Air Methods Reports 3Q2013 Results and 4Q2013 Update

Air Methods Reports 3Q2013 Results and 4Q2013 Update

Quarterly Fully-Diluted Earnings Per Share Increase 28% to $0.91

DENVER, Nov. 7, 2013 (GLOBE NEWSWIRE) -- Air Methods Corporation (Nasdaq:AIRM)
reported results for the quarter ended September 30, 2013. Revenue increased
14% to $252.4 million from $221.3 million in the year-ago quarter. For the
nine-month period, revenue increased 4% to $657.8 million, up from $634.6
million in the prior-year nine-month period. For the quarter, net income
increased 28% to $35.6 million, or $0.91 per diluted share, as compared with
2012 third quarter net income of $27.8 million, or $0.71 per diluted share.
Net income for the nine-month period decreased 32% to $49.1 million, or $1.25
per diluted share, compared to $71.7 million, or $1.84 per diluted share, for
the prior-year period. Financial results for the three and nine months ended
September 30, 2013 include operations associated with the Company's
acquisition of Sundance Helicopters, Inc., a Grand Canyon tour operator
(Sundance), on December 31, 2012. Revenue generated by Sundance during the
quarter and nine months ended September 30, 2013 was $16.0 million and $42.4
million, respectively.

The current year after-tax quarterly earnings were increased by $0.7 million
associated with the cumulative effect of changes in expected blended state
income tax rates, compared with a $0.7 million reduction in after-tax earnings
in the prior-year quarter for similar changes.Prior year after-tax quarterly
earnings were further reduced by $0.6 million associated with a net loss on
disposition of assets.

Third Quarter Highlights

Community-based patient transports were 14,570 during the current-year
quarter, compared with 14,829 in the prior-year quarter, a 2%
decrease.Patients transported for community bases in operation greater than
one year (Same-Base Transports) decreased by 6%, or 854 transports, while
weather cancellations for these same bases increased by 436 transports
compared with the prior-year quarter.Requests for community-based service
decreased 3% for bases open greater than one year. Net revenue per patient
transport increased 18% to $12,141, compared with $10,316 in the prior-year

Maintenance expense, excluding Sundance, decreased $1.8 million, or 7%,
compared with the prior-year quarter, while flight hours decreased by
8%.Excluding Sundance, fuel expense increased by $0.3 million, or 5%, as
compared with the prior-year quarter.Fuel expense per flight hour increased
6% over the prior-year quarter.

For the third quarter, Air Medical Services revenue increased by 8% to $230.8
million compared with $212.8 million in the prior-year quarter, while its
segment net income increased by 21% from $52.7 million to $63.6
million.Sundance generated segment net income of $3.8 million on revenue of
$16.0 million during the quarter.United Rotorcraft Division's external
revenue decreased 33% to $5.6 million compared with $8.4 million in the
prior-year quarter, while its external segment net income decreased from $1.7
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 October 2013 flight
volume.Total community-based transports increased 1% to 4,703 during October
2013, compared with 4,674 in October 2013.October 2013 Same-Base Transports
decreased by 116 transports, or 3%, while weather cancellations increased by
46 transports compared with October 2012.

Aaron Todd, CEO, stated, "Our third quarter reflects a return to growth in
earnings fueled by strong growth in net revenue per patient transport and more
moderate maintenance expenditures as anticipated.Our growth in net revenue
per transport reflects more stable year-over-year payer mix and has been
realized while reducing our days' sales outstanding, which decreased from 108
days as of September 30, 2012 and 99 days as of June 30, 2013, to 92 days as
of September 30, 2013 based on 90-day annualized net revenue.We are also very
pleased that our investment in Sundance and the tourism sector continues to
generate accretive financial results, in line with our initial expectations."

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 (855)
601-0049 (domestic) or (720) 398-0100 (international) or by accessing the web
cast at A replay of the call will be available at (855)
859-2056 (domestic) or (404) 537-3406 (international), access number 94368497,
for 3 days following the call and the web cast can be accessed at for 30 days.

Air Methods Corporation ( 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. The 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 October 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 October 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 –

(Amounts in thousands)
                                         September 30, 2013 December 31, 2012
Current assets:                                             
Cash and cash equivalents                 $19,159          3,818
Trade receivables, net                    236,560            232,929
Other current assets                      76,231             70,058
Total current assets                      331,950            306,805
Net property and equipment                611,480            597,238
Other assets, net                         216,290            214,820
Total assets                              $1,159,720       1,118,863
Current liabilities:                                        
Notes payable related to assets held for  $0               3,570
Current portion of indebtedness           63,305             63,139
Accounts payable, accrued expenses and    79,321             76,743
Total current liabilities                 142,626            143,452
Long-term indebtedness                    563,794            581,019
Other non-current liabilities             98,266             94,782
Total liabilities                         804,686            819,253
Total stockholders' equity                355,034            299,610
Total liabilities and stockholders'       $1,159,720       1,118,863

(Amounts in thousands, except share and per share amounts)
                                Three Months Ended    Nine Months Ended
                                 September 30,         September 30,
                                2013       2012       2013        2012
Flight operations                $227,543 211,109   593,311    606,719
Product operations               5,616     8,490     15,026     23,238
Tourism operations               16,002    --       42,385     --
Other                            3,224     1,691     7,097      4,627
Total revenue                    252,385   221,290   657,819    634,584
Operating expenses               139,527   124,961   415,880    365,918
General and administrative       30,448    23,478    87,738     73,902
Loss on disposition of assets,   118       985       326        774
Depreciation and amortization    19,781    20,638    59,790     62,460
                                189,874   170,062   563,734    503,054
Operating income                 62,511    51,228    94,085     131,530
Interest expense                 (5,190)   (5,022)   (15,169)   (15,887)
Other, net                       349       711       964        2,639
Income before income taxes       57,670    46,917    79,880     118,282
Income tax expense               (22,065)  (19,073)  (30,815)   (46,551)
Net income                       $35,605  27,844    49,065     71,731
Income per common share:                                        
Basic                            $0.91    0.72       1.26        1.86
Diluted                          $0.91    0.71       1.25        1.84
Weighted average common shares                                  
Basic                            38,933,915 38,690,436 38,882,943 38,551,587
Diluted                          39,194,532 39,050,247 39,228,113 38,969,937

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

Air Methods Corporation
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