PHI operating revenues dip USD1.6m in Q3 YoY

PHI, Inc. (NASDAQ: PHII) said it has reported financial results for the quarter ended September 30, 2015.

Consolidated operating revenues for the three months ended September 30, 2015 were USD214.7 million, compared to USD216.3 million for the three months ended September 30, 2014, a decrease of USD1.6 million.

Oil and Gas segment operating revenues decreased USD12.6 million for the quarter ended September 30, 2015, related primarily to decreased aircraft flight revenues for light and medium model types resulting predominately from fewer aircraft on contract and decreased flight hours.

Operating revenues in our Air Medical segment increased USD6.4 million due principally to increased revenues attributable to our independent provider programs, primarily by an increase in transports.

Technical Services revenues were USD8.0 million for the three months ended September 30, 2015, compared to USD3.5 million for the three months ended September 30, 2014. The increase in revenue is due primarily to an increase of technical services provided to a third party customer. The current projects with this customer are expected to be completed in the fourth quarter of 2015, after which additional projects are expected to begin and continue through 2016.

Oil and Gas segment profit was USD10.3 million for the quarter ended September 30, 2015, compared to segment profit of USD27.5 million for the quarter ended September 30, 2014. The decrease in segment profit is due to decreased revenues and increased expenses.

Air Medical segment profit was USD17.7 million for the quarter ended September 30, 2015, compared to a segment profit of USD15.7 million for the quarter ended September 30, 2014. The increase in segment profit is primarily attributable to the increased revenues described above, partially offset by increased operating expenses.

Technical Services segment earnings were USD0.6 million for the three months ended September 30, 2015, compared to segment loss of USD0.3 million for the three months ended September 30, 2014. Direct expenses increased USD3.4 million compared to the prior year quarter. The increase in segment profit is attributable to the increased revenues.

Consolidated net earnings for the three months ended September 30, 2015 was USD7.7 million compared to net earnings of USD17.2 million for the three months ended September 30, 2014. Earnings before income taxes for the three months ended September 30, 2015 was USD14.3 million compared to earnings before income tax of USD28.3 million for the same period in 2014.

Earnings per diluted share were USD0.49 for the current quarter compared to earnings per diluted share of USD1.10 for the prior year quarter. The decrease in net earnings for the quarter ended September 30, 2015 is principally attributable to the decreased profits in our Oil and Gas segment, partially offset by increased profits in our Air Medical and Technical Services segments.

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.