
     —       —       703       408  
 
                                
Total
     39,483       36,513       113,260       106,627  
 
                                
 
                                
Air Medical Transports
     6,046       5,891       17,468       16,463  
 
                                
                 
    September 30,
    2008   2007
Aircraft operated at period end:
                
Oil and Gas
     152       161  
Air Medical
     88       72  
Technical Services
     4       4  
 
                
Total
     244       237  
 
                

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