Air Methods Provides Update on 2nd Quarter Results
July 26 2016 - 8:30AM
Air Methods Corporation (Nasdaq:AIRM) today announced preliminary
financial and operating results for its second quarter ended June
30, 2016. Results are subject to final quarter-end closing and
review procedures and are subject to change.
The Company anticipates revenues for the second
quarter of 2016 will increase by 11.0% to approximately $293
million compared to revenues of $264 million in the prior year
period. Revenue growth was driven primarily by the acquisition of
Tri-State Care Flight (TSCF), hospital base conversions, and new
community bases. Net income from continuing operations is expected
to be approximately $0.69-$0.71 per diluted share for the second
quarter of 2016 compared to net income from continuing operations
of $0.69 per diluted share in the prior-year period.
Total patient transports by community bases
increased 15.9% to 18,662 from 16,105 in the second quarter of
2015. Patients transported by community bases in operation greater
than one year increased 67 transports or 0.4%. Weather
cancellations for these same bases decreased by an estimated 643
transports compared with the prior-year period.
Preliminary net revenue per transport increased
1.9% to $11,516 as compared with $11,298 in the prior-year quarter
with there being minimal impact from TSCF.
Aaron Todd, CEO of Air Methods, commented,
“Earnings did not grow in-line with revenue due to accelerated
clinical and aviation training related to the Tri-State
acquisition, lower tourism passengers, and a $0.5 million loss
related to the disposition of aircraft. The accelerated Tri-State
training resulted in lower in-service rates and volumes in the
quarter, which have reversed in July now that training is mostly
complete. In the tourism division, total passengers fell 9.7% in
the quarter but have recovered month-to-date in July. Despite these
challenges in the second quarter, we remain on track to achieve our
financial targets for the year.”
Excluding the impact of TSCF, Days Sales
Outstanding (DSO) for the Company’s patient transport revenue
increased to 155 days at the end of the second quarter of 2016
compared to 131 at the end of the second quarter of 2015. Peter
Csapo, CFO added, “We continue to intensely focus on our DSO and
have increased our resources and modified processes to adapt to
evolving payor behavior. These improvements have yet to be realized
in our DSO number due to the inherent lag in collection timing and
seasonality related to our calculation methodology.”
The Company will report financial results for
the second quarter ended June 30, 2016 after the close of the
market on Thursday, August 4, 2016. The Company has scheduled
a conference call for Thursday, August 4, 2016 at 4:30 p.m. Eastern
to discuss these results. Interested parties can access the
call by dialing (855) 601-0049 (domestic) or (720) 398-0100
(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
52621462, 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 Air Medical
Services Division is the largest provider of air medical transport
services in the United States. The United Rotorcraft Division
specializes in the design and manufacture of aeromedical and
aerospace technology. The Tourism Division is comprised of Sundance
Helicopters, Inc. and Blue Hawaiian Helicopters, which provide
helicopter tours and charter flights in the Las Vegas/Grand Canyon
region and Hawaii, respectively. Air Methods’ fleet of owned,
leased or maintained aircraft features approximately 500
helicopters and fixed wing aircraft.
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”, including statements we make with
regard to the Company’s achievement of its financial targets for
fiscal year 2016 and the Company’s preliminary second quarter 2016
operational and financial results, including those related to (i)
revenue, (ii) total community-based patient transports, (iii)
same-base transports, (iv) weather cancellations, (v) net revenue
per patient transport, (vi) days sales outstanding, and (vii) net
income per share. Actual results could differ materially from those
currently anticipated due to a number of factors, including but not
limited to, the Company’s completion of its final quarter-end
closing and review procedures, the size, structure and growth of
the Company's air medical services, United Rotorcraft Division and
Tourism Division; the collection rates for patient transports;
increases in days sales outstanding, shifts in payer mix resulting
in a decrease of the number of privately insured transports, the
continuation and/or renewal of air medical service contracts;
weather conditions across the U.S.; development and changes in laws
and regulations, including, without limitation, increased
regulation of the health care and aviation industry through
legislative action and revised rules and standards; 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 Christina Brodsly at (303)
256-4122 to be included on the Company’s e-mail distribution
list.
CONTACTS: Peter P. Csapo, Chief Financial Officer, (303) 792-7561.
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