Air Methods Corporation (Nasdaq:AIRM), the global leader in air
medical transportation, reported revenue and net income for the
year and fourth quarter ended December 31, 2011.
For the year, revenue increased 18% to $660.5 million compared
to $562.0 million in the prior year. Net income increased 9% to
$46.6 million, or $3.63 per diluted share, in the current year from
$42.8 million, or $3.39 per diluted share, in the prior year.
Earnings before interest, depreciation and amortization, and income
tax expenses (EBITDA) increased 13% to $170.9 million compared to
$150.7 million in the prior year.
For the fourth quarter, revenue increased 29% to $193.3 million
as compared with $150.4 million during the prior-year period. Net
income decreased slightly to $12.4 million, or $0.96 per diluted
share, compared to net income of $12.5 million, or $0.99 per
diluted share, in the prior-year period. EBITDA increased 15%
to $47.8 million compared to $41.5 million in the prior-year
quarter.
On August 1, 2011, the Company acquired 100% of the outstanding
common stock of OF Air Holdings Corporation and its subsidiaries,
including Omniflight Helicopters, Inc. (together, Omniflight). The
results of operations for the year and quarter ended December 31,
2011 include the consolidated operations of Omniflight since the
date of the acquisition. Pre-tax earnings were reduced by
approximately $2.3 million and $0.5 million for the year and fourth
quarter, respectively, for transaction costs and employee severance
expenses related to the acquisition of Omniflight. Pre-tax
earnings for both periods were further reduced by $2.2 million for
retrospective compensation paid to pilots associated with the
negotiation of a new collective bargaining agreement. The
quarter ended December 31, 2011 also included $0.3 million and $0.9
million in pre-tax expense associated with the financial
restatement and asset dispositions, respectively.
Fourth Quarter Highlights
Revenue from Community-Based Services increased 44% to $134.4
million from $93.6 million, while segment net income increased 17%
to $25.8 million during the fourth quarter, as compared with
segment net income of $22.0 million in the prior-year quarter. Net
revenue per community-based transport increased 10% to $10,099
compared with $9,175 in the prior-year quarter. Total
community-based patient transports increased 30% to 13,128 in the
current-year quarter from 10,071 in the prior-year quarter.
Community-based patient transports for bases open greater than one
year (Same-Base Transports) and excluding Omniflight transports
decreased 10%, or 1,031 transports, as compared with the prior-year
quarter. Weather cancellations for these same-base locations
decreased by 105 transports compared with the prior-year
quarter.
Revenue from Hospital-Based Services increased by 3% to $50.5
million from $49.1 million, while segment net income decreased to
$1.6 million in the current-year quarter from $2.8 million during
the prior-year quarter. This decrease in earnings is attributed
primarily to the retrospective pilot compensation referenced
above.
Consolidated maintenance expense for the current-year quarter
increased by only 16%, or $3.6 million, despite an increase in
flight volume of 22%. Fuel costs for community-based
operations increased $2.2 million during the current-year quarter
as compared to the prior-year quarter, representing a 74% increase.
This increase is attributed to a 30% increase in community-based
patient transports and $0.5 million pre-tax loss associated with
mark-to market of 2011 and 2012 fuel
hedges.
Revenue from our United Rotorcraft (formerly Products) Division,
excluding revenue generated from internal projects, increased to
$8.4 million from $7.7 million in the prior-year quarter, a 9%
increase. Segment net income, excluding internal projects,
decreased to $1.3 million from $2.2 million in the prior-year
quarter.
The Company also provided an update on preliminary January 2012
flight volume and net revenue per community-based transport. Total
community-based transports during January 2012 were 4,167 compared
with 2,842 during January 2011, reflecting a 47% increase.
Same-Base Transports (excluding Omniflight transports) for January
decreased 6 transports, or less than 1%, while weather
cancellations for these same bases decreased by 512 transports.
Preliminary net revenue per community-based transport during
January 2012 increased to $10,118 compared with $9,049 during
January 2011, a 12% increase.
Aaron Todd, Chief Executive Officer, stated, "We are pleased
with the annual and quarterly results in light of Omniflight
transaction and transition costs and the upfront expense associated
with our successful negotiation of a new collective bargaining
agreement with our pilots. We are pleased with the increases to
earnings and EBITDA that the Omniflight acquisition has produced
to-date. We are essentially complete with our transition activities
and look forward to the benefit of a full year of combined
operations, with fully-realized synergies and elimination of costs
associated with the acquisition and transition. Recent
softness in Same-Base Transports has been more than offset by
better than anticipated reimbursement. Mild weather in January,
combined with continued strength in reimbursement, has given us a
strong start for the first month of 2012."
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 (877) 883-0656 (domestic) or (706) 643-8826
(international) or by accessing the web cast at www.airmethods.com.
A replay of the call will be available at (855) 859-2056 (domestic)
or (404) 537-3406 (international), access number 56367356, for 3
days following the call and the web cast can be accessed at
www.airmethods.com for 30 days.
Air Methods Corporation (www.airmethods.com) is the global
leader in air medical transportation. The Hospital Based Services
Division is the largest provider of air medical transport services
for hospitals. The Community Based Services Division is one of the
largest community-based providers of air medical services. United
Rotorcraft Division specializes in the design and manufacture of
aeromedical and aerospace technology. Air Methods' fleet of owned,
leased or maintained aircraft features over 400 helicopters and
fixed wing aircraft.
The Air Methods Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6955
Forward Looking Statements: Forward-looking
statements in this news release are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. Statements in this press release that are
"forward-looking statements" are based on current expectations and
assumptions that are subject to risks and
uncertainties. Actual results could differ materially from
those currently anticipated due to a number of factors, including
but not limited to, the size, structure and growth of the Company's
air medical services and United Rotorcraft Division; the collection
rates for patient transports; the continuation and/or renewal of
air medical service contracts; the ability of the Company to
successfully finalize the integration of Omniflight; the
anticipated synergies associated with the acquisition of
Omniflight; extreme weather conditions across the U.S., and other
matters set forth in the Company's filings with the SEC. The
Company is under no obligation (and expressly disclaims any
obligation) to update or alter its forward-looking statements,
whether as a result of new information, future events or
otherwise.
Please contact Christine Clarke at (303) 792-7579 to be included
on the Company's fax and/or mailing list.
– FINANCIAL STATEMENTS ATTACHED –
AIR METHODS
CORPORATION AND SUBSIDIARIES |
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS |
(Amounts in
thousands) |
|
|
December 31, 2011 |
December 31, 2010 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 3,562 |
$ 60,710 |
Trade receivables, net |
187,056 |
132,329 |
Other current assets |
65,101 |
44,953 |
|
|
|
Total current assets |
255,719 |
237,992 |
|
|
|
Net property and equipment |
569,578 |
444,743 |
Other assets, net |
203,174 |
40,375 |
|
|
|
Total assets |
$ 1,028,471 |
$ 723,110 |
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
Notes payable related to aircraft pending
long-term financing |
$ 27,940 |
$ -- |
Current portion of indebtedness |
67,989 |
57,198 |
Accounts payable, accrued expenses and
other |
74,779 |
58,195 |
|
|
|
Total current liabilities |
170,708 |
115,393 |
|
|
|
Long-term indebtedness |
483,886 |
312,816 |
Other non-current liabilities |
85,975 |
61,472 |
|
|
|
Total liabilities |
740,569 |
489,681 |
|
|
|
Total stockholders' equity |
287,902 |
233,429 |
|
|
|
Total liabilities and stockholders'
equity |
$ 1,028,471 |
$ 723,110 |
|
|
|
|
|
AIR METHODS
CORPORATION AND SUBSIDIARIES |
|
|
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF INCOME |
|
|
|
|
(Amounts in thousands,
except share and per share amounts) |
|
|
|
|
|
|
|
|
|
|
Quarter Ended December
31, |
Year Ended December
31, |
|
|
|
|
|
|
2011 |
2010 |
2011 |
2010 |
|
|
|
|
|
Revenue: |
|
|
|
|
Flight operations |
$ 183,103 |
141,127 |
623,229 |
533,852 |
Product operations |
8,418 |
7,707 |
30,462 |
22,447 |
Other |
1,789 |
1,550 |
6,858 |
5,703 |
Total revenue |
193,310 |
150,384 |
660,549 |
562,002 |
|
|
|
|
|
Expenses: |
|
|
|
|
Operating expenses |
122,189 |
91,223 |
408,699 |
345,942 |
General and administrative |
25,162 |
19,051 |
85,500 |
69,226 |
Depreciation and amortization |
20,660 |
16,153 |
72,877 |
63,636 |
|
168,011 |
126,427 |
567,076 |
478,804 |
|
|
|
|
|
Operating income |
25,299 |
23,957 |
93,473 |
83,198 |
|
|
|
|
|
Interest expense |
(5,868) |
(4,618) |
(20,072) |
(19,176) |
Other, net |
916 |
937 |
3,901 |
3,934 |
|
|
|
|
|
Income before income taxes |
20,347 |
20,276 |
77,302 |
67,956 |
|
|
|
|
|
Income tax expense |
(7,945) |
(7,743) |
(30,728) |
(25,199) |
|
|
|
|
|
Net income |
$ 12,402 |
12,533 |
46,574 |
42,757 |
|
|
|
|
|
Income per common share: |
|
|
|
|
Basic |
$ 0.98 |
1.00 |
3.68 |
3.42 |
Diluted |
$ 0.96 |
0.99 |
3.63 |
3.39 |
|
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
Basic |
12,709,576 |
12,555,672 |
12,666,474 |
12,496,513 |
Diluted |
12,868,935 |
12,688,595 |
12,827,595 |
12,596,414 |
CONTACT: Aaron D. Todd, Chief Executive Officer
(303) 792-7413
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