LAFAYETTE, La.--(EON: Enhanced Online News)--PHI, Inc. (The Nasdaq Select Global Market: PHII (voting) PHIIK (non-voting)) today reported financial results for the year ended December 31, 2016.
Consolidated operating revenues for the year ended December 31, 2016 decreased $170.1 million compared to the year ended December 31, 2015. Oil and Gas segment revenues decreased $135.5 million related primarily to decreased aircraft flight revenues resulting predominately from less aircraft on contract and decreased flight hours. Operating revenues in the Air Medical segment decreased $30.9 million, due principally to decreased revenues attributable to overseas operations. Technical Services segment revenues decreased $3.7 million due to a reduction in services provided to a third party customer. Consolidated net loss for the year ended December 31, 2016 was $26.7 million, compared to net earnings of $26.9 million for the year ended December 31, 2015. The decrease in earnings is primarily due to the decreased profits in our Oil and Gas and Air Medical segments, partially offset by an increase in profits in our Technical Services segment, net gains on asset dispositions and decreases in our Corporate unallocated costs.
Oil and Gas segment loss was $27.3 million for the year ended December 31, 2016, compared to segment profit of $41.3 million for the prior year period. The decrease in segment profit was due to decreased revenues, which were only partially offset by decreased expenses.
Air Medical segment profit was $43.0 million for the year ended December 31, 2016, compared to a segment profit of $55.8 million for the year ended December 31, 2015. The decrease in profit is primarily attributable to the decreased revenues, partially offset by the decreased aircraft operating expenses.
Technical Services segment profit was $7.1 million for the year ended December 31, 2016, compared to $1.9 million for the year ended December 31, 2015. In 2015, we booked a loss in a project for a third party customer due to higher than expected labor hours incurred. In 2016, our project work associated with this customer was profitable.
For additional information, please see (i) the attachments hereto and (ii) the Annual Report on Form 10-K for the year ended December 31, 2016 that we filed today with the U.S. Securities and Exchange Commission.
PHI provides helicopter transportation and related services to a broad range of customers including the oil and gas and air medical industries, and also provides third-party maintenance services to select customers. PHI Voting Common Stock and Non-Voting Common Stock are traded on The NASDAQ Global Select Market (symbols PHII and PHIIK).
PHI, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(Thousands of dollars and shares, except per share data)
|Year Ended||Year Ended||Year Ended|
|December 31,||December 31,||December 31,|
|Operating revenues, net||$||634,098||$||804,228||$||836,270|
Selling, general and administrative expenses
|Total operating expenses||636,968||733,472||713,178|
|(Gain) loss on disposition of assets, net||(3,350||)||339||848|
|Impairments of assets||407||--||10,508|
Equity in (profit) loss of unconsolidated affiliate
|Loss on debt extinguishment||--||--||29,833|
|Other income, net||(3,271||)||(2,211||)||(818||)|
|(Loss) earnings before income taxes||(27,149||)||43,256||53,115|
|Income tax (benefit) expense||(469||)||16,332||20,427|
|Net (loss) earnings||$||(26,680||)||$||26,924||$||32,688|
|(Loss) earnings per share:|
|Weighted average shares outstanding:|
Summarized financial information concerning the Company’s reportable operating segments for the years ended December 31, 2016, 2015, and 2014:
|Year Ended December 31,|
|(Thousands of dollars)|
|Segment operating revenues|
|Oil and Gas||$||324,129||$||459,611||$||516,909|
|Total operating revenues||634,098||804,228||836,270|
|Segment direct expenses|
|Oil and Gas(1)||344,640||411,757||411,679|
|Total segment direct expenses||592,399||687,356||670,103|
|Segment selling, general and administrative expenses|
|Oil and Gas||6,739||6,511||4,615|
|Total segment selling, general and administrative expenses||18,808||17,771||14,573|
|Total segment expenses||611,207||705,127||684,676|
|Net segment (loss) profit|
|Oil and Gas||(27,250||)||41,343||100,615|
|Total net segment profit (2)||22,891||99,101||151,594|
|Other, net (3)||6,214||1,872||(10,539||)|
|Unallocated selling, general and administrative expenses||(25,610||)||(28,651||)||(28,597||)|
|Loss on debt extinguishment||--||--||(29,833||)|
|(Loss) earnings before income taxes||$||(27,149||)||$||43,256||$||53,115|
|(1)||Includes equity in gain/loss of unconsolidated affiliate.|
|(2)||Total net segment profit has not been prepared in accordance with generally accepted accounting principles (“GAAP”). Management believes this non-GAAP financial measure provides meaningful supplemental information regarding our results of operations. A description of the adjustments to and reconciliations of total net segment profit to the most comparable GAAP financial measure is as follows:|
|Total net segment profit||$||22,891||$||99,101||$||151,594|
|Unallocated selling, general and administrative costs||(25,610||)||(28,651||)||(28,597||)|
|Loss on debt extinguishment||--||--||(29,833||)|
|Earnings before income taxes||$||(27,149||)||$||43,256||$||53,115|
|(3)||Includes gains on disposition of property and equipment, asset impairments, and other income.|