Air Methods (AIRM) 8-K Air Methods Reports 1Q2009 Results and 2Q2009 Update

The #1 Airborne Healthcare Company

Air Methods Reports 1Q2009 Results and 2Q2009 Update

Company Achieves Fully-Diluted EPS of $0.41 from Improved Reimbursement and Cost Reductions

DENVER, CO., May 7, 2009 — Air Methods Corporation (NasdaqGS: AIRM), the largest air medical transportation company in the world, reported financial results for the first quarter ended March 31, 2009 and provided an update on April 2009 flight volumes.  For the quarter, revenue increased 5.6% to $124.7 million from $118.1 million in the prior-year quarter.  Net income for the first quarter of 2009 was $5.0 million, or $0.41 per diluted share, compared with net income of $2.3 million, or $0.18 per diluted share, in the first quarter of 2008.  The prior-year quarter net income includes an after-tax gain of $0.8 million, or $0.06 per diluted share, generated from disposition of aircraft.

As previously announced, the increase in net income was primarily attributed to improved net reimbursement per community-based transport and lower maintenance and fuel expense.  Net revenue per community-based transport increased 10.3% to $7,305 during the current-year quarter from $6,622 in the prior-year period.  Maintenance expense during the first quarter of 2009 decreased by $2.8 million, or 13.5%, to $17.8 million, while maintenance cost per flight hour decreased by 7.0% as compared with the prior-year quarter.  Fuel expense decreased by $1.4 million, or 34.3%, to $2.7 million, while fuel costs per community-based transport decreased by 27.9% as compared with the prior-year quarter.

For the first quarter, community-based revenue decreased 1.3% to $68.4 million, compared to $69.3 million in the prior year, while segment net income increased 36.0% to $7.9 million from $5.8 million.  Hospital-based flight revenue increased 7.5% to $48.6 million from $45.3 million in the prior-year period, while segment net income more than doubled to $4.1 million compared with $1.8 million in the prior-year quarter.   Products Division external revenue also more than doubled to $7.6 million compared with $3.5 million in the prior-year quarter, while its external segment net income increased by over $0.9 million as compared with the prior year.

The Company also provided an update on April 2009 flight volume.  Total community-based transports were 3,453 during April 2009 compared with 3,723 in April 2008.  April 2009 community-based transports for bases open greater than one year (Same-Base Transports) decreased by 97 transports, or 2.9%, as compared with April 2008.  Weather cancellations during April 2009 for these same bases were mostly unchanged as compared with the prior-year month, decreasing by just 14.

Aaron Todd, CEO, stated, “We are pleased that each of our operating divisions experienced strong earnings growth during the first quarter of 2009.  In addition to the benefit of reduced fuel prices and improved reimbursement from recent price increases, our strategy to reduce costs of operations through fleet replacement initiatives and base consolidations has produced significant improvements in our operating margins.  The recent improvement in Same-Base Transports in March and April, as compared with more recent months, is also very encouraging and approximates levels achieved before the economic slowdown.  While patient flight volumes, reimbursement levels, and maintenance expenditures experience inherent fluctuation in any given quarter, these recent positive trends offer justification for an optimistic outlook.”

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 (800) 642-1687 (domestic) or (706) 645-9291 (international), access number 96724635 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 a leader in emergency air medical transportation and medical services. The Hospital Based Services Division is the largest provider of air medical transport services for hospitals. The Community Based Services Division is the largest community-based provider of air medical services. The Products Division specializes in the design and manufacture of aeromedical and aerospace technology. The Company's fleet of owned, leased or maintained aircraft features over 300 helicopters and fixed wing aircraft.

Forward Looking Statements: This news release includes certain forward-looking statements, which are subject to various 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 products markets; the collection rates for patient transports; the continuation and/or renewal of air medical service contracts; the acquisition of profitable Products Division contracts and other flight service operations; the successful expansion of the community-based operations; and other matters set forth in the Company's public filings.

CONTACTS:  Aaron D. Todd, Chief Executive Officer, (303) 792-7413.  Please contact Christine Clarke at (303) 792-7579 to be included on the Company’s fax and/or mailing list.

AIR METHODS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

	March 31, 2009		December 31, 2008
ASSETS
Current assets:
Cash and cash equivalents	$	9,053		13,147
Trade receivables, net		129,643		133,467
Other current assets		62,597		61,134
Total current assets		201,293		207,748
Net property and equipment		156,358		146,167
Other assets, net		39,751		41,009
Total assets	$	397,402		394,924
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable related to assets held for sale	$	19,525		19,520
Current portion of indebtedness		15,116		15,638
Accounts payable, accrued expenses and other		62,919		56,628
Total current liabilities		97,560		91,786
Long-term indebtedness		77,984		85,858
Other non-current liabilities		54,994		56,816
Total liabilities		230,538		234,460
Total stockholders' equity		166,864		160,464
Total liabilities and stockholders' equity	$	397,402		394,924

AIR METHODS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Amounts in thousands, except share and per share amounts)

	Quarter Ended
	March 31,
	2009			2008
Revenue:
Flight operations	$	117,014			114,473
Product operations		7,649			3,626
Total revenue		124,663			118,099
Expenses:
Operating expenses		94,278			91,979
General and administrative		17,243			17,146
Depreciation and amortization		4,589			4,098
		116,110			113,223
Operating income		8,553			4,876
Interest expense		(1,235	)		(1,567	)
Other, net		822			643
Income before income taxes		8,140			3,952
Income tax expense		(3,152	)		(1,622	)
Net income	$	4,988			2,330
Income per common share:
Basic	$	0.41			0.19
Diluted	$	0.41			0.18
Weighted average common shares outstanding - basic		12,088,306			12,151,342
Weighted average common shares outstanding - diluted		12,274,671			12,623,358