DENVER,
May 8 /PRNewswire-FirstCall/ -- Air Methods Corporation
(Nasdaq: AIRM), the largest air medical transportation company in the world,
reported financial results for the first quarter ended
March 31, 2008 and
provided an update on
April 2008 flight volumes. For the quarter, revenue
increased 45.0% to
$118.1 million from
$81.5 million in the year-ago quarter.
Net income for the first quarter of 2008 was
$2.3 million or
$0.18 per diluted
share, compared with net income of
$3.7 million or
$0.30 per diluted share in
the first quarter of 2007. Current quarter net income includes an after-tax
gain of
$0.8 million, or
$0.06 per diluted share, generated from disposition
of aircraft.
As previously announced, the decrease in net income was primarily
attributed to decreases in community-based patient transports as a result of
increased weather cancellations, and higher than anticipated maintenance and
fuel expenditures. Community-based patient transports for bases in operation
greater than one year (Same-Base Transports) decreased by 577 transports,
while weather cancellations for these same bases increased by 636, as compared
with the prior-year quarter. Same-Base Transports and weather cancellations
exclude bases acquired from CJ Systems Aviation Group, Inc. (CJ) effective
October 1, 2007. Aircraft maintenance expense during the quarter, excluding
aircraft acquired in the CJ acquisition and those added after March 31, 2007,
increased 35.7% or $4.0 million as compared with the prior-year quarter. Fuel
expense per flight hour increased 44%, or approximately $1.1 million, as
compared with the prior-year period.
Net revenue per community-based transport increased 2.8% from $6,443 in
the prior-year quarter to $6,622 in the current-year quarter. The
current-year quarterly revenue per transport was slightly lower than
anticipated due to inherent fluctuations in payer mix and differences between
actual collections and previous estimates. Total community-based patient
transports were 10,570 in the current year quarter, compared to 8,284 in the
first quarter of 2007.
For the first quarter, community-based revenue increased 29.8% to
$69.3 million compared to $53.4 million in the prior year, while segment net
income decreased 26.6% to $5.8 million from $7.9 million. Hospital-based
flight revenue increased 72.4% from $26.2 million to $45.2 million in the
current-year period, while segment net income remained unchanged at $1.8
million for both current and prior periods. The increase in revenue is
primarily attributed to the acquisition of CJ, which occurred on October 1,
2007. The decrease in segment net income for both divisions as a percentage
of revenue is primarily attributed to the matters discussed above.
The Company also provided an update on April 2008 flight volume. Total
community-based transports were 3,722 during April 2008 compared with 3,071 in
April 2007. Same-Base Transports during the month of April decreased by 254
transports or 8.6% as compared with April 2007. The decrease in transports
was almost entirely attributed to an increase of 230 in weather cancellations
for bases in operation greater than one year and excluding bases acquired from
CJ.
Aaron Todd, CEO, stated, "As we had previously announced, the factors that
affected our first quarter results are inherent within our operations.
Weather and maintenance fluctuations can vary widely from quarter-to-quarter
and are not necessarily predictive of future quarters. The variation in our
community-based transport revenue is consistent with variations in recent
quarters and is not attributed to any specific changes in reimbursement
trends. The increase in fuel prices does have direct relevance to future
quarters. As previously announced, the Company has increased its pricing for
community-based patient transports by 7% effective May 1st to offset the
expected impact of higher fuel prices. The Company continues to expect
healthy growth in year-over-year earnings per share dependent on more moderate
weather cancellations and maintenance activities and consistent reimbursement
trends for the remainder of the year."
The Company will discuss these results in a conference call scheduled
today at 4:15 p.m. Eastern. Interested parties can access the call by dialing
(888) 396-5640 (domestic) or (706) 643-0580 (international) or by accessing
the web cast at http://www.airmethods.com. A replay of the call will be
available at (800) 642-1687 (domestic) or (706) 645-9291 (international),
access number 43095354, for 3 days following the call and the web cast can be
accessed at http://www.airmethods.com for 30 days.
Air Methods Corporation (http://www.airmethods.com) is a leader in
emergency air medical transportation and medical services. The Hospital Based
Services Division is the largest provider of air medical transport services
for hospitals. The Community Based Services Division is the largest
community-based provider of air medical services. The Products Division
specializes in the design and manufacture of aeromedical and aerospace
technology. The Company's fleet of owned, leased or maintained aircraft
features over 330 helicopters and fixed wing aircraft.
Forward Looking Statements: This news release includes certain
forward-looking statements, which are subject to various risks and
uncertainties. Actual results could differ materially from those currently
anticipated due to a number of factors, including but not limited to the
integration of CJ into our existing operations, the size, structure and growth
of the Company's air medical services and products markets; the collection
rates for patient transports; the continuation and/or renewal of air medical
service contracts; the acquisition of profitable Products Division contracts
and other flight service operations; the successful expansion of the
community-based operations; and other matters set forth in the Company's
public filings.
CONTACTS: Aaron D. Todd, Chief Executive Officer, (303) 792-7413 or Joe
Dorame at Lytham Partners, LLC at (602) 889-9700. Please contact Christine
Clarke at (303) 792-7579 to be included on the Company's fax and/or mailing
list.
AIR METHODS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(Amounts in thousands)
March 31, 2008 December 31, 2007
ASSETS
Current assets:
Cash and cash equivalents $12,510 5,134
Trade receivables, net 127,530 135,633
Other current assets 63,392 74,090
Total current assets 203,432 214,857
Net property and equipment 110,473 114,746
Other assets, net 42,704 39,949
Total assets $356,609 369,552
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable related to assets held
for sale $12,549 24,203
Current portion of indebtedness 18,612 18,350
Accounts payable, accrued expenses
and other 57,104 59,546
Total current liabilities 88,265 102,099
Long-term indebtedness 74,829 76,751
Other non-current liabilities 48,108 48,682
Total liabilities 211,202 227,532
Total stockholders' equity 145,407 142,020
Total liabilities and stockholders'
equity $356,609 369,552
AIR METHODS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Amounts in thousands, except share and per share amounts)
Quarter Ended
March 31,
2008 2007
Revenue:
Flight operations $114,473 79,161
Product operations 3,626 2,297
Total revenue 118,099 81,458
Expenses:
Operating expenses 91,979 58,493
General and administrative 17,146 12,151
Depreciation and amortization 4,098 3,411
113,223 74,055
Operating income 4,876 7,403
Interest expense (1,567) (1,422)
Other, net 643 455
Income before income taxes 3,952 6,436
Income tax expense (1,622) (2,738)
Net income $2,330 3,698
Income per common share:
Basic $0.19 0.31
Diluted $0.18 0.30
Weighted average common shares
outstanding - basic 12,151,342 11,876,835
Weighted average common shares
outstanding - diluted 12,623,358 12,362,198
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