EXHIBIT 99.1
Air Methods Reports 3Q15 Results
Revenue Increases 12.4% Compared to Prior Year Period
EPS from Continuing Operations Increases 27.5% Compared to Prior Year Period
DENVER, Nov. 5, 2015 (GLOBE NEWSWIRE) -- Air Methods Corporation (Nasdaq:AIRM), the global leader in air medical transportation, today reported financial results for the quarter ended September 30, 2015.
| | | | | | | |
| | Q3-2015 | Q3-2014 | YOY
Change (%) | 9-Months
Ending
9/30/15 | 9-Months
Ending
9/30/14 | YOY
Change (%) |
| Revenue | $311.3
million | $276.9
million | 12.4% | $813.2
million | $755.6
million | 7.6% |
Diluted EPS from
Continuing Operations | $1.16 | $0.91 | 27.5% | $2.17 | $1.96 | 10.7% |
| | | | | | | |
Aaron Todd, CEO of Air Methods, stated, "We are very pleased with our third quarter results, which exceeded expectations. Same-base transports in the Air Medical Services division increased 2.4%. When coupled with the addition of fourteen new bases since the third quarter of 2014 from both Greenfields and base conversions, total patient transports increased 9.7%. The Company's tourism business also performed well. The number of passengers grew 6.9% year-over-year and bottom-line results increased 47.4% aided by lower fuel and maintenance costs. Primarily as a result of these factors, the Company's quarterly diluted EPS from continuing operations grew 27.5% year-over-year. With the conversion of eight more hospital bases in early October, our momentum remains strong."
Third quarter 2015 results include a $2.6 million pre-tax loss related to the disposition of assets. This compares to a pre-tax gain of $0.2 million in the prior-year quarter.
Basic and diluted earnings per share from continuing operations for the quarter and nine months ended September 30, 2015 were decreased by $0.02 for an adjustment to the value of equity put options related to both of our redeemable non-controlling interests in our consolidated subsidiaries. While net income on the consolidated statement of comprehensive income was not decreased for the valuation adjustment, earnings per share are required to be calculated after decreasing net income for the change in valuation. For the prior year three and nine-month period, basic and diluted earnings per share increased by $0.05 for the same type of adjustment.
Third Quarter Performance by Segment
For the third quarter, Air Medical Services (AMS) revenue increased by 12.7% to $266.8 million, compared with $236.7 million in the prior-year quarter, while its segment net income increased 34.6% to $85.9 million, compared to $63.8 million for the third quarter of 2014. Community-based patient transports were 17,330 during the current-year quarter, compared with 15,796 in the prior-year quarter, a 9.7% increase. Patients transported for community bases in operation greater than one year (Same-Base Transports) increased 2.4%, or 367 transports, while weather cancellations for these same bases increased by 53 transports compared with the prior-year period. Same-base requests for community-based service increased 3.6%. Net revenue per community-based transport increased 7.2% from $11,972 to $12,839 in the current-year quarter. AMS maintenance expense was flat in the current-year quarter, compared with the prior-year quarter despite total flight volume increasing 5.7%. AMS fuel expense decreased $0.9 million compared with the prior-year quarter, while fuel expense per flight hour decreased 22.3%.
Tourism revenues increased 6.7% to $36.2 million in the current-year quarter, compared to $33.9 million in the prior-year quarter. Tourism segment net income increased 47.4% to $4.9 million compared with $3.3 million in the prior-year quarter. Total passengers increased 6.9% to 134,157 during the current-year quarter, compared with 125,515 in the prior year quarter. Tourism maintenance expense decreased $0.6 million or 8.3% in the current-year quarter, compared with the prior-year quarter despite total flight volume increasing 3.9%. Tourism fuel expense per flight hour decreased 37.8%.
United Rotorcraft's external revenue increased 36.2% to $8.4 million, compared to $6.2 million in the prior-year quarter. Its segment external earnings improved from a loss of $0.8 million in the year-ago period to income of $0.5 million in the current-year quarter.
Credit Facility Refinancing
In the third quarter 2015, the Company completed the previously announced amendment to its existing credit agreement, expanding its access to capital by $400 million of which up to $200 million can be used to repurchase shares.
October Preliminary Flight Volume
The Company also provided an update on preliminary October 2015 flight volume. Total community-based transports increased 12.3% to 5,840 during October 2015, compared with 5,199 in October 2014. October 2015 Same-Base Transports increased by 20 transports as compared with October 2014. Weather cancellations during October 2015 for these same bases increased by 193 compared with the prior-year month.
Third Quarter 2015 Conference Call
The Company will discuss these results in a conference call scheduled today at 4:30 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 54925007, for 3 days following the call and the web cast can be accessed at www.airmethods.com for 30 days. Concurrently, the Company will post a financial supplement that contains final operating statistics on its website, www.airmethods.com.
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 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 October 2015 operational results, including those related to (i) total community-based patient transports, (ii) same-base transports, and (iii) weather cancellations, and statements regarding potential share repurchases, 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 Company's completion of its final quarter-end closing and review procedures, 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) |
| (unaudited) |
| | | |
| | | |
| | September 30, 2015 | December 31, 2014 |
| | | |
| | | |
| ASSETS | | |
| | | |
| Current assets: | | |
| Cash and cash equivalents | $ 14,963 | 13,165 |
| Trade receivables, net | 359,768 | 293,985 |
| Other current assets | 92,562 | 92,691 |
| | | |
| Total current assets | 467,293 | 399,841 |
| | | |
| Net property and equipment | 768,598 | 721,981 |
| Other assets, net | 273,779 | 239,483 |
| | | |
| Total assets | $ 1,509,670 | 1,361,305 |
| | | |
| | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | |
| | | |
| Current liabilities: | | |
| Notes payable related to aircraft pending long-term financing | $ 11,112 | 11,442 |
| Current portion of indebtedness | 72,433 | 69,781 |
| Accounts payable, accrued expenses and other | 111,744 | 99,044 |
| | | |
| Total current liabilities | 195,289 | 180,267 |
| | | |
| Long-term indebtedness | 597,249 | 563,373 |
| Other non-current liabilities | 145,920 | 138,775 |
| | | |
| Total liabilities | 938,458 | 882,415 |
| | | |
| Redeemable non-controlling interests | 8,585 | 6,981 |
| | | |
| Total stockholders' equity | 562,627 | 471,909 |
| | | |
| Total liabilities and stockholders' equity | $ 1,509,670 | 1,361,305 |
| |
| AIR METHODS CORPORATION AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
| (Amounts in thousands, except share and per share amounts) |
| (unaudited) |
| | | | | |
| | | | | |
| | | | | |
| | Three Months Ended | Nine Months Ended |
| | September 30, | September 30, |
| | | | | |
| | 2015 | 2014 | 2015 | 2014 |
| | | | | |
| Revenue: | | | | |
| Patient transport revenue, net | $ 222,842 | 189,469 | 566,918 | 501,870 |
| Air medical services contract revenue | 40,329 | 44,278 | 119,743 | 134,829 |
| Tourism revenue | 36,212 | 33,941 | 98,877 | 89,709 |
| Product operations | 8,379 | 6,237 | 16,966 | 21,461 |
| Dispatch and billing service revenue | 3,580 | 2,992 | 10,739 | 7,754 |
| Total revenue | 311,342 | 276,917 | 813,243 | 755,623 |
| | | | | |
| Expenses: | | | | |
| Operating expenses | 168,830 | 160,061 | 485,663 | 452,153 |
| General and administrative | 39,351 | 35,602 | 108,698 | 102,734 |
| Depreciation and amortization | 20,884 | 19,972 | 62,082 | 60,467 |
| | 229,065 | 215,635 | 656,443 | 615,354 |
| | | | | |
| Operating income | 82,277 | 61,282 | 156,800 | 140,269 |
| | | | | |
| Interest expense | (4,893) | (5,342) | (15,041) | (16,439) |
| Other, net | (266) | 322 | 1,270 | 588 |
| | | | | |
| Income from continuing operations before income taxes | 77,118 | 56,262 | 143,029 | 124,418 |
| | | | | |
| Income tax expense | (30,235) | (21,891) | (55,864) | (48,668) |
| | | | | |
| Income from continuing operations | 46,883 | 34,371 | 87,165 | 75,750 |
| | | | | |
| Loss on discontinued operations, net of income taxes | (29) | (531) | (378) | (1,934) |
| | | | | |
| Net income | 46,854 | 33,840 | 86,787 | 73,816 |
| | | | | |
| Income attributable to redeemable non-controlling interests | 202 | 123 | 684 | 420 |
| | | | | |
| Net income attributable to Air Methods Corporation and subsidiaries | $ 46,652 | 33,717 | 86,103 | 73,396 |
| | | | | |
| Income per common share: | | | | |
| Basic | | | | |
| Continuing operations | $ 1.17 | 0.92 | 2.18 | 1.97 |
| Discontinued operations | -- | (0.01) | (0.01) | (0.05) |
| Diluted | | | | |
| Continuing operations | $ 1.16 | 0.91 | 2.17 | 1.96 |
| Discontinued operations | -- | (0.01) | (0.01) | (0.05) |
| | | | | |
| Weighted average common shares outstanding - basic | 39,293,453 | 39,168,873 | 39,276,062 | 39,146,609 |
| Weighted average common shares outstanding - diluted | 39,420,354 | 39,343,405 | 39,408,239 | 39,329,121 |
| |
| AIR METHODS CORPORATION AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (Amounts in thousands) |
| (unaudited) |
| | | |
| | Nine Months Ended |
| | September 30, |
| | | |
| | 2015 | 2014 |
| | | |
| Cash flows from operating activities: | | |
| Net income | $ 86,787 | 73,816 |
| Loss from discontinued operations, net of income taxes | 378 | 1,934 |
| Adjustments to reconcile net income to net cash provided by operating activities: | | |
| Depreciation and amortization | 62,082 | 60,467 |
| Deferred income tax expense | 6,397 | 17,998 |
| Stock-based compensation | 5,733 | 2,866 |
| Tax benefit from exercise of stock options | (184) | (1,779) |
| Loss on disposition of assets | 2,876 | 1,028 |
| Unrealized loss on derivative instrument | 369 | 70 |
| Loss from equity method investee | 1,193 | 738 |
| Changes in assets and liabilities, net of effects of acquisitions | (40,301) | (38,762) |
| | | |
| Net cash provided by continuing operating activities | 125,330 | 118,376 |
| Net cash used by discontinued operating activities | (100) | (1,843) |
| Net cash provided by operating activities | 125,230 | 116,533 |
| | | |
| Cash flows from investing activities: | | |
| Acquisition of subsidiaries | -- | (3,182) |
| Acquisition of property and equipment | (95,494) | (87,803) |
| Payments for hospital contract conversions | (43,481) | -- |
| Buy-out of previously leased aircraft | (9,519) | (17,296) |
| Proceeds from disposition of equipment | 3,642 | 12,378 |
| Decrease (increase) in other assets | (10,900) | (660) |
| | | |
| Net cash used by continuing investing activities | (155,752) | (96,563) |
| Net cash provided (used) by discontinued investing activities | 25 | 97 |
| Net cash used by investing activities | (155,727) | (96,466) |
| | | |
| Cash flows from financing activities: | | |
| Proceeds from issuance of common stock, net | 409 | 1,190 |
| Tax benefit from exercise of stock options | 184 | 1,779 |
| Net borrowings (payments) under line of credit | -- | (12,000) |
| Payments for financing costs | (4,472) | (81) |
| Proceeds from long-term debt | 105,525 | 54,503 |
| Payment of long-term debt and capital lease obligations | (69,351) | (58,586) |
| Proceeds from non-controlling interests | -- | 98 |
| | | |
| Net cash provided (used) by continuing financing activities | 32,295 | (13,097) |
| Net cash provided (used) by discontinued financing activities | -- | -- |
| Net cash provided (used) by financing activities | 32,295 | (13,097) |
| | | |
| Increase (decrease) in cash and cash equivalents | 1,798 | 6,970 |
| | | |
| Cash and cash equivalents at beginning of period | 13,165 | 9,862 |
| | | |
| Cash and cash equivalents at end of period | $ 14,963 | 16,832 |
| |
| AIR METHODS CORPORATION AND SUBSIDIARIES |
| RECONCILIATION OF NET INCOME TO EBITDA |
| (Amounts in thousands) |
| (unaudited) |
| | | | | |
| | | | | |
| | | | | |
| | Quarter Ended | Nine Months Ended |
| | September 30, | September 30, |
| | 2015 | 2014 | 2015 | 2014 |
| | | | | |
| Net income attributable to Air Methods Corporation and subsidiaries | $ 46,652 | 33,717 | $ 86,103 | 73,396 |
| Loss on discontinued operations, net of income taxes | (29) | (531) | (378) | (1,934) |
| Net income from continuing operations attributable to Air Methods Corporation and subsidiaries | 46,681 | 34,248 | 86,481 | 75,330 |
| | | | | |
| Interest expense * | 4,857 | 5,304 | 14,920 | 16,332 |
| Income tax expense * | 30,235 | 21,891 | 55,864 | 48,668 |
| Depreciation and amortization * | 20,783 | 19,893 | 61,800 | 60,220 |
| Loss on disposition of assets, net * | 2,607 | (186) | 2,876 | 1,027 |
| | | | | |
| EBITDA from continuing operations | $ 105,163 | 81,150 | $ 221,941 | 201,577 |
| | | | | |
| * Excludes amounts attributable to redeemable non-controlling interests | | | | |
CONTACT: Trent J. Carman, Chief Financial Officer, (303) 792-7591
