6-Aug-2010 Source: Air Methods
Air Methods Corporation (Nasdaq:AIRM), the largest air medical transportation company in the world, reported financial results for the second quarter ended June 30, 2010 and provided an update on July 2010 community-based patient transports. For the quarter, revenue increased 8% from $129.0 million to $139.2 million in the current-year quarter. For the six-month period, revenue increased 1% to $257.7 million, compared with $254.4 million in the prior-year six-month period.
For the quarter, net income increased 47% to $12.8 million, or $1.02 per diluted share, as compared with prior-year second quarter net income of $8.7 million, or $0.70 per diluted share. Net income for the six-month period decreased 6% to $12.9 million, or $1.03 per diluted share, compared to $13.6 million, or $1.11 per diluted share, for the prior-year six-month period. The increase in quarterly net income was primarily attributed to an increase in net revenue per community-based patient transport and lower maintenance expense per flight hour. The current-year quarter includes a pre-tax gain on disposition of assets of $0.1 million, compared with a pre-tax gain of $0.6 million in the prior-year quarter.
For the second quarter, community-based revenue increased 19% to $86.6 million compared to $72.7 million in the prior year, while segment net income increased 77% to $20.4 million from $11.5 million. Total community-based patient transports increased to 10,507, as compared with 10,414 in the prior-year quarter. Community-based patient transports for bases open greater than one year (Same-Base Transports) decreased 2%, or 246 patient transports, as compared with the prior-year quarter. Weather cancellations for these same base locations decreased by 385 compared with the prior-year quarter. Net revenue per community-based transport was $8,181 for the current-year quarter, compared with $6,969 in the prior-year quarter, a 17% increase. This increase was attributed to recent price increases, as well as weakness in collections experienced in the prior-year quarter which reduced the net revenue per transport by 5% compared with the 2009 average. Hospital-based revenue decreased by 3% to $49.1 million compared to $50.5 million in the prior-year period, while segment net income decreased 5% to $5.1 million from $5.4 million. External revenue within the Products Division decreased $2.4 million, or 40%, compared with the prior-year quarter. Consolidated maintenance expense decreased by 3% per flight hour, contributing to an overall decline in expense of $0.7 million, as compared with the prior-year quarter.
The Company also provided an update on July 2010 flight volume. Total community-based transports were 3,642 during July 2010 compared with 3,867 in July 2009, a 6% decrease. Daily average community-based transports in July 2010 represent a 2% decrease over the daily average in June 2010. Same-Base Transports during the month of July decreased by 398 transports, or 10%, as compared with July 2009, while weather cancellations decreased by 27 as compared with the prior-year month. Prior-year July community-based patient transports were 7% higher than the next highest month in 2009, creating a strong prior-year comparative for the month.
Aaron Todd, CEO, stated, “We are obviously pleased to see a return to strong earnings growth following the severe winter which impacted the previous two quarters. The reduction in maintenance expenditures promotes confidence that the hourly rate experienced during the first quarter of this year was unusually high. We were pleased to see the payer mix for community-based patient transports stabilize during the current quarter from percentages experienced during the first quarter of 2010. Even with the increase in net revenue per community-based transports, our days’ sales outstanding decreased to 83 days as of June 30, 2010, compared with 109 days as of June 30, 2009. While our Products Division experienced a sharp decline in external revenue, the division enjoys a $21 million backlog as of June 30th which is expected to improve financial results over the coming quarters.”
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 (877) 883-0656 (domestic) or (706) 643-8826 (international) or by accessing the web cast at www.airmethods.com. A replay of the call will be available at (800) 642-1687 (domestic) or (706) 645-9291 (international), access number 91624898, for 3 days following the call and the web cast can be accessed at www.airmethods.com for 30 days.
Air Methods Corporation (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 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 300 helicopters and fixed wing aircraft.
The Air Methods Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6955
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.
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 SHEETS
(Amounts in thousands)
(unaudited)
June 30, December
2010 31, 2009
--------- --------
ASSETS
------------------------------
Current assets:
Cash and cash equivalents $ 38,830 38,073
Trade receivables, net 116,744 113,563
Other current assets 43,981 55,460
--------- --------
Total current assets 199,555 207,096
Net property and equipment 202,194 181,742
Other assets, net 35,005 35,294
--------- --------
Total assets $ 436,754 424,132
========= ========
LIABILITIES AND STOCKHOLDERS'
EQUITY
------------------------------
Current liabilities:
Notes payable related to
assets held for sale $ -- 4,510
Current portion of
indebtedness 15,654 15,850
Accounts payable, accrued
expenses and other 58,666 53,370
--------- --------
Total current liabilities 74,320 73,730
Long-term indebtedness 89,071 90,980
Other non-current liabilities 63,095 62,880
--------- --------
Total liabilities 226,486 227,590
Total stockholders' equity 210,268 196,542
--------- --------
Total liabilities and
stockholders' equity $ 436,754 424,132
========= ========
AIR METHODS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except share and per share amounts)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- ------------------------
2010 2009 2010 2009
---------- ---------- ----------- -----------
Revenue:
Flight operations $ 134,326 122,180 247,605 239,194
Product operations 3,558 5,920 7,463 13,569
Other 1,290 913 2,616 1,641
---------- ---------- ----------- -----------
Total revenue 139,174 129,013 257,684 254,404
---------- ---------- ----------- -----------
Expenses:
Operating expenses 93,472 94,700 188,892 188,907
Gain on disposition of
assets, net (81) (604) (110) (533)
General and
administrative 17,021 15,167 32,956 32,410
Depreciation and
amortization 6,138 4,629 11,733 9,218
---------- ---------- ----------- -----------
116,550 113,892 233,471 230,002
---------- ---------- ----------- -----------
Operating income 22,624 15,121 24,213 24,402
Interest expense (1,626) (1,123) (3,087) (2,358)
Other, net 50 28 88 122
---------- ---------- ----------- -----------
Income before income
taxes 21,048 14,026 21,214 22,166
Income tax expense (8,288) (5,374) (8,351) (8,526)
---------- ---------- ----------- -----------
Net income $ 12,760 8,652 12,863 13,640
========== ========== =========== ===========
Income per common
share:
Basic $ 1.02 0.71 1.03 1.12
Diluted $ 1.02 0.70 1.03 1.11
Weighted average common
shares outstanding -
basic 12,465,266 12,226,948 12,462,444 12,158,010
Weighted average common
shares outstanding -
diluted 12,548,482 12,403,400 12,541,528 12,342,126
