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Press release from GlobeNewswire (a Nasdaq OMX company)

Air Methods Reports Year 2012 Results and 1Q2013 Update

Thursday, February 28, 2013

Air Methods Reports Year 2012 Results and 1Q2013 Update13:01 EST Thursday, February 28, 2013DENVER, Feb. 28, 2013 (GLOBE NEWSWIRE) -- Air Methods Corporation (Nasdaq:AIRM), the global leader in air medical transportation, reported financial results for the year and fourth quarter ended December 31, 2012. For the year, revenue increased 29% to $850.8 million compared to $660.5 million in the prior year. Net income doubled to $93.2 million, or $2.39 per diluted share, in the current year from $46.6 million, or $1.21 per diluted share, in the prior year. Earnings before interest, depreciation and amortization, and income tax expenses (EBITDA) increased 51% to $257.4 million compared to $170.9 million in the prior year. (See the table at the end of this release for a reconciliation of EBITDA, a non-GAAP measure, to GAAP.) For the fourth quarter, revenue increased 12% to $216.2 million as compared with $193.3 million during the prior-year period. Net income increased 73% to $21.4 million, or $0.55 per diluted share, compared to net income of $12.4 million, or $0.32 per diluted share, in the prior-year period. EBITDA increased 26% to $60.0 million compared to $47.8 million in the prior-year quarter. On August 1, 2011, the Company acquired 100% of the outstanding common stock of OF Air Holdings Corporation and its subsidiaries, including Omniflight Helicopters, Inc. (together, Omniflight). The results of operations for the year ended December 31, 2011 included the consolidated operations of Omniflight since the date of the acquisition. Pre-tax earnings were reduced by approximately $2.3 million and $0.5 million for the year and fourth quarter, respectively, for transaction costs and employee severance expenses related to the acquisition of Omniflight. Pre-tax earnings for both prior-year periods were further reduced by $2.2 million for retrospective compensation paid to pilots associated with the negotiation of a new collective bargaining agreement.Fourth Quarter Highlights Net patient transport revenue increased 18% to $152.9 million from $129.8 million. Net revenue per patient transport increased 16% to $11,448 from $9,883 in the prior-year quarter. Total patient transports from community-based locations increased 2% to 13,334 from 13,128. Patient transports from community-based locations open greater than one year (Same-Base Transports) increased 34 transports, as compared with the prior-year quarter. Weather cancellations for these same-base locations increased by 479 transports compared with the prior-year quarter. Air medical services contract revenue increased by 5% to $56.1 million from $53.3 million.  Consolidated maintenance expense for the fourth quarter of 2012 compared to the prior-year period increased by 10%, or $2.6 million, while flight volume decreased by 3%. Fuel costs increased by $0.9 million during the current-year quarter as compared to the prior-year quarter, representing a 17% increase. Revenue from our United Rotorcraft Division, excluding revenue generated from internal projects, decreased to $5.6 million from $8.4 million in the prior-year quarter, a 34% decrease. Excluding internal projects, the division generated a net loss of $0.6 million in the current-year quarter compared to net income of $1.3 million in the prior-year quarter. The Company also provided an update on preliminary January 2013 flight volume and net revenue per patient transport. Total community-based transports during January 2013 were 3,979 compared with 4,167 during January 2012, reflecting a 5% decrease. Same-Base Transports for January decreased 251 transports, or 6%, while weather cancellations for these same bases increased by 378 transports.  Preliminary net revenue per patient transport during January 2013 increased to $10,186 compared with $9,884 during January 2012, a 3% increase.   Aaron Todd, Chief Executive Officer, stated, "The year 2012 represented the first full year of combined operations since our acquisition of Omniflight. While the operational strengths and efficiencies from this combination have certainly been reflected in these operating results, we also enjoyed strong growth from organic expansion activities and successful marketing of our core services. We anticipate acceleration of base expansion and hospital-based conversion activities in 2013 and look forward to continued growth within our core businesses."  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 (855) 859-2056 (domestic) or (404) 537-3406 (international), access number 15173950, 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 for hospitals and one of the largest community-based providers of air medical services. 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. The Air Methods Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6955Forward 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 regarding the Company's preliminary January 2013 operational and financial results and anticipated base expansion and conversion activity, 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 and United Rotorcraft Division; the collection rates for patient transports; the continuation and/or renewal of air medical service contracts; the anticipated impact from the Company's internal reorganization; 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.About Non-GAAP Financial Information: This press release discusses EBITDA, which is not calculated in conformity with U.S. Generally Accepted Accounting Principles (GAAP). The Company defines EBITDA as earnings before interest, income taxes, depreciation, amortization and gain or loss on disposition of assets. A table is provided in this press release to reconcile such non-GAAP financial measure to net income, which is the most directly comparable financial measure prepared in accordance with GAAP. Such table below includes all information reasonably available to the Company at the date of this press release and adjustments that the Company can reasonably predict. Events that could cause the reconciliation to change include, but are not limited to, acquisitions and divestitures of businesses and goodwill and other asset impairments. To supplement the Company's consolidated financial statements presented on a GAAP basis, management believes that this non-GAAP measure provides useful information about the Company's core operating results and thus is appropriate to enhance the overall understanding of the Company's past financial performance and its prospects for the future. Management believes the additions and subtractions from net income used to calculate EBITDA reflect the measurements that its bank creditors and third party stock analysts use in evaluating the Company. These adjustments to the Company's GAAP results are made with the intent of providing both management and investors a more complete understanding of the Company's underlying operational results and trends and performance. Management uses this non-GAAP measure to evaluate the Company's financial results. The presentation of non-GAAP measures is not meant to be considered in isolation or as a substitute for or superior to financial results determined in accordance with GAAP. Please contact Christine Clarke at (303) 792-7579 to be included on the Company's e-mail distribution list. – FINANCIAL STATEMENTS ATTACHED –AIR METHODS CORPORATION AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(Amounts in thousands)         December 31, 2012 December 31, 2011            ASSETS           Current assets:     Cash and cash equivalents $ 3,818 $ 3,562 Trade receivables, net 232,929 187,056 Other current assets 70,058 65,101       Total current assets 306,805 255,719       Net property and equipment 597,238 569,578 Other assets, net 214,820 203,174       Total assets $ 1,118,863 $ 1,028,471            LIABILITIES AND STOCKHOLDERS' EQUITY           Current liabilities:     Notes payable related to aircraft pending long-term financing $ 3,570 $ 27,940 Current portion of indebtedness 63,139 67,989 Accounts payable, accrued expenses and other 76,743 74,779       Total current liabilities 143,452 170,708       Long-term indebtedness 581,019 483,886 Other non-current liabilities 94,782 85,975       Total liabilities 819,253 740,569       Total stockholders' equity 299,610 287,902       Total liabilities and stockholders' equity $ 1,118,863 $ 1,028,471  AIR METHODS CORPORATION AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME(Amounts in thousands, except share and per share amounts)             Quarter Ended Year Ended   December 31, December 31,             2012 2011 2012 2011           Revenue:         Patient transport revenue, net $ 152,853 129,797 590,718 416,294 Air medical services contract revenue 56,102 53,306 224,956 206,935 Product operations 5,594 8,418 28,832 30,462 Other 1,679 1,789 6,306 6,858 Total revenue 216,228 193,310 850,812 660,549           Expenses:         Operating expenses 129,241 122,189 495,933 408,699 General and administrative 28,121 25,162 102,023 85,500 Depreciation and amortization 20,064 20,660 82,524 72,877   177,426 168,011 680,480 567,076           Operating income 38,802 25,299 170,332 93,473           Interest expense (4,764) (5,868) (20,651) (20,072) Other, net 624 916 3,263 3,901           Income before income taxes 34,662 20,347 152,944 77,302           Income tax expense (13,241) (7,945) (59,792) (30,728)           Net income $ 21,421 12,402 93,152 46,574           Income per common share:          Basic $ 0.55 0.33 2.41 1.23  Diluted $ 0.55 0.32 2.39 1.21           Weighted average common shares outstanding:          Basic 38,721,452 38,128,729  38,594,286  37,999,422  Diluted 39,064,823 38,606,804  39,044,468  38,482,785  AIR METHODS CORPORATION AND SUBSIDIARIES RECONCILIATION OF NET INCOME TO EBITDA (Amounts in thousands)             Quarter Ended Year Ended   December 31, December 31,   2012 2011 2012 2011           Net income  $ 21,421  12,402 93,152 46,574           Interest expense  4,764  5,868 20,651 20,072 Income tax expense  13,241  7,945 59,792 30,728 Depreciation and amortization  20,064  20,660 82,524 72,877 Loss (gain) on disposition of assets, net  555  934  1,329  644           EBITDA  $ 60,045  47,809 257,448  170,895CONTACT: Trent J. Carman, Chief Financial Officer, (303) 792-7591