Fully-Diluted Earnings Per-Share of $0.18 In Line with Previously Announced
DENVER, May 8 /PRNewswire-FirstCall/ -- Air Methods Corporation (Nasdaq: AIRM), the largest air medical transportation company in the world, reported financial results for the first quarter ended March 31, 2008 and provided an update on April 2008 flight volumes. For the quarter, revenue increased 45.0% to $118.1 million from $81.5 million in the year-ago quarter. Net income for the first quarter of 2008 was $2.3 million or $0.18 per diluted share, compared with net income of $3.7 million or $0.30 per diluted share in the first quarter of 2007. Current quarter net income includes an after-tax gain of $0.8 million, or $0.06 per diluted share, generated from disposition of aircraft.
As previously announced, the decrease in net income was primarily attributed to decreases in community-based patient transports as a result of increased weather cancellations, and higher than anticipated maintenance and fuel expenditures. Community-based patient transports for bases in operation greater than one year (Same-Base Transports) decreased by 577 transports, while weather cancellations for these same bases increased by 636, as compared with the prior-year quarter. Same-Base Transports and weather cancellations exclude bases acquired from CJ Systems Aviation Group, Inc. (CJ) effective October 1, 2007. Aircraft maintenance expense during the quarter, excluding aircraft acquired in the CJ acquisition and those added after March 31, 2007, increased 35.7% or $4.0 million as compared with the prior-year quarter. Fuel expense per flight hour increased 44%, or approximately $1.1 million, as compared with the prior-year period.
Net revenue per community-based transport increased 2.8% from $6,443 in the prior-year quarter to $6,622 in the current-year quarter. The current-year quarterly revenue per transport was slightly lower than anticipated due to inherent fluctuations in payer mix and differences between actual collections and previous estimates. Total community-based patient transports were 10,570 in the current year quarter, compared to 8,284 in the first quarter of 2007.
For the first quarter, community-based revenue increased 29.8% to $69.3 million compared to $53.4 million in the prior year, while segment net income decreased 26.6% to $5.8 million from $7.9 million. Hospital-based flight revenue increased 72.4% from $26.2 million to $45.2 million in the current-year period, while segment net income remained unchanged at $1.8 million for both current and prior periods. The increase in revenue is primarily attributed to the acquisition of CJ, which occurred on October 1, 2007. The decrease in segment net income for both divisions as a percentage of revenue is primarily attributed to the matters discussed above.
The Company also provided an update on April 2008 flight volume. Total community-based transports were 3,722 during April 2008 compared with 3,071 in April 2007. Same-Base Transports during the month of April decreased by 254 transports or 8.6% as compared with April 2007. The decrease in transports was almost entirely attributed to an increase of 230 in weather cancellations for bases in operation greater than one year and excluding bases acquired from CJ.
Aaron Todd, CEO, stated, "As we had previously announced, the factors that affected our first quarter results are inherent within our operations. Weather and maintenance fluctuations can vary widely from quarter-to-quarter and are not necessarily predictive of future quarters. The variation in our community-based transport revenue is consistent with variations in recent quarters and is not attributed to any specific changes in reimbursement trends. The increase in fuel prices does have direct relevance to future quarters. As previously announced, the Company has increased its pricing for community-based patient transports by 7% effective May 1st to offset the expected impact of higher fuel prices. The Company continues to expect healthy growth in year-over-year earnings per share dependent on more moderate weather cancellations and maintenance activities and consistent reimbursement trends for the remainder of the year."
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 43095354, 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 air medical transportation and medical services. The Hospital Based Services Division is the largest provider of air medical transport services for hospitals. The Community Based Services 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 330 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
integration of CJ into our existing operations, 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.
AIR METHODS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(Amounts in thousands)
March 31, 2008 December 31, 2007
Cash and cash equivalents $12,510 5,134
Trade receivables, net 127,530 135,633
Other current assets 63,392 74,090
Total current assets 203,432 214,857
Net property and equipment 110,473 114,746
Other assets, net 42,704 39,949
Total assets $356,609 369,552
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable related to assets held
for sale $12,549 24,203
Current portion of indebtedness 18,612 18,350
Accounts payable, accrued expenses
and other 57,104 59,546
Total current liabilities 88,265 102,099
Long-term indebtedness 74,829 76,751
Other non-current liabilities 48,108 48,682
Total liabilities 211,202 227,532
Total stockholders' equity 145,407 142,020
Total liabilities and stockholders'
equity $356,609 369,552
AIR METHODS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Amounts in thousands, except share and per share amounts)
Flight operations $114,473 79,161
Product operations 3,626 2,297
Total revenue 118,099 81,458
Operating expenses 91,979 58,493
General and administrative 17,146 12,151
Depreciation and amortization 4,098 3,411
Operating income 4,876 7,403
Interest expense (1,567) (1,422)
Other, net 643 455
Income before income taxes 3,952 6,436
Income tax expense (1,622) (2,738)
Net income $2,330 3,698
Income per common share:
Basic $0.19 0.31
Diluted $0.18 0.30
Weighted average common shares
outstanding - basic 12,151,342 11,876,835
Weighted average common shares
outstanding - diluted 12,623,358 12,362,198
|SOURCE Air Methods Corporation|
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