Air Methods Reports 1Q2009 Results and 2Q2009 Update

05/07/09

Company Achieves Fully-Diluted EPS of $0.41 from Improved Reimbursement and Cost Reductions

DENVER, May 7 /PRNewswire-FirstCall/ -- Air Methods Corporation (Nasdaq: AIRM), the largest air medical transportation company in the world, reported financial results for the first quarter ended March 31, 2009 and provided an update on April 2009 flight volumes. For the quarter, revenue increased 5.6% to $124.7 million from $118.1 million in the prior-year quarter. Net income for the first quarter of 2009 was $5.0 million, or $0.41 per diluted share, compared with net income of $2.3 million, or $0.18 per diluted share, in the first quarter of 2008. The prior-year quarter net income includes an after-tax gain of $0.8 million, or $0.06 per diluted share, generated from disposition of aircraft.

As previously announced, the increase in net income was primarily attributed to improved net reimbursement per community-based transport and lower maintenance and fuel expense. Net revenue per community-based transport increased 10.3% to $7,305 during the current-year quarter from $6,622 in the prior-year period. Maintenance expense during the first quarter of 2009 decreased by $2.8 million, or 13.5%, to $17.8 million, while maintenance cost per flight hour decreased by 7.0% as compared with the prior-year quarter. Fuel expense decreased by $1.4 million, or 34.3%, to $2.7 million, while fuel costs per community-based transport decreased by 27.9% as compared with the prior-year quarter.

For the first quarter, community-based revenue decreased 1.3% to $68.4 million, compared to $69.3 million in the prior year, while segment net income increased 36.0% to $7.9 million from $5.8 million. Hospital-based flight revenue increased 7.5% to $48.6 million from $45.3 million in the prior-year period, while segment net income more than doubled to $4.1 million compared with $1.8 million in the prior-year quarter. Products Division external revenue also more than doubled to $7.6 million compared with $3.5 million in the prior-year quarter, while its external segment net income increased by over $0.9 million as compared with the prior year.

The Company also provided an update on April 2009 flight volume. Total community-based transports were 3,453 during April 2009 compared with 3,723 in April 2008. April 2009 community-based transports for bases open greater than one year (Same-Base Transports) decreased by 97 transports, or 2.9%, as compared with April 2008. Weather cancellations during April 2009 for these same bases were mostly unchanged as compared with the prior-year month, decreasing by just 14.

Aaron Todd, CEO, stated, "We are pleased that each of our operating divisions experienced strong earnings growth during the first quarter of 2009. In addition to the benefit of reduced fuel prices and improved reimbursement from recent price increases, our strategy to reduce costs of operations through fleet replacement initiatives and base consolidations has produced significant improvements in our operating margins. The recent improvement in Same-Base Transports in March and April, as compared with more recent months, is also very encouraging and approximates levels achieved before the economic slowdown. While patient flight volumes, reimbursement levels, and maintenance expenditures experience inherent fluctuation in any given quarter, these recent positive trends offer justification for an optimistic outlook."

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 96724635 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 300 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 SHEETS
                                (Amounts in thousands)


                                         March 31, 2009 December 31, 2008
                                         -------------- -----------------


    ASSETS
    ------

    Current assets:
    Cash and cash equivalents                    $9,053            13,147
    Trade receivables, net                      129,643           133,467
    Other current assets                         62,597            61,134
                                               --------          --------

    Total current assets                        201,293           207,748

    Net property and equipment                  156,358           146,167
    Other assets, net                            39,751            41,009
                                               --------          --------

    Total assets                               $397,402           394,924
                                               ========          ========


    LIABILITIES AND STOCKHOLDERS' EQUITY
    ------------------------------------

    Current liabilities:
    Notes payable related to assets held
     for sale                                   $19,525            19,520
    Current portion of indebtedness              15,116            15,638
    Accounts payable, accrued expenses
     and other                                   62,919            56,628
                                               --------          --------

    Total current liabilities                    97,560            91,786

    Long-term indebtedness                       77,984            85,858
    Other non-current liabilities                54,994            56,816
                                               --------          --------

    Total liabilities                           230,538           234,460

    Total stockholders' equity                  166,864           160,464
                                               --------          --------

    Total liabilities and
     stockholders' equity                      $397,402           394,924
                                               ========          ========



                       AIR METHODS CORPORATION AND SUBSIDIARIES
                     CONDENSED CONSOLIDATED STATEMENTS OF INCOME
              (Amounts in thousands, except share and per share amounts)


                                                          Quarter Ended
                                                            March 31,
                                                            ---------

                                                        2009        2008
                                                        ----        ----

    Revenue:
    Flight operations                               $117,014     114,473
    Product operations                                 7,649       3,626
                                                     -------     -------
    Total revenue                                    124,663     118,099
                                                     -------     -------

    Expenses:
    Operating expenses                                94,278      91,979
    General and administrative                        17,243      17,146
    Depreciation and amortization                      4,589       4,098
                                                     -------     -------
                                                     116,110     113,223
                                                     -------     -------

    Operating income                                   8,553       4,876

    Interest expense                                  (1,235)     (1,567)
    Other, net                                           822         643
                                                     -------     -------

    Income before income taxes                         8,140       3,952

    Income tax expense                                (3,152)     (1,622)
                                                     -------     -------

    Net income                                        $4,988       2,330
                                                     =======     =======

    Income per common share:
      Basic                                            $0.41        0.19
      Diluted                                          $0.41        0.18

    Weighted average common shares
     outstanding - basic                          12,088,306  12,151,342
    Weighted average common shares
     outstanding - diluted                        12,274,671  12,623,358


SOURCE  Air Methods Corporation

    -0-                           05/07/2009
    /CONTACT:  Aaron D. Todd, Chief Executive Officer of Air Methods
Corporation, +1-303-792-7413, or to be added to Company's fax and/or mailing
list, Christine Clarke, +1-303-792-7579/
    /Web Site:  http://www.airmethods.com /
    (AIRM)

CO:  Air Methods Corporation

ST:  Texas
IN:  AIR HEA TRN
SU:  ERN ERP CCA

PR
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6239 05/07/2009 16:15 EDT http://www.prnewswire.com