Air Methods Reports 1Q2014 Results and 2Q2014 Update

Air Methods Reports 1Q2014 Results and 2Q2014 Update

9-May-2014 Source: Air Methods

Air Methods Corporation (Nasdaq:AIRM), the global leader in air medical transportation, reported financial results for the quarter ended March 31, 2014 and provided an update on April 2014 flight volume. For the quarter, revenue increased 24% to $223.1 million from $179.2 million in the prior-year quarter. Net income for the first quarter of 2014 was $10.8 million, or $0.28 per diluted share, compared with a net loss of $5.7 million, or $0.15 per diluted share, in the first quarter of 2013.

On December 13, 2013, via a newly formed subsidiary Blue Hawaiian Holdings, LLC, the Company acquired 100% of the membership interests of Helicopter Consultants of Maui, LLC (doing business as Blue Hawaiian Helicopters) and certain of its affiliates (collectively, Blue Hawaiian).

Community-based patient transports were 12,941 during the current-year quarter, compared with 11,845 in the prior-year quarter, an 9% increase. Patients transported for community bases in operation greater than one year (Same-Base Transports) increased by 7%, or 780 transports, while weather cancellations for these same bases decreased by 443 transports compared with the prior-year quarter. Requests for community-based service increased 4% for bases open greater than one year. Net revenue per community-based transport increased 20% from $9,098 to $10,928 in the current-year quarter due to the benefit of price increases and reduced seasonal variability in payer mix.

Maintenance expense, excluding tourism operations, decreased $4.4 million, or 16%, compared with the prior-year quarter, while flight volume decreased 5%. Decrease in maintenance expense is attributed to typical quarterly fluctuations associated with scheduled and unscheduled maintenance events. Excluding tourism operations, fuel expense remained relatively unchanged compared with the prior-year quarter, while fuel expense per flight hour decreased by 6%.

For the first quarter, Air Medical Services revenue increased by 16% to $191.0 million compared with $164.4 million in the prior-year quarter, while its segment net income increased from $0.9 million to $27.1 million. Tourism revenue increased from $10.4 million to $24.3 million, while Tourism segment net income increased from $0.1 million to $1.9 million. United Rotorcraft Division’s external revenue increased 77% to $7.8 million compared with $4.4 million in the prior-year quarter, while its external segment net loss improved from $1.0 million to break-even in the current-year quarter.

The Company also provided an update on preliminary April 2014 flight volume. Total community-based transports increased 3% to 4,568 during April 2014, compared with 4,417 in April 2013. April 2014 Same-Base Transports and weather cancellations for these same bases were relatively unchanged from April 2013.

Aaron Todd, CEO, stated, “As anticipated, our first quarter results reflect a return to more normalized levels as weather was less severe and seasonality variations in payer mix between summer and winter months less extreme. We are also pleased that our tourism operations since the acquisition of Blue Hawaiian continue to show accretive results in line with expectations. These results have increased our earnings before interest, taxes and depreciation and amortization expenses (EBITDA) by over $28 million during the first quarter alone.” EBITDA is a non-GAAP financial measure, summarized below and reconciled in the attached tables.

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 (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 number 36214414, 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 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 Tourism Division is comprised of Sundance Helicopters, Inc. and Blue Hawaiian Helicopters, which provides helicopter tours and charter flights in the Las Vegas/Grand Canyon region and Hawaii, respectively. The United Rotorcraft Division specializes in the design and manufacture of aeromedical and aerospace technology. Air Methods’ fleet of owned, leased or maintained aircraft features over 400 helicopters and fixed wing aircraft.

Full financial statements are here

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