Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 01, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | PHII | |
Entity Registrant Name | PHI INC | |
Entity Central Index Key | 350,403 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Voting Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,905,757 | |
Non-Voting Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 12,904,799 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash | $ 7,431 | $ 8,770 |
Short-term investments | 61,988 | 64,237 |
Accounts receivable – net | ||
Trade | 157,363 | 168,153 |
Other | 29,223 | 17,826 |
Inventories of spare parts – net | 77,011 | 80,881 |
Prepaid expenses | 11,509 | 11,475 |
Income taxes receivable | 831 | 1,271 |
Total current assets | 345,356 | 352,613 |
Property and equipment – net | 936,323 | 946,765 |
Restricted cash and investments | 12,396 | 12,396 |
Other assets | 8,803 | 8,741 |
Deferred income taxes | 3,211 | 3,309 |
Goodwill | 61,299 | 61,299 |
Intangibles | 16,334 | 16,723 |
Total assets | 1,383,722 | 1,401,846 |
Current Liabilities: | ||
Revolving credit facility | 121,750 | 0 |
Senior Notes issued March 17, 2014, net of debt issuance costs of $1,285 | 498,715 | 0 |
Accounts payable | 37,166 | 37,186 |
Accrued and other current liabilities | 42,042 | 41,850 |
Total current liabilities | 699,673 | 79,036 |
Long-term debt: | ||
Revolving credit facility | 0 | 117,500 |
Senior Notes issued March 17, 2014, net of debt issuance costs of $1,506 | 0 | 498,494 |
Deferred income taxes | 80,866 | 86,005 |
Other long-term liabilities | 5,448 | 8,157 |
Commitments and contingencies (Note 9) | ||
Shareholders’ Equity: | ||
Additional paid-in capital | 309,672 | 308,353 |
Accumulated other comprehensive income (loss) | 464 | (280) |
Retained earnings | 286,018 | 303,001 |
Total shareholders’ equity | 597,735 | 612,654 |
Total liabilities and shareholders’ equity | 1,383,722 | 1,401,846 |
Voting Common Stock [Member] | ||
Shareholders’ Equity: | ||
Common stock | 291 | 291 |
Non-Voting Common Stock [Member] | ||
Shareholders’ Equity: | ||
Common stock | 1,290 | 1,289 |
Total shareholders’ equity | $ 1,290 | $ 1,289 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt issuance costs | $ 1,285 | $ 1,506 |
Voting Common Stock [Member] | ||
Common stock, par value (in USD per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (shares) | 12,500,000 | 12,500,000 |
Common stock, shares issued (shares) | 2,905,757 | 2,905,757 |
Common stock, shares outstanding (shares) | 2,905,757 | 2,905,757 |
Non-Voting Common Stock [Member] | ||
Common stock, par value (in USD per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (shares) | 37,500,000 | 37,500,000 |
Common stock, shares issued (shares) | 12,904,799 | 12,897,614 |
Common stock, shares outstanding (shares) | 12,904,799 | 12,897,614 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Operating revenues, net | $ 160,370 | $ 134,618 |
Expenses: | ||
Direct expenses | 156,226 | 136,513 |
Selling, general and administrative expenses | 15,459 | 13,044 |
Total operating expenses | 171,685 | 149,557 |
Loss on disposal of assets | 879 | 0 |
Equity in loss of unconsolidated affiliate, net | 37 | 1,003 |
Operating (loss) income | (12,231) | (15,942) |
Interest expense | 8,197 | 8,195 |
Other loss (income) – net | 1,045 | (1,064) |
Total expenses | 9,242 | 7,131 |
Loss before income taxes | (21,473) | (23,073) |
Income tax benefit | (4,490) | (7,825) |
Net loss | $ (16,983) | $ (15,248) |
Weighted average shares outstanding: | ||
Basic (shares) | 15,806 | 15,689 |
Diluted (shares) | 15,806 | 15,689 |
Net loss per share: | ||
Basic (in USD per share) | $ (1.07) | $ (0.97) |
Diluted (in USD per share) | $ (1.07) | $ (0.97) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (16,983) | $ (15,248) |
Unrealized gain on short-term investments | 471 | 162 |
Currency translation adjustments | 467 | 0 |
Changes in pension plan assets and benefit obligations | (9) | (1) |
Tax effect of the above-listed adjustments | (185) | (58) |
Total comprehensive loss | $ (16,239) | $ (15,145) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Non-Voting Common Stock [Member] | Voting Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Retained Earnings [Member] |
Balance at Dec. 31, 2016 | $ 599,778 | $ 1,278 | $ 291 | $ 304,246 | $ (478) | $ 294,441 |
Balance, Shares at Dec. 31, 2016 | 12,779 | 2,906 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (15,248) | (15,248) | ||||
Unrealized gain on short-term investments | 104 | 104 | ||||
Changes in pension plan assets and benefit obligations | (1) | (1) | ||||
Amortization of unearned stock-based compensation | 552 | 552 | ||||
Issuance of non-voting common stock (upon vesting of restricted stock units) | 2 | $ 2 | ||||
Issuance of non-voting common stock (upon vesting of restricted stock units), shares | 27 | |||||
Cancellation of restricted non-voting stock units for tax withholdings on vested shares | (101) | $ (1) | (100) | |||
Cancellation of restricted non-voting stock units for tax withholdings on vested shares, Shares | (9) | |||||
Retirement of treasury stock, shares | 0 | |||||
Balance at Mar. 31, 2017 | 586,114 | $ 1,279 | $ 291 | 304,698 | (375) | 280,221 |
Balance, Shares at Mar. 31, 2017 | 12,797 | 2,906 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Treasury Stock, Retired, Cost Method, Amount | 1,028 | 1,028 | ||||
Balance at Dec. 31, 2017 | 612,654 | $ 1,289 | $ 291 | 308,353 | (280) | 303,001 |
Balance, Shares at Dec. 31, 2017 | 12,897 | 2,906 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (16,983) | (16,983) | ||||
Unrealized gain on short-term investments | 282 | 282 | ||||
Changes in pension plan assets and benefit obligations | (5) | (5) | ||||
Amortization of unearned stock-based compensation | 1,319 | 1,319 | ||||
Currency translation adjustment | 467 | 467 | ||||
Issuance of non-voting common stock (upon vesting of restricted stock units) | 1 | $ 1 | 0 | |||
Issuance of non-voting common stock (upon vesting of restricted stock units), shares | 11 | |||||
Cancellation of restricted non-voting stock units for tax withholdings on vested shares | 0 | $ 0 | 0 | |||
Cancellation of restricted non-voting stock units for tax withholdings on vested shares, Shares | (3) | |||||
Balance at Mar. 31, 2018 | $ 597,735 | $ 1,290 | $ 291 | $ 309,672 | $ 464 | $ 286,018 |
Balance, Shares at Mar. 31, 2018 | 12,905 | 2,906 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating activities: | ||
Net loss | $ (16,983) | $ (15,248) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 19,467 | 16,845 |
Deferred income taxes | (5,113) | (7,883) |
Loss (gain) on asset dispositions | 879 | 0 |
Equity in loss of unconsolidated affiliate, net | 37 | 1,003 |
Inventory valuation reserves | 1,042 | (1,293) |
Changes in operating assets and liabilities | (761) | (1,677) |
Net cash used in operating activities | (1,432) | (8,253) |
Investing activities: | ||
Purchase of property and equipment | (6,665) | (4,789) |
Proceeds from asset dispositions | 842 | 0 |
Purchase of short-term investments | (134,319) | (54,867) |
Proceeds from sale of short-term investments | 136,259 | 67,659 |
Payment of deposits on aircraft | 0 | (66) |
Loan to unconsolidated affiliate | (274) | 0 |
Net cash (used in) provided by investing activities | (4,157) | 7,937 |
Financing activities: | ||
Proceeds from line of credit | 33,750 | 37,300 |
Payments on line of credit | (29,500) | (35,800) |
Repurchase of common stock | 0 | (100) |
Net cash provided by financing activities | 4,250 | 1,400 |
Increase (decrease) in cash | (1,339) | 1,084 |
Cash, beginning of period | 8,770 | 2,596 |
Cash, end of period | 7,431 | 3,680 |
Cash paid during the period for: | ||
Interest | 14,328 | 14,114 |
Income taxes | 320 | 0 |
Noncash investing activities: | ||
Other current liabilities and accrued payables related to purchase of property and equipment | $ 82 | $ 348 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements include the accounts of PHI, Inc. and its subsidiaries (“PHI” or the “Company” or “we” or “our”). In the opinion of management, these condensed consolidated financial statements reflect all adjustments, consisting of only normal, recurring adjustments, necessary to present fairly the financial results for the interim periods presented. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the accompanying notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . Our financial results, particularly as they relate to our Oil and Gas segment, are influenced by seasonal fluctuations as discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . For this and other reasons, the results of operations for interim periods are not necessarily indicative of the operating results that may be expected for a full fiscal year. Going Concern - The financial statements accompanying this Quarterly Report have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”), which contemplates our continuation as a going concern. For the reasons described in Note 5, the recent classification of our indebtedness as current liabilities due within one year and other conditions raise substantial doubt about our ability to continue as a going concern within one year after the date the financial statements accompanying this Quarterly Report are filed. Recently Adopted Accounting Pronouncements In 2014, Financial Accounting Standard Board ("the FASB") issued ASC 606, Revenue from Contracts with Customers (“ASC 606”), replacing the existing accounting standard and industry specific guidance for revenue recognition with a five-step model for recognizing and measuring revenue from contracts with customers. The underlying principle of the new standard is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. ASC 606 became effective on January 1, 2018 and the Company adopted it using the modified retrospective method applied to open contracts and only to the version of the contracts in effect as of January 1, 2018. Prior period amounts have not been adjusted and continue to be reflected in accordance with the Company’s historical accounting. There was no impact on the condensed consolidated financial statements and no cumulative effect adjustment was recognized. In general, we recognize revenue when a service or good is sold to a customer and there is a contract. At inception of each contract, we assess the obligations and identify a performance obligation to provide a service that is distinct in the context of the contract. To identify the performance obligations, we consider all goods or services promised in the contract, whether explicitly stated or implied based on customary business practices. Revenue is recognized when control of the identified distinct goods or services have been transferred to the client, and the transaction price is determined and allocated to the performed performance obligations and we have determined that collection has occurred or is probable of occurring. At contract inception, we assess the goods and services promised in our contracts with customers and identify all performance obligations for each distinct promise that transfers a good or service (or bundle of goods or services) to the customer. The company measures revenue as the amount of consideration we expect to receive in exchange of the services provided. Taxes collected from customers and remitted to governmental authorities and revenues are reported on a net basis in the Company’s financial statements. Thus, the Company excludes taxes imposed on the customer and collected on behalf of governmental agencies to be remitted to these agencies from the transaction price in determining the revenue related to contracts with a customer. Revenue Recognition Oil & Gas - The Company provides helicopter services to oil and gas customers operating in the Gulf of Mexico and a selected number of foreign countries. Revenues are recognized when performance obligations are satisfied over time in accordance with contractual terms, in an amount that reflects the consideration the Company expects to be entitled to in exchange for services rendered. Revenue Recognition Air Medical - The Company provides helicopter services to hospitals and emergency service providers in several U.S. states, and individuals, in which case the Company is paid by either a commercial insurance company, federal or state agency, or the patient. Our Air Medical segment operates primarily under the independent provider model and, to a lesser extent, under the traditional and cooperative provider models. Revenues related to the independent provider model services are recorded in the period in which we satisfy our performance obligations under contracts by transferring our services to our customers based upon established billing rates net of contractual allowances under agreements with third party payors and net of uncompensated care allowances. These amounts are due from patients, third-party payors (including health insurers and government programs), and others and includes variable consideration for retroactive revenue adjustments due to settlement of audits, reviews, and investigations. Generally, the Company bills the patients and third-party payors several days after the services are performed. Revenues generated under the traditional provider model is recognized as performance obligations are satisfied over time in accordance with contractual terms, in an amount that reflects the consideration the Company expects to be entitled to in exchange for services rendered. Revenues are recognized as performance obligations are satisfied and in the amounts to which we expect to be entitled, which are the transaction prices allocated to the distinct services. Performance Obligations Oil & Gas - A performance obligation arises under contracts with customers to render services and is the unit of account under ASC 606. Operating revenue from our Oil and Gas segment is derived mainly from fixed-term contracts with our customers, a substantial portion of which are competitively bid. A small portion of our Oil and Gas segment revenue is derived from providing services on an "ad-hoc" basis. Our fixed-term contracts typically have original terms of one year to seven years (subject to provisions permitting early termination by the customers), with payment in U.S. dollars. The Company accounts for services rendered separately if they are distinct and the service is separately identifiable from other items provided to a customer and if a customer can benefit from the services rendered on its own or with other resources that are readily available to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Within this contract type for helicopter services, we determined that each contract has a single distinct performance obligation. These services include a fixed monthly rate for a particular model of aircraft, and flight hour services, which represents the variable component of a typical contract with a customer. Rates for these services vary depending on the type of services provided and can be based on a per flight hour, per day, or per month basis. We also provide services to clients on an “ad hoc” basis, which usually entails a shorter contract notice period and duration. The charges for ad hoc services are based on an hourly rate or a daily or monthly fixed fee plus additional fees for each hour flown. The nature of our variable charges within our flight services contracts are not effective until a customer-initiated flight order and the actual hours flown are determined, therefore, the associated flight revenue generally cannot be reasonably and reliably estimated before hand. A contract’s standalone selling prices are determined based upon the prices that the Company charges for its services rendered. The majority of the Company’s revenue is recognized as performance obligations are satisfied over time, by measuring progress towards satisfying the contracted services in a manner that best depicts the transfer of services to the customer, which is generally represented by a period of 30 days or less. The Company’s payment terms vary by the type of services offered. The Company typically invoices customers on a monthly basis with the term between invoicing and when the payment is due is typically between 30 and 60 days. Performance Obligations Air Medical - Performance obligations are determined based upon the nature of the services provided. Under the independent provider model, we measure the performance obligation from the moment the patient is loaded into the aircraft until it reaches its destination. Under this model, we have no fixed revenue stream and compete for transport referrals on a daily basis with other independent operators in the area. As an independent provider, we bill for our services on the basis of a flat rate plus a variable charge per patient-loaded mile, regardless of aircraft model, and are typically compensated by private insurance, Medicaid or Medicare, or directly by transported patients who self-pay. Under the traditional provider model, we contract directly with the customer to provide their transportation services, with the contracts typically awarded or renewed through competitive bidding. As a traditional provider, we typically bill a fixed monthly rate for aircraft availability and an hourly rate for flight time. For each of these types of helicopter services, we have determined that each has a single distinct performance obligation. We recognize revenues for performance obligations satisfied at a point in time, which generally relate to patients receiving helicopter services under the independent provider model when: (1) services are provided; and (2) we do not believe the patient requires additional services. Traditional provider models services include fixed monthly rate for a particular model of aircraft, and flight hour services, which represents the variable component of a typical contract with customer. Rates for these services vary depending on the type of services provided and can be based on a per flight hour, per day, or per month basis. The variable charges within the contracts are not effective until customer-initiated flight order and the actual hours flown are determined, therefore, the associated revenue generally cannot be reasonably and reliably estimated beforehand. For the traditional provider model, we determine the transaction price based upon standard charges for goods and services provided. For independent provider model we determine the transaction price based upon gross charges for services provided reduced by contractual adjustments provided to third-party payors, discounts provided to uninsured patients in accordance with Company policy, and/or implicit price concessions provided to uninsured patients. We determine estimates of contractual adjustments and discounts based upon contractual agreements, our discount policy, and historical experience. We determine our estimate of implicit price concessions based upon our historical collection experience with these classes of patients using a portfolio approach as a practical expedient to account for patient contracts as collective groups, rather than individually. The financial statement effects of using this practical expedient are not materially different from an individual contract approach. As further described in Note 3, independent provider revenues are recorded net of contractual allowances under agreements with third party payors and estimated uncompensated care at the time the services are provided. Contractual allowances and uncompensated care are estimated based on historical collection experience by payor category (consisting mainly of private insurance, Medicaid, Medicare, and self-pay). The allowance percentages calculated are applied to the payor categories, and the necessary adjustments are made to the revenue allowance. Agreements with third-party payors typically provide for payments at amounts less than established charges. As of March 31, 3018 and December 31, 2017, receivables related to Oil and Gas segment were $110.7 million and $106.8 million , Air Medical segment were $73.4 million and $74.4 million and Technical Services segment were $2.5 million and $4.8 million , respectively. Contract assets and contract liabilities were immaterial as of March 31, 2018. Due to the nature of our business, we do not have significant backlog. Total backlog was $57.6 million at March 31, 2018, we expect to recognize this full backlog as revenue over the next 12 months. Our contracts typically include unilateral termination clauses that allow both parties to terminate existing contracts with a 30 to 180 day notice period. The amounts above include performance obligations up to the point where the contracting parties can cancel existing contracts. As such, our actual remaining performance obligation revenue is expected to be greater than what is reflected above. In addition, the remaining performance obligation disclosure does not include expected consideration related to performance obligations of a variable nature (i.e. flight services) as they cannot be reasonably and reliably estimated. The Company generally has a right to consideration in an amount that corresponds directly with the value to the customer of the entity's performance completed to date and may recognize revenue in the amount to which the entity has a right to invoice. We have elected to use the invoice practical expedient for revenue recognized when performance obligations are satisfied over time. In addition, payment for goods and services rendered is typically due in the subsequent month following satisfaction of the Company’s performance obligation. The Technical Services segment provides helicopter flight services and helicopter repair and overhaul services for existing flight operations customers that own their own aircraft. Under this segment, the Company periodically provides certain services to governmental customers, including the Company’s agreement to operate six aircraft for the National Science Foundation in Antarctica. Under this segment, we also offer certain software as a service to our Oil and Gas customers. Revenues are recognized when performance obligations are satisfied in accordance with contractual terms, in an amount that reflects the consideration the Company expects to be entitled to in exchange for services rendered. For these helicopter services, we determined that each has a single distinct performance obligation. The following table presents the Company’s revenues by segment disaggregated by type (in thousands): For the Quarter Ended March 31, 2018 2017 Service Revenue Oil & Gas $ 95,640 $ 71,731 Air Medical 56,988 55,338 Technical Services 7,742 7,549 Total Services $ 160,370 $ 134,618 Air Medical Revenue Traditional provider model $ 11,106 $ 10,596 Independent provider model 45,882 44,742 Total Air Medicals Revenues $ 56,988 $ 55,338 On January 26, 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350) : Simplifying the Test for Goodwill Impairment (ASU 2017-04). ASU 2017-04 removes the requirement to compare the implied fair value of goodwill with the carrying amount as part of Step 2 of the goodwill impairment test. Under the new standard, the goodwill impairment loss will be measured as the excess of a reporting unit's carrying amount over its fair value, not exceeding the total amount of goodwill allocated to that reporting unit, which may increase the frequency of goodwill impairment charges if a future goodwill impairment test does not pass the Step 1 evaluation. ASU 2017-04 is effective prospectively for periods beginning on or after December 15, 2019, with early adoption permitted. The Company adopted ASU 2017-04 effective January 1, 2018. The Company will perform goodwill impairment testing under the new standard annually as of October 1 or when events or changes in circumstances indicate that a potential impairment exist. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes , which requires that deferred tax assets and liabilities be classified as noncurrent in a classified balance sheet. PHI, Inc. adopted this ASU in the fourth quarter of 2017 on a prospective basis. Beginning with the December 31, 2017 balances, all deferred taxes were classified as non-current. Periods prior to December 31, 2017 were not retrospectively adjusted. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory , which will require an entity to recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The ASU is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The Company adopted ASU 2016-16 effective January 1, 2018 with no material impact to the condensed consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . ASU 2017-01 clarifies the definition of a business and requires that an entity apply certain criteria in order to determine when a set of assets and activities qualifies as a business. The adoption of this standard is expected to result in fewer acquisitions of properties qualifying as acquisitions of businesses and, accordingly, acquisition costs for those acquisitions that do not qualify as businesses will be capitalized rather than expensed. This standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, and should be applied on a prospective basis. The Company adopted ASU 2017-01 effective January 1, 2018 with no material impact to the condensed consolidated financial statements. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted which significantly reformed the U.S. Internal Revenue Code (the “Code”). The Tax Act, among other things, reduced the federal corporate income tax rate from 35% to 21% effective January 1, 2018. Following the enactment of the Tax Act, the SEC staff issued Staff Accounting Bulletin 118 - "Income Tax Accounting Implications of the Tax Cuts and Jobs Act" (SAB 118), which provides for a measurement period of up to one year from the enactment date to complete accounting under GAAP for the tax effects of the legislation. As of December 31, 2017, the Company had not completed its accounting for the tax effects of the Tax Act. However, the Company remeasured its net deferred tax liability at December 31, 2017 and provisionally recognized a net benefit of $49.2 million in its consolidated statement of operations for the year ended December 31, 2017. As of March 31, 2018 the Company has not completed its accounting for the tax effects of the Tax Act. The Company is still analyzing certain aspects of the Tax Act and refining its calculations, which could potentially affect the measurement of these balances or potentially give rise to changes to its current provisional estimates. The Company’s estimates may be affected by a wide variety of factors, including additional regulatory guidance issued with respect to the Tax Act. Any adjustments to the provisional amounts will be recognized as a component of income tax in the period in which the adjustments are determined. We expect to complete the accounting by the time we file our 2017 U.S. corporate income tax return in the 3rd quarter of 2018. New Accounting Pronouncements - In February 2016, the FASB issued ASU 2016-02, Leases , which replaces the existing guidance on leasing transactions in ASC 840 to require recognition of the assets and liabilities for the rights and obligations created by those leases on the balance sheet. The Company has formed an implementation team that is inventorying leases and evaluating the impact that adoption of this guidance will have on the Company’s financial statements, which includes monitoring industry specific developments including recent exposure drafts issued by the FASB. Based on our lease portfolio as of March 31, 2018, we expect the adoption of this standard will result in a material change to our consolidated assets and liabilities. We plan to adopt this standard beginning January 1, 2019. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | INVESTMENTS We classify all of our short-term investments as available-for-sale. We carry these at fair value and report unrealized gains and losses, net of taxes, in Accumulated other comprehensive loss, which is a separate component of shareholders’ equity in our Condensed Consolidated Balance Sheets. These unrealized gains and losses are also reflected in our Condensed Consolidated Statements of Comprehensive Income and Condensed Consolidated Statements of Shareholders’ Equity. We determine cost, gains, and losses using the specific identification method. Investments consisted of the following as of March 31, 2018 : Cost Basis Unrealized Unrealized Fair (Thousands of dollars) Investments: Money market mutual funds $ 74,370 $ — $ — $ 74,370 Deferred compensation plan assets included in other assets 831 — — 831 Total $ 75,201 $ — $ — $ 75,201 Investments consisted of the following as of December 31, 2017 : Cost Basis Unrealized Gains Unrealized Losses Fair Value (Thousands of dollars) Investments: Money market mutual funds $ 5,601 $ — $ — $ 5,601 U.S. government agencies 7,501 — (34 ) 7,467 Corporate bonds and notes 63,880 — (330 ) 63,550 Subtotal 76,982 — (364 ) 76,618 Deferred compensation plan assets included in other assets 2,685 — — 2,685 Total $ 79,667 $ — $ (364 ) $ 79,303 At each of March 31, 2018 and December 31, 2017 , we classified $12.4 million , of our aggregate investments as long-term investments and recorded them in our Condensed Consolidated Balance Sheets as restricted cash and investments, as they are securing outstanding letters of credit and a bond relating to foreign operations with maturities beyond one year. The following table presents the cost and fair value of our debt investments based on maturities as of: March 31, 2018 December 31, 2017 Amortized Fair Amortized Fair (Thousands of dollars) Due in one year or less $ — $ — $ 31,348 $ 31,254 Due within two years — — 40,032 39,763 Total $ — $ — $ 71,380 $ 71,017 The following table presents the average coupon rate percentage and the average days to maturity of our debt investments as of: March 31, 2018 December 31, 2017 Average Average Average Average U.S. Government agencies — 0 1.370 370 Corporate bonds and notes — 0 1.766 392 The following table presents the fair value and unrealized losses related to our investments that have been in a continuous unrealized loss position for less than twelve months as of: March 31, 2018 December 31, 2017 Fair Value Unrealized Fair Value Unrealized (Thousands of dollars) U.S. Government agencies $ — $ — $ 5,472 $ (28 ) Corporate bonds and notes — — 44,069 (271 ) Total $ — $ — $ 49,541 $ (299 ) The following table presents the fair value and unrealized losses related to our investments that have been in a continuous unrealized loss position for more than twelve months as of: March 31, 2018 December 31, 2017 Fair Value Unrealized Fair Value Unrealized (Thousands of dollars) U.S. Government agencies $ — $ — $ 1,994 $ (6 ) Corporate bonds and notes — — 19,482 (59 ) Total $ — $ — $ 21,476 $ (65 ) From time to time over the periods covered in our financial statements included herein (and as illustrated in the foregoing tables), our investments have experienced net unrealized losses. We consider these declines in market value to be due to customary market fluctuations, and we typically do not plan to sell these investments prior to maturity. For these reasons, we do not consider any of our investments to be other than temporarily impaired at March 31, 2018 or December 31, 2017 . We have also determined that we did not have any other than temporary impairments relating to credit losses on debt securities for the quarter ended March 31, 2018 . For additional information regarding our criteria for making these assessments, see Note 2 to the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2017 . |
Valuation Accounts
Valuation Accounts | 3 Months Ended |
Mar. 31, 2018 | |
Revenue Recognition And Valuation Accounts [Abstract] | |
Revenue Recognition and Valuation Accounts | VALUATION ACCOUNTS We establish the amount of our allowance for doubtful accounts based upon factors relating to the credit risk of specific customers, current market conditions, and other information. Our allowance for doubtful accounts was approximately $7.2 million at March 31, 2018 , and December 31, 2017 . Revenues related to flights generated by our Air Medical segment are recorded net of contractual allowances under agreements with third party payors and estimated uncompensated care when the services are provided. The allowance for contractual discounts was $104.5 million and $117.8 million as of March 31, 2018 and December 31, 2017 , respectively. The allowance for uncompensated care was $54.9 million and $52.5 million as of March 31, 2018 and December 31, 2017 , respectively. Included in the allowance for uncompensated care listed above is the value of services to patients who are unable to pay when it is determined that they qualify for charity care. The value of these services was $1.5 million and $2.5 million for the quarters ended March 31, 2018 and 2017 , respectively. The estimated cost of providing charity services was $0.4 million for the quarter ended March 31, 2018 and $0.6 million for the quarter ended March 31, 2017 . The estimated costs of providing charity services are based on a calculation that applies a ratio of costs to the charges for uncompensated charity care. The ratio of costs to charges is based on our Air Medical segment’s total expenses divided by gross patient service revenue. The allowance for contractual discounts and estimated uncompensated care (expressed as a percentage of gross segment accounts receivable) as of the dates listed below was as follows: March 31, 2018 December 31, 2017 Allowance for Contractual Discounts 50% 53% Allowance for Uncompensated Care 26% 24% We have also established valuation reserves related to obsolete and slow-moving spare parts inventory. The inventory valuation reserves were $22.2 million and $20.9 million at March 31, 2018 and December 31, 2017 , respectively. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Accounting standards require that assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The following table summarizes the valuation of our investments and financial instruments by the above pricing levels as of the valuation dates listed: March 31, 2018 Total (Level 1) (Level 2) (Thousands of dollars) Investments: Money market mutual funds $ 74,370 $ 74,370 $ — Deferred compensation plan assets 831 831 — Total $ 75,201 $ 75,201 $ — December 31, 2017 Total (Level 1) (Level 2) (Thousands of dollars) Investments: Money market mutual funds $ 5,601 $ 5,601 $ — U.S. government agencies 7,467 — 7,467 Corporate bonds and notes 63,550 — 63,550 76,618 5,601 71,017 Deferred compensation plan assets 2,685 2,685 — Total $ 79,303 $ 8,286 $ 71,017 We hold our short-term investments in an investment fund consisting of high quality money market instruments of governmental and private issuers, which is classified as a short-term investment. Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets. These items are traded with sufficient frequency and volume to provide pricing on an ongoing basis. The fair values of the investments in these funds are based on observable market prices, and therefore, have been categorized in Level 1 in the fair value hierarchy. Level 2 inputs reflect quoted prices for identical assets or liabilities that are not actively traded. These items may not be traded daily; examples include commercial paper, corporate bonds and U.S. government agencies debt. There have been no reclassifications of assets between Level 1 and Level 2 investments during the periods covered by the financial statements included in this report. We hold no Level 3 investments. Investments reflected on our balance sheets as Other Assets, which we hold to fund liabilities under our Officers’ Deferred Compensation Plan, consist mainly of multiple investment funds that are highly liquid and diversified. Cash, accounts receivable, accounts payable and accrued liabilities, and our revolving credit facility debt all had fair values approximating their carrying amounts at March 31, 2018 and December 31, 2017 . Our determination of the estimated fair value of our 5.25% Senior Notes due 2019 is derived using Level 2 inputs, including quoted market indications of similar publicly-traded debt. The fair value of our 5.25% Senior Notes due 2019, based on quoted market prices, was $490.6 million and $499.2 million at March 31, 2018 and December 31, 2017 , respectively. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Listed below is information regarding our indebtedness, all of which was classified as short-term debt on our balance sheet as of March 31, 2018 and as long-term debt on our balance sheet as of December 31, 2017: March 31, 2018 December 31, 2017 Principal Unamortized Principal Unamortized (Thousands of dollars) Senior Notes issued March 17, 2014, interest only payable semi-annually at 5.25%, maturing March 15, 2019 $ 500,000 $ 1,285 $ 500,000 $ 1,506 Revolving Credit Facility due March 7, 2019 with a group of commercial banks, interest payable at variable rates 121,750 — 117,500 — Total indebtedness $ 621,750 $ 1,285 $ 617,500 $ 1,506 Senior Notes - Our 5.25% Senior Notes (the “2019 Notes”) will mature on March 15, 2019 , are unconditionally guaranteed on a senior basis by each of PHI, Inc.’s wholly-owned domestic subsidiaries, and are the general, unsecured obligations of PHI, Inc. and the guarantors. Interest is payable semi-annually on March 15 and September 15 of each year. PHI has the option to redeem some or all of the 2019 Notes at any time on or after March 15, 2018 at par plus accrued interest. The indenture governing the 2019 Notes (the “2019 Indenture”) contains, among other things, certain restrictive covenants, including limitations on incurring indebtedness, creating liens, selling assets and entering into certain transactions with affiliates. The covenants also limit PHI’s ability to, among other things, pay cash dividends on common stock, repurchase or redeem common or preferred equity, prepay subordinated debt and make certain investments. Upon the occurrence of a “Change in Control Repurchase Event” (as defined in the 2019 Indenture), PHI will be required, unless it has previously elected to redeem the 2019 Notes as described above, to make an offer to purchase the 2019 Notes for a cash price equal to 101% of their principal amount. Revolving Credit Facility – We have amended and restated our revolving credit facility (our “revolving credit facility”) that matures on March 7, 2019 . Under this facility, we can borrow up to $130.0 million at floating interest rates based on either the London Interbank Offered Rate plus 275 basis points or the prime rate (each as defined in this facility), at our option. This facility includes usual and customary covenants and events of default for credit facilities of its type. Our ability to borrow under this facility is conditioned upon our continued compliance with such covenants, including, among others, (i) covenants that restrict our ability to engage in certain asset sales, mergers or other fundamental changes, to incur liens or to engage in certain other transactions or activities and (ii) financial covenants that stipulate that PHI will maintain a consolidated working capital ratio of at least 2 to 1, a net funded debt to consolidated net worth ratio not greater than 1.5 to 1, a fixed charge coverage ratio of at least 1.1 to 1 if our short term investments fall below $150.0 million , and consolidated net worth of at least $500.0 million (with all such terms or amounts as defined in or determined under this facility). Borrowings under our revolving credit facility are secured on a first-priority basis by our inventory, spare parts and accounts receivable. On March 30, 2018, we received a waiver of our consolidated working capital ratio for the first quarter of 2018. As of March 31, 2018 , we were in compliance with the remaining covenants. For information about other recent amendments or waivers relating to our revolving credit facility, see "Management Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources." Interest Expense - Cash paid to fund interest expense under our outstanding indebtedness was $14.3 million for the quarter ended March 31, 2018 and $14.1 million for the quarter ended March 31, 2017 . Letter of Credit Facility - We maintain a separate letter of credit facility that had $12.4 million in letters of credit outstanding at March 31, 2018 and December 31, 2017 . We have letters of credit securing our workers compensation policies and a traditional provider contract. We also have outstanding a letter of credit for $7.6 million issued under our $130.0 million credit facility that reduces the amount we can borrow under that facility. The letter of credit was issued to guaranty our performance under an international contract that was awarded in late 2017 . Other - PHI, Inc. has cash management arrangements with certain of its principal subsidiaries, in which substantial portions of the subsidiaries’ cash is regularly advanced to PHI, Inc. Although PHI, Inc. periodically repays these advances to fund the subsidiaries’ cash requirements throughout the year, at any given point in time PHI, Inc. may owe a substantial sum to its subsidiaries under these advances, which, in accordance with GAAP, are eliminated in consolidation and therefore not recognized on our consolidated balance sheets. For additional information, see Note 15. Liquidity - In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. Under this standard, management must evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the entity’s financial statements are issued. Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within this one year period. This evaluation initially must be undertaken without considering the potential mitigating effect of management’s plans that have not been fully implemented as of the date the financial statements are issued. When substantial doubt exists under this initial determination, management must evaluate whether the mitigating effect of its plans sufficiently alleviates substantial doubt about an entity’s ability to continue as a going concern. The mitigating effect of management’s plans, however, is only considered under the standard if both (1) it is probable that the plans will be effectively implemented within one year after the date that the financial statements are issued and (2) it is probable that the plans, when implemented, will mitigate the relevant conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within the one year period. Generally, to be considered probable of being effectively implemented, the plans must have been approved before the date that the financial statements are issued. PHI’s accompanying financial statements have been prepared in conformity with GAAP, which contemplates PHI’s continuation as a going concern. Our revolving credit facility indebtedness matures on March 7, 2019 and our outstanding senior notes mature on March 15, 2019. As of March 31, 2018, all of our outstanding revolving credit and senior note indebtedness was due within less than one year. This change necessitated us classifying under GAAP all such indebtedness as current liabilities on our accompanying balance sheet as of such date and receiving a short-term waiver of the working capital ratio covenant in our revolving credit facility. This change also substantially increased the aggregate amount of indebtedness that we were required to assess when evaluating our ability to meet our obligations as they become due within one year after the date that the accompanying financial statements are filed. In late 2017, we retained advisors to begin assisting us in evaluating alternatives to refinance our outstanding indebtedness. In February 2018, following the completion of our acquisition of the HNZ Offshore Business in December 2017, we continued our exploration of refinancing alternatives, including a broad assessment of interest rates and other prevailing conditions in the capital markets. Based on our discussions to date with our advisors and current market conditions, we believe it is likely that we can extend or refinance our revolving credit facility indebtedness and refinance our outstanding senior notes, in each case before they become due. Nonetheless, because our plans to refinance or restructure our debt have not been finalized, and therefore are not within our control, these plans cannot be considered probable. Consequently, these conditions in the aggregate raise substantial doubt about our ability to continue as a going concern within one year after the date the accompanying financial statements are filed. For additional information about our refinancing plans, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources.” |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The components of basic and diluted earnings per share for the quarter and three months ended March 31, 2018 and 2017 are as follows: Quarter Ended 2018 2017 (Thousands of dollars) Weighted average outstanding shares of common stock, basic 15,806 15,689 Dilutive effect of unvested restricted stock units — — Weighted average outstanding shares of common stock, diluted (1) 15,806 15,689 (1) For the three months ended March 31, 2018 and 2017 , 490,843 and 58,119 unvested restricted stock units were excluded from the weighted average outstanding shares of common stock, diluted, respectively as they were anti-dilutive to earnings per share. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION We recognize the cost of employee compensation received in the form of equity instruments based on the grant date fair value of those awards. The table below sets forth the total amount of stock-based compensation expense for the quarters ended March 31, 2018 and 2017 . Quarter Ended 2018 2017 (Thousands of dollars) Stock-based compensation expense: Time-based restricted stock units $ 642 $ 553 Performance-based restricted stock units 677 — Total stock-based compensation expense $ 1,319 $ 553 During the quarter ended March 31, 2018, no time-based restricted units or performance-based restricted units were awarded to managerial employees. |
Asset Disposals
Asset Disposals | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Asset Disposals | ASSET DISPOSALS During the first quarter of 2018 , we disposed of one light aircraft previously utilized in the Air Medical segment and donated to a charitable organization one aircraft previously used in our Oil and Gas segment. These aircraft no longer met our strategic needs. Cash proceeds totaled $0.8 million , resulting in a $0.3 million loss on the disposal of these assets. There were no sales or disposals of aircraft during the first quarter of 2017. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments – We currently have no aircraft purchase commitments. Total aircraft deposits of $0.5 million were included in Other Assets as of March 31, 2018 . This amount represents a deposit on a future lease buyout option. In the event we do not exercise the buyout option, the deposit will be applied against lease payments. As of March 31, 2018 , we had options to purchase aircraft under leases, with such purchase options becoming exercisable in 2018 through 2020. The aggregate option purchase prices are $127.0 million in 2018 , $129.0 million in 2019 , and $22.7 million in 2020 . Under current conditions, we believe it is unlikely that we will exercise the 2018 purchase options, unless opportunistic conditions arise. Environmental Matters – We have recorded an estimated liability of $0.15 million as of March 31, 2018 for environmental response costs. Previously, we conducted environmental surveys of our former Lafayette Facility located at the Lafayette Regional Airport, which we vacated in 2001, and determined that limited soil and groundwater contamination exist at two parcels of land at the former facility. An Assessment Report for both parcels was submitted in 2003 (and updated in 2006) to the Louisiana Department of Environmental Quality (LDEQ) and the Louisiana Department of Natural Resources (LDNR). Approvals for the Assessment Report were received from the LDEQ and LDNR in 2010 and 2011, respectively. Since that time, we have performed groundwater sampling of the required groundwater monitor well installations at both parcels and submitted these sampling reports to the LDEQ. Pursuant to an agreement with the LDEQ, we provided groundwater sample results semi-annually to the LDEQ for both parcels from 2005 to 2015. LDEQ approved a reduction in the sampling program from semi-annual to annual groundwater monitoring in 2015. Based on our working relationship and agreements with the LDEQ, and the results of ongoing former facility parcel monitoring, we believe that ultimate remediation costs for the subject parcels will not be material to our consolidated financial position, operations or cash flows. Legal Matters – From time to time, we are involved in various legal actions incidental to our business, including actions relating to employee claims, medical malpractice claims, tax issues, grievance hearings before labor regulatory agencies, and miscellaneous third party tort actions. The outcome of these proceedings is not predictable. However, based on current circumstances, we do not believe that the ultimate resolution of our presently pending proceedings, after considering available defenses and any insurance coverage or indemnification rights, will have a material adverse effect on our financial position, results of operations or cash flows. Operating Leases – We lease certain aircraft, facilities, and equipment used in our operations. The related lease agreements, which include both non-cancelable and month-to-month terms, generally provide for fixed monthly rentals, and certain real estate leases also include renewal options. We generally pay all insurance, taxes, and maintenance expenses associated with these leases. All aircraft leases contain purchase options exercisable by us at certain dates specified in the lease agreements. At March 31, 2018 , we had approximately $194.3 million in aggregate commitments under operating leases of which approximately $26.7 million is payable through the fourth quarter of 2018. The total lease commitments include $168.4 million for aircraft and $25.9 million for facility lease commitments. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GOODWILL Our Goodwill represents the amount by which our purchase price for the HNZ Offshore Business exceeded the fair value of net assets acquired. Goodwill has an indefinite useful life and is not amortized, but is assessed for impairment annually or when events or changes in circumstances indicate that a potential impairment exists. Goodwill of $61.3 million as of March 31, 2018 and December 31, 2017 was as follow: Oil & Gas Air Medical Technical Services Total Balance December 31, 2017 $ 61,299 — — $ 61,299 Activity — — — — Balance March 31, 2018 $ 61,299 — — $ 61,299 We test goodwill for impairment on an annual basis as of October 1st or when events or changes in circumstances indicate that a potential impairment exists. |
Other Intangible Assets
Other Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | OTHER INTANGIBLE ASSETS Intangible assets with finite useful lives are amortized over estimated useful lives on a straight-line basis. Our intangible assets, which arose in connection with our acquisition of the HNZ Offshore Business, consist of the following (in thousands): Estimated Useful Lives Gross Amount at December 31, 2017 Accumulated Amortization Net Balance at March 31, 2018 Customer Relationship 15 $ 11,622 $ (194 ) $ 11,428 Non-Compete Agreements 5 900 (45 ) 855 Tradenames 7 4,201 (150 ) 4,051 Total $ 16,723 $ (389 ) $ 16,334 Based on the carrying values of our intangible assets at March 31, 2018, we estimate our amortization expense for the next five years (2018 through 2022) to be $1.6 million per year. As of March 31, 2018 amortization expense was $0.4 million . |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION PHI is primarily a provider of helicopter transport services, including helicopter maintenance and repair services. We report our financial results through the three reportable segments further described below. A segment’s operating profit or loss is its operating revenues less its direct expenses and selling, general and administrative expenses. Each segment has a portion of selling, general and administrative expenses that is charged directly to the segment, and a small portion that is allocated. Direct charges represent the vast majority of segment selling, general and administrative expenses. Allocated selling, general and administrative expenses are based primarily on total segment costs as a percentage of total operating costs. Oil and Gas Segment - Our Oil and Gas segment, headquartered in Lafayette, Louisiana, provides helicopter services primarily for the major integrated and independent oil and gas production companies transporting personnel or equipment to offshore platforms in the Gulf of Mexico and a select number of foreign countries. Our customers include Shell Oil Company, BP America Production Company, ExxonMobil Production Company, and ConocoPhillips Company, with whom we have worked for 35 or more years, and ENI Petroleum, with whom we have worked for more than 20 years. At March 31, 2018 , we had available for use 130 aircraft in this segment. Operating revenue from our Oil and Gas segment is derived mainly from contracts that include a fixed monthly rate for a particular model of aircraft, plus variable payments based on the amount of flight time. A small portion of our Oil and Gas segment revenue is derived from providing services on an "ad-hoc" basis. Operating costs for the Oil and Gas segment are primarily aircraft operation costs, including costs for pilots and maintenance personnel. Total fuel cost is included in direct expense and any reimbursement of these costs is included in revenue. We typically operate under fixed-term contracts with our customers, a substantial portion of which are competitively bid. Our fixed-term contracts typically have original terms of one year to seven years (subject to provisions permitting early termination by the customers), with payment in U.S. dollars. For the quarters ended March 31, 2018 and 2017 , respectively, approximately 59% and 53% of our total operating revenues were generated by our Oil and Gas segment, with approximately 88% and 90% of these revenues from fixed-term customer contracts. The remaining 12% and 10% of these revenues were attributable to work in the spot market and ad hoc flights for contracted customers. Air Medical Segment - The operations of our Air Medical segment are headquartered in Phoenix, Arizona, where we maintain significant separate facilities and administrative staff dedicated to this segment. We provide Air Medical transportation services for hospitals and emergency service agencies throughout the U.S. As of March 31, 2018 , our Air Medical segment operated approximately 106 aircraft in 18 states at 73 separate locations. Our Air Medical segment operates primarily under the independent provider model and, to a lesser extent, under the traditional provider model. Under the independent provider model, we have no fixed revenue stream and compete for transport referrals on a daily basis with other independent operators in the area. Under the traditional provider model, we contract directly with the customer to provide their transportation services, with the contracts typically awarded or renewed through competitive bidding. For the quarters ended March 31, 2018 and 2017, approximately 36% and 41% of our total operating revenues were generated by our Air Medical segment, respectively. As an independent provider, we bill for our services on the basis of a flat rate plus a variable charge per patient-loaded mile, regardless of aircraft model, and are typically compensated by private insurance, Medicaid or Medicare, or directly by transported patients who self-pay. As further described in Note 3, revenues are recorded net of contractual allowances under agreements with third party payors and estimated uncompensated care at the time the services are provided. Contractual allowances and uncompensated care are estimated based on historical collection experience by payor category (consisting mainly of insurance, Medicaid, Medicare, and self-pay). Estimates regarding the payor mix and changes in reimbursement rates are the factors most subject to sensitivity and variability in calculating our allowances. We compute a historical payment analysis of accounts fully closed, by category. Provisions for contractual discounts and estimated uncompensated care for our Air Medical segment (expressed as a percentage of gross segment billings) were as follows for the periods listed below: Quarter Ended 2018 2017 Provision for contractual discounts 69 % 70 % Provision for uncompensated care 6 % 4 % These percentages are affected by various factors, including rate increases and changes in the number of transports by payor mix. Net reimbursement per transport from commercial payors generally increases when a rate increase is implemented. Net reimbursement from certain commercial payors, as well as Medicare and Medicaid, generally does not increase proportionately with rate increases. Net revenue attributable to Insurance, Medicare, Medicaid, and Self-Pay (expressed as a percentage of net Air Medical revenues) were as follows for the periods listed below: Quarter Ended 2018 2017 Insurance 71 % 70 % Medicare 20 % 20 % Medicaid 9 % 10 % Self-Pay — % — % We also have a limited number of contracts with hospitals under which we receive a fixed fee component for aircraft availability and a variable fee component for flight time. Most of our contracts with hospitals contain provisions permitting early termination by the hospital, typically with 180 days’ notice for any reason and generally with penalty. Those contracts generated approximately 18% and 19% of the segment’s revenues for the quarters ended March 31, 2018 and 2017 , respectively. We also derive a small portion of the segment’s revenues from providing services under our patient navigation business. Technical Services Segment - Our Technical Services segment provides helicopter repair and overhaul services for flight operations customers that own their aircraft. Costs associated with these services are primarily labor, and customers are generally billed at a percentage above our service costs. We also periodically provide flight services to governmental customers under this segment, including our agreement to operate six aircraft for the National Science Foundation in Antarctica, typically in the first and fourth quarters each year. Also included in this segment are our proprietary Helipass operations, which provide software as a service to certain of our Oil and Gas customers for the purpose of passenger check-in and compliance verification. For the quarters ended March 31, 2018 and 2017, approximately 5% and 6% , respectively, of our total operating revenues were generated by our Technical Services segment. Summarized financial information concerning our reportable operating segments for the three months ended March 31, 2018 and 2017 is as follows: Quarter Ended 2018 2017 (Thousands of dollars) Segment operating revenues Oil and Gas $ 95,640 $ 71,731 Air Medical 56,988 55,338 Technical Services 7,742 7,549 Total operating revenues, net 160,370 134,618 Segment direct expenses (1) Oil and Gas (2) 96,507 81,728 Air Medical 53,832 50,842 Technical Services 5,887 4,946 Total direct expenses 156,226 137,516 Segment selling, general and administrative expenses Oil and Gas 4,921 1,720 Air Medical 3,167 2,881 Technical Services 370 338 Total selling, general and administrative expenses 8,458 4,939 Total segment direct and selling, general and administrative expenses 164,684 142,455 Net segment (loss) profit Oil and Gas (5,788 ) (11,717 ) Air Medical (11 ) 1,615 Technical Services 1,485 2,265 Total net segment profit (4,314 ) (7,837 ) Other, net (3) (1,961 ) 1,064 Unallocated selling, general and administrative costs (1) (7,001 ) (8,105 ) Interest expense (8,197 ) (8,195 ) (Loss) earnings before income taxes $ (21,473 ) $ (23,073 ) (1) Included in direct expenses and unallocated selling, general, and administrative costs are the depreciation and amortization expense amounts below: Depreciation and Amortization Expense Quarter Ended 2018 2017 (Thousands of dollars) Segment Direct Expense: Oil and Gas $ 11,783 $ 9,862 Air Medical 5,624 5,477 Technical Services 145 146 Total $ 17,552 $ 15,485 Unallocated SG&A $ 1,915 $ 1,360 (2) Includes equity in (earnings) of unconsolidated affiliates, net. (3) Consists of (gains) losses on disposition of property and equipment and other income. |
Investment in Variable Interest
Investment in Variable Interest Entity | 3 Months Ended |
Mar. 31, 2018 | |
Investment in Variable Interest Entity and Other Investments and Affiliates [Abstract] | |
Investment in Variable Interest Entity | INVESTMENT IN VARIABLE INTEREST ENTITY We account for our investment in certain international operations as variable interest entities, which is defined as an entity that either (a) has insufficient equity to permit the entity to finance its operations without additional subordinated financial support or (b) has equity investors who lack the characteristics of a controlling financial interest. PHI Century Limited - As of March 31, 2018 , we had a 49% investment in the common stock of PHI Century Limited (“PHIC”), a Ghanaian entity. We acquired our 49% interest on May 26, 2011 , PHIC’s date of incorporation. The purpose of PHIC is to provide oil and gas flight services in Ghana and the West African region. For the quarter ended March 31, 2018 , we recorded a loss in equity of this unconsolidated affiliate of less than $0.1 million compared to a loss of $1.0 million for the quarter ended March 31, 2017 relative to our 49% equity ownership. We had $4.1 million and $4.0 million of trade receivables as of March 31, 2018 and December 31, 2017 , respectively, from PHIC. During the quarter ended March 31, 2018, we loaned PHIC $0.3 million for operating purposes. The $0.3 million loan balance is included in Accounts receivable - other on our Condensed Consolidated Balance Sheets at March 31, 2018. Our investment in the common stock of PHIC is included in Other Assets on our Condensed Consolidated Balance Sheets and was $0.3 million and $0.3 million at March 31, 2018 and December 31, 2017 , respectively. |
Other Comprehensive Income
Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Other Comprehensive Income | OTHER COMPREHENSIVE INCOME Amounts reclassified from Accumulated other comprehensive income are not material and, therefore, not presented separately in the Condensed Consolidated Statements of Comprehensive Income. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Financial Information | CONDENSED CONSOLIDATING FINANCIAL INFORMATION As discussed further in Note 5, on March 17, 2014, PHI, Inc. issued $500.0 million aggregate principal amount of 5.25% Senior Notes due 2019 that are fully and unconditionally guaranteed on a joint and several, senior basis by all of PHI, Inc.’s domestic subsidiaries. PHI, Inc. directly or indirectly owns 100% of all of its domestic subsidiaries. The supplemental condensed financial information on the following pages sets forth, on a consolidated basis, the balance sheet, statement of operations, statement of comprehensive income, and statement of cash flows information for PHI, Inc. (“Parent Company”) the guarantor subsidiaries and the non-guarantor subsidiaries, each under separate headings. The eliminating entries eliminate investments in subsidiaries, intercompany balances, and intercompany revenues and expenses. The condensed consolidating financial statements have been prepared on the same basis as the consolidated financial statements of PHI, Inc. The equity method is followed by the Parent Company within the financial information presented below. The transactions reflected in “Due to/from affiliates, net” in the following condensed consolidated statements of cash flows primarily consist of centralized cash management activities between PHI, Inc. and its subsidiaries, pursuant to which cash earned by the guarantor subsidiaries is regularly transferred to PHI, Inc. to be centrally managed. Because these balances are treated as short-term borrowings of the Parent Company, serve as a financing and cash management tool to meet our short-term operating needs, turn over quickly and are payable to the guarantor subsidiaries on demand, we present borrowings and repayments with our affiliates on a net basis within the condensed consolidating statement of cash flows. Net receivables from our affiliates are considered advances and net payables to our affiliates are considered borrowings, and both changes are presented as financing activities in the following condensed consolidating statements of cash flows. Due to growth of our affiliates in Trinidad and Australia which no longer qualify as minor subsidiaries under regulation S-X 210.3-10(h)6, we began reporting all of our non-guarantors subs in a separate column beginning with the quarter ended June 30, 2017. We have recast prior years financial information to conform to current year presentation. PHI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS (Thousands of dollars) (Unaudited) March 31, 2018 Parent Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current Assets: Cash $ 54 $ 979 $ 6,398 $ — $ 7,431 Short-term investments 61,988 — — — 61,988 Accounts receivable – net 76,539 74,580 36,627 (1,160 ) 186,586 Intercompany receivable — 128,702 — (128,702 ) — Inventories of spare parts – net 64,695 9,330 2,986 — 77,011 Prepaid expenses 7,773 2,668 1,068 — 11,509 Income taxes receivable 295 511 25 — 831 Total current assets 211,344 216,770 47,104 (129,862 ) 345,356 Investment in subsidiaries 399,555 — — (399,555 ) — Property and equipment – net 607,960 285,080 43,283 — 936,323 Restricted cash and investments 12,382 — 14 — 12,396 Other assets 139,515 851 (131,563 ) — 8,803 Deferred income tax — — 3,211 — 3,211 Goodwill — — 61,299 — 61,299 Intangible assets — — 16,334 — 16,334 Total assets $ 1,370,756 $ 502,701 $ 39,682 $ (529,417 ) $ 1,383,722 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities: Revolving Credit facility $ 121,750 $ — $ — $ — $ 121,750 Senior notes issued March 17, 2014, net of debt issuance costs of $1,285 498,715 — — — 498,715 Accounts payable 27,027 4,664 6,635 (1,160 ) 37,166 Accrued and other current liabilities 20,722 13,531 7,789 — 42,042 Intercompany payable 107,122 — 21,580 (128,702 ) — Total current liabilities 775,336 18,195 36,004 (129,862 ) 699,673 Deferred income taxes and other long-term liabilities (1,848 ) 84,670 3,492 — 86,314 Shareholders’ Equity: Common stock and paid-in capital 311,253 77,951 1,511 (79,462 ) 311,253 Accumulated other comprehensive loss (3 ) — 467 — 464 Retained earnings 286,018 321,885 (1,792 ) (320,093 ) 286,018 Total shareholders’ equity 597,268 399,836 186 (399,555 ) 597,735 Total liabilities and shareholders’ equity $ 1,370,756 $ 502,701 $ 39,682 $ (529,417 ) $ 1,383,722 PHI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS (Thousands of dollars) December 31, 2017 Parent Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current Assets: Cash $ 47 $ 1,072 $ 7,651 $ — $ 8,770 Short-term investments 64,237 — — — 64,237 Accounts receivable – net 90,077 74,886 38,020 (17,004 ) 185,979 Intercompany receivable — 126,366 — (126,366 ) — Inventories of spare parts – net 68,737 9,049 3,095 — 80,881 Prepaid expenses 8,348 1,898 1,229 — 11,475 Income taxes receivable 345 9 917 — 1,271 Total current assets 231,791 213,280 50,912 (143,370 ) 352,613 Investment in subsidiaries and others 397,301 — — (397,301 ) — Property and equipment – net 617,488 284,984 44,293 — 946,765 Restricted investments 12,382 — 14 — 12,396 Other assets 139,754 908 (131,921 ) — 8,741 Deferred income tax — — 3,309 — 3,309 Goodwill — — 61,299 — 61,299 Intangible assets — — 16,723 — 16,723 Total assets $ 1,398,716 $ 499,172 $ 44,629 $ (540,671 ) $ 1,401,846 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities: Accounts payable $ 28,130 $ 4,636 $ 21,425 $ (17,005 ) $ 37,186 Accrued and other current liabilities 23,147 10,577 8,126 — 41,850 Intercompany payable 113,387 — 12,978 (126,365 ) — Total current liabilities 164,664 15,213 42,529 (143,370 ) 79,036 Long-term debt 615,994 — — — 615,994 Deferred income taxes and other long-term liabilities 5,404 84,300 4,458 — 94,162 Shareholders’ Equity: Common stock and paid-in capital 309,933 77,951 1,375 (79,326 ) 309,933 Accumulated other comprehensive loss (280 ) — — — (280 ) Retained earnings 303,001 321,708 (3,733 ) (317,975 ) 303,001 Total shareholders’ equity 612,654 399,659 (2,358 ) (397,301 ) 612,654 Total liabilities and shareholders’ equity $ 1,398,716 $ 499,172 $ 44,629 $ (540,671 ) $ 1,401,846 PHI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (Thousands of dollars) (Unaudited) For the Quarter Ended March 31, 2018 Parent Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated Operating revenues, net $ 78,092 $ 58,709 $ 49,502 $ (25,933 ) $ 160,370 Expenses: Direct expenses 83,997 55,364 42,779 (25,914 ) 156,226 Selling, general and administrative expenses 8,747 3,167 3,549 (4 ) 15,459 Total operating expenses 92,744 58,531 46,328 (25,918 ) 171,685 (Gain) Loss on disposal of assets, net 879 — — — 879 Equity in (income) loss of unconsolidated affiliates, net 37 — — — 37 Operating (loss) income (15,568 ) 178 3,174 (15 ) (12,231 ) Equity in net income of consolidated subsidiaries (2,099 ) — — 2,099 — Interest expense 8,195 1 543 (542 ) 8,197 Other income, net 305 — 213 527 1,045 6,401 1 756 2,084 9,242 (Loss) earnings before income taxes (21,969 ) 177 2,418 (2,099 ) (21,473 ) Income tax (benefit) expense (4,986 ) — 496 — (4,490 ) Net (loss) earnings $ (16,983 ) $ 177 $ 1,922 $ (2,099 ) $ (16,983 ) PHI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (Thousands of dollars) For the Quarter Ended March 31, 2017 Parent Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated Operating revenues, net $ 74,284 $ 57,473 $ 2,861 $ — $ 134,618 Expenses: Direct expenses 82,344 52,381 1,788 — 136,513 Selling, general and administrative expenses 10,108 2,887 53 (4 ) 13,044 Total operating expenses 92,452 55,268 1,841 (4 ) 149,557 Equity in loss of consolidated affiliate 1,003 — — — 1,003 Operating (loss) income (19,171 ) 2,205 1,020 4 (15,942 ) Equity in net income of consolidated subsidiaries (2,631 ) — — 2,631 — Interest expense 8,174 21 — — 8,195 Other income, net (1,067 ) (1 ) — 4 (1,064 ) 4,476 20 — 2,635 7,131 (Loss) earnings before income taxes (23,647 ) 2,185 1,020 (2,631 ) (23,073 ) Income tax (benefit) expense (8,399 ) 574 — — (7,825 ) Net (loss) earnings $ (15,248 ) $ 1,611 $ 1,020 $ (2,631 ) $ (15,248 ) PHI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Thousands of dollars) (Unaudited) For the Quarter Ended March 31, 2018 Parent Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated Net (loss) earnings $ (16,983 ) $ 177 $ 1,922 $ (2,099 ) $ (16,983 ) Unrealized gain on short-term investments 471 — — — 471 Currency translation adjustments — — 467 — 467 Changes in pension plan asset and benefit obligation (9 ) — — — (9 ) Tax effect of the above-listed adjustments (185 ) — — — (185 ) Total comprehensive (loss) income $ (16,706 ) $ 177 $ 2,389 $ (2,099 ) $ (16,239 ) PHI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Thousands of dollars) For the Quarter Ended March 31, 2017 Parent Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated Net (loss) earnings $ (15,248 ) $ 1,611 $ 1,020 $ (2,631 ) $ (15,248 ) Unrealized gain on short-term investments 162 — — — 162 Changes in pension plan asset and benefit obligations (1 ) — — — (1 ) Tax effect of the above-listed adjustments (58 ) — — — (58 ) Total comprehensive (loss) income $ (15,145 ) $ 1,611 $ 1,020 $ (2,631 ) $ (15,145 ) PHI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (Thousands of dollars) (Unaudited) For the Quarter Ended March 31, 2018 Parent Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated Net cash (used in) provided by operating activities $ (9,764 ) $ 6,141 $ 2,191 $ — $ (1,432 ) Investing activities: Purchase of property and equipment (5,459 ) — (1,206 ) — (6,665 ) Proceeds from asset dispositions 842 — — — 842 Purchase of short-term investments (134,319 ) — — — (134,319 ) Proceeds from sale of short-term investments 136,259 — — — 136,259 Loan (274 ) — — — (274 ) Net cash provided by (used in) investing activities (2,951 ) — (1,206 ) — (4,157 ) Financing activities: Proceeds from line of credit 33,750 — — — 33,750 Payments on line of credit (29,500 ) — — — (29,500 ) Due to/from affiliate, net 8,472 (6,234 ) (2,238 ) — — Net cash provided by (used in) financing activities 12,722 (6,234 ) (2,238 ) — 4,250 Increase (decrease) in cash 7 (93 ) (1,253 ) — (1,339 ) Cash, beginning of period 47 1,072 7,651 — 8,770 Cash, end of period $ 54 $ 979 $ 6,398 $ — $ 7,431 PHI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (Thousands of dollars) For the Quarter Ended March 31, 2017 Parent Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated Net cash (used in) provided by operating activities $ (19,332 ) $ 10,678 $ 401 $ — $ (8,253 ) Investing activities: Purchase of property and equipment (4,738 ) — (51 ) — (4,789 ) Purchase of short-term investments (54,867 ) — — (54,867 ) Proceeds from sale of short-term investments 67,659 — — 67,659 Payments of deposits on aircraft (66 ) — — (66 ) Net cash provided by (used in) investing activities 7,988 — (51 ) — 7,937 Financing activities: Proceeds from line of credit 37,300 — — 37,300 Payments on line of credit (35,800 ) — — (35,800 ) Repurchase of common stock (100 ) — — (100 ) Due to/from affiliate, net 9,959 (10,703 ) 744 — — Net cash provided by (used in) financing activities 11,359 (10,703 ) 744 — 1,400 Increase in cash 15 (25 ) 1,094 — 1,084 Cash, beginning of period 36 2,100 460 — 2,596 Cash, end of period $ 51 $ 2,075 $ 1,554 $ — $ 3,680 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | Going Concern - The financial statements accompanying this Quarterly Report have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”), which contemplates our continuation as a going concern. For the reasons described in Note 5, the recent classification of our indebtedness as current liabilities due within one year and other conditions raise substantial doubt about our ability to continue as a going concern within one year after the date the financial statements accompanying this Quarterly Report are filed. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In 2014, Financial Accounting Standard Board ("the FASB") issued ASC 606, Revenue from Contracts with Customers (“ASC 606”), replacing the existing accounting standard and industry specific guidance for revenue recognition with a five-step model for recognizing and measuring revenue from contracts with customers. The underlying principle of the new standard is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. ASC 606 became effective on January 1, 2018 and the Company adopted it using the modified retrospective method applied to open contracts and only to the version of the contracts in effect as of January 1, 2018. Prior period amounts have not been adjusted and continue to be reflected in accordance with the Company’s historical accounting. There was no impact on the condensed consolidated financial statements and no cumulative effect adjustment was recognized. In general, we recognize revenue when a service or good is sold to a customer and there is a contract. At inception of each contract, we assess the obligations and identify a performance obligation to provide a service that is distinct in the context of the contract. To identify the performance obligations, we consider all goods or services promised in the contract, whether explicitly stated or implied based on customary business practices. Revenue is recognized when control of the identified distinct goods or services have been transferred to the client, and the transaction price is determined and allocated to the performed performance obligations and we have determined that collection has occurred or is probable of occurring. At contract inception, we assess the goods and services promised in our contracts with customers and identify all performance obligations for each distinct promise that transfers a good or service (or bundle of goods or services) to the customer. The company measures revenue as the amount of consideration we expect to receive in exchange of the services provided. Taxes collected from customers and remitted to governmental authorities and revenues are reported on a net basis in the Company’s financial statements. Thus, the Company excludes taxes imposed on the customer and collected on behalf of governmental agencies to be remitted to these agencies from the transaction price in determining the revenue related to contracts with a customer. Revenue Recognition Oil & Gas - The Company provides helicopter services to oil and gas customers operating in the Gulf of Mexico and a selected number of foreign countries. Revenues are recognized when performance obligations are satisfied over time in accordance with contractual terms, in an amount that reflects the consideration the Company expects to be entitled to in exchange for services rendered. Revenue Recognition Air Medical - The Company provides helicopter services to hospitals and emergency service providers in several U.S. states, and individuals, in which case the Company is paid by either a commercial insurance company, federal or state agency, or the patient. Our Air Medical segment operates primarily under the independent provider model and, to a lesser extent, under the traditional and cooperative provider models. Revenues related to the independent provider model services are recorded in the period in which we satisfy our performance obligations under contracts by transferring our services to our customers based upon established billing rates net of contractual allowances under agreements with third party payors and net of uncompensated care allowances. These amounts are due from patients, third-party payors (including health insurers and government programs), and others and includes variable consideration for retroactive revenue adjustments due to settlement of audits, reviews, and investigations. Generally, the Company bills the patients and third-party payors several days after the services are performed. Revenues generated under the traditional provider model is recognized as performance obligations are satisfied over time in accordance with contractual terms, in an amount that reflects the consideration the Company expects to be entitled to in exchange for services rendered. Revenues are recognized as performance obligations are satisfied and in the amounts to which we expect to be entitled, which are the transaction prices allocated to the distinct services. Performance Obligations Oil & Gas - A performance obligation arises under contracts with customers to render services and is the unit of account under ASC 606. Operating revenue from our Oil and Gas segment is derived mainly from fixed-term contracts with our customers, a substantial portion of which are competitively bid. A small portion of our Oil and Gas segment revenue is derived from providing services on an "ad-hoc" basis. Our fixed-term contracts typically have original terms of one year to seven years (subject to provisions permitting early termination by the customers), with payment in U.S. dollars. The Company accounts for services rendered separately if they are distinct and the service is separately identifiable from other items provided to a customer and if a customer can benefit from the services rendered on its own or with other resources that are readily available to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Within this contract type for helicopter services, we determined that each contract has a single distinct performance obligation. These services include a fixed monthly rate for a particular model of aircraft, and flight hour services, which represents the variable component of a typical contract with a customer. Rates for these services vary depending on the type of services provided and can be based on a per flight hour, per day, or per month basis. We also provide services to clients on an “ad hoc” basis, which usually entails a shorter contract notice period and duration. The charges for ad hoc services are based on an hourly rate or a daily or monthly fixed fee plus additional fees for each hour flown. The nature of our variable charges within our flight services contracts are not effective until a customer-initiated flight order and the actual hours flown are determined, therefore, the associated flight revenue generally cannot be reasonably and reliably estimated before hand. A contract’s standalone selling prices are determined based upon the prices that the Company charges for its services rendered. The majority of the Company’s revenue is recognized as performance obligations are satisfied over time, by measuring progress towards satisfying the contracted services in a manner that best depicts the transfer of services to the customer, which is generally represented by a period of 30 days or less. The Company’s payment terms vary by the type of services offered. The Company typically invoices customers on a monthly basis with the term between invoicing and when the payment is due is typically between 30 and 60 days. Performance Obligations Air Medical - Performance obligations are determined based upon the nature of the services provided. Under the independent provider model, we measure the performance obligation from the moment the patient is loaded into the aircraft until it reaches its destination. Under this model, we have no fixed revenue stream and compete for transport referrals on a daily basis with other independent operators in the area. As an independent provider, we bill for our services on the basis of a flat rate plus a variable charge per patient-loaded mile, regardless of aircraft model, and are typically compensated by private insurance, Medicaid or Medicare, or directly by transported patients who self-pay. Under the traditional provider model, we contract directly with the customer to provide their transportation services, with the contracts typically awarded or renewed through competitive bidding. As a traditional provider, we typically bill a fixed monthly rate for aircraft availability and an hourly rate for flight time. For each of these types of helicopter services, we have determined that each has a single distinct performance obligation. We recognize revenues for performance obligations satisfied at a point in time, which generally relate to patients receiving helicopter services under the independent provider model when: (1) services are provided; and (2) we do not believe the patient requires additional services. Traditional provider models services include fixed monthly rate for a particular model of aircraft, and flight hour services, which represents the variable component of a typical contract with customer. Rates for these services vary depending on the type of services provided and can be based on a per flight hour, per day, or per month basis. The variable charges within the contracts are not effective until customer-initiated flight order and the actual hours flown are determined, therefore, the associated revenue generally cannot be reasonably and reliably estimated beforehand. For the traditional provider model, we determine the transaction price based upon standard charges for goods and services provided. For independent provider model we determine the transaction price based upon gross charges for services provided reduced by contractual adjustments provided to third-party payors, discounts provided to uninsured patients in accordance with Company policy, and/or implicit price concessions provided to uninsured patients. We determine estimates of contractual adjustments and discounts based upon contractual agreements, our discount policy, and historical experience. We determine our estimate of implicit price concessions based upon our historical collection experience with these classes of patients using a portfolio approach as a practical expedient to account for patient contracts as collective groups, rather than individually. The financial statement effects of using this practical expedient are not materially different from an individual contract approach. As further described in Note 3, independent provider revenues are recorded net of contractual allowances under agreements with third party payors and estimated uncompensated care at the time the services are provided. Contractual allowances and uncompensated care are estimated based on historical collection experience by payor category (consisting mainly of private insurance, Medicaid, Medicare, and self-pay). The allowance percentages calculated are applied to the payor categories, and the necessary adjustments are made to the revenue allowance. Agreements with third-party payors typically provide for payments at amounts less than established charges. As of March 31, 3018 and December 31, 2017, receivables related to Oil and Gas segment were $110.7 million and $106.8 million , Air Medical segment were $73.4 million and $74.4 million and Technical Services segment were $2.5 million and $4.8 million , respectively. Contract assets and contract liabilities were immaterial as of March 31, 2018. Due to the nature of our business, we do not have significant backlog. Total backlog was $57.6 million at March 31, 2018, we expect to recognize this full backlog as revenue over the next 12 months. Our contracts typically include unilateral termination clauses that allow both parties to terminate existing contracts with a 30 to 180 day notice period. The amounts above include performance obligations up to the point where the contracting parties can cancel existing contracts. As such, our actual remaining performance obligation revenue is expected to be greater than what is reflected above. In addition, the remaining performance obligation disclosure does not include expected consideration related to performance obligations of a variable nature (i.e. flight services) as they cannot be reasonably and reliably estimated. The Company generally has a right to consideration in an amount that corresponds directly with the value to the customer of the entity's performance completed to date and may recognize revenue in the amount to which the entity has a right to invoice. We have elected to use the invoice practical expedient for revenue recognized when performance obligations are satisfied over time. In addition, payment for goods and services rendered is typically due in the subsequent month following satisfaction of the Company’s performance obligation. The Technical Services segment provides helicopter flight services and helicopter repair and overhaul services for existing flight operations customers that own their own aircraft. Under this segment, the Company periodically provides certain services to governmental customers, including the Company’s agreement to operate six aircraft for the National Science Foundation in Antarctica. Under this segment, we also offer certain software as a service to our Oil and Gas customers. Revenues are recognized when performance obligations are satisfied in accordance with contractual terms, in an amount that reflects the consideration the Company expects to be entitled to in exchange for services rendered. For these helicopter services, we determined that each has a single distinct performance obligation. The following table presents the Company’s revenues by segment disaggregated by type (in thousands): For the Quarter Ended March 31, 2018 2017 Service Revenue Oil & Gas $ 95,640 $ 71,731 Air Medical 56,988 55,338 Technical Services 7,742 7,549 Total Services $ 160,370 $ 134,618 Air Medical Revenue Traditional provider model $ 11,106 $ 10,596 Independent provider model 45,882 44,742 Total Air Medicals Revenues $ 56,988 $ 55,338 On January 26, 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350) : Simplifying the Test for Goodwill Impairment (ASU 2017-04). ASU 2017-04 removes the requirement to compare the implied fair value of goodwill with the carrying amount as part of Step 2 of the goodwill impairment test. Under the new standard, the goodwill impairment loss will be measured as the excess of a reporting unit's carrying amount over its fair value, not exceeding the total amount of goodwill allocated to that reporting unit, which may increase the frequency of goodwill impairment charges if a future goodwill impairment test does not pass the Step 1 evaluation. ASU 2017-04 is effective prospectively for periods beginning on or after December 15, 2019, with early adoption permitted. The Company adopted ASU 2017-04 effective January 1, 2018. The Company will perform goodwill impairment testing under the new standard annually as of October 1 or when events or changes in circumstances indicate that a potential impairment exist. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes , which requires that deferred tax assets and liabilities be classified as noncurrent in a classified balance sheet. PHI, Inc. adopted this ASU in the fourth quarter of 2017 on a prospective basis. Beginning with the December 31, 2017 balances, all deferred taxes were classified as non-current. Periods prior to December 31, 2017 were not retrospectively adjusted. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory , which will require an entity to recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The ASU is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The Company adopted ASU 2016-16 effective January 1, 2018 with no material impact to the condensed consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . ASU 2017-01 clarifies the definition of a business and requires that an entity apply certain criteria in order to determine when a set of assets and activities qualifies as a business. The adoption of this standard is expected to result in fewer acquisitions of properties qualifying as acquisitions of businesses and, accordingly, acquisition costs for those acquisitions that do not qualify as businesses will be capitalized rather than expensed. This standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, and should be applied on a prospective basis. The Company adopted ASU 2017-01 effective January 1, 2018 with no material impact to the condensed consolidated financial statements. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted which significantly reformed the U.S. Internal Revenue Code (the “Code”). The Tax Act, among other things, reduced the federal corporate income tax rate from 35% to 21% effective January 1, 2018. Following the enactment of the Tax Act, the SEC staff issued Staff Accounting Bulletin 118 - "Income Tax Accounting Implications of the Tax Cuts and Jobs Act" (SAB 118), which provides for a measurement period of up to one year from the enactment date to complete accounting under GAAP for the tax effects of the legislation. As of December 31, 2017, the Company had not completed its accounting for the tax effects of the Tax Act. However, the Company remeasured its net deferred tax liability at December 31, 2017 and provisionally recognized a net benefit of $49.2 million in its consolidated statement of operations for the year ended December 31, 2017. As of March 31, 2018 the Company has not completed its accounting for the tax effects of the Tax Act. The Company is still analyzing certain aspects of the Tax Act and refining its calculations, which could potentially affect the measurement of these balances or potentially give rise to changes to its current provisional estimates. The Company’s estimates may be affected by a wide variety of factors, including additional regulatory guidance issued with respect to the Tax Act. Any adjustments to the provisional amounts will be recognized as a component of income tax in the period in which the adjustments are determined. We expect to complete the accounting by the time we file our 2017 U.S. corporate income tax return in the 3rd quarter of 2018. New Accounting Pronouncements - In February 2016, the FASB issued ASU 2016-02, Leases , which replaces the existing guidance on leasing transactions in ASC 840 to require recognition of the assets and liabilities for the rights and obligations created by those leases on the balance sheet. The Company has formed an implementation team that is inventorying leases and evaluating the impact that adoption of this guidance will have on the Company’s financial statements, which includes monitoring industry specific developments including recent exposure drafts issued by the FASB. Based on our lease portfolio as of March 31, 2018, we expect the adoption of this standard will result in a material change to our consolidated assets and liabilities. We plan to adopt this standard beginning January 1, 2019. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Disaggregated Revenues by Segment | The following table presents the Company’s revenues by segment disaggregated by type (in thousands): For the Quarter Ended March 31, 2018 2017 Service Revenue Oil & Gas $ 95,640 $ 71,731 Air Medical 56,988 55,338 Technical Services 7,742 7,549 Total Services $ 160,370 $ 134,618 Air Medical Revenue Traditional provider model $ 11,106 $ 10,596 Independent provider model 45,882 44,742 Total Air Medicals Revenues $ 56,988 $ 55,338 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Components of Investments | Investments consisted of the following as of March 31, 2018 : Cost Basis Unrealized Unrealized Fair (Thousands of dollars) Investments: Money market mutual funds $ 74,370 $ — $ — $ 74,370 Deferred compensation plan assets included in other assets 831 — — 831 Total $ 75,201 $ — $ — $ 75,201 Investments consisted of the following as of December 31, 2017 : Cost Basis Unrealized Gains Unrealized Losses Fair Value (Thousands of dollars) Investments: Money market mutual funds $ 5,601 $ — $ — $ 5,601 U.S. government agencies 7,501 — (34 ) 7,467 Corporate bonds and notes 63,880 — (330 ) 63,550 Subtotal 76,982 — (364 ) 76,618 Deferred compensation plan assets included in other assets 2,685 — — 2,685 Total $ 79,667 $ — $ (364 ) $ 79,303 |
Cost and Fair Value of Debt Investments Based on Maturities | The following table presents the cost and fair value of our debt investments based on maturities as of: March 31, 2018 December 31, 2017 Amortized Fair Amortized Fair (Thousands of dollars) Due in one year or less $ — $ — $ 31,348 $ 31,254 Due within two years — — 40,032 39,763 Total $ — $ — $ 71,380 $ 71,017 |
Average Coupon Rate Percentage and Average Days to Maturity of Debt | The following table presents the average coupon rate percentage and the average days to maturity of our debt investments as of: March 31, 2018 December 31, 2017 Average Average Average Average U.S. Government agencies — 0 1.370 370 Corporate bonds and notes — 0 1.766 392 |
Investments in Continuous Unrealized Loss Position for Less Than Twelve Months | The following table presents the fair value and unrealized losses related to our investments that have been in a continuous unrealized loss position for less than twelve months as of: March 31, 2018 December 31, 2017 Fair Value Unrealized Fair Value Unrealized (Thousands of dollars) U.S. Government agencies $ — $ — $ 5,472 $ (28 ) Corporate bonds and notes — — 44,069 (271 ) Total $ — $ — $ 49,541 $ (299 ) |
Investments in Continuous Unrealized Loss Position for More Than Twelve Months | The following table presents the fair value and unrealized losses related to our investments that have been in a continuous unrealized loss position for more than twelve months as of: March 31, 2018 December 31, 2017 Fair Value Unrealized Fair Value Unrealized (Thousands of dollars) U.S. Government agencies $ — $ — $ 1,994 $ (6 ) Corporate bonds and notes — — 19,482 (59 ) Total $ — $ — $ 21,476 $ (65 ) |
Valuation Accounts (Tables)
Valuation Accounts (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue Recognition And Valuation Accounts [Abstract] | |
Schedule of Allowance for Contractual Discounts and Estimated Uncompensated Care as a Percentage of Gross Segment Accounts Receivable | The allowance for contractual discounts and estimated uncompensated care (expressed as a percentage of gross segment accounts receivable) as of the dates listed below was as follows: March 31, 2018 December 31, 2017 Allowance for Contractual Discounts 50% 53% Allowance for Uncompensated Care 26% 24% |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Valuation of Investments and Financial Instruments Pricing Levels | The following table summarizes the valuation of our investments and financial instruments by the above pricing levels as of the valuation dates listed: March 31, 2018 Total (Level 1) (Level 2) (Thousands of dollars) Investments: Money market mutual funds $ 74,370 $ 74,370 $ — Deferred compensation plan assets 831 831 — Total $ 75,201 $ 75,201 $ — December 31, 2017 Total (Level 1) (Level 2) (Thousands of dollars) Investments: Money market mutual funds $ 5,601 $ 5,601 $ — U.S. government agencies 7,467 — 7,467 Corporate bonds and notes 63,550 — 63,550 76,618 5,601 71,017 Deferred compensation plan assets 2,685 2,685 — Total $ 79,303 $ 8,286 $ 71,017 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Components of Debt | Listed below is information regarding our indebtedness, all of which was classified as short-term debt on our balance sheet as of March 31, 2018 and as long-term debt on our balance sheet as of December 31, 2017: March 31, 2018 December 31, 2017 Principal Unamortized Principal Unamortized (Thousands of dollars) Senior Notes issued March 17, 2014, interest only payable semi-annually at 5.25%, maturing March 15, 2019 $ 500,000 $ 1,285 $ 500,000 $ 1,506 Revolving Credit Facility due March 7, 2019 with a group of commercial banks, interest payable at variable rates 121,750 — 117,500 — Total indebtedness $ 621,750 $ 1,285 $ 617,500 $ 1,506 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Components of Basic and Diluted Earnings Per Share | The components of basic and diluted earnings per share for the quarter and three months ended March 31, 2018 and 2017 are as follows: Quarter Ended 2018 2017 (Thousands of dollars) Weighted average outstanding shares of common stock, basic 15,806 15,689 Dilutive effect of unvested restricted stock units — — Weighted average outstanding shares of common stock, diluted (1) 15,806 15,689 (1) For the three months ended March 31, 2018 and 2017 , 490,843 and 58,119 unvested restricted stock units were excluded from the weighted average outstanding shares of common stock, diluted, respectively as they were anti-dilutive to earnings per share. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Share Based Compensation Expense | The table below sets forth the total amount of stock-based compensation expense for the quarters ended March 31, 2018 and 2017 . Quarter Ended 2018 2017 (Thousands of dollars) Stock-based compensation expense: Time-based restricted stock units $ 642 $ 553 Performance-based restricted stock units 677 — Total stock-based compensation expense $ 1,319 $ 553 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill of $61.3 million as of March 31, 2018 and December 31, 2017 was as follow: Oil & Gas Air Medical Technical Services Total Balance December 31, 2017 $ 61,299 — — $ 61,299 Activity — — — — Balance March 31, 2018 $ 61,299 — — $ 61,299 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Our intangible assets, which arose in connection with our acquisition of the HNZ Offshore Business, consist of the following (in thousands): Estimated Useful Lives Gross Amount at December 31, 2017 Accumulated Amortization Net Balance at March 31, 2018 Customer Relationship 15 $ 11,622 $ (194 ) $ 11,428 Non-Compete Agreements 5 900 (45 ) 855 Tradenames 7 4,201 (150 ) 4,051 Total $ 16,723 $ (389 ) $ 16,334 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Provisions for Contractual Discounts and Estimated Uncompensated Care as a Percentage of Gross Segment Billings | Provisions for contractual discounts and estimated uncompensated care for our Air Medical segment (expressed as a percentage of gross segment billings) were as follows for the periods listed below: Quarter Ended 2018 2017 Provision for contractual discounts 69 % 70 % Provision for uncompensated care 6 % 4 % |
Schedule of Net Revenue Attributable to Insurance, Medicare, Medicaid, and Self-Pay as Percentage of Net Air Medical Revenues | Net revenue attributable to Insurance, Medicare, Medicaid, and Self-Pay (expressed as a percentage of net Air Medical revenues) were as follows for the periods listed below: Quarter Ended 2018 2017 Insurance 71 % 70 % Medicare 20 % 20 % Medicaid 9 % 10 % Self-Pay — % — % |
Schedule of Financial Information Concerning Reportable Operating Segments | Summarized financial information concerning our reportable operating segments for the three months ended March 31, 2018 and 2017 is as follows: Quarter Ended 2018 2017 (Thousands of dollars) Segment operating revenues Oil and Gas $ 95,640 $ 71,731 Air Medical 56,988 55,338 Technical Services 7,742 7,549 Total operating revenues, net 160,370 134,618 Segment direct expenses (1) Oil and Gas (2) 96,507 81,728 Air Medical 53,832 50,842 Technical Services 5,887 4,946 Total direct expenses 156,226 137,516 Segment selling, general and administrative expenses Oil and Gas 4,921 1,720 Air Medical 3,167 2,881 Technical Services 370 338 Total selling, general and administrative expenses 8,458 4,939 Total segment direct and selling, general and administrative expenses 164,684 142,455 Net segment (loss) profit Oil and Gas (5,788 ) (11,717 ) Air Medical (11 ) 1,615 Technical Services 1,485 2,265 Total net segment profit (4,314 ) (7,837 ) Other, net (3) (1,961 ) 1,064 Unallocated selling, general and administrative costs (1) (7,001 ) (8,105 ) Interest expense (8,197 ) (8,195 ) (Loss) earnings before income taxes $ (21,473 ) $ (23,073 ) (1) Included in direct expenses and unallocated selling, general, and administrative costs are the depreciation and amortization expense amounts below: |
Depreciation and Amortization Expense Included in Direct Expenses and Unallocated Selling, General, and Administrative Costs | Depreciation and Amortization Expense Quarter Ended 2018 2017 (Thousands of dollars) Segment Direct Expense: Oil and Gas $ 11,783 $ 9,862 Air Medical 5,624 5,477 Technical Services 145 146 Total $ 17,552 $ 15,485 Unallocated SG&A $ 1,915 $ 1,360 (2) Includes equity in (earnings) of unconsolidated affiliates, net. (3) Consists of (gains) losses on disposition of property and equipment and other income |
Condensed Consolidating Finan34
Condensed Consolidating Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheets | PHI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS (Thousands of dollars) (Unaudited) March 31, 2018 Parent Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current Assets: Cash $ 54 $ 979 $ 6,398 $ — $ 7,431 Short-term investments 61,988 — — — 61,988 Accounts receivable – net 76,539 74,580 36,627 (1,160 ) 186,586 Intercompany receivable — 128,702 — (128,702 ) — Inventories of spare parts – net 64,695 9,330 2,986 — 77,011 Prepaid expenses 7,773 2,668 1,068 — 11,509 Income taxes receivable 295 511 25 — 831 Total current assets 211,344 216,770 47,104 (129,862 ) 345,356 Investment in subsidiaries 399,555 — — (399,555 ) — Property and equipment – net 607,960 285,080 43,283 — 936,323 Restricted cash and investments 12,382 — 14 — 12,396 Other assets 139,515 851 (131,563 ) — 8,803 Deferred income tax — — 3,211 — 3,211 Goodwill — — 61,299 — 61,299 Intangible assets — — 16,334 — 16,334 Total assets $ 1,370,756 $ 502,701 $ 39,682 $ (529,417 ) $ 1,383,722 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities: Revolving Credit facility $ 121,750 $ — $ — $ — $ 121,750 Senior notes issued March 17, 2014, net of debt issuance costs of $1,285 498,715 — — — 498,715 Accounts payable 27,027 4,664 6,635 (1,160 ) 37,166 Accrued and other current liabilities 20,722 13,531 7,789 — 42,042 Intercompany payable 107,122 — 21,580 (128,702 ) — Total current liabilities 775,336 18,195 36,004 (129,862 ) 699,673 Deferred income taxes and other long-term liabilities (1,848 ) 84,670 3,492 — 86,314 Shareholders’ Equity: Common stock and paid-in capital 311,253 77,951 1,511 (79,462 ) 311,253 Accumulated other comprehensive loss (3 ) — 467 — 464 Retained earnings 286,018 321,885 (1,792 ) (320,093 ) 286,018 Total shareholders’ equity 597,268 399,836 186 (399,555 ) 597,735 Total liabilities and shareholders’ equity $ 1,370,756 $ 502,701 $ 39,682 $ (529,417 ) $ 1,383,722 PHI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS (Thousands of dollars) December 31, 2017 Parent Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current Assets: Cash $ 47 $ 1,072 $ 7,651 $ — $ 8,770 Short-term investments 64,237 — — — 64,237 Accounts receivable – net 90,077 74,886 38,020 (17,004 ) 185,979 Intercompany receivable — 126,366 — (126,366 ) — Inventories of spare parts – net 68,737 9,049 3,095 — 80,881 Prepaid expenses 8,348 1,898 1,229 — 11,475 Income taxes receivable 345 9 917 — 1,271 Total current assets 231,791 213,280 50,912 (143,370 ) 352,613 Investment in subsidiaries and others 397,301 — — (397,301 ) — Property and equipment – net 617,488 284,984 44,293 — 946,765 Restricted investments 12,382 — 14 — 12,396 Other assets 139,754 908 (131,921 ) — 8,741 Deferred income tax — — 3,309 — 3,309 Goodwill — — 61,299 — 61,299 Intangible assets — — 16,723 — 16,723 Total assets $ 1,398,716 $ 499,172 $ 44,629 $ (540,671 ) $ 1,401,846 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities: Accounts payable $ 28,130 $ 4,636 $ 21,425 $ (17,005 ) $ 37,186 Accrued and other current liabilities 23,147 10,577 8,126 — 41,850 Intercompany payable 113,387 — 12,978 (126,365 ) — Total current liabilities 164,664 15,213 42,529 (143,370 ) 79,036 Long-term debt 615,994 — — — 615,994 Deferred income taxes and other long-term liabilities 5,404 84,300 4,458 — 94,162 Shareholders’ Equity: Common stock and paid-in capital 309,933 77,951 1,375 (79,326 ) 309,933 Accumulated other comprehensive loss (280 ) — — — (280 ) Retained earnings 303,001 321,708 (3,733 ) (317,975 ) 303,001 Total shareholders’ equity 612,654 399,659 (2,358 ) (397,301 ) 612,654 Total liabilities and shareholders’ equity $ 1,398,716 $ 499,172 $ 44,629 $ (540,671 ) $ 1,401,846 |
Condensed Consolidating Statements of Operations | PHI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (Thousands of dollars) (Unaudited) For the Quarter Ended March 31, 2018 Parent Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated Operating revenues, net $ 78,092 $ 58,709 $ 49,502 $ (25,933 ) $ 160,370 Expenses: Direct expenses 83,997 55,364 42,779 (25,914 ) 156,226 Selling, general and administrative expenses 8,747 3,167 3,549 (4 ) 15,459 Total operating expenses 92,744 58,531 46,328 (25,918 ) 171,685 (Gain) Loss on disposal of assets, net 879 — — — 879 Equity in (income) loss of unconsolidated affiliates, net 37 — — — 37 Operating (loss) income (15,568 ) 178 3,174 (15 ) (12,231 ) Equity in net income of consolidated subsidiaries (2,099 ) — — 2,099 — Interest expense 8,195 1 543 (542 ) 8,197 Other income, net 305 — 213 527 1,045 6,401 1 756 2,084 9,242 (Loss) earnings before income taxes (21,969 ) 177 2,418 (2,099 ) (21,473 ) Income tax (benefit) expense (4,986 ) — 496 — (4,490 ) Net (loss) earnings $ (16,983 ) $ 177 $ 1,922 $ (2,099 ) $ (16,983 ) PHI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (Thousands of dollars) For the Quarter Ended March 31, 2017 Parent Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated Operating revenues, net $ 74,284 $ 57,473 $ 2,861 $ — $ 134,618 Expenses: Direct expenses 82,344 52,381 1,788 — 136,513 Selling, general and administrative expenses 10,108 2,887 53 (4 ) 13,044 Total operating expenses 92,452 55,268 1,841 (4 ) 149,557 Equity in loss of consolidated affiliate 1,003 — — — 1,003 Operating (loss) income (19,171 ) 2,205 1,020 4 (15,942 ) Equity in net income of consolidated subsidiaries (2,631 ) — — 2,631 — Interest expense 8,174 21 — — 8,195 Other income, net (1,067 ) (1 ) — 4 (1,064 ) 4,476 20 — 2,635 7,131 (Loss) earnings before income taxes (23,647 ) 2,185 1,020 (2,631 ) (23,073 ) Income tax (benefit) expense (8,399 ) 574 — — (7,825 ) Net (loss) earnings $ (15,248 ) $ 1,611 $ 1,020 $ (2,631 ) $ (15,248 ) |
Condensed Consolidated Statements of Comprehensive Income (Loss) | PHI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Thousands of dollars) (Unaudited) For the Quarter Ended March 31, 2018 Parent Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated Net (loss) earnings $ (16,983 ) $ 177 $ 1,922 $ (2,099 ) $ (16,983 ) Unrealized gain on short-term investments 471 — — — 471 Currency translation adjustments — — 467 — 467 Changes in pension plan asset and benefit obligation (9 ) — — — (9 ) Tax effect of the above-listed adjustments (185 ) — — — (185 ) Total comprehensive (loss) income $ (16,706 ) $ 177 $ 2,389 $ (2,099 ) $ (16,239 ) PHI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Thousands of dollars) For the Quarter Ended March 31, 2017 Parent Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated Net (loss) earnings $ (15,248 ) $ 1,611 $ 1,020 $ (2,631 ) $ (15,248 ) Unrealized gain on short-term investments 162 — — — 162 Changes in pension plan asset and benefit obligations (1 ) — — — (1 ) Tax effect of the above-listed adjustments (58 ) — — — (58 ) Total comprehensive (loss) income $ (15,145 ) $ 1,611 $ 1,020 $ (2,631 ) $ (15,145 ) |
Condensed Consolidating Statements of Cash Flows | PHI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (Thousands of dollars) (Unaudited) For the Quarter Ended March 31, 2018 Parent Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated Net cash (used in) provided by operating activities $ (9,764 ) $ 6,141 $ 2,191 $ — $ (1,432 ) Investing activities: Purchase of property and equipment (5,459 ) — (1,206 ) — (6,665 ) Proceeds from asset dispositions 842 — — — 842 Purchase of short-term investments (134,319 ) — — — (134,319 ) Proceeds from sale of short-term investments 136,259 — — — 136,259 Loan (274 ) — — — (274 ) Net cash provided by (used in) investing activities (2,951 ) — (1,206 ) — (4,157 ) Financing activities: Proceeds from line of credit 33,750 — — — 33,750 Payments on line of credit (29,500 ) — — — (29,500 ) Due to/from affiliate, net 8,472 (6,234 ) (2,238 ) — — Net cash provided by (used in) financing activities 12,722 (6,234 ) (2,238 ) — 4,250 Increase (decrease) in cash 7 (93 ) (1,253 ) — (1,339 ) Cash, beginning of period 47 1,072 7,651 — 8,770 Cash, end of period $ 54 $ 979 $ 6,398 $ — $ 7,431 PHI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (Thousands of dollars) For the Quarter Ended March 31, 2017 Parent Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated Net cash (used in) provided by operating activities $ (19,332 ) $ 10,678 $ 401 $ — $ (8,253 ) Investing activities: Purchase of property and equipment (4,738 ) — (51 ) — (4,789 ) Purchase of short-term investments (54,867 ) — — (54,867 ) Proceeds from sale of short-term investments 67,659 — — 67,659 Payments of deposits on aircraft (66 ) — — (66 ) Net cash provided by (used in) investing activities 7,988 — (51 ) — 7,937 Financing activities: Proceeds from line of credit 37,300 — — 37,300 Payments on line of credit (35,800 ) — — (35,800 ) Repurchase of common stock (100 ) — — (100 ) Due to/from affiliate, net 9,959 (10,703 ) 744 — — Net cash provided by (used in) financing activities 11,359 (10,703 ) 744 — 1,400 Increase in cash 15 (25 ) 1,094 — 1,084 Cash, beginning of period 36 2,100 460 — 2,596 Cash, end of period $ 51 $ 2,075 $ 1,554 $ — $ 3,680 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Typical contract length | 30 days | |
Contracted backlog | $ 57.6 | |
Typical period to recognize backlog as revenue | 12 months | |
Provisional income tax benefit related to remeasurement of deferred tax balances | $ 49.2 | |
Minimum [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Accounts receivable invoice term | 30 days | |
Contract termination notice period | 30 days | |
Maximum [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Accounts receivable invoice term | 60 days | |
Contract termination notice period | 180 days | |
Oil and Gas [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Receivables | $ 110.7 | 106.8 |
Air Medical [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Receivables | 73.4 | 74.4 |
Technical Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Receivables | $ 2.5 | $ 4.8 |
Basis of Presentation - Disaggr
Basis of Presentation - Disaggregated Revenue by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Operating revenues, net | $ 160,370 | $ 134,618 |
Operating Segments [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenues, net | 160,370 | 134,618 |
Oil and Gas [Member] | Operating Segments [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenues, net | 95,640 | 71,731 |
Air Medical [Member] | Operating Segments [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenues, net | 56,988 | 55,338 |
Technical Services [Member] | Operating Segments [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenues, net | 7,742 | 7,549 |
Traditional Provider Model [Member] | Air Medical [Member] | Operating Segments [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenues, net | 11,106 | 10,596 |
Independent Provider Model [Member] | Air Medical [Member] | Operating Segments [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenues, net | $ 45,882 | $ 44,742 |
Investments - Components of Inv
Investments - Components of Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost Basis | $ 75,201 | $ 79,667 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | (364) |
Fair Value | 75,201 | 79,303 |
Investment Type [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost Basis | 76,982 | |
Unrealized Gains | 0 | |
Unrealized Losses | (364) | |
Fair Value | 76,618 | |
Investment Type [Member] | Money Market Mutual Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost Basis | 74,370 | 5,601 |
Fair Value | 74,370 | 5,601 |
Investment Type [Member] | US Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost Basis | 7,501 | |
Unrealized Losses | (34) | |
Fair Value | 7,467 | |
Investment Type [Member] | Corporate Bonds and Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost Basis | 63,880 | |
Unrealized Gains | 0 | |
Unrealized Losses | (330) | |
Fair Value | 63,550 | |
Deferred Compensation Plan Assets [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost Basis | 831 | 2,685 |
Fair Value | $ 831 | $ 2,685 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Restricted cash and investments | $ 12,396 | $ 12,396 |
Investments - Cost and Fair Val
Investments - Cost and Fair Value of Debt Investments Based on Maturities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Due in one year or less, Amortized Costs | $ 0 | $ 31,348 |
Due within two years, Amortized Costs | 0 | 40,032 |
Total, Amortized Costs | 0 | 71,380 |
Due in one year or less, Fair Value | 0 | 31,254 |
Due within two years, Fair Value | 0 | 39,763 |
Total, Fair Value | $ 0 | $ 71,017 |
Investments - Average Coupon Ra
Investments - Average Coupon Rate Percentage and the Average Days to Maturity of Debt (Detail) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
US Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Average Coupon Rate | 0.00% | 1.37% |
Average Days To Maturity | 0 days | 370 days |
Corporate Bonds and Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Average Coupon Rate | 0.00% | 1.766% |
Average Days To Maturity | 0 days | 392 days |
Investments - Investments in Co
Investments - Investments in Continuous Unrealized Loss Position for Less Than Twelve Months (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 0 | $ 49,541 |
Unrealized Losses | 0 | (299) |
US Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 0 | 5,472 |
Unrealized Losses | 0 | (28) |
Corporate Bonds and Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 0 | 44,069 |
Unrealized Losses | $ 0 | $ (271) |
Investments - Investments in 42
Investments - Investments in Continuous Unrealized Loss Position for More Than Twelve Months (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 0 | $ 21,476 |
Unrealized Losses | 0 | (65) |
US Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 0 | 1,994 |
Unrealized Losses | 0 | (6) |
Corporate Bonds and Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 0 | 19,482 |
Unrealized Losses | $ 0 | $ (59) |
Valuation Accounts - Additional
Valuation Accounts - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Allowance for doubtful accounts | $ 7.2 | $ 7.2 | |
Value of services to patients who are unable to pay | 1.5 | $ 2.5 | |
Estimated cost of providing charity services | 0.4 | $ 0.6 | |
Valuation reserves related to obsolescence and slow moving inventory | 22.2 | 20.9 | |
Air Medical [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Allowance for contractual discounts against outstanding accounts receivable | 104.5 | 117.8 | |
Allowance for uncompensated care against outstanding accounts receivable | $ 54.9 | $ 52.5 |
Valuation Accounts - Schedule o
Valuation Accounts - Schedule of Allowance for Contractual Discounts and Estimated Uncompensated Care as a Percentage of Gross Segment Accounts Receivable (Detail) - Air Medical [Member] - Trade Accounts Receivable [Member] | Mar. 31, 2018 | Dec. 31, 2017 |
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Allowance for Contractual Discounts | 50.00% | 53.00% |
Allowance for Uncompensated Care | 26.00% | 24.00% |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Valuation of Investments and Financial Instruments Pricing Levels (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 75,201 | $ 79,303 |
Investment Type [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 76,618 | |
Investment Type [Member] | Money Market Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 74,370 | 5,601 |
Investment Type [Member] | US Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 7,467 | |
Investment Type [Member] | Corporate Bonds and Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 63,550 | |
Deferred Compensation Plan Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 831 | 2,685 |
(Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 75,201 | 8,286 |
(Level 1) [Member] | Investment Type [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 5,601 | |
(Level 1) [Member] | Investment Type [Member] | Money Market Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 74,370 | 5,601 |
(Level 1) [Member] | Deferred Compensation Plan Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 831 | 2,685 |
(Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 0 | 71,017 |
(Level 2) [Member] | Investment Type [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 71,017 | |
(Level 2) [Member] | Investment Type [Member] | US Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 7,467 | |
(Level 2) [Member] | Investment Type [Member] | Corporate Bonds and Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 63,550 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 17, 2014 |
Fair Value Measurements Disclosure [Line Items] | |||
The fair value investments reclassification of assets between level 1 and level 2 | $ 0 | $ 0 | |
The fair value of Senior Notes, based on quoted market prices | 490,600,000 | 499,200,000 | |
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value Measurements Disclosure [Line Items] | |||
Level 3 investments | $ 0 | $ 0 | |
5.25% Senior Notes due March 15, 2019 [Member] | Senior Notes [Member] | |||
Fair Value Measurements Disclosure [Line Items] | |||
Interest rate on Senior Notes | 5.25% | 5.25% |
Debt - Components of Long-term
Debt - Components of Long-term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Principal | $ 621,750 | $ 617,500 |
Unamortized debt issuance debt costs | 1,285 | 1,506 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 121,750 | 117,500 |
5.25% Senior Notes due March 15, 2019 [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 500,000 | 500,000 |
Unamortized debt issuance debt costs | $ 1,285 | $ 1,506 |
Debt - Components of Long-ter48
Debt - Components of Long-term Debt (Additional Information) (Detail) - 5.25% Senior Notes due March 15, 2019 [Member] - Senior Notes [Member] | 3 Months Ended | |
Mar. 31, 2018 | Mar. 17, 2014 | |
Debt Instrument [Line Items] | ||
Interest rate on Senior Notes | 5.25% | 5.25% |
Senior Notes payable periods | Mar. 15, 2019 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Mar. 17, 2014 | |
Debt Instrument [Line Items] | ||||
Short-term Investment limit | $ 61,988,000 | $ 64,237,000 | ||
Letters of credit outstanding under the facility | $ 12,400,000 | $ 12,400,000 | ||
5.25% Senior Notes due March 15, 2019 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate on Senior Notes | 5.25% | 5.25% | ||
Maturity date of Senior notes payable | Mar. 15, 2019 | |||
Debt instrument interest rate term | Interest is payable semi-annually on March 15 and September 15 of each year. | |||
Debt instrument restrictive covenants | The indenture governing the 2019 Notes (the “2019 Indenture”) contains, among other things, certain restrictive covenants, including limitations on incurring indebtedness, creating liens, selling assets and entering into certain transactions with affiliates. The covenants also limit PHI’s ability to, among other things, pay cash dividends on common stock, repurchase or redeem common or preferred equity, prepay subordinated debt and make certain investments. | |||
Percentage of principal amount redeemed | 101.00% | |||
Interest Expense Fund [Member] | ||||
Debt Instrument [Line Items] | ||||
Periodic payment of debt interest | $ 14,300,000 | $ 14,100,000 | ||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility, maturity date | Mar. 7, 2019 | |||
Increased Borrowing capacity | $ 130,000,000 | |||
Revolving Credit facility, Covenants, consolidated working capital ratio | 200.00% | |||
Revolving Credit facility, Covenants, consolidated net worth ratio | 150.00% | |||
Revolving Credit facility, Covenants, fixed coverage ratio | 110.00% | |||
Revolving Credit facility, Covenants, consolidated net worth | $ 500,000,000 | |||
Letters of credit outstanding under the facility | $ 7,600,000 | |||
Revolving Credit Facility [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
LIBOR plus interest rate on borrowed funds | 2.75% | |||
Minimum [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Short-term Investment limit | $ 150,000,000 |
Earnings Per Share - Components
Earnings Per Share - Components of Basic and Diluted Earnings Per Share (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||
Weighted average outstanding shares of common stock, basic | 15,806 | 15,689 |
Dilutive effect of unvested restricted stock units | 0 | 0 |
Weighted average outstanding shares of common stock, diluted | 15,806 | 15,689 |
Earnings Per Share - Componen51
Earnings Per Share - Components of Basic and Diluted Earnings Per Share (Additional Information) (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||
Anti-dilutive securities (in shares) | 490,843 | 58,119 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Share Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Stock-based compensation expense: | ||
Total stock-based compensation expense | $ 1,319 | $ 553 |
Time-based Restricted Units [Member] | ||
Stock-based compensation expense: | ||
Total stock-based compensation expense | 642 | 553 |
Performance-based Restricted Units [Member] | ||
Stock-based compensation expense: | ||
Total stock-based compensation expense | $ 677 | $ 0 |
Asset Disposals - Additional In
Asset Disposals - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($)Aircraft | Mar. 31, 2017Aircraft | |
Assets Held For Sale And Impairments [Line Items] | ||
Number of aircraft sold | 0 | |
Cash realized from sale of assets | $ | $ 0.8 | |
Gain (loss) on disposal of assets | $ | $ 0.3 | |
Oil and Gas [Member] | ||
Assets Held For Sale And Impairments [Line Items] | ||
Number of aircraft donated | 1 | |
Oil and Gas [Member] | Light Aircraft [Member] | ||
Assets Held For Sale And Impairments [Line Items] | ||
Number of aircraft sold | 1 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018USD ($)Land_Parcel | |
Long-term Purchase Commitment [Line Items] | |
Purchase commitment for aircraft | $ 0 |
Total aircraft deposits | 500,000 |
Aggregate estimated probable liability environmental matters | $ 150,000 |
Number of parcels of land exists | Land_Parcel | 2 |
Aggregate commitments under operating leases | $ 194,300,000 |
Operational lease payable | 26,700,000 |
Lease commitment for aircraft | 168,400,000 |
Facility lease commitments | 25,900,000 |
2018 [Member] | |
Long-term Purchase Commitment [Line Items] | |
Aggregate purchase price for aircraft | 127,000,000 |
2019 [Member] | |
Long-term Purchase Commitment [Line Items] | |
Aggregate purchase price for aircraft | 129,000,000 |
2020 [Member] | |
Long-term Purchase Commitment [Line Items] | |
Aggregate purchase price for aircraft | $ 22,700,000 |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning | $ 61,299 |
Activity | 0 |
Goodwill, ending | 61,299 |
Oil and Gas [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning | 61,299 |
Activity | 0 |
Goodwill, ending | 61,299 |
Air Medical [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning | 0 |
Activity | 0 |
Goodwill, ending | 0 |
Technical Services [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning | 0 |
Activity | 0 |
Goodwill, ending | $ 0 |
Other Intangible Assets (Detail
Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount at December 31, 2017 | $ 16,723 | |
Accumulated Amortization | (389) | |
Net Balance at March 31, 2018 | $ 16,334 | $ 16,723 |
Customer Relationship [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 15 years | |
Gross Amount at December 31, 2017 | $ 11,622 | |
Accumulated Amortization | (194) | |
Net Balance at March 31, 2018 | $ 11,428 | |
Non-Compete Agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 5 years | |
Gross Amount at December 31, 2017 | $ 900 | |
Accumulated Amortization | (45) | |
Net Balance at March 31, 2018 | $ 855 | |
Tradenames [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 7 years | |
Gross Amount at December 31, 2017 | $ 4,201 | |
Accumulated Amortization | (150) | |
Net Balance at March 31, 2018 | $ 4,051 |
Other Intangible Assets - Futur
Other Intangible Assets - Future Amortization of Intangible Assets (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2018 | $ 1.6 |
2,019 | 1.6 |
2,020 | 1.6 |
2,021 | 1.6 |
2,022 | 1.6 |
Amortization expense | $ 0.4 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2018StatesAircraftLocationSegment | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | Segment | 3 | |
National Science Foundation [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of aircraft assigned | 6 | |
Hospitals Contracts [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment revenue | 18.00% | 19.00% |
Fixed Term Customer Contract [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment revenue | 88.00% | 90.00% |
Contracted Customers [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment revenue | 12.00% | 10.00% |
Minimum [Member] | ||
Segment Reporting Information [Line Items] | ||
Term of contract | 1 year | |
Maximum [Member] | ||
Segment Reporting Information [Line Items] | ||
Term of contract | 7 years | |
Oil and Gas [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of aircraft available for use | 130 | |
Segment revenue | 59.00% | 53.00% |
Oil and Gas [Member] | Minimum [Member] | Major Customer [Member] | ||
Segment Reporting Information [Line Items] | ||
Working period with major customers | 35 years | |
Oil and Gas [Member] | Minimum [Member] | ENI Petroleum [Member] | ||
Segment Reporting Information [Line Items] | ||
Working period with major customers | 20 years | |
Air Medical [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment revenue | 36.00% | 41.00% |
Number of aircraft assigned | 106 | |
Number of states in which company operates aircrafts | States | 18 | |
Locations in which company operates Aircrafts | Location | 73 | |
Technical Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment revenue | 5.00% | 6.00% |
Segment Information - Schedule
Segment Information - Schedule of Provisions for Contractual Discounts and Estimated Uncompensated Care as a Percentage of Gross Segment Billings (Detail) - Air Medical [Member] | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Provisions For Contractual Discounts And Estimated Uncompensated Care [Line Items] | ||
Provision for contractual discounts | 69.00% | 70.00% |
Provision for uncompensated care | 6.00% | 4.00% |
Segment Information - Schedul60
Segment Information - Schedule of Net Revenue Attributable to Insurance, Medicare, Medicaid, and Self-Pay as Percentage of Net Air Medical Revenues (Detail) - Air Medical [Member] | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Insurance [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of net Air Medical revenues | 71.00% | 70.00% |
Medicare [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of net Air Medical revenues | 20.00% | 20.00% |
Medicaid [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of net Air Medical revenues | 9.00% | 10.00% |
Self Pay [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of net Air Medical revenues | 0.00% | 0.00% |
Segment Information - Schedul61
Segment Information - Schedule of Financial Information Concerning Reportable Operating Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Total operating revenues, net | $ 160,370 | $ 134,618 |
Total direct expenses | 156,226 | 136,513 |
Total selling, general and administrative expenses | 15,459 | 13,044 |
Total net segment profit | (12,231) | (15,942) |
Interest expense | (8,197) | (8,195) |
Loss before income taxes | (21,473) | (23,073) |
Reportable Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues, net | 160,370 | 134,618 |
Total direct expenses | 156,226 | 137,516 |
Total selling, general and administrative expenses | 8,458 | 4,939 |
Total segment direct and selling, general and administrative expenses | 164,684 | 142,455 |
Total net segment profit | (4,314) | (7,837) |
Reportable Operating Segments [Member] | Oil and Gas [Member] | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues, net | 95,640 | 71,731 |
Total direct expenses | 96,507 | 81,728 |
Total selling, general and administrative expenses | 4,921 | 1,720 |
Total net segment profit | (5,788) | (11,717) |
Reportable Operating Segments [Member] | Air Medical [Member] | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues, net | 56,988 | 55,338 |
Total direct expenses | 53,832 | 50,842 |
Total selling, general and administrative expenses | 3,167 | 2,881 |
Total net segment profit | (11) | 1,615 |
Reportable Operating Segments [Member] | Technical Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total operating revenues, net | 7,742 | 7,549 |
Total direct expenses | 5,887 | 4,946 |
Total selling, general and administrative expenses | 370 | 338 |
Total net segment profit | 1,485 | 2,265 |
Segment Reconciling Items [Member] | ||
Segment Reporting Information [Line Items] | ||
Other, net | (1,961) | 1,064 |
Interest expense | (8,197) | (8,195) |
Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Unallocated selling, general and administrative costs | $ (7,001) | $ (8,105) |
Segment Information - Depreciat
Segment Information - Depreciation and Amortization Expense Included in Direct Expenses and Unallocated Selling, General, and Administrative Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Reportable Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Depreciation and Amortization Expenses | $ 17,552 | $ 15,485 |
Reportable Operating Segments [Member] | Oil and Gas [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Depreciation and Amortization Expenses | 11,783 | 9,862 |
Reportable Operating Segments [Member] | Air Medical [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Depreciation and Amortization Expenses | 5,624 | 5,477 |
Reportable Operating Segments [Member] | Technical Services [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Depreciation and Amortization Expenses | 145 | 146 |
Corporate [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Depreciation and Amortization Expenses | $ 1,915 | $ 1,360 |
Investment in Variable Intere63
Investment in Variable Interest Entity and Other Investments and Affiliates - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | |||
Loan to affiliate for operating purposes | $ 274 | $ 0 | |
PHI Century Limited [Member] | |||
Variable Interest Entity [Line Items] | |||
Investment in the common stock | 49.00% | ||
PHIC's date of incorporation | May 26, 2011 | ||
Earnings (loss) in equity of unconsolidated affiliate | $ 100 | $ (1,000) | |
Trade receivables | 4,100 | $ 4,000 | |
Loan to affiliate for operating purposes | 300 | ||
Other assets | 300 | $ 300 | |
Accounts Receivable - Other [Member] | PHI Century Limited [Member] | |||
Variable Interest Entity [Line Items] | |||
Loan to affiliate | $ 300 |
Condensed Consolidating Finan64
Condensed Consolidating Financial Information - Additional Information (Detail) - USD ($) | Mar. 31, 2018 | Mar. 17, 2014 |
Supplemental Guarantor Financial Information [Line Items] | ||
Ownership percentage in domestic subsidiaries | 100.00% | |
5.25% Senior Notes due March 15, 2019 [Member] | Senior Notes [Member] | ||
Supplemental Guarantor Financial Information [Line Items] | ||
Senior notes, amount issued | $ 500,000,000 | |
Interest rate on Senior Notes | 5.25% | 5.25% |
Condensed Consolidating Finan65
Condensed Consolidating Financial Information - Guarantor Subsidiaries - Condensed Consolidating Balance Sheets (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Current Assets: | ||||
Cash | $ 7,431 | $ 8,770 | $ 3,680 | $ 2,596 |
Short-term investments | 61,988 | 64,237 | ||
Accounts receivable - net | 186,586 | 185,979 | ||
Inventories of spare parts – net | 77,011 | 80,881 | ||
Prepaid expenses | 11,509 | 11,475 | ||
Income taxes receivable | 831 | 1,271 | ||
Total current assets | 345,356 | 352,613 | ||
Property and equipment – net | 936,323 | 946,765 | ||
Restricted cash and investments | 12,396 | 12,396 | ||
Other assets | 8,803 | 8,741 | ||
Deferred income taxes | 3,211 | 3,309 | ||
Goodwill | 61,299 | 61,299 | ||
Intangibles | 16,334 | 16,723 | ||
Total assets | 1,383,722 | 1,401,846 | ||
Current Liabilities: | ||||
Revolving Credit facility | 121,750 | |||
Senior Notes issued March 17, 2014, net of debt issuance costs of $1,285 | 498,715 | 0 | ||
Accounts payable | 37,166 | 37,186 | ||
Accrued and other current liabilities | 42,042 | 41,850 | ||
Total current liabilities | 699,673 | 79,036 | ||
Long-term debt | 615,994 | |||
Deferred income taxes and other long-term liabilities | 86,314 | 94,162 | ||
Shareholders’ Equity: | ||||
Common stock and paid-in capital | 311,253 | 309,933 | ||
Accumulated other comprehensive income (loss) | 464 | (280) | ||
Retained earnings | 286,018 | 303,001 | ||
Total shareholders’ equity | 597,735 | 612,654 | 586,114 | 599,778 |
Total liabilities and shareholders’ equity | 1,383,722 | 1,401,846 | ||
Debt issuance costs | 1,285 | 1,506 | ||
Eliminations [Member] | ||||
Current Assets: | ||||
Accounts receivable - net | (1,160) | (17,004) | ||
Intercompany receivable | (128,702) | (126,366) | ||
Total current assets | (129,862) | (143,370) | ||
Investment in subsidiaries and others | (399,555) | (397,301) | ||
Total assets | (529,417) | (540,671) | ||
Current Liabilities: | ||||
Accounts payable | (1,160) | (17,005) | ||
Accrued and other current liabilities | 0 | |||
Intercompany payable | (128,702) | (126,365) | ||
Total current liabilities | (129,862) | (143,370) | ||
Shareholders’ Equity: | ||||
Common stock and paid-in capital | (79,462) | (79,326) | ||
Retained earnings | (320,093) | (317,975) | ||
Total shareholders’ equity | (399,555) | (397,301) | ||
Total liabilities and shareholders’ equity | (529,417) | (540,671) | ||
Parent Company Only (issuer) [Member] | ||||
Current Assets: | ||||
Cash | 54 | 47 | 51 | 36 |
Short-term investments | 61,988 | 64,237 | ||
Accounts receivable - net | 76,539 | 90,077 | ||
Inventories of spare parts – net | 64,695 | 68,737 | ||
Prepaid expenses | 7,773 | 8,348 | ||
Income taxes receivable | 295 | 345 | ||
Total current assets | 211,344 | 231,791 | ||
Investment in subsidiaries and others | 399,555 | 397,301 | ||
Property and equipment – net | 607,960 | 617,488 | ||
Restricted cash and investments | 12,382 | 12,382 | ||
Other assets | 139,515 | 139,754 | ||
Total assets | 1,370,756 | 1,398,716 | ||
Current Liabilities: | ||||
Revolving Credit facility | 121,750 | |||
Senior Notes issued March 17, 2014, net of debt issuance costs of $1,285 | 498,715 | |||
Accounts payable | 27,027 | 28,130 | ||
Accrued and other current liabilities | 20,722 | 23,147 | ||
Intercompany payable | 107,122 | 113,387 | ||
Total current liabilities | 775,336 | 164,664 | ||
Long-term debt | 615,994 | |||
Deferred income taxes and other long-term liabilities | (1,848) | 5,404 | ||
Shareholders’ Equity: | ||||
Common stock and paid-in capital | 311,253 | 309,933 | ||
Accumulated other comprehensive income (loss) | (3) | (280) | ||
Retained earnings | 286,018 | 303,001 | ||
Total shareholders’ equity | 597,268 | 612,654 | ||
Total liabilities and shareholders’ equity | 1,370,756 | 1,398,716 | ||
Guarantor Subsidiaries [Member] | ||||
Current Assets: | ||||
Cash | 979 | 1,072 | 2,075 | 2,100 |
Accounts receivable - net | 74,580 | 74,886 | ||
Intercompany receivable | 128,702 | 126,366 | ||
Inventories of spare parts – net | 9,330 | 9,049 | ||
Prepaid expenses | 2,668 | 1,898 | ||
Income taxes receivable | 511 | 9 | ||
Total current assets | 216,770 | 213,280 | ||
Property and equipment – net | 285,080 | 284,984 | ||
Other assets | 851 | 908 | ||
Total assets | 502,701 | 499,172 | ||
Current Liabilities: | ||||
Accounts payable | 4,664 | 4,636 | ||
Accrued and other current liabilities | 13,531 | 10,577 | ||
Total current liabilities | 18,195 | 15,213 | ||
Deferred income taxes and other long-term liabilities | 84,670 | 84,300 | ||
Shareholders’ Equity: | ||||
Common stock and paid-in capital | 77,951 | 77,951 | ||
Retained earnings | 321,885 | 321,708 | ||
Total shareholders’ equity | 399,836 | 399,659 | ||
Total liabilities and shareholders’ equity | 502,701 | 499,172 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Current Assets: | ||||
Cash | 6,398 | 7,651 | $ 1,554 | $ 460 |
Accounts receivable - net | 36,627 | 38,020 | ||
Inventories of spare parts – net | 2,986 | 3,095 | ||
Prepaid expenses | 1,068 | 1,229 | ||
Income taxes receivable | 25 | 917 | ||
Total current assets | 47,104 | 50,912 | ||
Property and equipment – net | 43,283 | 44,293 | ||
Restricted cash and investments | 14 | 14 | ||
Other assets | (131,563) | (131,921) | ||
Deferred income taxes | 3,211 | 3,309 | ||
Goodwill | 61,299 | 61,299 | ||
Intangibles | 16,334 | 16,723 | ||
Total assets | 39,682 | 44,629 | ||
Current Liabilities: | ||||
Accounts payable | 6,635 | 21,425 | ||
Accrued and other current liabilities | 7,789 | 8,126 | ||
Intercompany payable | 21,580 | 12,978 | ||
Total current liabilities | 36,004 | 42,529 | ||
Deferred income taxes and other long-term liabilities | 3,492 | 4,458 | ||
Shareholders’ Equity: | ||||
Common stock and paid-in capital | 1,511 | 1,375 | ||
Accumulated other comprehensive income (loss) | 467 | |||
Retained earnings | (1,792) | (3,733) | ||
Total shareholders’ equity | 186 | (2,358) | ||
Total liabilities and shareholders’ equity | $ 39,682 | $ 44,629 |
Condensed Consolidating Finan66
Condensed Consolidating Financial Information - Guarantor Subsidiaries - Condensed Consolidating Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed Income Statements, Captions [Line Items] | ||
Operating revenues, net | $ 160,370 | $ 134,618 |
Expenses: | ||
Direct expenses | 156,226 | 136,513 |
Selling, general and administrative expenses | 15,459 | 13,044 |
Total operating expenses | 171,685 | 149,557 |
Loss on disposal of assets | 879 | 0 |
Equity in loss of unconsolidated affiliate, net | 37 | 1,003 |
Operating (loss) income | (12,231) | (15,942) |
Interest expense | 8,197 | 8,195 |
Other income, net | 1,045 | (1,064) |
Total expenses | 9,242 | 7,131 |
(Loss) earnings before income taxes | (21,473) | (23,073) |
Income tax benefit | (4,490) | (7,825) |
Net loss | (16,983) | (15,248) |
Eliminations [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Operating revenues, net | (25,933) | |
Expenses: | ||
Direct expenses | (25,914) | |
Selling, general and administrative expenses | (4) | (4) |
Total operating expenses | (25,918) | (4) |
Operating (loss) income | (15) | 4 |
Equity in net income of consolidated subsidiaries | 2,099 | 2,631 |
Interest expense | (542) | |
Other income, net | 527 | 4 |
Total expenses | 2,084 | 2,635 |
(Loss) earnings before income taxes | (2,099) | (2,631) |
Net loss | (2,099) | (2,631) |
Parent Company Only (issuer) [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Operating revenues, net | 78,092 | 74,284 |
Expenses: | ||
Direct expenses | 83,997 | 82,344 |
Selling, general and administrative expenses | 8,747 | 10,108 |
Total operating expenses | 92,744 | 92,452 |
Loss on disposal of assets | 879 | |
Equity in loss of unconsolidated affiliate, net | 37 | 1,003 |
Operating (loss) income | (15,568) | (19,171) |
Equity in net income of consolidated subsidiaries | (2,099) | (2,631) |
Interest expense | 8,195 | 8,174 |
Other income, net | 305 | (1,067) |
Total expenses | 6,401 | 4,476 |
(Loss) earnings before income taxes | (21,969) | (23,647) |
Income tax benefit | (4,986) | (8,399) |
Net loss | (16,983) | (15,248) |
Guarantor Subsidiaries [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Operating revenues, net | 58,709 | 57,473 |
Expenses: | ||
Direct expenses | 55,364 | 52,381 |
Selling, general and administrative expenses | 3,167 | 2,887 |
Total operating expenses | 58,531 | 55,268 |
Operating (loss) income | 178 | 2,205 |
Interest expense | 1 | 21 |
Other income, net | (1) | |
Total expenses | 1 | 20 |
(Loss) earnings before income taxes | 177 | 2,185 |
Income tax benefit | 574 | |
Net loss | 177 | 1,611 |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Operating revenues, net | 49,502 | 2,861 |
Expenses: | ||
Direct expenses | 42,779 | 1,788 |
Selling, general and administrative expenses | 3,549 | 53 |
Total operating expenses | 46,328 | 1,841 |
Operating (loss) income | 3,174 | 1,020 |
Interest expense | 543 | |
Other income, net | 213 | |
Total expenses | 756 | |
(Loss) earnings before income taxes | 2,418 | 1,020 |
Income tax benefit | 496 | |
Net loss | $ 1,922 | $ 1,020 |
Condensed Consolidating Finan67
Condensed Consolidating Financial Information - Guarantor Subsidiaries - Condensed Consolidated Statements of Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net loss | $ (16,983) | $ (15,248) |
Unrealized gain (loss) on short-term investments | 471 | 162 |
Currency translation adjustments | 467 | 0 |
Changes in pension plan asset and benefit obligation | (9) | (1) |
Tax effect of the above-listed adjustments | (185) | (58) |
Total comprehensive (loss) income | (16,239) | (15,145) |
Eliminations [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net loss | (2,099) | (2,631) |
Total comprehensive (loss) income | (2,099) | (2,631) |
Parent Company Only (issuer) [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net loss | (16,983) | (15,248) |
Unrealized gain (loss) on short-term investments | 471 | 162 |
Currency translation adjustments | 0 | |
Changes in pension plan asset and benefit obligation | (9) | (1) |
Tax effect of the above-listed adjustments | (185) | (58) |
Total comprehensive (loss) income | (16,706) | (15,145) |
Guarantor Subsidiaries [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net loss | 177 | 1,611 |
Total comprehensive (loss) income | 177 | 1,611 |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net loss | 1,922 | 1,020 |
Currency translation adjustments | 467 | |
Total comprehensive (loss) income | $ 2,389 | $ 1,020 |
Condensed Consolidating Finan68
Condensed Consolidating Financial Information - Guarantor Subsidiaries - Condensed Consolidating Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | $ (1,432) | $ (8,253) |
Investing activities: | ||
Purchase of property and equipment | (6,665) | (4,789) |
Proceeds from asset dispositions | 842 | 0 |
Purchase of short-term investments | (134,319) | (54,867) |
Proceeds from sale of short-term investments | 136,259 | 67,659 |
Payments of deposits on aircraft | 0 | (66) |
Loan to unconsolidated affiliate | (274) | 0 |
Net cash provided by (used in) investing activities | (4,157) | 7,937 |
Financing activities: | ||
Proceeds from line of credit | 33,750 | 37,300 |
Payments on line of credit | (29,500) | (35,800) |
Repurchase of common stock | 0 | (100) |
Net cash provided by financing activities | 4,250 | 1,400 |
Increase (decrease) in cash | (1,339) | 1,084 |
Cash, beginning of period | 8,770 | 2,596 |
Cash, end of period | 7,431 | 3,680 |
Parent Company Only (issuer) [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | (9,764) | (19,332) |
Investing activities: | ||
Purchase of property and equipment | (5,459) | (4,738) |
Proceeds from asset dispositions | 842 | |
Purchase of short-term investments | (134,319) | (54,867) |
Proceeds from sale of short-term investments | 136,259 | 67,659 |
Payments of deposits on aircraft | (66) | |
Loan to unconsolidated affiliate | (274) | |
Net cash provided by (used in) investing activities | (2,951) | 7,988 |
Financing activities: | ||
Proceeds from line of credit | 33,750 | 37,300 |
Payments on line of credit | (29,500) | (35,800) |
Repurchase of common stock | (100) | |
Due to/from affiliate, net | 8,472 | 9,959 |
Net cash provided by financing activities | 12,722 | 11,359 |
Increase (decrease) in cash | 7 | 15 |
Cash, beginning of period | 47 | 36 |
Cash, end of period | 54 | 51 |
Guarantor Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | 6,141 | 10,678 |
Investing activities: | ||
Purchase of property and equipment | 0 | |
Net cash provided by (used in) investing activities | 0 | 0 |
Financing activities: | ||
Due to/from affiliate, net | (6,234) | (10,703) |
Net cash provided by financing activities | (6,234) | (10,703) |
Increase (decrease) in cash | (93) | (25) |
Cash, beginning of period | 1,072 | 2,100 |
Cash, end of period | 979 | 2,075 |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | 2,191 | 401 |
Investing activities: | ||
Purchase of property and equipment | (1,206) | (51) |
Net cash provided by (used in) investing activities | (1,206) | (51) |
Financing activities: | ||
Due to/from affiliate, net | (2,238) | 744 |
Net cash provided by financing activities | (2,238) | 744 |
Increase (decrease) in cash | (1,253) | 1,094 |
Cash, beginning of period | 7,651 | 460 |
Cash, end of period | $ 6,398 | $ 1,554 |