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Air Methods Reports Year 2013 Results and 1Q2014 Update

Air Methods Reports Year 2013 Results and 1Q2014 Update

DENVER, Feb. 27, 2014 (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, 2013.

For the year, revenue increased 4% to $881.6 million compared to $850.8
million in the prior year. Net income decreased 33% to $62.3 million, or $1.54
per diluted share, in the current year from $93.2 million, or $2.39 per
diluted share, in the prior year. Earnings before interest, depreciation and
amortization, and income tax expenses (EBITDA) decreased 21% to $202.3 million
compared to $257.4 million in the prior year. (See the table at the end of
this release for a reconciliation of EBITDA, a non-GAAP measure, to net
income, a GAAP measure.)

For the fourth quarter, revenue increased 3% to $223.8 million as compared
with $216.2 million during the prior-year period. Net income decreased 38% to
$13.3 million, or $0.29 per diluted share, compared to net income of $21.4
million, or $0.55 per diluted share, in the prior-year period. EBITDA
decreased 22% to $47.1 million compared to $60.0 million in the prior-year
quarter.

The 2013 fourth quarter includes $2.4 million in pre-tax charges associated
with severance for certain terminated employees, reserves for pending legal
matters, impairment/disposition losses on aircraft and certain intangible
assets, and transaction costs associated with acquisition activities.

Basic and diluted earnings per share for the quarter and year ended December
31, 2013 were reduced by $0.05 for the impact of an equity put option related
to one of our redeemable non-controlling interests in one of our consolidated
subsidiaries. The equity put option allows the non-controlling interest party
to sell its ownership interest in a joint venture to the Company at a future
date for a minimum pre-established amount. While net income on the
consolidated statement of comprehensive income was not reduced by the amount
of this equity put option, earnings per share are required to be calculated
after reducing net income by the amount of the equity put option.

On December 13, 2013, via a newly formed subsidiary Blue Hawaiian Holdings,
LLC, the Company acquired 100% of the membership interests of Helicopter
Consultants of Maui, LLC (doing business as Blue Hawaiian Helicopters) and
certain of its affiliates (collectively, BHH). The former owners of BHH hold a
10% ownership interest in Blue Hawaiian Holdings, LLC, which the Company can
redeem at any time for a price based on BHH's current operating results. On
December 31, 2012, the Company acquired all of the outstanding common stock of
Sundance Helicopters, Inc. and all of the aircraft owned by two affiliated
entities (collectively, Sundance). The results of operations for the year and
quarter ended December 31, 2013 include the operations of Sundance and of BHH
from the date of acquisition.

Fourth Quarter Highlights

Net patient transport revenue increased less than 1% to $153.3 million from
$152.9 million in the prior-year quarter. Net revenue per patient transport
increased 2% to $11,686 from $11,448 in the prior-year quarter.Total patient
transports from community-based locations decreased 3% to 12,881 from 13,334.
Patient transports from community-based locations open greater than one year
(Same-Base Transports) decreased 789 transports, as compared with the
prior-year quarter.Weather cancellations for these same-base locations
increased by 84 transports compared with the prior-year quarter.Air medical
services contract revenue decreased by 18% to $45.8 million from $56.1
million.

Maintenance expense (excluding tour operations) for the fourth quarter of 2013
compared to the prior-year period decreased by 13%, or $3.7 million, while
flight volume decreased by 9%.Fuel costs (excluding tour operations) remained
unchanged at $6.5 million compared with the prior-year quarter.

Revenue and divisional net income from tour operations were $14.2 million and
$1.3 million, respectively, for the quarter ended December 31, 2013.

Revenue from our United Rotorcraft Division, excluding revenue generated from
internal projects, increased to $9.3 million from $5.6 million in the
prior-year quarter, a 66% increase.Excluding internal projects, the division
generated a net loss of $1.0 million in the current-year quarter compared to
net loss of $0.6 million in the prior-year quarter.

The Company also provided an update on preliminary January 2014 flight volume
and net revenue per patient transport. Total community-based transports during
January 2014 were 4,479 compared with 3,989 during January 2013, reflecting a
12% increase. Same-Base Transports for January increased 317 transports, or
8%, while weather cancellations for these same bases decreased by 362
transports.Preliminary net revenue per patient transport during January 2014
increased to $11,235 compared with $10,168 during January 2013, an 11%
increase.The Company also announced that community-based transports for
February to-date reflect a 4% increase, despite a 2% increase in weather
cancellations.

Aaron Todd, Chief Executive Officer, stated, "We are pleased to see a return
to growth in our community-based transports year-to-date in 2014, while also
realizing healthy growth in net revenue per patient transport in January.With
2013 reflecting the first year of our diversification into tour operations, we
are especially pleased to have generated accretive results with segment net
income of $6.3 million on revenue of $56.6 million.We anticipate that our
recent acquisition of Blue Hawaiian Helicopters will further supplement this
accretion in 2014."

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 www.airmethods.com. A replay of the call will be available at (855)
859-2056 (domestic) or (404) 537-3406 (international), access number 53212166,
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. The United
Rotorcraft Division specializes in the design and manufacture of aeromedical
and aerospace technology. The Tourism Division is comprised of Sundance
Helicopters, Inc. and Blue Hawaiian Helicopters, which provides helicopter
tours and charter flights in the Las Vegas/Grand Canyon region and Hawaii,
respectively. 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 we make with regard to
anticipated results from the acquisition of Blue Hawaiian Helicopters and the
Company's preliminary January and February 2014 operational and financial
results, including those related to (i) total community-based patient
transports, (ii) same base transports, (iii) weather cancellations, and (iv)
net revenue per patient transport, 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, United Rotorcraft Division and Tourism Division; the
collection rates for patient transports; the continuation and/or renewal of
air medical service contracts; 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 Christina Brodsly at (303) 256-4122 to be included on the
Company's e-mail distribution list.

                      – FINANCIAL STATEMENTS ATTACHED –

                                                           
                                                           
AIR METHODS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(unaudited)
                                                           
                                                           
                                          December 31, 2013 December 31, 2012
                                                           
                                                           
ASSETS                                                      
                                                           
Current assets:                                             
Cash and cash equivalents                  $9,862          $3,818
Trade receivables, net                     237,856           232,929
Other current assets                       92,832            70,058
                                                           
Total current assets                       340,550           306,805
                                                           
Net property and equipment                 664,842           597,238
Other assets, net                          247,149           214,820
                                                           
Total assets                               $1,252,541      $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            68,531            63,139
Accounts payable, accrued expenses and     91,171            76,743
other
                                                           
Total current liabilities                  162,318           143,452
                                                           
Long-term indebtedness                     608,287           581,019
Other non-current liabilities              105,864           94,782
                                                           
Total liabilities                          876,469           819,253
                                                           
Redeemable non-controlling interests       8,113             -
                                                           
Total stockholders' equity                 367,959           299,610
                                                           
Total liabilities and stockholders' equity $1,252,541      $1,118,863

                                                               
                                                               
AIR METHODS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in thousands, except share and per share amounts)
(unaudited)
                                                               
                                                               
                                Quarter Ended         Year Ended
                                 December 31,          December 31,
                                2013       2012       2013        2012
                                                               
Revenue:                                                        
Patient transport revenue, net   $153,331 152,853    587,899     590,718
Air medical services contract    45,769     56,102     204,512     224,956
revenue
Tourism revenue                  14,206     -        56,591      -
Product operations               9,279      5,594      24,305      28,832
Other                            1,197      1,679      8,294       6,306
Total revenue                    223,782    216,228    881,601     850,812
                                                               
Expenses:                                                       
Operating expenses               146,866    130,449    568,230     500,632
General and administrative       30,455     26,913     113,035     97,324
Depreciation and amortization    19,865     20,064     79,655      82,524
                                197,186    177,426    760,920     680,480
                                                               
Operating income                 26,596     38,802     120,681     170,332
                                                               
Interest expense                 (5,154)    (4,764)    (20,323)    (20,651)
Other, net                       172        624        1,136       3,263
                                                               
Income before income taxes       21,614     34,662     101,494     152,944
                                                               
Income tax expense               (8,610)    (13,241)   (39,425)    (59,792)
                                                               
Net income                       13,004     21,421     62,069      93,152
                                                               
Loss attributable to redeemable  (270)      -        (270)       -
non-controlling interests
                                                               
Net income attributable to Air
Methods Corporation and          $13,274  21,421     62,339      93,152
subsidiaries
                                                               
Income per common share:                                        
Basic                           $0.29    0.55       1.55        2.41
Diluted                         $0.29    0.55       1.54        2.39
                                                               
Weighted average common shares                                  
outstanding:
Basic                           39,042,683 38,721,452 38,923,206 38,594,286
Diluted                         39,273,193 39,064,823 39,210,392 39,044,468

                                                                  
                                                                  
AIR METHODS CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NET INCOME TO EBITDA
(Amounts in thousands)
(unaudited)
                                                                  
                                                                  
                                           Quarter Ended     Year Ended
                                            December 31,      December 31,
                                           2013      2012    2013    2012
                                                                  
Net income attributable to Air Methods      $13,274 21,421 62,339  93,152
Corporation and subsidiaries
                                                                  
Interest expense                            5,154    4,764  20,323  20,651
Income tax expense                          8,610    13,241 39,425  59,792
Depreciation and amortization               19,865   20,064 79,655  82,524
Loss on disposition of assets, net          193      555    519    1,329
                                                                  
EBITDA                                      $47,096 60,045 202,261 257,448

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

Air Methods Corporation
 
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