SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: January 31, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____to ____
Commission file number 0-9827
PETROLEUM HELICOPTERS, INC.
(Exact name of registrant as specified in its charter)
Louisiana 72-0395707
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2121 Airline Highway, Suite 400
P. O. Box 578
Metairie, Louisiana 70001-5979
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (504)828-3323
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15 (d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES X NO ___
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the Issuer's
classes of common stock, as of the latest practicable date.
Class Outstanding at March 11, 1998
----- -----------------------------
Voting Common Stock 2,800,886 shares
Non-Voting Common Stock 2,352,935 shares
PART I - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
PETROLEUM HELICOPTERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Thousands of dollars, except share data)
(Unaudited)
January 31, April 30,
----------- ----------
1998 1997(1)
ASSETS -------- --------
Current assets:
Cash and cash equivalents $ 3,424 $ 2,437
Accounts receivable - net of allowance 42,422 35,547
Inventory 35,127 30,202
Prepaid expenses 1,345 1,115
Refundable income taxes - 1,344
Notes receivable - investee companies 445 1,313
---------- ---------
Total current assets 82,763 71,958
---------- ---------
Investments 2,653 2,480
Property and equipment:
Cost 255,640 244,047
Less accumulated depreciation (120,647) (122,220)
---------- ---------
134,993 121,827
---------- ---------
Other 593 366
---------- ---------
$ 221,002 $ 196,631
========== =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 20,925 $ 21,059
Accrued vacation pay 5,305 4,784
Income taxes payable 1,579 -
Current maturities of long-term debt 4,915 4,868
---------- ---------
Total current liabilities 32,724 30,711
---------- ---------
Long-term debt, net of current
maturities 71,300 57,592
Deferred income taxes 18,239 18,239
Other long-term liabilities 6,197 2,673
Minority interest 177 -
Shareholders' equity:
Voting common stock - par value of
$0.10; authorized 12,500,000;
issued shares of 2,800,866 at
January 31 and April 30 280 280
Non-voting common stock - par value of
$ 0.10; authorized 12,500,000;
issued shares of 2,319,082 and
2,294,066 at January 31 and
April 30, respectively 232 229
Additional paid-in capital 11,119 10,810
Retained earnings 80,734 76,097
---------- ---------
92,365 87,416
---------- ---------
$ 221,002 $ 196,631
========== =========
(1)The balance sheet at April 30, 1997 is condensed from the
audited financial statements at that date. The accompanying
notes are an integral part of these condensed consolidated
financial statements.
PETROLEUM HELICOPTERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Thousands of dollars, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
January 31, January 31,
------------------- -------------------
1998 1997 1998 1997
------- ------- ------- -------
REVENUES:
Operating revenues $ 58,803 $ 53,269 $ 172,238 $ 158,670
Other income(deductions) 679 (701) 1,195 (451)
------- ------- ------- -------
59,482 52,568 173,433 158,219
------- ------- ------- -------
EXPENSES:
Direct expenses 51,081 46,181 149,065 135,992
Selling, general
and administrative 4,021 2,953 11,906 9,198
Interest expense 1,325 1,181 3,751 3,200
------- ------- ------- -------
56,427 50,315 164,722 148,390
------- ------- ------- -------
Earnings before
income taxes 3,055 2,253 8,711 9,829
Income taxes 1,235 939 3,562 3,952
------- ------- ------- -------
Net earnings $ 1,820 $ 1,314 $ 5,149 $ 5,877
======= ======= ======= =======
BASIC:
Earnings per common
share $ 0.36 $ 0.26 $ 1.01 $ 1.16
======= ======= ======= =======
DILUTED:
Earnings per common
share $ 0.35 $ 0.25 $ 0.99 $ 1.14
======= ======= ======= =======
Weighted average common
shares outstanding 5,118 5,078 5,106 5,077
Incremental common shares
from stock options and
restricted shares 84 89 87 89
------- ------- ------- -------
Weighted average common
shares and equivalents 5,202 5,167 5,193 5,166
======= ======= ======= =======
Dividends paid
per common share $ 0.05 $ 0.05 $ 0.15 $ 0.15
======= ======= ======= =======
The accompanying notes are an integral part of these condensed
consolidated financial statements.
PETROLEUM HELICOPTERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Thousands of Dollars)
(Unaudited)
Nine Months Ended January 31,
-----------------------------
1998 1997
-------- --------
Cash flows from operating activities:
Net earnings $ 5,149 $ 5,877
Adjustments to reconcile net
earnings to net cash provided
by operating activities:
Depreciation 9,210 7,277
Gain on equipment disposals (2,027) (93)
Equity in net earnings of
investee companies (167) 544
Changes in operating assets and
liabilities (8,647) (10,159)
Other 436 254
-------- --------
Net cash provided by operating
activities 3,954 3,700
-------- --------
Cash flows from investing activities:
Investments/acquisitions (8,754) (957)
Purchases of property and equipment (19,568) (30,657)
Proceeds from asset dispositions 12,063 2,065
-------- --------
Net cash used in investing
activities (16,259) (29,549)
-------- --------
Cash flows from financing activities:
Proceeds from long-term debt 30,150 38,425
Payments on long-term debt (16,395) (11,587)
Proceeds from exercise of stock
options 328 63
Dividends paid (767) (762)
Other, net (24) (37)
-------- --------
Net cash provided by financing
activities 13,292 26,102
-------- --------
Increase in cash and cash equivalents 987 253
Cash and cash equivalents at
beginning of period 2,437 1,899
-------- --------
Cash and cash equivalents at end
of period $ 3,424 $ 2,152
======== ========
The accompanying notes are an integral part of these condensed
consolidated financial statements.
PETROLEUM HELICOPTERS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NINE MONTHS ENDED JANUARY 31, 1998 AND 1997
(Unaudited)
(1) General
The accompanying unaudited condensed consolidated financial
statements have been prepared in accordance with Form 10-Q
instructions of the Securities and Exchange Commission ("SEC")
from the books and records of Petroleum Helicopters, Inc. and
Subsidiaries ("PHI" or the "Company"). In the opinion of
management, these financial statements reflect all adjustments,
consisting of only normal, recurring adjustments, necessary to
present fairly the financial results for the interim periods
presented. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or
omitted pursuant to such rules and regulations of the SEC;
however, the Company believes that this information is fairly
presented. These condensed consolidated financial statements
should be read in conjunction with the financial statements
contained in the Company's Annual Report on Form 10-K for the
year ended April 30, 1997 and the accompanying notes and
Management's Discussion and Analysis of Financial Condition and
Results of Operations. Certain reclassifications have been made
to the prior year's financial statements in order to conform to
the classifications adopted for reporting in fiscal 1998. These
reclassifications had no impact on net income or shareholders'
equity.
The Company's financial results, particularly as it relates
to its domestic oil and gas operations, are influenced by
seasonal fluctuations. During the winter, there are more days of
adverse weather conditions and fewer hours of daylight than the
other months of the year. Consequently, flight hours are
generally lower during the Company's third fiscal quarter than at
other times of the year. This produces a seasonal aspect to the
Company's business and typically results in reduced revenues from
operations during those months. Therefore, the results of
operations for interim periods are not necessarily indicative of
the operating results that may be expected for the full fiscal
year.
(2) Commitments and Contingencies
On Monday, June 2, 1997, the Company was notified by the
National Mediation Board ("NMB") that the Office and Professional
Employees International Union ("OPEIU") filed an application to
represent flight deck crew members (helicopter pilots) of PHI.
On September 4, 1997 the NMB reported that the Company's
helicopter pilots voted to reject union representation. The
OPEIU filed objections with the NMB seeking a new election. This
reelection request was granted on January 30, 1998. The ballots
will be counted by the NMB on March 31, 1998.
(3) New Accounting Pronouncements
In February 1997, the Financial Accounting Standards Board
issued Statement of Financial Accounting Standards No. 128,
Earnings Per Share ("FAS 128"). FAS 128 changes the
computation, presentation and disclosure requirements for
earnings per share amounts. FAS 128 requires presentation of
"basic" and "diluted" earnings per share, as defined, on the face
of the income statement for all entities with complex capital
structures. The Company adopted FAS 128 effective with the
quarter ended January 31, 1998 on a retroactive basis;
accordingly, per share amounts for the quarter and nine-month
period ended January 31, 1997, have been restated to conform to
the requirements of FAS No. 128.
(4) AirEvac Services, Inc. Acquisition
On December 31, 1997, PHI purchased the assets of Samaritan
AirEvac for approximately $ 8.8 million. The purchase involved
all of the operating assets and business of Samaritan AirEvac, an
aeromedical services division of Samaritan Health System based in
Arizona and a customer of PHI's since June 12, 1993.
The assets were acquired by a new wholly-owned subsidiary of
PHI, AirEvac Services, Inc. (AirEvac), including one Lear Jet and
five Cessna 441's equipped for medical transportation.
The cost of the acquisition was allocated under the purchase
method of accounting based upon the fair value of the assets
acquired and liabilities assumed. The results of AirEvac's
operations have been consolidated with the Company's results
effective January 1, 1998. The pro-forma effects of this
acquisition, as if it occurred on May 1, 1996, are not material.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The Company is engaged in providing helicopter transporta
tion and related services. The predominant portion of its
revenue is derived from transporting offshore oil and gas
production and drilling workers on a worldwide basis. The
Company also performs helicopter transportation services for a
variety of hospital and medical programs and aircraft maintenance
to outside parties.
This discussion should be read in conjunction with the
accompanying financial statements and with the financial
statements for the year ended April 30, 1997 together with the
related notes and Management's Discussion and Analysis of
Financial Condition and Results of Operations.
RESULTS OF OPERATIONS
Revenues
The Company generates flight revenues from both ongoing
service contracts with established customers and non-contract
flights referred to as Specials. Oil and Gas Aviation Services
contracts are generally on a month to month basis and consist of
a fixed fee plus an hourly charge for actual flight time.
Specials are customer flights, provided on an as needed basis
that are not provided pursuant to contractual commitments and
which generally reflect higher rates. Oil and Gas Aviation
Services are provided primarily in the United States and also
consists of third party maintenance services.
Aeromedical contracts also provide for fixed and hourly
charges, but are generally for longer terms and impose early
cancellation fees to encourage customers to fulfill the contract
term and cover the Company's additional up-front costs in the
event of early termination. AirEvac, which operates in Arizona,
primarily derives its revenues from third party payors based on
per hour or per seat charges. These contracts are predominantly
short-term in nature.
Third Quarter Fiscal 1998 to Third Quarter Fiscal 1997
- -------------------------------------------------------
The following table summarizes and compares the Company's
operating revenues by certain markets for the quarters ended
January 31, 1998 and 1997:
Operating Revenues for the Quarter
----------------------------------
Ended January 31,
(Thousands of dollars, -----------------
except percentages and
flight hours)
Increase
1998 1997 $ %
-------- -------- ----- ---
Oil and Gas Aviation
Services $ 50,436 $ 45,948 $ 4,488 10
Aeromedical Services 8,367 7,321 1,046 14
-------- -------- -----
Total Operating
Revenues $ 58,803 $ 53,269 $ 5,534 10
======== ======== ===== ===
Total Flight Hours 60,201 55,837 4,364 8
======== ======== ===== ===
Oil and Gas Aviation Services
Oil and Gas revenues for the quarter ended January 31, 1998
increased 10% to $ 50.4 million from $ 45.9 million. Flight
hours increased 8% to 55,828 hours from 51,789 hours for the
quarter ended January 31, 1998. Strong activity levels in the
Gulf of Mexico coupled with rate increases in the third quarter
resulted in higher revenues. The Company anticipates that these
rate increases, when fully effective, will increase revenues by
approximately $ 13 million per year assuming current activity
levels. The 1998 quarter revenues reflected approximately $ 2.0
million due to rate increases.
Aeromedical Services
Aeromedical revenues increased to $ 8.4 million, or 14%,
from $ 7.3 million. Total Aeromedical programs and aircraft as
of January 31, 1998 were 14 and 46, respectively, including the
recently acquired aircraft through the AirEvac acquisition,
versus 15 Aeromedical programs and 40 aircraft at January 31,
1997. Aeromedical flight hours for the quarter increased 325
hours to 4,373 hours. Of the increase in flight hours and
revenues, AirEvac accounted for 433 hours and $ 1.0 million,
respectively.
Direct Expenses
Direct expenses increased $ 4.9 million, or 11%, to $ 51.1
million primarily as a result of increased activity levels.
Direct expenses as a percentage of operating revenues remained
relatively constant with the Company maintaining an operating
margin of 13%.
Human Resource costs including employee benefit costs,
increased $ 1.5 million, or 8%, to $ 19.9 million. Salary
expense increased by $ 1.4 million due to additional employees
needed to support increased flight activity and the addition of
approximately 200 employees with the purchase of AirEvac. This
increase was offset by a decline in the Company's gain sharing
program expense which was $ 0.6 million lower than the previous
year period due to lower than planned earnings. Future human
resource costs are expected to increase as all employees received
a 4% general wage increase effective January 1, 1998. Due to the
continued pressure to attract and retain qualified personnel, a
new pay plan was also implemented in February which is expected
to increase salary expense by an additional 6.5% over the next
twelve months.
Spare parts usage and repairs and maintenance costs
increased $ 1.2 million, or 11%, to $ 12.4 million. The Company
is incurring higher than expected maintenance costs due to fleet
expansion over the past year. In order to meet current aircraft
utilization requirements, the Company has significantly increased
the amount of outside repair work which is more costly than
performing the work in-house. The Company is in the process of
developing plans with the objective of restoring these costs to
their historical relationships.
Aircraft depreciation increased $ 0.6 million, or 23%, to
$ 3.1 million due to the purchase/acquisition of additional
aircraft. The Company purchased twenty-eight aircraft in fiscal
year 1997 and has acquired an additional fifteen aircraft during
fiscal year 1998, including one Lear Jet and five Cessna 441's
ascribable to the AirEvac acquisition.
Helicopter rental expense increased $ 0.6 million, or 19%,
to $ 3.8 million due to the addition of several newly leased
aircraft. There were ninety-one leased aircraft as of January
31, 1998 as compared to seventy-two at January 31, 1997.
All other aircraft costs increased $ 1.0 million, or 12%, to
$ 9.7 million, including $ 0.6 million due to higher aircraft
insurance costs.
Selling, General, and Administrative Expenses
Selling, general and administrative expenses increased $ 1.1
million to $ 4.0 million. This increase was principally
attributable to the following: $ 0.2 million due to consulting fees
primarily related to the information system upgrade programs,
which commenced in 1996 and will continue into fiscal 1999; and
$ 0.7 million due to legal and other consulting fees.
Interest Expense
Interest expense increased $ 0.1 million, or 12%, to $ 1.3
million. This was primarily related to the increase in the
Company's long-term debt. Average long-term debt increased $ 8.6
million over the prior year's third quarter.
First Nine Months Fiscal 1998 to First Nine Months Fiscal 1997
- --------------------------------------------------------------
Revenues
The following table summarizes and compares the Company's
revenues by certain markets for the nine months ended January 31,
1998 and 1997:
Operating Revenues for the Nine
-------------------------------
Months Ended January 31,
------------------------
(Thousands of dollars,
except percentages and
flight hours)
Increase
1998 1997 $ %
------- ------- ------ ----
Oil and Gas Aviation
Services $ 148,222 $ 136,234 $ 11,988 9
Aeromedical Services 24,016 22,436 1,580 7
------- ------- ------
Total Operating
Revenues $ 172,238 $ 158,670 $ 13,568 9
======= ======= ====== ====
Total Flight Hours 194,750 183,661 11,089 6
======= ======= ====== ====
Oil and Gas Aviation Services
Oil and Gas revenues for the nine months ended January 31,
1998 increased 9% to $ 148.2 million from $ 136.2 million.
Flight hours increased 6% to 180,912 hours from 170,435 hours for
the nine months ended January 31, 1998. Strong activity levels
coupled with rate increases in the third quarter resulted in
higher revenues. The Company anticipates that these rate increases
will continue to have a positive impact on revenues, and will help
to offset anticipated increases in salary and other expenses.
Aeromedical Services
The Company operates 14 programs and a total of 46 aircraft
in the Aeromedical Services industry. Aeromedical revenues
increased to $ 24.0 million, or 7%, from $ 22.4 million.
Aeromedical flight hours increased 612 hours, or 5%, to 13,838
hours. Of the increase in flight hours and revenues, AirEvac
accounted for 433 hours and $ 1.0 million, respectively.
Direct Expenses
Direct expenses increased $ 13.1 million, or 10%, to $ 149.1
million associated with increased activity levels. Direct
expenses as a percentage of operating revenues increased slightly
decreasing the Company's operating margin to 13.5% from 14.3% in
the prior year. The Company is incurring higher than expected
maintenance costs as rapid fleet expansion caused more
maintenance to be performed at outside vendors.
Human Resource costs, including employee benefit costs,
increased $ 1.6 million to $ 57.9 million. Salary expense
increased by $ 2.8 million due to additional employees needed to
support increased flight activity. This increase was primarily
offset by a decline in the Company's gain sharing program expense
which was $ 1.9 million lower than the previous year period due
to lower than planned earnings. Future human resource costs are
expected to increase as all employees received a 4% general wage
increase effective January 1, 1998. Due to the continued
pressure to attract and retain qualified personnel, a new pay
plan was also implemented in February which is expected to
increase salary expense by an additional 6.5% over the next
twelve months.
Spare parts usage and repairs and maintenance costs
increased $ 6.1 million, or 20%, to $ 37.0 million. The Company
is incurring higher than expected maintenance costs due to the
increase in fleet size over the past year. In order to meet
current aircraft utilization requirements, the Company has
significantly increased the amount of work sent for outside
repair, which is more costly than performing the work in-house.
The Company is in the process of developing plans with the
objective of restoring these costs to their historical relationships.
Aircraft depreciation increased $ 1.6 million, or 22%, to
$ 8.7 million due to the purchase of additional aircraft. The
Company purchased twenty-eight aircraft in fiscal year 1997 and
has acquired fifteen aircraft during fiscal year 1998, including
one Lear Jet and five Cessna 441's with the AirEvac acquisition.
Helicopter rental expense increased $ 1.7 million, or 19%,
to $ 10.9 million due to the addition of several newly leased
aircraft. There were ninety-one leased aircraft as of January
31, 1998 as compared to seventy-two at January 31, 1997.
All other aircraft costs increased $ 1.7 million, or 6%, to
$ 28.0 million. These increases were primarily due to increased
flight activity and insurance costs partially offset by a decline
in fuel prices.
Selling, General, and Administrative Expenses
Selling, general and administrative expenses increased $ 2.7
million, or 29%, to $ 11.9 million. This increase was ascribable
to the following: $ 0.7 million due to consulting fees and an
additional $ 0.4 million of depreciation primarily related to
information system upgrade programs, which commenced in 1996 and
will continue through fiscal 1999; and $ 1.2 million due to legal
and other consulting fees.
Interest Expense
Interest expense increased $ 0.6 million, or 17%, to $ 3.8
million. This was primarily related to the increase in the
Company's long-term debt. Average long-term debt increased $ 12.7
million over the prior year period.
LIQUIDITY AND CAPITAL RESOURCES
The following is a comparison of the first nine months of
the fiscal year ending April 30, 1998 with the year ended April
30, 1997.
The Company's cash position as of January 31, 1998 was $ 3.4
million compared to $ 2.4 million at April 30, 1997, the
Company's fiscal year end. Working capital increased $ 8.8
million from $ 41.2 million at fiscal year end to $ 50.0 million.
The increase was primarily related to an increase in cash,
accounts receivable, prepaid expenses and inventory of $ 1.0
million, $ 6.9 million, $ 0.2 million, and $ 4.9 million,
respectively, and a decrease in accounts payable and accrued
expenses of $ 0.1 million. This was partially offset by the
combined changes in refundable income taxes/income taxes payable
and notes receivable of $ 3.8 million.
Total long-term debt increased $ 13.7 million to $ 71.3
million as a result of the investing activities described below.
The Company's current debt obligation totals $ 4.9 million,
payable in equal quarterly installments, which the Company
intends to pay with cash flow from operations. On December 31,
1997 the Company's wholly-owned subsidiary, AirEvac Services
Inc., and the Company's principal lending group ratified a loan
agreement. This agreement provides $ 5.0 million and $ 6.25
million revolver and term credit facilities, respectively.
This loan is secured by certain assets of AirEvac and is guaranteed
by the Company. Inclusive of this new agreement, the Company at
February 27, 1998 had $ 21.0 million of credit capacity available
under its credit facilities. The Company believes its cash flow
from operations in conjunction with its credit capacity is
sufficient to meet its planned requirements for the foreseeable
future. The Company is in compliance with the provisions of its
loan agreements.
Cash provided by operating activities was $ 4.0 million.
Investing activities included the purchase and completion of
several aircraft, aircraft improvements, and engines for $ 19.6
million. Additionally, the Company acquired all of the operating
assets of Samaritan AirEvac from Samaritan Health System for
$ 8.8 million. The purchase included one Lear Jet and five
Cessna 441 aircraft. Proceeds from asset dispositions were
primarily due to the sale of four S76s, two BK117s and several
other aircraft that no longer met PHI fleet requirements. A gain
of $ 2.2 million was recognized relating to these sale
transactions and is included in the Consolidated Statement of
Earnings caption, "Other income (deductions)." Investing
activities were primarily funded through increased borrowings
under the Company's credit facilities. The Company also paid
dividends of $ 0.05 per share during the first, second, and third
quarters of fiscal 1998.
The Company continues to review selected domestic bases for
possible fuel contamination resulting from routine flight
operations. The Company has expensed, including provisions for
environmental costs, $ 1.2 million for the nine months ended
January 31, 1998 as compared to $ 1.6 million for the comparable
period in fiscal year 1997. The aggregate accrual for
environmental related costs at January 31, 1998 is $ 2.3 million
which the Company believes is adequate for probable and estimable
environmental costs. The Company will make additional provisions
in future periods to the extent appropriate as further
information regarding these costs becomes available.
The Company has considered the impact of Year 2000 issues on
its computer systems and applications. A remediation plan has
been developed and conversion activities are in process in
conjunction with the current information systems upgrade and is
expected to be completed and tested in 1998. The Company is
unable to state at this time whether the impact of the Year 2000
issues will or will not be material.
FORWARD LOOKING STATEMENTS
All statements other than statements of historical fact
contained in this Form 10-Q, other periodic reports filed by the
Company under the Securities Act of 1934 and other written or
oral statements made by it or on its behalf, are forward looking
statements. When used herein, the words "anticipates",
"expects", "believes", "intends", "plans", or "projects" and
similar expressions are intended to identify forward looking
statements. It is important to note that forward looking
statements are based on a number of assumptions about future
events and are subject to various risks, uncertainties and other
factors that may cause the Company's actual results to differ
materially from the views, beliefs and estimates expressed or
implied in such forward looking statements. Although the Company
believes that the assumptions reflected in forward looking
statements are reasonable, no assurance can be given that such
assumptions will prove correct. Factors that could cause the
Company's results to differ materially from the results discussed
in such forward looking statements include but are not limited to
the following: flight variances from expectations, volatility of
oil and gas prices, the substantial capital expenditures required
to fund its operations, environmental risks, competition,
government regulation, unionization and the ability of the
Company to implement its business strategy. All forward looking
statements in this document are expressly qualified in their
entirety by the cautionary statements in this paragraph. PHI
undertakes no obligation to update publicly any forward looking
statements, whether as a result of new information, future events
or otherwise.
RESULTS AT A GLANCE (Unaudited)
The following table provides a summary of critical operating
and financial statistics (thousands of dollars, except per share
amounts, financial ratios, flight hours and general statistics):
Nine Months Ended January 31,
--------------------------------
Operations 1998 1997
--------- ---------
Operating revenues $ 172,238 $ 158,670
Net earnings 5,149 5,877
Net earnings per diluted share 0.99 1.14
Book value per diluted share 17.31 16.28
Annualized return on
shareholders' equity 7.6% 9.3%
Total flight hours -
operated 194,750 183,661
Financial Summary January 31, 1998 April 30, 1997
---------------- --------------
Net working capital $ 50,039 $ 41,247
Net book value of property
and equipment 134,993 121,827
Long-term debt 71,300 57,592
General Statistics
Aircraft operated 317 314
Employees 2,111 1,851
PART II - OTHER INFORMATION
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
3.1 (i) Articles of Incorporation of the Company (incorporated
by reference to Exhibit No. 3.1 (i) to PHI's Report
on Form 10-Q for the quarterly period ended October 31,
1994).
(ii) By-laws of the Company (incorporated by reference
to Exhibit No. 3.1 (ii) to PHI's Report on Form 10-Q
for the quarterly period ended July 31, 1996).
10.1 Loan Agreement dated as of December 31, 1997 among AirEvac
Services Inc., Whitney National Bank, First National Bank of
Commerce, and NationsBank of Texas, N.A.
10.2 Asset Purchase Agreement between Samaritan Health System
and AirEvac Services, Inc.
27 Financial Data Schedule
(b) Reports on Form 8-K
No reports were filed on Form 8-K for the quarter ending
January 31, 1998.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
Petroleum Helicopters, Inc.
March 13, 1998 By: /s/ Carroll W. Suggs
-------------------------
Carroll W. Suggs
Chairman of the Board,
President and Chief
Executive Officer
(duly authorized officer)
March 13, 1998 By: /s/ John H. Untereker
-------------------------
John H. Untereker
Vice President and Chief
Financial Officer
(principal financial officer)