Air Methods Reports Year 2012 Results and 1Q2013 Update

Air Methods Reports Year 2012 Results and 1Q2013 Update

Fourth Quarter 2012 Fully-Diluted Earnings Per-Share Increased 72% to $0.55

DENVER, 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=6955

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 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  $ 3,570           $ 27,940
long-term financing
Current portion of indebtedness            63,139            67,989
Accounts payable, accrued expenses and     76,743            74,779
other
                                                           
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    56,102     53,306     224,956     206,935
revenue
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 47,809 257,448 170,895

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

Air Methods Corporation
 
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