Air Methods Corporation (Nasdaq:AIRM), the global leader in air medical transportation, reported financial results for the quarter and year ended December 31, 2014.

For the year, revenue increased 14% to $1,004.8 million compared to $879.2 million in the prior year. Income from continuing operations after minority interests increased 57% to $98.8 million, or $2.56 per diluted share, in the current year from $62.9 million, or $1.55 per diluted share, in the prior year. For the fourth quarter, revenue increased 12% to $249.2 million as compared with $222.4 million during the prior-year period. Earnings from continuing operations after minority interests increased 72% to $23.4 million, or $0.59 per diluted share, compared to $13.7 million, or $0.29 per diluted share, in the prior-year period.

The Company made the decision during the fourth quarter of 2014 to discontinue all operations conducted by its subsidiary, American Jets, Inc. (AJI), a long-range fixed wing medical transportation provider acquired in July 2013. Ongoing operating losses were a key factor in the decision to discontinue all of AJI’s operations in late December 2014. Accordingly, after-tax losses of $2.0 million, or $.05 per share, and $3.9 million, or $0.10 per share, for the quarter and year ended December 31, 2014, respectively, have been excluded from results from continuing operations. The loss from this discontinued operation was $0.01 per diluted share for the quarter and year ended December 31, 2013.

The fourth quarter of 2013 included $2.4 million in pre-tax charges associated with severance for certain terminated employees, reserves for pending legal matters, impairment/disposition losses on aircraft and certain intangible assets, and transaction costs associated with acquisition activities. The current-year quarter includes $1.1 million in pre-tax charges from these activities.

Basic and diluted earnings per share for the quarter and year ended December 31, 2013, were reduced by $0.05 for the impact of an equity put option related to our redeemable non-controlling interest in one of our consolidated subsidiaries. The equity put option allows the non-controlling interest party to sell its ownership interest in a joint venture to the Company at a future date for a minimum pre-established amount. While net income on the consolidated statements of comprehensive income was not reduced by the amount of this equity put option, earnings per share are required to be calculated after reducing net income by the amount of the equity put option. Basic and diluted earnings per share for the year ended December 31, 2014 were increased by $0.05 associated with an adjustment to the value of the same equity put option during the third quarter of 2014.

Financial results for the quarter and year ended December 31, 2014, include operations associated with the Company’s acquisition of Helicopter Consultants of Maui, LLC (doing business as Blue Hawaiian Helicopters) and certain of its affiliates (collectively, Blue Hawaiian) on December 13, 2013. Revenue generated from Blue Hawaiian during the quarter and year ended December 31, 2014 was $13.8 million and $56.3 million, respectively, compared with $2.8 million from December 13 through December 31 of 2013.

Fourth Quarter Highlights

Net patient transport revenue increased 15% to $174.3 million from $151.9 million in the prior-year quarter. Net revenue per patient transport increased 6% to $12,238 from $11,531 in the prior-year quarter. Total patient transports from community-based locations increased 9% to 14,209 from 13,054. Patient transports from community-based locations open greater than one year (Same-Base Transports) increased 71 transports, as compared with the prior-year quarter. Weather cancellations for these same base locations increased by 272 transports compared with the prior-year quarter. Air medical services contract revenue decreased by 8% to $41.9 million from $45.8 million.

Maintenance expense (excluding tour operations) for the fourth quarter of 2014 compared to the prior-year period decreased by 10%, or $2.5 million, while flight volume, including volume associated with hospital contracts, decreased by 2%. Fuel costs (excluding tour operations) per flight hour decreased by 14% during the current year quarter.

Revenue and divisional net loss from tour operations were $26.3 million and $0.4 million, respectively, for the quarter ended December 31, 2014, compared with revenue and net income of $14.2 million and $1.3 million, respectively, for the prior year quarter. Decrease in divisional net income was attributed, in part, to more severe weather in certain markets.

Revenue from our United Rotorcraft Division, excluding revenue generated from internal projects, decreased to $3.4 million from $9.3 million in the prior-year quarter, a 63% decrease. Excluding internal projects, the division generated a net loss of $2.7 million in the current-year quarter compared to a net loss of $1.0 million in the prior-year quarter.

The Company also provided an update on preliminary January flight volume and net revenue per patient transport. Total community-based transports during January 2015 were mostly unchanged at 4,534 compared with 4,542 during January 2014. Same-Base Transports for January decreased 335 transports, or 8%, while weather cancellations for these same bases increased by 365 transports. Preliminary net revenue per patient transport during January 2015 increased 15% to $12,740 compared with $11,074 during January 2014. The Company also announced that community-based transports for February to date reflect a 13% increase, due in part to reduction in weather cancellations month to date.

Aaron Todd, Chief Executive Officer, stated, “We have achieved a key milestone in exceeding $1 billion in revenue in 2014. Healthy growth in air medical flight volume throughout 2014 and quarter to date in 2015 is very encouraging. We have also seen less seasonality in our net reimbursement results during the winter months thus far, as well. Fuel price decreases and continued outsourcing activity within our hospital-based operations should continue to be key earnings growth drivers in 2015. We are also pleased to have generated strong earnings accretion from our helicopter tourism diversification in 2014, despite more severe weather conditions in both key markets.”

The Company will discuss these results in a conference call scheduled today at 4:30 p.m. Eastern. Interested parties can access the call by dialing (855) 601-0049 (domestic) or (720) 398-0100 (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 number90055964, for 3 days following the call and the web cast can be accessed at www.airmethods.com for 30 days. Concurrently, a financial supplement that contains operating statistics normally provided during previous earnings calls has been posted on its website,www.airmethods.com.

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 in the United States. The United Rotorcraft Division specializes in the design and manufacture of aeromedical and aerospace technology. The Tourism Division is comprised of Sundance Helicopters, Inc. and Blue Hawaiian Helicopters, which provide helicopter tours and charter flights in the Las Vegas/Grand Canyon region and Hawaii, respectively. Air Methods’ fleet of owned, leased or maintained aircraft features approximately 450 helicopters and fixed wing aircraft.

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