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: July 31, 1999
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 Drive 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 September 1, 1999
----- --------------------------------
Voting Common Stock 2,793,386 shares
Non-Voting Common Stock 2,366,175 shares
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
PETROLEUM HELICOPTERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Thousands of dollars, except share data)
July 31, April 30,
1999 1999(1)
-------- --------
ASSETS (Unaudited)
Current Assets:
Cash and cash equivalents $ 1,014 $ 3,025
Accounts receivable - net of allowance 41,909 42,235
Inventory 36,466 34,902
Prepaid expenses 1,367 1,658
Refundable income taxes 3,436 3,368
-------- --------
Total current assets 84,192 85,188
-------- --------
Investments in affiliates and other 1,966 1,827
Property and equipment:
Cost 266,488 272,330
Less accumulated depreciation (123,753) (127,770)
-------- --------
142,735 144,560
-------- --------
Total Assets $ 228,893 $ 231,575
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 19,661 $ 22,210
Accrued vacation payable 6,064 6,057
Current maturities of long-term debt 5,909 5,891
-------- --------
Total current liabilities 31,634 34,158
-------- --------
Long-term debt, net of current maturities 73,920 74,405
Deferred income taxes 19,411 19,411
Other long-term liabilities 7,076 7,020
Shareholders' Equity:
Voting common stock - par value of $ 0.10;
authorized 12,500,000; issued shares of
2,800,866 at July 31 and April 30 279 279
Non-voting common stock - par value of $ 0.10;
authorized 12,500,000; issued shares of
2,368,175 at July 31 and April 30 237 237
Additional paid-in capital 11,717 11,717
Retained earnings 84,619 84,348
-------- --------
Total Shareholders' Equity 96,852 96,581
-------- --------
Total Liabilities and
Shareholders' Equity $ 228,893 $ 231,575
======== ========
(1)The balance sheet at April 30, 1999 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
(in thousands, except per share data)
(Unaudited)
Three Months Ended
July 31,
__________________
1999 1998
REVENUES: ------ ------
Operating revenues $ 53,814 $ 62,220
Other income, net 3,861 157
------ ------
57,675 62,377
------ ------
EXPENSES:
Direct expenses 51,535 53,291
Selling, general and administrative 3,842 4,265
Interest expense 1,435 1,449
------ ------
56,812 59,005
------ ------
Earnings before income taxes 863 3,372
Income taxes 328 1,370
------ ------
Net earnings $ 535 $ 2,002
====== ======
Basic earnings per common share $ 0.10 $ 0.39
====== ======
Diluted earnings per common share $ 0.10 $ 0.38
====== ======
Weighted average common shares
outstanding 5,160 5,161
Incremental common shares 43 75
Weighted average common shares ------ ------
and equivalents 5,203 5,236
====== ======
Dividends declared per common share $ 0.05 $ 0.05
====== ======
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)
Three Months Ended July 31,
1999 1998
--------- ---------
Cash flows from operating
activities:
Net earnings $ 535 $ 2,002
Adjustments to reconcile net earnings
to net cash provided by (used in)
operating activities:
Depreciation 3,576 3,620
Gain on asset dispositions (3,779) (121)
Equity in net earnings of
investee companies, net of
distributions (22) (36)
Changes in operating assets and
liabilities (1,800) (4,111)
--------- ---------
Net cash provided by (used in)
operating activities (1,490) 1,354
--------- ---------
Cash flows from investing
activities:
Investments - (135)
Purchase of property and equipment (4,368) (13,150)
Proceeds from asset dispositions 4,573 1,530
--------- ---------
Net cash provided by (used in)
investing activities 205 (11,755)
--------- ---------
Cash flows from financing
activities:
Proceeds from long-term debt 3,000 15,500
Payments on long-term debt (3,467) (6,450)
Proceeds from exercise of stock
options and other - 78
Dividends paid (259) (257)
--------- ---------
Net cash provided by (used in)
financing activities (726) 8,871
--------- ---------
Decrease in cash and cash equivalents (2,011) (1,530)
Cash and cash equivalents, beginning
of period 3,025 2,753
--------- ---------
Cash and cash equivalents, end of period $ 1,014 $ 1,223
========= =========
The accompanying notes are an integral part of these condensed consolidated
financial statements.
PETROLEUM HELICOPTERS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
THREE MONTHS ENDED JULY 31, 1999 AND 1998
(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 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, 1999 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 the transition period
ending December 31, 1999. These reclassifications had no impact on net
income or shareholders' equity.
The Company's financial results, particularly as they relate to the
Company's 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 a full fiscal year.
(2) Change in Accounting Estimate
Property and Equipment
Effective May 1, 1999 the Company changed the estimated useful lives on its
aircraft from ten years to fifteen years. The residual value will be
increased from 25% to 30%. The Company believes the revised estimated
useful lives and residual values will more appropriately reflect its
financial results by better matching costs over the estimated useful lives
of these assets. The effect of this change on net income for the quarter
was a reduction in depreciation expense of approximately $ 0.6 million
($ 0.4 million after tax or $ 0.08 per diluted share).
(3) Change in Fiscal Year
The Company has elected to change its fiscal year from April 30 to a fiscal
year ending December 31. The Company will file a Form 10-Q for the quarter
ending October 31, 1999, and will file a transition report on Form 10-K for
the eight-month period ending December 31, 1999. The Company will commence
reporting on a calendar year basis with the filing of its Form 10-Q for the
quarter ending March 31, 2000.
(4) Segment Information
In fiscal 1999, the Company adopted SFAS No. 131, "Disclosures about
Segments of an Enterprise and Related Information," which requires that
companies disclose segment data based on how management makes decisions
about allocating resources to segments and measuring their performance.
The Company operates principally in two segments: Oil and Gas Aviation
Services and Aeromedical Services. The Oil and Gas Aviation Services
segment includes domestic and international helicopter services provided to
oil and gas customers, including technical services and maintenance work.
The Aeromedical Services segment includes all services provided to the
Company's air medical customers, including hospitals and medical programs.
Segment operating profit is based on operating revenues less direct
expenses, selling, general and administrative costs and special charges, if
any, applicable to the operating segment. Segment assets are those assets
used exclusively in the operations of each operating segment or which are
allocated when used jointly. Corporate assets are principally cash and cash
equivalents, short term investments, other current assets, and certain
property, plant and equipment. Corporate overhead, consisting primarily of
non-allocable selling, general and administrative costs is not allocated
to the operating segments.
Summarized financial information concerning the Company's operating
segments for the periods ended July 31 is shown in the following table (in
thousands):
1999 1998
------- -------
Operating revenues:
Oil and Gas $ 42,001 $ 50,317
Aeromedical 11,674 11,741
Other 139 162
------- -------
$ 53,814 $ 62,220
======= =======
Operating profit:
Oil and Gas 55 6,530
Aeromedical 264 668
------- -------
Total Segment operating profit $ 319 $ 7,198
Other income 3,861 157
Corporate overhead (1,882) (2,534)
Interest expense (1,435) (1,449)
------- -------
Earnings before income taxes $ 863 $ 3,372
======= =======
(5) New Accounting Pronouncements
In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 133 ("FAS 133"), "Accounting for
Derivative Instruments and Hedging Activities." FAS 133, as amended, is
effective for all fiscal quarters of fiscal years beginning after June 15,
2000 and establishes accounting and reporting standards for derivative
instruments, including certain derivative instruments embedded in other
contracts, and for hedging activities. FAS 133 requires that all
derivative instruments be recorded on the balance sheet at their fair
value. Changes in the fair value of derivatives are to be recorded each
period in current earnings or other comprehensive income, depending on
whether a derivative is designated as part of a hedge transaction and, if
it is, the type of hedge transaction. Earlier application of the
provisions of FAS 133 is encouraged and is permitted as of the beginning of
any fiscal quarter that begins after the issuance of FAS 133. The Company
believes that, due to its current limited use of derivative instruments,
adoption of FAS 133 will not have a material effect on the Company's
results of operations, financial position, or liquidity.
(6) Environmental Liability
The Company continues to review selected domestic bases for possible fuel
contamination resulting from routine flight operations. The aggregate
liability recorded for environmental related costs at July 31, 1999 is
$ 1.8 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. No additional provisions were
recognized in the quarter ended July 31, 1999.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Management's Discussion and Analysis of Financial Condition and Results of
Operations ("MD&A") should be read in conjunction with the accompanying
financial statements and with the Company's Consolidated Financial
Statements for the year ended April 30, 1999 together with the related
Notes to Consolidated Financial Statements and Management's Discussion and
Analysis of Financial Condition and Results of Operations.
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
Exchange 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, Year 2000 issues 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. The Company
undertakes no obligation to update publicly any forward-looking statements,
whether as a result of new information, future events or otherwise.
RESULTS OF OPERATIONS
The Company is engaged primarily in providing helicopter transportation 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 ("technical services") to outside parties.
Operating Revenues
General
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, both domestic and
international, 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, primarily domestic oil and gas, provided on an as
needed basis that are not provided pursuant to ongoing contracts and
which generally carry higher rates. The Company's technical service
contracts are generally provided on an actual cost plus negotiated mark-
up basis.
Aeromedical Services 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. Air Evac, a
separately incorporated company within PHI's Aeromedical Services
segment, 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.
The following table summarizes and compares the Company's operating
revenues by segment for the quarters ended July 31, 1999 and 1998:
Operating Revenues for the Quarter Ended July 31,
------------------------------------------------
(Thousands of dollars, except percentages
and flight hours)
Increase (Decrease)
------ ------ -------------------
1999 1998 $ %
------ ------ -------- ------
Oil and Gas Aviation Unit $ 42,001 $ 50,317 $ (8,316) (17)
Aeromedical Services Unit 11,674 11,741 (67) (1)
Other 139 162 (23) (14)
------ ------ --------
Total Operating Revenues $ 53,814 $ 62,220 $ (8,406) (14)
====== ====== ======== ======
Total Flight Hours 50,093 63,320 (13,227) (21)
====== ====== ======== ======
Oil and Gas Aviation Unit
Total Oil and Gas Aviation Unit revenues for the quarter ended July 31,
1999 decreased 17% to $ 42.0 million from $ 50.3 million for the quarter
ended July 31, 1998. Flight hours declined 22% to 43,824 hours from
56,419 hours for the quarter ended July 31, 1999. These decreases were
due primarily to decreased activity in the Gulf of Mexico.
United States Aviation Operations. Demand for the Company's domestic
oil and gas aviation services is directly influenced by offshore oil
and gas exploration, development and production activities in the
areas in which PHI operates, which in turn is affected primarily by
oil and gas prices. Despite the recent improvements in oil and gas
prices, activity in the Gulf of Mexico continues to be lackluster as
oil and gas companies continue to focus on their costs. The Company
does not expect any significant improvement in demand for its services
for the remainder of this calendar year.
First quarter operating revenues attributable to domestic flight
operations were $ 33.5 million compared to $ 42.8 million for the
prior year first quarter, a decrease of $ 9.3 million. Flight hours
declined 24% over the prior year first quarter. The decrease in
flight hours accounted for substantially all of the revenue decrease.
International Aviation Operations. International operating revenues
increased slightly this quarter to $ 4.8 million as compared to $ 4.6
million for the prior year first quarter. This increase was due
primarily to improved pricing.
Technical Services Operations. Technical Services operating revenues
were $ 3.7 million for the current quarter compared to $ 2.9 million
in the prior year's first quarter, an increase of $ 0.8 million. This
increase was primarily attributable to additional third-party
maintenance work.
Aeromedical Services Unit
Aeromedical revenues remained constant at $ 11.7 million as compared to
the prior year first quarter, although operating profit declined due
primarily to increased human resource costs. Total Aeromedical programs
and aircraft as of July 31, 1999 were seventeen and forty-six,
respectively, compared to fifteen Aeromedical programs and forty-three
aircraft at July 31, 1998. Aeromedical flight hours for the quarter
decreased fifty-two hours to 5,883 hours. Air Evac accounted for 735
hours and $ 4.7 million in revenues for the quarter ended July 31, 1999
as compared to 791 hours and $ 5.6 million in revenues for the prior
year quarter.
Other Income, net
Gains recorded relating to the sale of assets increased to $ 3.8 million as
compared to $ 0.1 million for the prior year first quarter, as the Company
sold eleven aircraft during the quarter ended July 31, 1999.
Expenses
Direct Expenses
Direct expenses decreased $ 1.8 million, or 3%, to $ 51.5 million,
primarily as a result of decreased activity levels and a change in
aircraft depreciable lives (See Note 2 to the Condensed Consolidated
Financial Statements). Due to the recent slow down in activity, the
Company is looking at cost reductions in all areas. On September 1,
1999, the Company reduced its personnel complement which will result in
an annual salary expense reduction of approximately $ 3.1 million.
Severance costs related to this action are approximately $ 0.8 million,
and will be recorded in the second quarter.
Human Resource costs, including employee benefit costs, decreased $ 0.8
million, or 3%, to $ 22.4 million this quarter as compared to the prior
year first quarter. Although the Company's work force was reduced from
the prior years' quarter by approximately 175 employees, salary expense
only decreased by $ 0.3 million due to wage and benefit increases
effective July 1999. These increases were required to respond to
competitive market pressure and the Company's need to retain highly
qualified personnel. Employee benefit costs declined by $ 0.5 million,
primarily as the result of reduction in insurance costs related to the
reduction in the work force, a decline in insurance claims and other
employee related costs.
Although the number of aircraft has declined, spare parts usage and
repair and maintenance costs remained relatively constant as the Company
continues to refurbish and maintain its fleet of aircraft under a
prescribed refurbishment schedule.
Insurance costs and helicopter rent declined $ 0.4 million, primarily
due to the disposition of aircraft that no longer met the Company's
needs.
Selling, General, and Administrative Expenses
Selling, general and administrative expenses decreased $ 0.4 million, or
10%, to $ 3.8 million. This was primarily related to a reduction of legal
and other business consulting expenses.
LIQUIDITY AND CAPITAL RESOURCES
The following is a comparison of the quarter ended July 31, 1999 with the
year ended April 30, 1999.
The Company's cash position as of July 31, 1999 was $ 1.0 million compared
to $ 3.0 million at April 30, 1999, the Company's fiscal year end. Working
capital increased $ 1.6 million from $ 51.0 million at fiscal year end to
$ 52.6 million.
Total long-term debt decreased $ 0.5 million to $ 79.8 million, of which
the current portion is $ 5.9 million, payable in equal quarterly
installments, which the Company intends to pay with cash flow from
operations. At September 1, 1999, the Company had $ 12.5 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 used in operating activities was $ 1.5 million. Investing activities
included the purchase and completion of aircraft improvements and engines
and other property, plant and equipment for $ 4.4 million. Investing
activities were primarily funded through proceeds from asset dispositions.
The Company also paid dividends of $ 0.05 per share during the quarter
ended July 31, 1999. In July 1999, the Company reported that its Board of
Directors was considering eliminating its dividend to conserve cash.
The Company continues to review selected domestic bases for possible fuel
contamination resulting from routine flight operations. The aggregate
liability recorded for environmental related costs at July 31, 1999 is
$ 1.8 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. No additional provisions were
recognized in the quarter ended July 31, 1999.
YEAR 2000 MATTERS
General
To consider the impact of Year 2000 ("Y2K") issues on PHI, a committee
consisting of members of senior management from various disciplines within
the Company meets regularly to discuss, outline and implement appropriate
courses of action. In addition, the Company retained a consulting firm to
review Y2K readiness of the Company and make recommendations for action.
Its review was completed on June 30, 1999, and PHI is in the process of
implementing its recommendations.
Information Technology.
The Company recently completed a major upgrade of its information
technology systems begun in fiscal 1996, an incidental benefit of which is
that most of its systems are Y2K compliant. Management does not expect
that remaining remediation activities will result in any significant delay
or cost. Remediation and testing are expected to be completed by October
31, 1999.
Non-Information Technology.
PHI's non-information technology systems include embedded chip technology
in various equipment, aircraft systems, communications (ground and air) and
utilities. The Company has completed an inventory of those systems and
expects to remediate items that need to be upgraded or replaced by
September 30, 1999. To date, no aircraft safety of flight or other
significant issues have been identified.
The Company has been in contact with the manufacturers of its aircraft and
related equipment to determine the impact of embedded chip technology on
flight systems. A review of these communications indicates that embedded
chip technology will not cause PHI's fleet to be grounded as a result of
Y2K issues.
Third Parties.
PHI is evaluating its position with significant suppliers, lenders,
customers and others to ensure that those parties have appropriate plans to
address Y2K issues where they may impact the operations of the Company.
While the Company does not have any significant suppliers, lenders, or
customers that directly interface with its information technology systems,
the failure of these third parties to address their Y2K problems could
negatively impact PHI. Based on contacts to date with third parties
identified as important, PHI does not expect the impact of any third party
problems to be material. However, there is no assurance that the systems of
any third parties will be Y2K compliant in time or that any non-compliance
will not have a material adverse effect on the Company.
PHI operates internationally in various countries in South America, Europe,
Asia and Africa. Published reports indicate that the governments of some
of the countries in which it operates may not be Y2K compliant in
activities administered or operated by them, such as communications,
utilities and aircraft landing facilities, and PHI has received no
assurances from any of such governments of its Y2K readiness. To the
extent that the failure of those governments, or of private parties
organized under the laws of such countries and doing business with PHI, are
not Y2K compliant, resulting disruptions could have a material adverse
effect on PHI's international operations.
Consequences.
If all significant Y2K issues are not properly identified, or if
assessment, remediation and testing of systems of the Company and of third
parties with which it has a significant relationship are not effected
timely, the Y2K issue could potentially have an adverse impact on the
Company's operations and financial condition. The Company believes that the
most reasonably likely worst-case scenario would be that the Company would
find it necessary to revert to the use of manual accounting records for
billings, payments and collections. In addition, the inability of principal
suppliers and major customers to be Y2K compliant could result in delays in
deliveries from those suppliers and collections of accounts receivable. A
more remote possibility is that delays and disruptions caused by Y2K
problems of governments and customers could ground a significant portion of
its aircraft, a situation for which there is no apparent remedy.
Contingency Plan.
Concurrent with the Company's efforts to address Y2K issues, it is in the
process of developing appropriate contingency plans, which it expects to
have completed by November 1999, to help prevent the Company's operations
from being materially impacted by or to reduce the impact that results from
a failure to correct a Y2K problem. The contingency plans will entail
finding alternative vendors and suppliers which are Y2K compliant,
purchasing additional products and inventories and supplies in advance of
December 31, 1999, and reverting to manual systems or workarounds.
Costs.
While the Company incurred significant costs to upgrade its information
technology systems, it does not associate these costs with Y2K readiness.
Its direct costs associated with its Y2K compliance efforts to date have
not exceeded $ 0.4 million, and the Company does not expect to incur
significant Y2K compliance costs for the remainder of calendar 1999.
Direct costs do not include management and other employee time spent on Y2K
issues, which the Company does not quantify.
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):
Three Months Ended July 31,
--------------------------
Operations 1999 1998
--------------------------
Operating revenues $ 53,814 $ 62,220
Net earnings 535 2,002
Net earnings per basic share 0.10 0.39
Net earnings per diluted share 0.10 0.38
Book value per diluted share 19.05 18.43
Total flight hours 50,093 63,320
Financial Summary July 31, 1999 April 30, 1999
------------- --------------
Net working capital $ 52,558 $ 51,030
Net book value of property
and equipment 142,735 144,560
Long-term debt, net of
current maturities 73,920 74,405
General Statistics
Aircraft operated 273 290
Employees 2,011 2,051
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
There were no material changes to the Company's disclosures regarding
derivatives in our Form 10-K dated April 30, 1999.
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).
27 Financial Data Schedule
(b) Reports on Form 8-K
The Registrant filed the following Current Report on Form 8-K during
the quarter ended July 31, 1999.
Date Item Reported
------ -------------
July 30, 1999 The Registrant announced a change in fiscal year end
from April 30 to December 31 effective with the eight
month transition period ending December 31, 1999.
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.
September 14, 1999 By: /s/ Carroll W. Suggs
------------------------
Carroll W. Suggs
Chairman of the Board, President and
Chief Executive Officer
September 14, 1999 By: /s/ Michael J. McCann
-------------------------
Michael J. McCann
Chief Financial Officer and Treasurer
<TABLE> <S> <C>
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<LEGEND>
This schedule contains summary financial information from condensed financial
statements for the period ending July 31, 1999 and is qualified in its entirety
by reference to such financial statements.
</LEGEND>
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<NAME> GEOFF STANFORD
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<PERIOD-END> JUL-31-1999
<CASH> 1,014
<SECURITIES> 0
<RECEIVABLES> 41,909
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0
<COMMON> 516
<OTHER-SE> 96,336
<TOTAL-LIABILITY-AND-EQUITY> 228,893
<SALES> 53,814
<TOTAL-REVENUES> 57,675
<CGS> 51,535
<TOTAL-COSTS> 51,535
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,435
<INCOME-PRETAX> 863
<INCOME-TAX> 328
<INCOME-CONTINUING> 535
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 535
<EPS-BASIC> 0.10
<EPS-DILUTED> 0.10
</TABLE>
