DENVER, Aug. 7, 2014 (GLOBE NEWSWIRE) -- Air Methods Corporation (Nasdaq:AIRM), the global leader in air medical transportation, reported financial results for the quarter ended June 30, 2014 and provided an update on July 2014 patient transports. For the quarter, revenue increased 14% from $226.2 million to $258.5 million from the prior year quarter. For the six-month period, revenue increased 19% to $481.6 million, compared with $405.4 million in the prior-year six-month period. Financial results for the three and six months ended June 30, 2014 include operations associated with the Company's acquisition of Helicopters Consultants of Maui, LLC (doing business as Blue Hawaiian Helicopters) and certain of its affiliates (collectively, Blue Hawaiian), which was acquired by the Company on December 13, 2013. Revenue generated from Blue Hawaiian during the quarter and six months ended June 30, 2014 was $14.0 million and $27.5 million, respectively.
For the quarter, net income increased 50% to $28.8 million, or $0.73 per diluted share, as compared with prior-year second quarter net income of $19.1 million, or $0.49 per diluted share. Net income for the six-month period increased 195% to $39.7 million, or $1.01 per diluted share, compared to $13.5 million, or $0.34 per diluted share, for the prior-year six-month period. The prior-year second quarter and six-month results included pre-tax hull & liability insurance retention expenses of $2.0 million associated with claims incurred during the second quarter of 2013. The current-year second quarter and six-month results include a profit commission of $1.1 million associated with significantly reduced hull and liability insurance claims during the most recent plan year. The current year second quarter and six-month period include net losses on disposition of assets of $0.8 million and $1.2 million, respectively. This compares with the prior-year quarter net gain of $0.2 million and prior-year six-month net loss of $0.2 million. Net cash provided by operating activities increased by $22.7 million during the six months ended June 30, 2014, compared with the prior-year period. This increase is consistent with increase in net income of $26.2 million during the same comparative periods.
Patient transports were 14,994 during the current-year quarter, compared with 13,984 in the prior-year quarter, a 7% increase. Patients transported for community bases in operation greater than one year (Same-Base Transports) increased by 3%, or 333 transports, while weather cancellations for these same bases decreased by 333 transports compared with the prior-year quarter. Requests for community-based service increased 4% for bases open greater than one year. Net revenue per patient transport increased 7% to $11,353, compared with $10,650 in the prior-year quarter.
Maintenance expense, excluding tourism operations, decreased $4.7 million, or 17%, compared with the prior-year quarter, while flight hours decreased by 7%. Excluding tourism operations, fuel expense per hour flown decreased by 4%.
For the second quarter, Air Medical Services revenue increased by 7% to $219.6 million compared with $205.2 million in the prior-year quarter, while its segment net income increased by 37% from $39.4 million to $54.1 million. Tourism operations generated segment net income of $4.7 million on revenue of $31.4 million during the quarter, compared with prior-year second quarter segment net income and revenue of $1.1 million and $16.0 million, respectively. United Rotorcraft Division's external revenue increased 51% to $7.4 million compared with $4.9 million in the prior-year quarter, while its external segment net income remained essentially unchanged at breakeven.
The Company also provided an update on preliminary July 2014 flight volume. Total community-based transports increased 13% to 5,489 during July 2014, compared with 4,838 in July 2013. July 2014 Same-Base Transports increased by 158 transports, or 3%, while weather cancellations decreased by 546 transports compared with July 2013.
Aaron Todd, CEO, stated, "During our second quarter, we continued to experience strong growth in both revenue and earnings. Increase in community-based operating locations and average flight volumes, more moderate weather and maintenance expenditures, dividends from safe flight operations, and accretive results from recent diversification into helicopter tourism have all contributed to this success. The 13% growth in July community-based patient flight volumes reflects a strong start to the third quarter as well. We also anticipate continued growth in net revenue per transport based on improving payer mix trends experienced in recent months, compared with earlier winter months. We feel these factors justify our continued optimism for the second half of 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 81392741, 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 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. The 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 450 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 the Company's preliminary July 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.
Please contact Christina Brodsly at (303) 256-4122 to be included on the Company's e-mail distribution list.
|AIR METHODS CORPORATION AND SUBSIDIARIES|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|(Amounts in thousands)|
|June 30, 2014||December 31, 2013|
|Cash and cash equivalents||$ 2,917||9,862|
|Trade receivables, net||279,525||237,856|
|Other current assets||83,822||92,832|
|Total current assets||366,264||340,550|
|Net property and equipment||699,953||664,842|
|Other assets, net||244,885||247,149|
|Total assets||$ 1,311,102||1,252,541|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Notes payable related to aircraft pending long-term financing||$ 5,738||2,616|
|Current portion of indebtedness||69,711||68,531|
|Accounts payable, accrued expenses and other||100,954||91,171|
|Total current liabilities||176,403||162,318|
|Other non-current liabilities||112,914||105,864|
|Redeemable non-controlling interests||8,496||8,113|
|Total stockholders' equity||410,702||367,959|
|Total liabilities and stockholders' equity||$ 1,311,102||1,252,541|
|AIR METHODS CORPORATION AND SUBSIDIARIES|
|CONDENSED CONSOLIDATED STATEMENTS OF INCOME|
|(Amounts in thousands, except share and per share amounts)|
|Three Months Ended||Six Months Ended|
|June 30,||June 30,|
|Patient transport revenue, net||$ 171,373||148,943||315,302||256,775|
|Air medical services contract revenue||45,790||54,535||90,551||108,993|
|General and administrative||36,131||27,067||67,789||54,290|
|Depreciation and amortization||20,273||19,887||40,789||40,009|
|Income before income taxes||47,495||31,583||65,857||22,210|
|Income tax expense||(18,571)||(12,434)||(25,881)||(8,750)|
|Income attributable to redeemable non-controlling interests||134||--||297||--|
|Net income attributable to Air Methods Corporation and subsidiaries||$ 28,790||19,149||39,679||13,460|
|Income per common share:|
|Weighted average common shares outstanding - basic||39,151,012||38,882,681||39,135,292||38,857,034|
|Weighted average common shares outstanding - diluted||39,318,480||39,136,155||39,314,872||39,140,492|
|AIR METHODS CORPORATION AND SUBSIDIARIES|
|CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS|
|(Amounts in thousands)|
|Six Months Ended|
|Cash flows from operating activities:|
|Net income||$ 39,976||13,460|
|Adjustments to reconcile net income to net cash provided by operating activities:|
|Depreciation and amortization||40,789||40,009|
|Deferred income tax expense||9,253||6,775|
|Tax benefit from exercise of stock options||(1,010)||(527)|
|Loss on disposition of assets||1,213||208|
|Unrealized loss on derivative instrument||64||140|
|Loss from equity method investee||603||--|
|Changes in assets and liabilities, net of effects of acquisitions||(19,006)||(11,377)|
|Net cash provided by operating activities||73,395||50,741|
|Cash flows from investing activities:|
|Acquisition of subsidiaries||(3,182)||--|
|Acquisition of property and equipment||(65,909)||(17,310)|
|Buy-out of previously leased aircraft||(17,296)||(36,568)|
|Proceeds from disposition of equipment||9,156||10,964|
|Decrease (increase) in other assets||447||(2,303)|
|Net cash used in investing activities||(76,784)||(45,217)|
|Cash flows from financing activities:|
|Proceeds from issuance of common stock, net||479||576|
|Tax benefit from exercise of stock options||1,010||527|
|Net borrowings (payments) under line of credit||1,000||(29,157)|
|Payments for financing costs||(75)||(168)|
|Proceeds from long-term debt||34,429||90,400|
|Payment of long-term debt, notes payable, and capital lease obligations||(40,497)||(65,773)|
|Proceeds from non-controlling interests||98||--|
|Net cash used in financing activities||(3,556)||(3,595)|
|Increase (decrease) in cash and cash equivalents||(6,945)||1,929|
|Cash and cash equivalents at beginning of period||9,862||3,818|
|Cash and cash equivalents at end of period||$ 2,917||5,747|
CONTACT: Trent J. Carman, Chief Financial Officer, (303) 792-7591
Source:Air Methods Corporation