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Air Methods Reports 3Q2008 Results and 4Q2008 Update
Date:11/6/2008

ter than one year and excluding bases acquired from CJ (Same-Base Transports). Same-Base Transports decreased 1,552 transports, or 16%, while weather cancellations for these same bases increased 422 transports compared with the prior-year quarter. The decrease in revenue from reduction in Same-Base Transports was partially offset by $7.3 million in revenue generated from hurricane response activities during the quarter, as well as from a 7% increase in net revenue per community-based transport to $7,047 from $6,560 in the prior year quarter. Segment net income also reflects a $0.7 million, or 12%, increase in maintenance expenditures over the prior-year quarter, excluding aircraft added since July 1, 2007. In addition, fuel expense increased 56% per hour flown as compared with the prior-year quarter, which increased fuel expense by $1.8 million. Revenue generated from bases added in the CJ acquisition was $10.8 million during the current-year quarter.

Hospital-Based Services: Revenue from hospital-based services increased by 65% to $48.6 million from $29.4 million, while segment net income decreased to $0.4 million in the current-year quarter from $2.0 million during the prior-year third quarter. The increase in revenue is primarily attributed to $15.9 million generated during the current-year quarter from the assumption of CJ hospital-based contracts. This increased revenue was partially offset by an 11% decrease in flight volume, excluding locations added or closed since July 1, 2007, which decreased flight revenues by approximately $1.2 million. The net decrease in segment earnings is primarily attributed to an increase in maintenance expense. Maintenance expense for the quarter increased by $2.1 million, or 24%, excluding aircraft added since July 1, 2007.

Products Division: Revenue, excluding revenue generated from internal projects, decreased slightly from $2.9 million to $2.7 million in the current-year quarter. Segment net income, excluding int
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