350403--3/16/2009--PHI_INC

related topics
{condition, economic, financial}
{gas, price, oil}
{cost, contract, operation}
{stock, price, share}
{debt, indebtedness, cash}
{regulation, government, change}
{operation, international, foreign}
{stock, price, operating}
{competitive, industry, competition}
{product, liability, claim}
{cost, operation, labor}
{personnel, key, retain}
Our operations are affected by adverse weather conditions and seasonal factors. We may not be able to obtain acceptable customer contracts covering some of our new helicopters, and there will be a delay between the time that a helicopter is delivered to us and the time that it can begin generating revenues. Our contracts generally can be terminated or downsized by our customers without penalty. Increased governmental regulations could increase our costs or reduce our ability to operate successfully. The helicopter services business is highly competitive. Our air medical operations expose us to numerous special risks, including collection risks, high start-up costs and potential medical malpractice claims. Our international operations are subject to political, economic and regulatory uncertainty. Our failure to attract and retain qualified personnel could adversely affect us. RISKS SPECIFIC TO OUR COMPANY We are highly dependent on the offshore oil and gas industry. Our pilot workforce is represented by the Office and Professional Employees International Union, with which the Company is engaged in strike-related litigation. We depend on a small number of large oil and gas industry customers for a significant portion of our revenues, and our credit exposure within this industry is significant. The current credit crisis may have an adverse impact on our business and financial condition in ways that we currently cannot predict. General economic conditions and recent market events may expose our Company to new risks. Our Chairman of the Board and Chief Executive Officer is also our principal stockholder and has voting control of the Company. Our substantial indebtedness could adversely affect our financial condition and impair our ability to operate our business. Our stock has a low trading volume. We do not pay dividends.

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