Air Methods Corporation (Nasdaq:AIRM), the global leader in air
medical transportation, reported financial results for the year and
fourth quarter ended December 31, 2012.
For the year, revenue increased 29% to $850.8 million compared
to $660.5 million in the prior year. Net income doubled to $93.2
million, or $2.39 per diluted share, in the current year from $46.6
million, or $1.21 per diluted share, in the prior year. Earnings
before interest, depreciation and amortization, and income tax
expenses (EBITDA) increased 51% to $257.4 million compared to
$170.9 million in the prior year. (See the table at the end of this
release for a reconciliation of EBITDA, a non-GAAP measure, to
GAAP.)
For the fourth quarter, revenue increased 12% to $216.2 million
as compared with $193.3 million during the prior-year period. Net
income increased 73% to $21.4 million, or $0.55 per diluted share,
compared to net income of $12.4 million, or $0.32 per diluted
share, in the prior-year period. EBITDA increased 26% to $60.0
million compared to $47.8 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 ended December 31, 2011 included
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
prior-year periods were further reduced by $2.2 million for
retrospective compensation paid to pilots associated with the
negotiation of a new collective bargaining agreement.
Fourth Quarter Highlights
Net patient transport revenue increased 18% to $152.9 million
from $129.8 million. Net revenue per patient transport increased
16% to $11,448 from $9,883 in the prior-year quarter. Total
patient transports from community-based locations increased 2% to
13,334 from 13,128. Patient transports from community-based
locations open greater than one year (Same-Base Transports)
increased 34 transports, as compared with the prior-year
quarter. Weather cancellations for these same-base locations
increased by 479 transports compared with the prior-year
quarter. Air medical services contract revenue increased by 5%
to $56.1 million from $53.3 million.
Consolidated maintenance expense for the fourth quarter of 2012
compared to the prior-year period increased by 10%, or $2.6
million, while flight volume decreased by 3%. Fuel costs
increased by $0.9 million during the current-year quarter as
compared to the prior-year quarter, representing a 17%
increase.
Revenue from our United Rotorcraft Division, excluding revenue
generated from internal projects, decreased to $5.6 million from
$8.4 million in the prior-year quarter, a 34%
decrease. Excluding internal projects, the division generated
a net loss of $0.6 million in the current-year quarter compared to
net income of $1.3 million in the prior-year quarter.
The Company also provided an update on preliminary January 2013
flight volume and net revenue per patient transport. Total
community-based transports during January 2013 were 3,979 compared
with 4,167 during January 2012, reflecting a 5% decrease. Same-Base
Transports for January decreased 251 transports, or 6%, while
weather cancellations for these same bases increased by 378
transports. Preliminary net revenue per patient transport
during January 2013 increased to $10,186 compared with $9,884
during January 2012, a 3% increase.
Aaron Todd, Chief Executive Officer, stated, "The year 2012
represented the first full year of combined operations since our
acquisition of Omniflight. While the operational strengths and
efficiencies from this combination have certainly been reflected in
these operating results, we also enjoyed strong growth from organic
expansion activities and successful marketing of our core
services. We anticipate acceleration of base expansion and
hospital-based conversion activities in 2013 and look forward to
continued growth within our core businesses."
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 15173950, 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 January 2013 operational and financial
results and anticipated base expansion and conversion activity, 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;
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.
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 e-mail distribution list.
– FINANCIAL STATEMENTS ATTACHED –
AIR METHODS CORPORATION
AND SUBSIDIARIES |
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS |
(Amounts in thousands) |
|
|
|
|
December 31, 2012 |
December 31, 2011 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 3,818 |
$ 3,562 |
Trade receivables, net |
232,929 |
187,056 |
Other current assets |
70,058 |
65,101 |
|
|
|
Total current assets |
306,805 |
255,719 |
|
|
|
Net property and equipment |
597,238 |
569,578 |
Other assets, net |
214,820 |
203,174 |
|
|
|
Total assets |
$ 1,118,863 |
$ 1,028,471 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
Notes payable related to aircraft pending
long-term financing |
$ 3,570 |
$ 27,940 |
Current portion of indebtedness |
63,139 |
67,989 |
Accounts payable, accrued expenses and
other |
76,743 |
74,779 |
|
|
|
Total current liabilities |
143,452 |
170,708 |
|
|
|
Long-term indebtedness |
581,019 |
483,886 |
Other non-current liabilities |
94,782 |
85,975 |
|
|
|
Total liabilities |
819,253 |
740,569 |
|
|
|
Total stockholders' equity |
299,610 |
287,902 |
|
|
|
Total liabilities and stockholders'
equity |
$ 1,118,863 |
$ 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 |
Year Ended |
|
December 31, |
December 31, |
|
|
|
|
|
|
2012 |
2011 |
2012 |
2011 |
|
|
|
|
|
Revenue: |
|
|
|
|
Patient transport revenue, net |
$ 152,853 |
129,797 |
590,718 |
416,294 |
Air medical services contract revenue |
56,102 |
53,306 |
224,956 |
206,935 |
Product operations |
5,594 |
8,418 |
28,832 |
30,462 |
Other |
1,679 |
1,789 |
6,306 |
6,858 |
Total revenue |
216,228 |
193,310 |
850,812 |
660,549 |
|
|
|
|
|
Expenses: |
|
|
|
|
Operating expenses |
129,241 |
122,189 |
495,933 |
408,699 |
General and administrative |
28,121 |
25,162 |
102,023 |
85,500 |
Depreciation and amortization |
20,064 |
20,660 |
82,524 |
72,877 |
|
177,426 |
168,011 |
680,480 |
567,076 |
|
|
|
|
|
Operating income |
38,802 |
25,299 |
170,332 |
93,473 |
|
|
|
|
|
Interest expense |
(4,764) |
(5,868) |
(20,651) |
(20,072) |
Other, net |
624 |
916 |
3,263 |
3,901 |
|
|
|
|
|
Income before income taxes |
34,662 |
20,347 |
152,944 |
77,302 |
|
|
|
|
|
Income tax expense |
(13,241) |
(7,945) |
(59,792) |
(30,728) |
|
|
|
|
|
Net income |
$ 21,421 |
12,402 |
93,152 |
46,574 |
|
|
|
|
|
Income per common share: |
|
|
|
|
Basic |
$ 0.55 |
0.33 |
2.41 |
1.23 |
Diluted |
$ 0.55 |
0.32 |
2.39 |
1.21 |
|
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
Basic |
38,721,452 |
38,128,729 |
38,594,286 |
37,999,422 |
Diluted |
39,064,823 |
38,606,804 |
39,044,468 |
38,482,785 |
|
AIR METHODS CORPORATION
AND SUBSIDIARIES |
RECONCILIATION OF NET INCOME TO
EBITDA |
(Amounts in thousands) |
|
|
|
|
|
|
Quarter Ended |
Year Ended |
|
December 31, |
December 31, |
|
2012 |
2011 |
2012 |
2011 |
|
|
|
|
|
Net income |
$ 21,421 |
12,402 |
93,152 |
46,574 |
|
|
|
|
|
Interest expense |
4,764 |
5,868 |
20,651 |
20,072 |
Income tax expense |
13,241 |
7,945 |
59,792 |
30,728 |
Depreciation and amortization |
20,064 |
20,660 |
82,524 |
72,877 |
Loss (gain) on disposition of assets,
net |
555 |
934 |
1,329 |
644 |
|
|
|
|
|
EBITDA |
$ 60,045 |
47,809 |
257,448 |
170,895 |
CONTACT: Trent J. Carman, Chief Financial Officer, (303) 792-7591
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