Air Methods Announces Year 2008 Financial Results and Provides First Quarter 2009 Update
03/10/09
DENVER, March 10, 2009 /PRNewswire-FirstCall via COMTEX/ -- Air Methods Corporation (Nasdaq: AIRM), the largest air medical transportation company in the world, reported revenue and net income for the year and fourth quarter ended December 31, 2008.
For the year, revenue increased 26% to $498.8 million compared to $396.3 million in the prior year. Net income decreased 30% from $27.5 million, or $2.20 per diluted share, in the prior year to $19.3 million, or $1.54 per diluted share, in the current year. The current year results include a $1.5 million ($0.12 per diluted share) decrease in income tax expense resulting from a decrease in the effective state income tax rate due to a change in Colorado statute. The prior-year results included a decrease in income tax expense of $1.1 million ($0.08 per diluted share) resulting from approved changes in tax depreciation methods.
For the fourth quarter, revenue decreased 3% to $118.9 million as compared with $122.6 million during the prior-year period. Net income decreased 23% to $3.7 million, or $0.30 per diluted share, compared to net income of $4.8 million, or $0.38 per diluted share, in the prior-year period. The current-year quarter results include a $1.5 million ($0.12 per diluted share) decrease in income tax expense as discussed above, while the prior-year fourth quarter included a decrease in income tax expense of $1.1 million ($0.08 per diluted share) also discussed above. The Company had previously announced that its current-year fourth quarter results included a 39% increase in employee healthcare costs of $1.2 million ($0.06 per diluted share after taxes) as compared with the prior-year fourth quarter, attributed to several large individual claims.
During the fourth quarter of 2008, total patients transported within community-based operations were 9,496, as compared with 10,738 during the prior-year quarter, a 12% decrease. Patients transported for community bases in operation greater than one year (Same-Base Transports) decreased by 831 transports, or 8%, while weather cancellations for these same bases decreased by 394 transports compared with the prior-year period. Revenue per community-based transport increased from $6,597 in the fourth quarter of 2007 and $7,047 in the third quarter of 2008, to $7,156 in the current-year fourth quarter. Consolidated maintenance expenses per flight hour of $572 during the current-year quarter were mostly unchanged from the prior-year fourth quarter. Fuel expenses per community-based transport decreased by 4% to $330 as compared with the prior-year quarter.
The Company also provided an update on first quarter 2009 operations to-date. Same-Base Transports within community-based operations through February were down 424 patient transports, or 7%, as compared with the prior-year period, while weather cancellations for these same bases decreased by 664 as compared with the prior-year period. Total community-based patient transports for the two-month period were 5,936 as compared with 6,818 in the prior-year period. For the month of February, Same-Based Transports were down only 2%.
The Company also announced that maintenance expenses for the month of January were significantly below historical levels. Preliminary maintenance expenses were approximately 20% below the 2008 monthly average and January 2008 actual results. In addition, net revenue per community-based transport in January reflected healthy increases over the fourth quarter 2008 average. This improvement was attributed, in part, to the 5% price increase in gross charges effective January 1, 2009. Fuel expenses per community-based transport in January were $241, reflecting a 24% decrease from the prior-year month.
Aaron Todd, CEO of Air Methods, commented, "We are pleased with our fourth quarter results considering the recent softness in demand for service caused by the current economic environment. Fuel prices and maintenance expenditures showed moderation during the last quarter of 2008 and have continued to improve significantly during the first month of 2009. Our reimbursement continues to reflect benefits from previous price increases, while our flight volume through February is in line with our beginning-of-the-year expectations."
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 88611116, 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 the largest community-based provider 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 320 helicopters and fixed wing aircraft.
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.
CONTACTS: Aaron D. Todd, Chief Executive Officer, (303) 792-7413. Please contact Christine Clarke at (303) 792-7579 to be included on the Company's fax and/or mailing list.
- FINANCIAL STATEMENTS ATTACHED -
AIR METHODS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(Amounts in thousands)
December 31, 2008 December 31, 2007
----------------- -----------------
ASSETS
------
Current assets:
Cash and cash equivalents $13,147 $5,134
Trade receivables, net 133,467 135,633
Other current assets 61,134 74,090
------ ------
Total current assets 207,748 214,857
Net property and equipment 146,167 114,746
Other assets, net 41,009 39,949
------ ------
Total assets $394,924 $369,552
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities:
Notes payable related to assets
held for sale $19,520 $24,203
Current portion of indebtedness 15,638 18,350
Accounts payable, accrued
expenses and other 56,628 59,546
------ ------
Total current liabilities 91,786 102,099
Long-term indebtedness 85,858 76,751
Other non-current liabilities 56,816 48,682
------ ------
Total liabilities 234,460 227,532
Total stockholders' equity 160,464 142,020
------- -------
Total liabilities and stockholders'
equity $394,924 $369,552
======== ========
AIR METHODS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share amounts)
Quarter Ended Year Ended
December 31, December 31,
------------ ------------
2008 2007 2008 2007
---- ---- ---- ----
Revenue:
Flight operations $114,886 118,934 485,184 386,377
Product operations 4,026 3,675 13,618 9,972
----- ----- ------ -----
Total revenue 118,912 122,609 498,802 396,349
------- ------- ------- -------
Expenses:
Operating expenses 93,144 94,991 381,500 279,006
General and administrative 16,809 15,719 67,480 53,298
Depreciation and
amortization 4,462 4,133 17,090 14,418
----- ----- ------ ------
114,415 114,843 466,070 346,722
------- ------- ------- -------
Operating income 4,497 7,766 32,732 49,627
Interest expense (1,254) (1,700) (5,197) (5,609)
Loss on early extinguishment
of debt - - - (757)
Other, net 763 629 2,943 2,187
--- --- ----- -----
Income before income taxes 4,006 6,695 30,478 45,448
Income tax expense (270) (1,872) (11,209) (17,911)
---- ------ ------- -------
Net income $3,736 4,823 19,269 27,537
====== ===== ====== ======
Income per common share: $0.31 0.40 1.59 2.30
Basic $0.30 0.38 1.54 2.20
Diluted
Weighted average common
shares outstanding:
Basic 12,107,981 12,095,296 12,155,144 11,953,871
Diluted 12,343,920 12,634,687 12,530,381 12,512,077
SOURCE Air Methods Corporation
http://www.airmethods.com
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