Air Methods Reports 2Q2013 Results and 3Q2013 Update

Air Methods Reports 2Q2013 Results and 3Q2013 Update

2nd Quarter EPS of $0.49 Impacted by Weather and Higher Maintenance Costs

DENVER, Aug. 8, 2013 (GLOBE NEWSWIRE) -- Air Methods Corporation
(Nasdaq:AIRM), the global leader in air medical transportation, reported
financial results for the quarter ended June 30, 2013 and provided an update
on July 2013 patient transports. For the quarter, revenue increased 2% from
$222.5 million to $226.2 million from the prior year quarter. For the
six-month period, revenue decreased 2% to $405.4 million, compared with $413.3
million in the prior-year six-month period. Financial results for the three
and six months ended June 30, 2013 include operations associated with the
Company's acquisition of Sundance Helicopters, Inc., a Grand Canyon tour
operator (Sundance), which was acquired by the Company on December 31, 2012.
Revenue generated from Sundance during the quarter and six months ended June
30, 2013 was $16.0 million and $26.4 million, respectively.

For the quarter, net income decreased 39% to $19.1 million, or $0.49 per
diluted share, as compared with prior-year second quarter net income of $31.4
million, or $0.81 per diluted share. Net income for the six-month period
decreased 69% to $13.5 million, or $0.34 per diluted share, compared to $43.9
million, or $1.13 per diluted share, for the prior-year six-month period. The
current-year second quarter and six-month results include pre-tax hull &
liability insurance retention expenses of $2.0 million ($0.03 per share after
tax effect) associated with claims incurred during the second quarter of 2013.

Patient transports were 13,835 during the current-year quarter, compared with
15,134 in the prior-year quarter, a 9% decrease. Patients transported for
community bases in operation greater than one year (Same-Base Transports)
decreased by 12%, or 1,718 transports, while weather cancellations for these
same bases increased by 883 transports compared with the prior-year quarter.
Requests for community-based service decreased 7% for bases open greater than
one year. Net revenue per patient transport increased 4% to $10,766, compared
with $10,396 in the prior-year quarter.

Maintenance expense, excluding Sundance, increased $3.8 million, or 16%,
compared with the prior-year quarter, despite flight hours having decreased by
9%. This increase was attributed to higher engine overhaul costs and nearly
three times as many heavy airframe inspections on two models of aircraft as
compared with the prior-year quarter. Excluding Sundance, fuel expense
decreased by $0.6 million, or 8%, as compared with the prior-year quarter.
Fuel expense per flight hour increased 2% over the prior-year quarter.

For the second quarter, Air Medical Services revenue decreased by 5% to $205.2
million compared with $215.0 million in the prior-year quarter, while its
segment net income decreased by 33% from $59.1 million to $39.4 million.
Sundance generated segment net income of $1.1 million on revenue of $16.0
million during the quarter. United Rotorcraft Division's external revenue
decreased 34% to $4.9 million compared with $7.5 million in the prior-year
quarter, while its external segment net income decreased from $0.9 million in
the prior-year quarter to a loss of $0.4 million in the current-year quarter.

The Company also provided an update on preliminary July 2013 flight volume.
Total community-based transports decreased 6% to 4,760 during July 2013,
compared with 5,051 in July 2012. July 2013 Same-Base Transports decreased by
491 transports, or 10%, while weather cancellations increased by 540
transports compared with July 2012. 

Aaron Todd, CEO, stated, "While severe increases in weather cancellations and
higher maintenance had a significant impact on the quarter, we are pleased to
see that decreases in June and July flight volumes appear to be primarily
attributed to higher weather cancellations.In addition, the second quarter
brought a return to growth in net revenue per patient transport, while days'
sales outstanding, computed using 90-day annualized revenue, decreased from
128 days as of March 31, 2013 to 99 days as of June 30, 2013.We expect
meaningful improvement in future earnings based on anticipated improvement in
weather and maintenance trends over the coming periods."

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 26240307,
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 in the United States. 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 July 2013 flight volume, anticipated earnings results and
anticipated weather and maintenance trends, 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 July 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 fax and/or mailing list.

                      - FINANCIAL STATEMENTS ATTACHED -

AIR METHODS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(unaudited)
                                                           
                                              June 30, 2013 December 31, 2012
                                                           
                                                           
ASSETS                                                      
                                                           
Current assets:                                             
Cash and cash equivalents                      $5,747      3,818
Trade receivables, net                         222,495      232,929
Other current assets                           81,434       70,058
                                                           
Total current assets                           309,676      306,805
                                                           
Net property and equipment                     604,699      597,238
Other assets, net                              213,100      214,820
                                                           
Total assets                                   $1,127,475  1,118,863
                                                           
                                                           
LIABILITIES AND STOCKHOLDERS' EQUITY                        
                                                           
Current liabilities:                                        
Notes payable related to aircraft pending      $2,616      3,570
long-term financing
Current portion of indebtedness                60,162       63,139
Accounts payable, accrued expenses and other   70,836       76,743
                                                           
Total current liabilities                      133,614      143,452
                                                           
Long-term indebtedness                         582,173      581,019
Other non-current liabilities                  95,462       94,782
                                                           
Total liabilities                              811,249      819,253
                                                           
Total stockholders' equity                     316,226      299,610
                                                           
Total liabilities and stockholders' equity     $1,127,475  1,118,863


AIR METHODS CORPORATION AND SUBSIDIARIES                                  
CONDENSED CONSOLIDATED STATEMENTS OF INCOME                               
(Amounts in thousands, except share and per share amounts)                
(unaudited)                                                               
                                                       
                        Three Months Ended    Six Months Ended
                         June 30,              June 30,
                                                       
                        2013       2012       2013        2012
                                                       
Revenue:                                                
Flight operations        $203,478 213,466    365,768     395,610
Product operations       4,976      7,516      9,410       14,748
Tourism operations       15,992     --       26,383      --
Other                    1,759      1,498      3,873       2,936
Total revenue            226,205    222,480    405,434     413,294
                                                       
Expenses:                                               
Operating expenses       141,352    120,694    276,353     240,957
Loss (gain) on
disposition of assets,   (233)      30         208         (211)
net
General and              28,767     25,549     57,290      50,424
administrative
Depreciation and         19,887     20,943     40,009      41,822
amortization
                        189,773    167,216    373,860     332,992
                                                       
Operating income         36,432     55,264     31,574      80,302
                                                       
Interest expense         (5,177)    (5,272)    (9,979)     (10,865)
Other, net               328        998        615         1,928
                                                       
Income before income     31,583     50,990     22,210      71,365
taxes
                                                       
Income tax expense       (12,434)   (19,577)   (8,750)     (27,478)
                                                       
Net income               $19,149  31,413     13,460      43,887
                                                       
Income per common share:                                
Basic                    $0.49    0.81       0.35        1.14
Diluted                  $0.49    0.81       0.34        1.13
                                                       
Weighted average common
shares outstanding -     38,882,681 38,577,855 38,857,034 38,479,389
basic
Weighted average common
shares outstanding -     39,136,155 38,857,575 39,140,492 38,817,633
diluted

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

Air Methods Corporation
 
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