PHI Inc filed for bankruptcy on March 15, 2019, with a Financial Health Rating (FHR) of 24, High Risk. PHI, Inc. provides helicopter transportation and related services. The Company serves customers involved in the oil and gas exploration and production industry, shuttling people and equipment to and from offshore drilling platforms in the Gulf of Mexico and foreign countries. PHI also provides helicopter services to emergency medical service providers, as well as aircraft maintenance and repair services
The company has struggled in recent years with slumping oil prices dragging down the oil and gas production sector in the Gulf of Mexico. With these recent struggles, the company was unable to repay $500mm in debt and was forced to file for Chapter 11 bankruptcy protection.
FHR at default: 24, High Risk
What the ratings tell you.
PHI Inc had an FHR of 24 which is well into our High Risk category (20-39) giving the company an Estimated Probability of Default of 6.4% which is cause for concern. The company had a Core Health Score (CHS) of 18 which is in our Very Poor Health category (0 – 19). This shows a company that is extremely challenged in operating at an efficient/profitable level.
Where our analysis tells the story.
The company's profile page in our portal shows the clear underperformance compared to the sector.
For an extended trend analysis, the FHR Report shows High Risk financial health issues starting in YE 2016 giving plenty of warning about a future bankruptcy or default.
For further analysis, you can use the Financial Dialogue to review the areas that are leading to a low score. This is used in conjunction with the FHR Report and highlights areas of strength for well-rated companies and areas of weakness for poorly rated companies. It is text-based and will offer you questions to start a dialogue with your supplier or vendor. Below we see an inability to cover their interest expense, high leverage, low working capital, a low cash ratio and poor profitability pointing to a weak FHR score.