Air Methods Corporation (Nasdaq:AIRM), the global leader in air
medical transportation, reported financial results for the quarter
ended March 31, 2012 and provided an update on April 2012 flight
volume. For the quarter, revenue increased 45% to $190.8 million
from $131.9 million in the prior-year quarter. Net income for the
first quarter of 2012 was $12.5 million, or $0.97 per diluted
share, compared with net income of $5.7 million, or $0.45 per
diluted share, in the first quarter of 2011. The current-year
quarter includes the consolidated results of operations of OF Air
Holdings Corporation and its subsidiaries, including Omniflight
Helicopters, Inc. (together, Omniflight), which was acquired on
August 1, 2011. The prior-year quarter included a pre-tax, non-cash
gain of $1.0 million for the mark to market of a fuel derivative,
compared with a gain of less than $0.1 million in the current-year
quarter. Earnings before interest, income taxes, depreciation and
amortization expenses (EBITDA) increased by 55%, to $46.6 million
in the current-year quarter from $30.1 million in the prior-year
quarter. (See the table at the end of this release for a
reconciliation of EBITDA, a non-GAAP measure, to GAAP.)
Community-based patient transports were 12,673 during the
current-year quarter, compared with 8,870 in the prior-year
quarter, a 43% increase. Patients transported for community bases
in operation greater than one year and excluding Omniflight bases
(Same-Base Transports) decreased by 3%, or 258 transports, while
weather cancellations for these same bases decreased by 935
transports compared with the prior-year quarter. Requests for
community-based service decreased 7% for bases open greater than
one year. Net revenue per community-based transport increased 17%
from $8,837 to $10,303 in the current-year quarter reflecting
current and prior-year price increases.
Maintenance expense increased $7.3 million, or 39%, compared
with the prior-year quarter, while flight hours increased
30%. Increase in maintenance expense per flight hour is
attributed to typical quarterly fluctuations associated with
scheduled and unscheduled maintenance events. Fuel expense
increased by $1.8 million, or 47% (excluding effect of fuel
derivatives), compared with the prior-year quarter. This
increase is attributed to a 43% increase in community-based patient
transports and the impact of fuel price increases.
For the first quarter, community-based divisional revenue
increased 65% to $132.0 million, compared to $80.0 million in the
prior year, while segment net income increased to $25.3 million
from $10.3 million. Hospital-based divisional revenue
increased 12% to $51.6 million from $46.1 million in the prior-year
period, while segment net income decreased to $0.8 million compared
with $3.8 million in the prior-year quarter. The decrease in
hospital-based segment net income was primarily attributed to
increase in aircraft maintenance expense of $3.6
million. United Rotorcraft Division's external revenue
increased 25% to $7.2 million compared with $5.8 million in the
prior-year quarter, while its external segment net income increased
by $0.7 million as compared with the prior-year quarter.
The Company also provided an update on preliminary April 2012
flight volume. Total community-based transports increased 48% to
4,745 during April 2012, compared with 3,215 in April
2011. April 2012 Same-Base Transports increased by 88
transports, or 3%, as compared with April 2011. Weather
cancellations during April 2012 for these same bases decreased by
327 compared with the prior-year month.
Aaron Todd, CEO, stated, "We are pleased with the strong start
to our 2012 fiscal year. The clear benefit of our acquisition
of Omniflight is reflected in these results, as we have now
essentially concluded the integration of our two
companies. Favorable impact of milder weather conditions,
combined with higher than anticipated reimbursement rates, have
more than offset higher maintenance expenditures and fuel expenses
during the quarter. Although requests for service for bases
open greater than one year declined 7% during the first quarter,
this decline was only 2.5% during April 2012, compared with the
prior-year period. We are ahead of pace to achieve our
budgeted earnings expectations."
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 75627226, 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.
About Non-GAAP Financial Information: This
press release discusses EBITDA, which is not calculated in
conformity with U.S. Generally Accepted Accounting Principles
(GAAP). The Company defines EBITDA as earnings before
interest, income taxes, depreciation, amortization and gain or loss
on disposition of assets. A table is provided in this press release
to reconcile such non-GAAP financial measure to net income, which
is the most directly comparable financial measure prepared in
accordance with GAAP. Such table below includes all
information reasonably available to the Company at the date of this
press release and adjustments that the Company can reasonably
predict. Events that could cause the reconciliation to change
include, but are not limited to, acquisitions and divestitures of
businesses and goodwill and other asset impairments.
To supplement the Company's consolidated financial statements
presented on a GAAP basis, management believes that this non-GAAP
measure provides useful information about the Company's core
operating results and thus is appropriate to enhance the overall
understanding of the Company's past financial performance and its
prospects for the future. Management believes the additions and
subtractions from net income used to calculate EBITDA reflect the
measurements that its bank creditors and third party stock analysts
use in evaluating the Company. These adjustments to the Company's
GAAP results are made with the intent of providing both management
and investors a more complete understanding of the Company's
underlying operational results and trends and performance.
Management uses this non-GAAP measure to evaluate the Company's
financial results. The presentation of non-GAAP measures is not
meant to be considered in isolation or as a substitute for or
superior to financial results determined in accordance with
GAAP.
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) |
|
|
|
|
March 31, 2012 |
December 31, 2011 |
|
|
|
ASSETS |
|
|
|
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 1,640 |
3,562 |
Trade receivables, net |
192,038 |
187,056 |
Other current assets |
55,657 |
65,101 |
|
|
|
Total current assets |
249,335 |
255,719 |
|
|
|
Net property and equipment |
566,158 |
569,578 |
Other assets, net |
201,815 |
203,174 |
|
|
|
Total assets |
$ 1,017,308 |
1,028,471 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
Notes payable related to aircraft pending
long-term financing |
$ 1,511 |
27,940 |
Current portion of indebtedness |
66,466 |
67,989 |
Accounts payable, accrued expenses and
other |
65,310 |
74,779 |
|
|
|
Total current liabilities |
133,287 |
170,708 |
|
|
|
Long-term indebtedness |
490,433 |
483,886 |
Other non-current liabilities |
89,478 |
85,975 |
|
|
|
Total liabilities |
713,198 |
740,569 |
|
|
|
Total stockholders' equity |
304,110 |
287,902 |
|
|
|
Total liabilities and stockholders'
equity |
$ 1,017,308 |
1,028,471 |
|
|
AIR METHODS CORPORATION
AND SUBSIDIARIES |
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF INCOME |
(Amounts in thousands, except
share and per share amounts) |
|
|
|
|
Quarter Ended |
|
March 31, |
|
|
|
|
2012 |
2011 |
|
|
|
Revenue: |
|
|
Flight operations |
$ 182,144 |
124,521 |
Product operations |
7,232 |
5,801 |
Other |
1,438 |
1,583 |
Total revenue |
190,814 |
131,905 |
|
|
|
Expenses: |
|
|
Operating expenses |
120,022 |
84,384 |
General and administrative |
24,875 |
18,307 |
Depreciation and amortization |
20,879 |
16,492 |
|
165,776 |
119,183 |
|
|
|
Operating income |
25,038 |
12,722 |
|
|
|
Interest expense |
(5,593) |
(4,510) |
Other, net |
930 |
1,217 |
|
|
|
Income before income taxes |
20,375 |
9,429 |
|
|
|
Income tax expense |
(7,901) |
(3,717) |
|
|
|
Net income |
$ 12,474 |
5,712 |
|
|
|
Income per common share: |
|
|
Basic |
$ 0.98 |
0.45 |
Diluted |
$ 0.97 |
0.45 |
|
|
|
Weighted average common shares outstanding -
basic |
12,793,640 |
12,607,522 |
Weighted average common shares outstanding -
diluted |
12,915,816 |
12,758,669 |
|
|
AIR METHODS CORPORATION
AND SUBSIDIARIES |
RECONCILIATION OF NET INCOME TO
EBITDA |
(Amounts in thousands) |
|
|
|
|
Quarter Ended |
|
March 31, |
|
2012 |
2011 |
|
|
|
Net income |
$ 12,474 |
5,712 |
|
|
|
Interest expense |
5,593 |
4,510 |
Income tax expense |
7,901 |
3,717 |
Depreciation and amortization |
20,879 |
16,492 |
Gain on disposition of assets, net |
(241) |
(361) |
|
|
|
EBITDA |
$ 46,606 |
30,070 |
CONTACT: Aaron D. Todd
Chief Executive Officer
(303) 792-7413
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