News Column

Air Methods Reports 2Q2014 Results and 3Q2014 Update

August 7, 2014

DENVER, Aug. 7, 2014 (GLOBE NEWSWIRE) -- Air Methods Corporation (Nasdaq:AIRM), the global leader in air medical transportation, reported financial results for the quarter ended June 30, 2014 and provided an update on July 2014 patient transports. For the quarter, revenue increased 14% from $226.2 million to $258.5 million from the prior year quarter.  For the six-month period, revenue increased 19% to $481.6 million, compared with $405.4 million in the prior-year six-month period. Financial results for the three and six months ended June 30, 2014 include operations associated with the Company's acquisition of Helicopters Consultants of Maui, LLC (doing business as Blue Hawaiian Helicopters) and certain of its affiliates (collectively, Blue Hawaiian), which was acquired by the Company on December 13, 2013. Revenue generated from Blue Hawaiian during the quarter and six months ended June 30, 2014 was $14.0 million and $27.5 million, respectively.

For the quarter, net income increased 50% to $28.8 million, or $0.73 per diluted share, as compared with prior-year second quarter net income of $19.1 million, or $0.49 per diluted share. Net income for the six-month period increased 195% to $39.7 million, or $1.01 per diluted share, compared to $13.5 million, or $0.34 per diluted share, for the prior-year six-month period. The prior-year second quarter and six-month results included pre-tax hull & liability insurance retention expenses of $2.0 million associated with claims incurred during the second quarter of 2013. The current-year second quarter and six-month results include a profit commission of $1.1 million associated with significantly reduced hull and liability insurance claims during the most recent plan year. The current year second quarter and six-month period include net losses on disposition of assets of $0.8 million and $1.2 million, respectively. This compares with the prior-year quarter net gain of $0.2 million and prior-year six-month net loss of $0.2 million. Net cash provided by operating activities increased by $22.7 million during the six months ended June 30, 2014, compared with the prior-year period. This increase is consistent with increase in net income of $26.2 million during the same comparative periods.    

Patient transports were 14,994 during the current-year quarter, compared with 13,984 in the prior-year quarter, a 7% increase. Patients transported for community bases in operation greater than one year (Same-Base Transports) increased by 3%, or 333 transports, while weather cancellations for these same bases decreased by 333 transports compared with the prior-year quarter. Requests for community-based service increased 4% for bases open greater than one year. Net revenue per patient transport increased 7% to $11,353, compared with $10,650 in the prior-year quarter. 

Maintenance expense, excluding tourism operations, decreased $4.7 million, or 17%, compared with the prior-year quarter, while flight hours decreased by 7%.  Excluding tourism operations, fuel expense per hour flown decreased by 4%.   

For the second quarter, Air Medical Services revenue increased by 7% to $219.6 million compared with $205.2 million in the prior-year quarter, while its segment net income increased by 37% from $39.4 million to $54.1 million. Tourism operations generated segment net income of $4.7 million on revenue of $31.4 million during the quarter, compared with prior-year second quarter segment net income and revenue of $1.1 million and $16.0 million, respectively. United Rotorcraft Division's external revenue increased 51% to $7.4 million compared with $4.9 million in the prior-year quarter, while its external segment net income remained essentially unchanged at breakeven.   

The Company also provided an update on preliminary July 2014 flight volume. Total community-based transports increased 13% to 5,489 during July 2014, compared with 4,838 in July 2013. July 2014 Same-Base Transports increased by 158 transports, or 3%, while weather cancellations decreased by 546 transports compared with July 2013.       

Aaron Todd, CEO, stated, "During our second quarter, we continued to experience strong growth in both revenue and earnings. Increase in community-based operating locations and average flight volumes, more moderate weather and maintenance expenditures, dividends from safe flight operations, and accretive results from recent diversification into helicopter tourism have all contributed to this success. The 13% growth in July community-based patient flight volumes reflects a strong start to the third quarter as well. We also anticipate continued growth in net revenue per transport based on improving payer mix trends experienced in recent months, compared with earlier winter months. We feel these factors justify our continued optimism for the second half of 2014."

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 81392741, 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 450 helicopters and fixed wing aircraft.

Forward Looking Statements: Forward-looking statements in this news release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements in this press release that are "forward-looking statements", including statements we make with regard to the Company's preliminary July 2014 operational and financial results, including those related to (i) total community-based patient transports, (ii) same base transports, (iii) weather cancellations, and (iv) net revenue per patient transport, are based on current expectations and assumptions that are subject to 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,  United Rotorcraft Division and Tourism Division; the collection rates for patient transports; the continuation and/or renewal of air medical service contracts; weather conditions across the U.S.; development and changes in laws and regulations, including, without limitation, the impact of the Patient Protection and Affordable Care Act; increased regulation of the health care and aviation industry through legislative action and revised rules and standards; and other matters set forth in the Company's filings with the SEC. The Company is under no obligation (and expressly disclaims any obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise. 

Please contact Christina Brodsly at (303) 256-4122 to be included on the Company's e-mail distribution list.

AIR METHODS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(unaudited)
     
 June 30, 2014December 31, 2013
     
ASSETS    
     
Current assets:    
Cash and cash equivalents  $ 2,917  9,862
Trade receivables, net  279,525  237,856
Other current assets  83,822  92,832
     
Total current assets  366,264  340,550
     
Net property and equipment  699,953  664,842
Other assets, net  244,885  247,149
     
Total assets  $ 1,311,102  1,252,541
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
Current liabilities:    
Notes payable related to aircraft pending long-term financing  $ 5,738  2,616
Current portion of indebtedness  69,711  68,531
Accounts payable, accrued expenses and other  100,954  91,171
     
Total current liabilities  176,403  162,318
     
Long-term indebtedness  602,587  608,287
Other non-current liabilities  112,914  105,864
     
Total liabilities  891,904  876,469
     
Redeemable non-controlling interests  8,496  8,113
     
Total stockholders' equity  410,702  367,959
     
Total liabilities and stockholders' equity  $ 1,311,102  1,252,541
     
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,
         
  2014 2013 2014 2013
         
Revenue:        
Patient transport revenue, net  $ 171,373 148,943 315,302 256,775
Air medical services contract revenue 45,790 54,535 90,551 108,993
Tourism revenue 31,430 15,992 55,768 26,383
Product operations 7,404 4,976 15,224 9,410
Other 2,474 1,759 4,762 3,873
Total revenue 258,471 226,205 481,607 405,434
         
Expenses:        
Operating expenses 149,295 142,819 296,340 279,561
General and administrative 36,131 27,067 67,789 54,290
Depreciation and amortization 20,273 19,887 40,789 40,009
  205,699 189,773 404,918 373,860
         
Operating income 52,772 36,432 76,689 31,574
         
Interest expense (5,569) (5,177) (11,098) (9,979)
Other, net 292 328 266 615
         
Income before income taxes 47,495 31,583 65,857 22,210
         
Income tax expense (18,571) (12,434) (25,881) (8,750)
         
Net income 28,924 19,149 39,976 13,460
         
Income attributable to redeemable non-controlling interests 134  --  297  -- 
         
Net income attributable to Air Methods Corporation and subsidiaries  $ 28,790 19,149 39,679 13,460
         
Income per common share:        
 Basic  $ 0.73 0.49 1.01 0.35
 Diluted  $ 0.73 0.49 1.01 0.34
         
Weighted average common shares outstanding - basic 39,151,012 38,882,681  39,135,292  38,857,034
Weighted average common shares outstanding - diluted 39,318,480 39,136,155  39,314,872  39,140,492
 
AIR METHODS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(unaudited)
     
  Six Months Ended
 June 30,
     
  2014 2013
     
Cash flows from operating activities:    
Net income  $ 39,976 13,460
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 40,789 40,009
Deferred income tax expense 9,253 6,775
Stock-based compensation 1,513 2,053
Tax benefit from exercise of stock options (1,010) (527)
Loss on disposition of assets 1,213 208
Unrealized loss on derivative instrument 64 140
Loss from equity method investee 603  -- 
Changes in assets and liabilities, net of effects of acquisitions (19,006) (11,377)
     
Net cash provided by operating activities 73,395 50,741
     
Cash flows from investing activities:    
Acquisition of subsidiaries (3,182)  -- 
Acquisition of property and equipment (65,909) (17,310)
Buy-out of previously leased aircraft (17,296) (36,568)
Proceeds from disposition of equipment 9,156 10,964
Decrease (increase) in other assets 447 (2,303)
     
Net cash used in investing activities (76,784) (45,217)
     
Cash flows from financing activities:    
Proceeds from issuance of common stock, net  479  576
Tax benefit from exercise of stock options  1,010  527
Net borrowings (payments) under line of credit  1,000  (29,157)
Payments for financing costs  (75)  (168)
Proceeds from long-term debt  34,429  90,400
Payment of long-term debt, notes payable, and capital lease obligations  (40,497)  (65,773)
Proceeds from non-controlling interests  98  -- 
     
Net cash used in financing activities  (3,556)  (3,595)
     
Increase (decrease) in cash and cash equivalents  (6,945)  1,929
     
Cash and cash equivalents at beginning of period  9,862  3,818
     
Cash and cash equivalents at end of period  $ 2,917  5,747

CONTACT: Trent J. Carman, Chief Financial Officer, (303) 792-7591



Air Methods Corporation

Source: Air Methods Corporation


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: GlobeNewswire


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters