Rocky Mountain Helicopters Inc. reports a net income deficit of $694,000 or 20 cents per share, on revenues of $16.9 million for its fiscal third quarter ended Jan. 31, compared to net deficit income of $113,000 on revenues of $15.8 million for the same quarter last year.
For the nine-month period, net income was $1.3 million, or 42 cents per share, on revenues of $55.8 million, down from $2.3 million on revenues of $50.5 million for the same period a year ago.Third quarter earnings are historically RMH's lowest of the year, as the company's heavy lift and energy divisions are seasonally less active due to weather and reduced daylight hours, said James B. Burr, president.
"The combination of the war, its effect on the market and the weather acted together to slow recovery of the heavy lift division," he said.
Although the especially low earnings in the division may be an isolated incident, Burr says management has meanwhile limited expansion in that division.
"We have over $16 million in infrastructure in that division, so to sell it now would be premature. Rather, we'll observe its performance over the next fiscal term and if the margins improve, we'll keep the division; if they don't, we'll re-evaluate our position."