PHELK Petroleum Helicopters - Non-Voting Common Stock (MM)

Petroleum Helicopters, Inc. (NASDAQ:PHEL) (NASDAQ:PHELK) ("PHI") today reported net earnings of $5.5 million ($0.53 per diluted share) on operating revenues of $100.0 million for the quarter ended September 30, 2005. For the same period of 2004, PHI reported net earnings of $2.7 million ($0.48 per diluted share) on operating revenues of $77.7 million. Fully diluted shares outstanding at September 30, 2005, were 10,295,000, compared to 5,486,000 at September 30, 2004. For the nine months ended September 30, 2005, net earnings were $7.8 million ($1.06 per diluted share) on operating revenues of $261.0 million. This compares to net earnings of $3.8 million ($0.69 per diluted share) on operating revenues of $214.9 million for the same nine-month period in 2004. Average fully diluted shares outstanding for the nine months ended September 30, 2005, were 7,314,000 compared to 5,486,000 for the nine months ended September 30, 2004. PHI also reported that during the quarter two significant hurricanes affected operations. Hurricane Katrina made landfall in southeastern Louisiana on August 29, 2005 and caused substantial flooding at the base in Boothville, Louisiana which is expected to be out of service for approximately twelve months as repairs are made. Other bases incurred some damage, all of which is expected to be repaired in the next several months. Flight hours were adversely affected initially as aircraft were evacuated and parked until the storm passed. When flights resumed, there was an increase in flight hours as customers began assessing damage and making repairs to facilities in the Gulf of Mexico. Additionally, the Air Medical segment experienced higher than normal flight activity while assisting with the evacuation of New Orleans following the hurricane. Additionally, on September 24, 2005, Hurricane Rita made landfall in southwestern Louisiana destroying the base in Cameron, Louisiana and causing flooding and wind damage at other bases. Initially, flight hours were also adversely affected by this storm, but once flights resumed, they returned to post-Katrina activity levels. The Air Medical segment also experienced additional flight activity both before and after Hurricane Rita related to the evacuation of certain areas of Texas. Operations at bases that are currently out of service have been relocated to other bases that were unaffected or did not sustain significant damage. All employees were accounted for and there were no injuries reported. All aircraft were evacuated prior to both storms, and as a result there was no damage to aircraft. PHI expects that substantially all of the damage incurred at all bases will be covered by insurance, and is discussed in more detail in Form 10Q. Certain statements in this release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "forecast," "anticipate," "estimate," "project," "intend," "expect," "should," "believe," and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance (financial or operating) or achievements to differ from the future results, performance (financial or operating) or achievements expressed or implied by such forward-looking statements. The above factors are more fully discussed in the Company's SEC filings. PHI provides helicopter transportation and related services to a broad range of customers including the oil and gas industry, air medical industry and also provides third-party maintenance services to select customers. PHI Common Stock is traded on The Nasdaq National Market System (symbols PHEL and PHELK). -0- *T PETROLEUM HELICOPTERS, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations Quarter Ended Nine Months Ended September 30, September 30, ------------------ ------------------ 2005 2004 2005 2004 -------- -------- -------- -------- Operating revenues $100,018 $ 77,733 $261,040 $214,892 Gain on disposition of property and equipment, net 26 1,091 486 2,271 Other 861 76 1,155 221 -------- -------- -------- -------- 100,905 78,900 262,681 217,384 -------- -------- -------- -------- Expenses: Direct expenses 80,184 63,805 217,115 179,138 Selling, general and administrative expenses 6,561 5,403 17,263 16,157 Interest expense 5,061 5,026 15,337 15,052 -------- -------- -------- -------- 91,806 74,234 249,715 210,347 -------- -------- -------- -------- Earnings before income taxes 9,099 4,666 12,966 7,037 Income taxes 3,639 2,007 5,186 3,262 -------- -------- -------- -------- Net earnings $ 5,460 $ 2,659 $ 7,780 $ 3,775 ======== ======== ======== ======== Weighted average shares outstanding: Basic 10,271 5,383 7,288 5,383 Diluted 10,295 5,486 7,314 5,486 Net earnings per share Basic $ 0.53 $ 0.49 $ 1.07 $ 0.70 Diluted $ 0.53 $ 0.48 $ 1.06 $ 0.69 Summarized financial information concerning the Company's reportable operating segments for the quarter and nine months ended September 30, 2005 and 2004 is as follows: Quarter Ended Nine Months Ended September 30, September 30, --------------------- --------------------- 2005 2004 2005 2004 -------- -------- -------- -------- (Thousands of dollars) (Thousands of dollars) Segment operating revenues Domestic Oil and Gas $ 58,952 $ 48,081 $155,392 $133,660 Air Medical 33,905 21,441 82,989 55,919 International 6,766 5,766 19,565 16,936 Technical Services 395 2,445 3,094 8,377 -------- -------- -------- -------- Total operating revenues 100,018 77,733 261,040 214,892 -------- -------- -------- -------- Segment direct expenses Domestic Oil and Gas 46,773 38,762 126,116 111,407 Air Medical 28,701 18,894 75,799 46,562 International 4,358 4,094 12,824 13,847 Technical Services 352 2,055 2,376 7,322 -------- -------- -------- -------- Total direct expenses 80,184 63,805 217,115 179,138 Segment selling, general and administrative expenses Domestic Oil and Gas 256 113 704 1,379 Air Medical 1,741 1,866 4,645 5,579 International 118 12 182 36 Technical Services 1 3 5 11 -------- -------- -------- -------- Total selling, general and administrative expenses 2,116 1,994 5,536 7,005 -------- -------- -------- -------- Total direct and selling, general and administrative expenses 82,300 65,799 222,651 186,143 -------- -------- -------- -------- Net segment profit Domestic Oil and Gas 11,923 9,206 28,572 20,874 Air Medical 3,463 681 2,545 3,778 International 2,290 1,660 6,559 3,053 Technical Services 42 387 713 1,044 -------- -------- -------- -------- Total 17,718 11,934 38,389 28,749 Other, net 887 1,167 1,641 2,492 Unallocated selling, general and administrative costs (4,445) (3,409) (11,727) (9,152) Interest expense (5,061) (5,026) (15,337) (15,052) -------- -------- -------- -------- Earnings before income taxes $ 9,099 $ 4,666 $ 12,966 $ 7,037 ======== ======== ======== ======== *T