Air Methods Reports 3Q2012 Results and 4Q2012 Update
November 08 2012 - 4:01PM
Air Methods Corporation (Nasdaq:AIRM) reported results for the
quarter ended September 30, 2012. Revenue increased 20% to $221.3
million from $185.2 million in the year-ago quarter. For the
nine-month period, revenue increased 36% to $634.6 million, up from
$467.2 million in the prior-year nine-month period. For the
quarter, net income increased 50% to $27.8 million, or $2.14 per
diluted share, as compared with 2011 third quarter net income of
$18.5 million, or $1.44 per diluted share. Net income for the
nine-month period increased 110% to $71.7 million, or $5.52 per
diluted share, compared to $34.2 million, or $2.67 per diluted
share, for the prior-year period. Financial results for the three
and nine months ended September 30, 2012 include operations
associated with the Company's acquisition of OF Air Holdings and
its subsidiaries (together, Omniflight) effective August 1, 2011.
Accordingly, only two months of consolidated operations are
reflected in the prior-year quarter and nine months ended September
30, 2011.
After-tax earnings for the current year quarter include $0.6
million net loss on disposition of assets. The current year
after-tax quarterly earnings were further reduced by $0.9 million
associated with the non-recurring cumulative effect of changes in
expected blended state income tax rates. Prior-year after-tax
earnings for the quarter ended September 30, 2011 were reduced by
approximately $1.4 million for transaction and non-recurring
transition costs and employee severance expense related to the
acquisition of Omniflight.
Effective September 1, 2012, the Company combined its
community-based and hospital-based services divisions. This
combination of the Company's two air medical services divisions was
made in order to improve efficiency and
coordination. Accordingly, net patient transport revenue
(previously referred to as net community-based services revenue) no
longer includes revenue from military base air medical services
contracts. Air medical services contract revenue includes both
fixed fee and hourly flight fee revenue associated with air medical
service agreements with hospital and military customers.
Third Quarter Highlights
Net patient transport revenue increased 28% to $153.1 million
from $119.3 million. Net revenue per community-based transport
(excluding military base services revenue) increased 14% to $10,316
compared with $9,054 in the prior-year quarter. Total
community-based patient transports increased 13% to 14,829 in the
current-year quarter from 13,173 in the prior-year quarter.
Community-based patient transports for bases open greater than one
year (Same-Base Transports) and excluding Omniflight transports for
July 2012 increased 3%, or 362 transports, as compared with the
prior-year quarter. Weather cancellations for these same-base
locations decreased by 172 transports compared with the prior-year
quarter. Air medical services contract revenue increased by
5% to $58.0 million from $55.4 million.
Consolidated maintenance expense for the current-year quarter
increased by 27%, or $5.7 million, despite an increase in flight
volume of only 5%. Excluding the impact of the fuel derivative
agreements, the cost of aircraft fuel per flight hour increased 3%
over the prior-year quarter.
Revenue from our United Rotorcraft Division, excluding revenue
generated from internal projects, decreased 4% to $8.4 million from
$8.7 million in the prior-year quarter. Segment net income,
excluding internal projects, decreased 12% to $1.7 million from
$1.9 million in the prior-year quarter.
The Company also provided an update on preliminary October 2012
flight volume. Total community-based transports during October 2012
were 4,670 compared with 4,814 during October 2011, reflecting a 3%
decrease. Same-Base Transports for October decreased 93
transports, or 2%, while weather cancellations for these same bases
increased by 225 transports.
Aaron Todd, Chief Executive Officer, stated, "During the third
quarter of 2012, we completed our first full year of consolidated
operations following the Omniflight acquisition. Our financial
results have confirmed the accretive benefits of this acquisition
and the realization of anticipated synergies. We are pleased
to have experienced a return to Same-Base Transport growth during
the third quarter, including on a weather-adjusted
basis. Preliminary October 2012 flight volume also reflects
growth in Same-Base Transports on a weather-adjusted
basis. Our strong earnings growth during the current-year
quarter has been achieved despite higher than anticipated
maintenance expenditures."
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 59981547, 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
for hospitals and 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", including statements regarding the
Company's preliminary October 2012 flight volume, 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 anticipated impact from the
Company's internal reorganization; extreme weather conditions
across the U.S.; development and changes in laws and regulations,
including, without limitation, the impact of the Patient Protection
and Affordable Care Act; 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 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
SHEETS |
(Amounts in thousands) |
(unaudited) |
|
|
|
|
September 30, 2012 |
December 31, 2011 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 3,807 |
3,562 |
Trade receivables, net |
235,764 |
187,056 |
Other current assets |
79,860 |
65,101 |
|
|
|
Total current assets |
319,431 |
255,719 |
|
|
|
Net property and equipment |
551,944 |
569,578 |
Other assets, net |
197,420 |
203,174 |
|
|
|
Total assets |
$ 1,068,795 |
1,028,471 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
Notes payable related to assets held for
sale |
$ 4,640 |
27,940 |
Current portion of indebtedness |
62,593 |
67,989 |
Accounts payable, accrued expenses and
other |
77,868 |
74,779 |
|
|
|
Total current liabilities |
145,101 |
170,708 |
|
|
|
Long-term indebtedness |
462,958 |
483,886 |
Other non-current liabilities |
92,957 |
85,975 |
|
|
|
Total liabilities |
701,016 |
740,569 |
|
|
|
Total stockholders' equity |
367,779 |
287,902 |
|
|
|
Total liabilities and stockholders'
equity |
$ 1,068,795 |
1,028,471 |
|
|
AIR METHODS CORPORATION
AND SUBSIDIARIES |
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME |
(Amounts in thousands, except
share and per share amounts) |
(unaudited) |
|
|
|
|
|
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|
2012 |
2011 |
2012 |
2011 |
|
|
|
|
|
Revenue: |
|
|
|
|
Patient transport revenue, net |
$ 153,095 |
119,332 |
437,865 |
286,497 |
Air medical services contract revenue |
58,014 |
55,381 |
168,854 |
153,629 |
Product operations |
8,490 |
8,702 |
23,238 |
22,044 |
Other |
1,691 |
1,757 |
4,627 |
5,069 |
Total revenue |
221,290 |
185,172 |
634,584 |
467,239 |
|
|
|
|
|
Expenses: |
|
|
|
|
Operating expenses |
124,961 |
107,408 |
365,918 |
286,800 |
General and administrative |
23,478 |
23,331 |
73,902 |
60,338 |
Loss (gain) on disposition of assets,
net |
985 |
(264) |
774 |
(290) |
Depreciation and amortization |
20,638 |
19,030 |
62,460 |
52,217 |
|
170,062 |
149,505 |
503,054 |
399,065 |
|
|
|
|
|
Operating income |
51,228 |
35,667 |
131,530 |
68,174 |
|
|
|
|
|
Interest expense |
(5,022) |
(5,383) |
(15,887) |
(14,204) |
Other, net |
711 |
872 |
2,639 |
2,985 |
|
|
|
|
|
Income before income taxes |
46,917 |
31,156 |
118,282 |
56,955 |
|
|
|
|
|
Income tax expense |
(19,073) |
(12,616) |
(46,551) |
(22,783) |
|
|
|
|
|
Net income |
$ 27,844 |
18,540 |
71,731 |
34,172 |
|
|
|
|
|
Income per common share: |
|
|
|
|
Basic |
$ 2.16 |
1.46 |
5.58 |
2.70 |
Diluted |
$ 2.14 |
1.44 |
5.52 |
2.67 |
|
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
Basic |
12,896,812 |
12,688,791 |
12,850,529 |
12,651,949 |
Diluted |
13,016,749 |
12,837,530 |
12,989,979 |
12,806,716 |
CONTACT: Trent J. Carman, Chief Financial Officer,
(303) 792-7591
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