AIRM Air Methods Corp.

DENVER, March 12 /PRNewswire-FirstCall/ -- Air Methods Corporation (NASDAQ:AIRM), the largest air medical transportation company in the world, reported revenue and net income for the year and fourth quarter ended December 31, 2007. For the year, revenue increased 24% to $396.3 million compared to $319.5 million in the prior year. Net income was $27.5 million or $2.20 per diluted share compared to $17.2 million or $1.40 per diluted share, a 57% increase. The current year results include a $1.1 million ($0.08 per diluted share) decrease in income tax expense resulting from approved changes in tax depreciation methods applied to prior years. The prior-year results included an increase in income tax expense of $0.5 million (0.04 per diluted share) resulting from a higher expected federal tax rate applied to deferred income tax liabilities. For the fourth quarter, revenue increased 58% to $122.6 million as compared with $77.5 million during the prior-year period. Net income increased to $4.8 million or $0.38 per diluted share compared to net income of $1.2 million or $0.10 per diluted share in the prior-year period. The current-year quarter results include a $1.1 million ($0.08 per diluted share) decrease in income tax expense as discussed above, offset in part by a $0.5 million after tax loss ($0.04 per diluted share) on disposition of assets. The prior-year fourth quarter included an increase in income tax expense of $0.8 million ($0.06 per diluted share) resulting from the higher expected federal tax rate applied to deferred income tax liabilities mentioned above. Approximately $30.3 million of the $45.1 million increase in revenue during the fourth quarter was attributed to hospital-based and community-based revenue generated from bases added in the acquisition of the parent company of CJ Systems Aviation Group, Inc. (CJ) effective October 1, 2007. Excluding revenue related to the CJ acquisition, revenue growth was 19% during the fourth quarter as compared with the prior-year quarter. During the fourth quarter of 2007, total patients transported within community-based operations were 10,737, as compared with 8,382 during the prior-year quarter. Patients transported for community bases in operation greater than one year and excluding CJ bases (Same-Base Transports) decreased by 543 patients or 7%, while weather cancellations for these same bases increased by 521 transports or 25%, compared with the prior-year period. Revenue per community-based transport increased from $5,958 in the fourth quarter of 2006 and $6,519 in the third quarter of 2007, to $6,597 in the current-year fourth quarter. The Company also provided an update on first quarter 2008 flight volume. Same-Base Transports within community-based operations through February were down 205 patient transports or 4% as compared with the prior-year period, while weather cancellations for these same bases increased 560 or 40% as compared with the prior-year period. Total community-based patient transports for the two-month period were 6,812, as compared with 5,190 in the prior-year period. Aaron Todd, CEO of Air Methods, commented, "We are extremely proud of our 2007 annual and fourth quarter results. To have achieved such significant growth in fourth quarter earnings despite the severe weather experienced during the month of December is strong evidence that the CJ acquisition is on track to achieve its first year objectives. The ongoing strength in reimbursement for community-based transports, combined with continued moderation of maintenance expenditures associated with our fleet rejuvenation initiatives, also offset the impact of weather during the quarter." Mr. Todd added, "Despite the impact of weather on transports during the first two months of 2008, we remain very optimistic that we can achieve another year of healthy earnings growth. With the acquisition of CJ closing on October 1, 2007, we look forward to the expected benefit of a full year of combined operating results in 2008. With deliveries of over 45 new aircraft anticipated in 2008, fleet rejuvenation activity will accelerate and should favorably impact historical hourly maintenance costs in the future. These new aircraft also create expansion opportunities within both services divisions." 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 37598727, 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. - FINANCIAL STATEMENTS ATTACHED - AIR METHODS CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET (Amounts in thousands) December 31, December 31, 2007 2006 ASSETS Current assets: Cash and cash equivalents $5,134 $4,219 Trade receivables, net 135,633 100,559 Other current assets 74,090 35,083 Total current assets 214,857 139,861 Net property and equipment 114,746 95,575 Other assets, net 39,949 14,721 Total assets $369,552 $250,157 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Notes payable related to assets held for sale $24,203 $9,560 Current portion of indebtedness 18,350 9,963 Accounts payable, accrued expenses and other 59,546 28,306 Total current liabilities 102,099 47,829 Long-term indebtedness 76,751 62,346 Other non-current liabilities 48,682 32,668 Total liabilities 227,532 142,843 Total stockholders' equity 142,020 107,314 Total liabilities and stockholders' equity $369,552 $250,157 AIR METHODS CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Amounts in thousands, except share and per share amounts) Quarter Ended Year Ended December 31, December 31, 2007 2006 2007 2006 Revenue: Flight operations $118,934 76,469 386,377 313,879 Product operations 3,675 1,009 9,972 5,625 Total revenue 122,609 77,478 396,349 319,504 Expenses: Operating expenses 94,991 59,084 279,006 231,317 General and administrative 15,719 10,521 53,298 40,710 Depreciation and amortization 4,133 3,306 14,418 12,910 114,843 72,911 346,722 284,937 Operating income 7,766 4,567 49,627 34,567 Interest expense (1,700) (1,473) (5,609) (5,821) Loss on early extinguishment of debt - - (757) - Other, net 629 406 2,187 1,598 Income before income taxes 6,695 3,500 45,448 30,344 Income tax expense (1,872) (2,299) (17,911) (13,144) Net income $4,823 1,201 27,537 17,200 Income per common share: Basic $0.40 0.10 2.30 1.46 Diluted $0.38 0.10 2.20 1.40 Weighted average common shares outstanding: Basic 12,095,296 11,819,102 11,953,871 11,748,107 Diluted 12,634,687 12,344,396 12,512,077 12,306,047 DATASOURCE: Air Methods Corporation CONTACT: Aaron D. Todd, Chief Executive Officer, +1-303-792-7413, or to be included on the Company's fax and|or mailing list, Christine Clarke, +1-303-792-7579, both of Air Methods Corporation; or Joe Dorame of Lytham Partners, LLC, +1-602-889-9700, for Air Methods Corporation Web site: http://www.airmethods.com/

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