Air Methods Reports 1Q2013 Results and 2Q2013 Update

Air Methods Reports 1Q2013 Results and 2Q2013 Update

First Quarter Loss of $0.15 Per Share in Line With Previously Announced
Expectations

DENVER, May 9, 2013 (GLOBE NEWSWIRE) -- Air Methods Corporation (Nasdaq:AIRM),
the global leader in air medical transportation, reported financial results
for the quarter ended March 31, 2013 and provided an update on April 2013
flight volume. For the quarter, revenue decreased 6% to $179.2 million from
$190.8 million in the prior-year quarter. Net loss for the first quarter of
2013 was $5.7 million, or $0.15 per share, compared with net income of $12.5
million, or $0.32 per diluted share, in the first quarter of 2012. The
current-year quarter includes the results of operations for Sundance
Helicopters, Inc., a Grand Canyon tour operator (Sundance), which was acquired
by the Company on December 31, 2012. Revenue and pre-tax income generated from
Sundance during the first quarter of 2013 was $10.4 million and $0.1 million,
respectively.

Community-based patient transports were 11,845 during the current-year
quarter, compared with 12,673 in the prior-year quarter, a 7% decrease.
Patients transported for community bases in operation greater than one year
(Same-Base Transports) decreased by 9%, or 1,081 transports, while weather
cancellations for these same bases increased by 427 transports compared with
the prior-year quarter. Requests for community-based service decreased 6% for
bases open greater than one year. Net revenue per community-based transport
decreased 10% from $10,072 to $9,098 in the current-year quarter due to
deterioration in payer mix, partially offset by price increases.

Maintenance expense, excluding Sundance, increased $0.5 million, or 2%,
compared with the prior-year quarter, while flight hours decreased
5%.Increase in maintenance expense per flight hour is attributed to typical
quarterly fluctuations associated with scheduled and unscheduled maintenance
events.Excluding Sundance, fuel expense increased by $0.4 million, or 6%,
compared with the prior-year quarter, while fuel expense per flight hour
increased by 19%.

For the first quarter, Air Medical Services revenue decreased by 10% to $164.4
million compared with $183.6 million in the prior-year quarter.United
Rotorcraft Division's external revenue decreased 39% to $4.4 million compared
with $7.2 million in the prior-year quarter, while its external segment net
income decreased from $2.1 million to an external segment net loss of $1.0
million in the current-year quarter.United Rotorcraft incurred $0.5 million
during the current-year quarter for warranty-related expenses.

The Company also provided an update on preliminary April 2013 flight volume.
Total community-based transports decreased 7% to 4,417 during April 2013,
compared with 4,745 in April 2012.April 2013 Same-Base Transports decreased
by 435 transports, or 9%, as compared with April 2012. Weather cancellations
during April 2013 for these same bases decreased by 8 compared with the
prior-year month.

Aaron Todd, CEO, stated, "As previously disclosed, we believe a greater
severity in weather and weaker payer mix had a significant influence on our
first quarter results.In addition, the lower flight volumes did not translate
into lower maintenance expense, as there is often a delay in the expense
benefit associated with decreased flight activity.Once weather moderates
during the spring and summer months, we will be better able to isolate whether
weak demand and payer mix were solely weather-related or reflect other
factors."

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 64210826,
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. The Tourism Division is comprised of Sundance
Helicopters, Inc., which provides helicopter tours and charter flights,
primarily focusing on Grand Canyon tours.Air Methods' fleet of owned, leased
or maintained aircraft features over 400 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 regarding the Company's
preliminary April 2013 flight volume, and our belief that the severity in
weather and weaker payer mix had a significant influence on first quarter
results, 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 final
results of April 2013 flight volume; 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 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)
                                                           
                                                           
                                                           
                                             March 31, 2013 December 31, 2011
                                                           
                                                           
ASSETS                                                      
                                                           
Current assets:                                             
Cash and cash equivalents                     $11,379      3,818
Trade receivables, net                        209,430       232,929
Other current assets                          81,589        70,058
                                                           
Total current assets                          302,398       306,805
                                                           
Net property and equipment                    603,797       597,238
Other assets, net                             211,414       214,820
                                                           
Total assets                                  $1,117,609   1,118,863
                                                           
                                                           
LIABILITIES AND STOCKHOLDERS' EQUITY                        
                                                           
Current liabilities:                                        
Notes payable related to aircraft pending     $--         3,570
long-term financing
Current portion of indebtedness               57,778        63,139
Accounts payable, accrued expenses and other  66,736        76,743
                                                           
Total current liabilities                     124,514       143,452
                                                           
Long-term indebtedness                        605,892       581,019
Other non-current liabilities                 91,028        94,782
                                                           
Total liabilities                             821,434       819,253
                                                           
Total stockholders' equity                    296,175       299,610
                                                           
Total liabilities and stockholders' equity    $1,117,609   1,118,863


AIR METHODS CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except share and per share amounts)
                                                              
                                                              
                                                    Quarter Ended
                                                    March 31,
                                                              
                                                    2013       2012
                                                              
Revenue:                                                       
Flight operations                                    $162,290 182,144
Product operations                                   4,434     7,232
Tourism operations                                   10,391    --
Other                                                2,114     1,438
Total revenue                                        179,229   190,814
                                                              
Expenses:                                                      
Operating expenses                                   135,442   120,022
General and administrative                           28,523    24,875
Depreciation and amortization                        20,122    20,879
                                                    184,087   165,776
                                                              
Operating income                                     (4,858)   25,038
                                                              
Interest expense                                     (4,802)   (5,593)
Other, net                                           287       930
                                                              
Income before income taxes                           (9,373)   20,375
                                                              
Income tax expense                                   3,684     (7,901)
                                                              
Net income                                           $(5,689) 12,474
                                                              
Income per common share:                                       
Basic                                               $(0.15)  0.33
Diluted                                             $(0.15)  0.32
                                                              
Weighted average common shares outstanding - basic   38,831,102 38,380,920
Weighted average common shares outstanding - diluted 38,831,102 38,747,448

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

Air Methods Corporation
 
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