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 long-term financing | $ 2,616 | 3,570 |
| 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 June 30, |
Six Months Ended 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, net | (233) | 30 | 208 | (211) | ||||
| General and administrative | 28,767 | 25,549 | 57,290 | 50,424 | ||||
| Depreciation and amortization | 19,887 | 20,943 | 40,009 | 41,822 | ||||
| 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 taxes | 31,583 | 50,990 | 22,210 | 71,365 | ||||
| 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 - basic | 38,882,681 | 38,577,855 | 38,857,034 | 38,479,389 | ||||
| Weighted average common shares outstanding - diluted | 39,136,155 | 38,857,575 | 39,140,492 | 38,817,633 | ||||