Air Methods Reports 1Q2007 Results and 2Q2007 Update
DENVER, May 9 /PRNewswire-FirstCall/ — Air Methods Corporation , the largest air medical transportation company in the world, reported financial results for the first quarter ended March 31, 2007 and provided an update on April 2007 flight volumes. For the quarter, revenue increased 11.5% to $81.5 million from $73.0 million in the year-ago quarter. Net income for the first quarter of 2007 was $3.7 million or $0.30 per diluted share, compared with net income of $2.6 million or $0.21 per diluted share in the first quarter of 2006.
The increase in net income is primarily attributed to improved reimbursement per community-based transport during the quarter and reductions in maintenance expense. Net revenue per community-based transport increased 7.9% from $5,971 in the prior-year quarter to $6,443 in the current-year quarter. Maintenance expense for the current year quarter decreased 17.1% or $2.3 million, as compared with the prior-year quarter, even though total flight volume decreased by less than 1%.
The increase in net income was offset in part by a reduction in community- based transports for bases in operation greater than one year (Same-Base Transports), partially attributed to more severe weather conditions. Same- Base Transports decreased by 262 transports or 3.5% as compared with the prior-year quarter. Although weather cancellations increased by only 45 for bases in operation greater than one year, the reduction in Same-Base Transports was also attributed to shifting of transports to the Company’s newly opened bases in adjacent locations. Total patients transported within the community-based operations increased from 7,612 in the prior-year quarter to 8,284 during the first quarter of 2007, an 8.8% increase.
For the first quarter, community-based revenue increased 17.3% to $53.4 million compared to $45.5 million in the prior year, while current period segment net income increased 16.5% to $7.9 million from $6.8 million. Hospital-based flight revenue decreased slightly from $26.0 million to $25.8 million in the current-year period, while segment net income increased from a loss of $0.2 million in the prior-year period to net income of $1.8 million in the current period. The increase in profitability within the hospital-based operations segment was primarily attributed to the decrease in maintenance expense referenced above, offset in part by lower-than-anticipated flight volume attributed to more severe weather conditions. Same-base flight volume within the hospital-based operations decreased 5.7% as compared with the prior-year quarter.
The Company also provided an update on April 2007 flight volume. Total community-based transports were 3,071 during April 2007 compared with 2,908 in April 2006. Same-Base Transports during the month of April decreased by 158 transports or 5.6% as compared with April 2006. Weather cancellations decreased by 67 transports for community bases in operation greater than one year during April 2007. The decrease in Same-Base Transports, despite a decrease in weather cancellations, was also attributed to shifting of transports to newly opened bases, as described above.
Aaron Todd, CEO, stated, “We have begun 2007 with very strong earnings growth. We are pleased to have achieved these results despite the impact of weather on our first quarter flight volume. Our fleet modernization efforts, combined with fewer maintenance events during the quarter, favorably impacted our maintenance expenditures. In addition, collections from our community- based transports remained strong. Days’ sales outstanding in receivables at March 31, 2007 for community-based transports decreased eleven days as compared with March 31, 2006. In addition, our cash collections were at record levels in April. We continue to anticipate another year of strong growth in both revenue and net income given these strong fundamentals.”
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 4765039, 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 aeromedical transportation and medical services. The Air Medical Services Division is the largest provider of air medical transport services for hospitals. The LifeNet Division is one of the largest community-based providers 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 200 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 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) March 31, December 31, 2007 2006 ASSETS Current assets: Cash and cash equivalents $5,528 4,219 Trade receivables, net 99,500 100,559 Other current assets 33,335 35,083 Total current assets 138,363 139,861 Net property and equipment 97,692 95,575 Other assets, net 16,066 14,721 Total assets $252,121 250,157 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Notes payable related to assets held for sale $7,087 9,560 Current portion of indebtedness 10,826 9,963 Accounts payable, accrued expenses and other 31,502 28,306 Total current liabilities 49,415 47,829 Long-term indebtedness 59,107 62,346 Other non-current liabilities 31,102 32,668 Total liabilities 139,624 142,843 Total stockholders’ equity 112,497 107,314 Total liabilities and stockholders’ equity $252,121 250,157 AIR METHODS CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Amounts in thousands, except share and per share amounts) Quarter Ended March 31, 2007 2006 Revenue: Flight operations $79,161 71,424 Product operations 2,297 1,605 Total revenue 81,458 73,029 Expenses: Operating expenses 58,493 54,553 General and administrative 12,151 9,827 Depreciation and amortization 3,411 3,171 74,055 67,551 Operating income 7,403 5,478 Interest expense (1,422) (1,356) Other, net 455 346 Income before income taxes 6,436 4,468 Income tax expense (2,738) (1,888) Net income $3,698 2,580 Income per common share: Basic $0.31 0.22 Diluted $0.30 0.21 Weighted average common shares outstanding – basic 11,876,835 11,635,327 Weighted average common shares outstanding – diluted 12,362,198 12,278,738
Air Methods Corporation
CONTACT: Aaron D. Todd, Chief Executive Officer of Air MethodsCorporation, +1-303-792-7413; or Joe Dorame of Lytham Partners, LLC,+1-602-889-9700, for Air Methods Corporation
Web site: http://www.airmethods.com/