AIRM Air Methods Corp.

Air Methods Announces 3rd Quarter Financial Results Basic EPS of $0.28 and Revenue of $67.0 Million Reflect Historical Highs for a Quarter DENVER, Nov. 4 /PRNewswire-FirstCall/ -- Air Methods Corporation reported revenue and net income for the third quarter and nine months ended September 30, 2003. For the quarter, revenue increased 132% to $67.0 million compared to $28.9 million in the prior-year period. Net income increased 182% to $2.7 million, $0.28 per basic and $0.27 per diluted share, compared to prior-year net income of $1.0 million, $0.10 per basic and diluted share. For the nine months, revenue increased 113% to $176.7 million compared to $83.0 million for the prior-year period. Net income decreased 14% to $3.5 million, $0.36 per basic and $0.35 per diluted share, compared to prior-year net income of $4.1 million, $0.45 per basic and $0.44 per diluted share. This decrease was largely attributed to an increase in missed transports due to weather during the first half of 2003. Results include operations of Rocky Mountain Holdings, LLC (RMH) since acquisition in October 2002. Aaron Todd, Chief Executive Officer, said, "These strong financial results reflect a return to more moderate weather patterns during our third quarter, combined with improved operational efficiencies as the Company grew closer to completing its integration plans for RMH. For the quarter, the Company realized growth in both revenue and segment net income within its community- based and hospital-based operations. The benefits of last year's acquisition of RMH are evident as our quarterly results reflect all-time highs in both revenue and net income." Third Quarter Highlights: * Community-Based Operations: Community-based services revenue increased 163% to $42.0 million from $16.0 million, while segment net income increased 211% to $3.9 million from $1.2 million in the prior-year quarter. Total patient transports for the quarter were 7,142 as compared with 2,890 in the prior-year quarter. For bases in operation greater than one year, including RMH community-bases (Same-Base Transports), cancelled patient transports due to weather were 174 higher than during the prior-year quarter. Bad debt expense as a percentage of community-based revenue was 24.2% for both the current- year quarter and the prior-year quarter. * Hospital-Based Operations: Revenue from hospital-based operations increased by 106% to $23.1 million from $11.2 million, while segment net income increased by 146% to $2.3 million from $0.9 million. * Products Division: The Products Division reported external revenue of $1.7 million and segment net income (excluding internal sales) of $537,000 for the quarter compared to $1.8 million and $426,000 respectively, for the prior-year period. "We remain very optimistic about the remainder of the year and beyond. Flight volume from our community-based operations in October benefited from favorable weather patterns. Patients transported within this division were 2,453, reflecting a 24% increase for Same-Base Transports, including RMH bases. Additionally, the Company expects to commence services at several new bases during the remainder of 2003 and early part of 2004," said Todd. Air Methods Corporation ( http://www.airmethods.com/ ) is a leader in emergency aeromedical transportation, medical services and technology. The Air Medical Services Division is the largest provider of air medical transport services for hospitals in the world. The LifeNet 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 170 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 size, structure and growth of the Company's air medical services and products markets; 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; successful integration of RMH operations and other matters set forth in the Company's public filings. CONTACTS: Aaron D. Todd, Chief Executive Officer, (303) 792-7413 or RCG Capital Markets Group, Inc. at (480) 675-0400. 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) September 30, December 31, 2003 2002 ASSETS Current Assets: Cash and cash equivalents $3,182 $1,410 Trade receivables, net 55,120 37,818 Other current assets 17,640 24,300 Total current assets 75,942 63,528 Net equipment and leasehold improvements 112,993 118,305 Other assets, net 15,098 14,563 Total assets $204,033 $196,396 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Notes payable and other indebtedness $9,078 $8,945 Accounts payable, accrued expenses and other 28,620 26,008 Total current liabilities 37,698 34,953 Long-term indebtedness 83,079 80,397 Other non-current liabilities 33,084 34,828 Total liabilities 153,861 150,178 Total stockholders' equity 50,172 46,218 Total liabilities and stockholders' equity $204,033 $196,396 AIR METHODS CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except share and per share amounts) Quarter Ended Nine Months Ended September 30, September 30, 2003 2002 2003 2002 Revenue: Flight operations $65,041 $26,577 $171,381 $76,892 Product operations 1,936 2,331 5,340 6,095 Total revenue 66,977 28,908 176,721 82,987 Expenses: Operating expenses 52,049 22,915 141,494 63,257 General and administrative 5,444 2,609 15,668 7,685 Depreciation and amortization 2,905 1,436 8,461 4,221 60,398 26,960 165,623 75,163 Operating income 6,579 1,948 11,098 7,824 Interest expense (2,218) (425) (6,152) (1,287) Other, net 52 42 764 115 Income before income taxes 4,413 1,565 5,710 6,652 Income tax expense 1,721 610 2,227 2,593 Net income $2,692 $955 $3,483 $4,059 Net income per basic share $0.28 $0.10 $0.36 $0.45 Net income per diluted share $0.27 $0.10 $0.35 $0.44 Weighted average common shares outstanding: Basic 9,577,916 9,440,442 9,554,040 9,090,782 Diluted 9,974,973 9,564,604 9,926,561 9,250,558 DATASOURCE: Air Methods Corporation CONTACT: Aaron D. Todd, Chief Executive Officer of Air Methods Corporation, +1-303-792-7413; or RCG Capital Markets Group, Inc., +1-480-675-0400 Web site: http://www.airmethods.com/

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