Air Methods (AIRM) 10-Q 7 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	AIR METHODS CORP
Entity Central Index Key	816,159
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		39,293,457
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 28,861	$ 13,165
Receivables:
Trade, net (note 4)	306,114	293,985
Refundable income taxes		8,865
Other	2,976	4,802
Total receivables	309,090	307,652
Inventories	46,186	46,095
Work-in-process on medical interiors and products contracts	3,327	4,610
Assets held for sale	11,265	8,608
Costs and estimated earnings in excess of billings on uncompleted contracts	1,510	564
Refundable deposits	10,016	8,381
Prepaid expenses and other (note 6)	8,373	10,766
Total current assets	418,628	399,841
Property and equipment:
Land	251	251
Flight and ground support equipment	757,270	697,444
Aircraft under capital leases	182,188	196,302
Aircraft rotable spare parts	36,796	38,050
Buildings and office equipment	61,565	57,983
Property and equipment, gross	1,038,070	990,030
Less accumulated depreciation and amortization	(286,536)	(268,049)
Net property and equipment	751,534	721,981
Goodwill (note 2)	127,269	127,269
Intangible assets, net of accumulated amortization of $21,811 and $19,282 at June 30, 2015 and December 31, 2014, respectively	114,639	83,654
Other assets	31,640	28,560
Total assets	1,443,710	1,361,305
Current liabilities:
Notes payable	16,314	11,442
Current installments of long-term debt	47,526	45,827
Current installments of obligations under capital leases	22,365	23,954
Accounts payable	21,985	17,393
Deferred revenue	4,710	4,409
Billings in excess of costs and estimated earnings on uncompleted contracts	2,310	1,313
Accrued wages and compensated absences	27,270	31,539
Due to third party payers	9,699	7,426
Deferred income taxes	16,536	21,427
Other accrued liabilities	33,041	15,537
Total current liabilities	201,756	180,267
Long-term debt, less current installments	496,440	466,839
Obligations under capital leases, less current installments	81,561	96,534
Deferred income taxes	129,889	122,715
Other liabilities	11,521	16,060
Total liabilities	921,167	882,415
Redeemable non-controlling interests	$ 7,582	$ 6,981
Stockholders' equity (note 3):
Preferred stock, $1 par value. Authorized 15,000,000 shares, none issued
Common stock, $.06 par value. Authorized 70,500,000 shares; issued 39,500,652 and 39,452,753 shares at June 30, 2015 and December 31, 2014, respectively; outstanding 39,278,291 and 39,228,948 shares at June 30, 2015 and December 31, 2014, respectively	$ 2,352	$ 2,349
Additional paid-in capital	124,560	120,391
Retained earnings	389,145	349,805
Accumulated other comprehensive loss	(1,096)	(636)
Total stockholders' equity	514,961	471,909
Total liabilities and stockholders' equity	$ 1,443,710	$ 1,361,305

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Assets
Intangible assets, accumulated amortization (in dollars)	$ 21,811	$ 19,282
Stockholders' equity (note 3):
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized	15,000,000	15,000,000
Preferred stock, shares issued
Common stock, par value (in dollars per share)	$ 0.06	$ 0.06
Common stock, shares authorized	70,500,000	70,500,000
Common stock, shares issued	39,500,652	39,452,753
Common stock, shares outstanding	39,278,291	39,228,948

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenue:
Patient transport revenue, net of provision for contractual discounts (note 4)	$ 355,607	$ 297,212	$ 646,643	$ 545,741
Provision for uncompensated care (note 4)	(173,347)	(126,673)	(302,567)	(233,340)
Patient transport revenue, net	182,260	170,539	344,076	312,401
Air medical services contract revenue	38,775	45,790	79,414	90,551
Tourism and charter revenue	34,444	31,430	62,665	55,768
Medical interiors and products revenue	4,450	7,404	8,587	15,224
Dispatch and billing service revenue	3,673	2,474	7,159	4,762
Total revenue	263,602	257,637	501,901	478,706
Operating expenses:
Flight centers	98,619	86,561	192,411	174,016
Aircraft operations (note 6)	31,229	31,720	68,569	63,246
Tourism operating expenses	23,092	19,476	42,943	35,476
Cost of medical interiors and products sold	3,529	6,538	6,730	13,217
Cost of dispatch and billing services	3,090	2,395	5,911	4,924
Depreciation and amortization	21,154	20,123	41,198	40,495
Loss on disposition of assets, net	531	806	269	1,213
General and administrative	33,622	35,807	69,347	67,132
Operating expense	214,866	203,426	427,378	399,719
Operating income	48,736	54,211	74,523	78,987
Other income (expense):
Interest expense	(5,163)	(5,569)	(10,148)	(11,097)
Other, net	1,172	292	1,536	266
Income from continuing operations before income taxes	44,745	48,934	65,911	68,156
Income tax expense	(17,339)	(19,132)	(25,629)	(26,777)
Income from continuing operations	27,406	29,802	40,282	41,379
Loss on discontinued operations, net of income taxes (note 2)	(340)	(878)	(349)	(1,403)
Net income	27,066	28,924	39,933	39,976
Less net income attributable to redeemable non-controlling interests	243	134	482	297
Net income attributable to Air Methods Corporation and subsidiaries	26,823	28,790	39,451	39,679
Other comprehensive income (loss), net of income taxes:
Foreign currency translation adjustments	(85)	111	(460)	46
Comprehensive income	$ 26,738	$ 28,901	$ 38,991	$ 39,725
Basic:
Continuing operations (in dollars per share)	$ 0.69	$ 0.75	$ 1.01	$ 1.05
Discontinued operations (in dollars per share)	(0.01)	(0.02)	(0.01)	(0.04)
Net income (in dollars per share)	0.68	0.73	1	1.01
Diluted:
Continuing operations (in dollars per share)	0.69	0.75	1.01	1.05
Discontinued operations (in dollars per share)	(0.01)	(0.02)	(0.01)	(0.04)
Net income (in dollars per share)	$ 0.68	$ 0.73	$ 1	$ 1.01
Weighted average number of common shares outstanding - basic (in shares)	39,272,325	39,151,012	39,267,222	39,135,292
Weighted average number of common shares outstanding - diluted (in shares)	39,405,889	39,318,480	39,400,193	39,314,872

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income	$ 39,933	$ 39,976
Loss from discontinued operations, net of income taxes	349	1,403
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	41,198	40,495
Deferred income tax expense	2,491	9,207
Stock-based compensation	3,604	1,513
Tax benefit from exercise of stock options	(160)	(1,010)
Loss on disposition of assets, net	269	1,213
Unrealized loss on derivative instrument	256	64
Loss from equity method investee	353	603
Changes in assets and liabilities, net of effects of acquisitions:
Decrease (increase) in prepaid expenses and other current assets	502	(399)
Increase in receivables	(1,605)	(32,492)
Decrease in inventories	1,192	2,162
Decrease (increase) in costs in excess of billings	(946)	1,375
Increase in accounts payable, other accrued liabilities, and other liabilities	19,492	11,881
Increase (decrease) in deferred revenue and billings in excess of costs	1,298	(1,398)
Net cash provided by continuing operating activities	108,226	74,593
Net cash used by discontinued operating activities	(47)	(1,198)
Net cash provided by operating activities	108,179	73,395
Cash flows from investing activities:
Acquisition of subsidiaries		(3,182)
Acquisition of property and equipment	(48,355)	(65,752)
Acquisition of hospital program	(43,481)
Buy-out of previously leased aircraft	(7,569)	(17,296)
Proceeds from disposition and sale of equipment and assets held for sale	2,664	9,156
Decrease (increase) in other assets	(10,741)	447
Net cash used by continuing investing activities	(107,482)	(76,627)
Net cash provided (used) by discontinued investing activities	25	(157)
Net cash used in investing activities	(107,457)	(76,784)
Cash flows from financing activities:
Proceeds from issuance of common stock, net	408	479
Tax benefit from exercise of stock options	160	1,010
Borrowings under line of credit	35,000	23,000
Payments under line of credit	(35,000)	(22,000)
Payments for financing costs	(54)	(75)
Proceeds from long-term debt	55,321	34,429
Payments of long-term debt	(24,021)	(18,803)
Payments of capital lease obligations	(16,840)	(21,694)
Proceeds from non-controlling interests		98
Net cash provided (used) by continuing financing activities	$ 14,974	$ (3,556)
Net cash provided (used) by discontinued financing activities
Net cash provided (used) by financing activities	$ 14,974	$ (3,556)
Increase (decrease) in cash and cash equivalents	15,696	(6,945)
Cash and cash equivalents at beginning of period	13,165	9,862
Cash and cash equivalents at end of period	28,861	2,917
Interest paid in cash during the period	9,799	10,695
Income taxes paid in cash during the period	$ 3,129	$ 268

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (Parentheticals) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Non-cash investing and financing activities:
Entered into notes payable to finance the purchase of aircraft	$ 16,314	$ 5,738
Entered into capital leases to finance the purchase of equipment	278	548
Settlement of notes payable in exchange for the aircraft securing the debt	$ 11,442	$ 2,616

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2015
Basis of Presentation [Abstract]
Basis of Presentation	(1) Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and instructions to Form 10-Q and Regulation S-X. Accordingly, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the condensed consolidated financial statements for the respective periods. Interim results are not necessarily indicative of results for a full year. The condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2014. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The Company considers its critical accounting policies involving more significant judgments and estimates to be those related to revenue recognition, deferred income taxes, valuation of long-lived assets, and fair values of assets acquired and liabilities assumed in business combinations. Actual results could differ from those estimates.

Discontinued Operations

Discontinued Operations	6 Months Ended
	Jun. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	(2) Discontinued Operations In July 2013, the Company acquired all of the outstanding common stock of American Jets, Inc., and all of the assets of an affiliated entity (collectively, AJI) for a purchase price of approximately $1.7 million. AJI provided long-range fixed wing medical transportation services based out of Florida. Because of operating losses generated in both 2014 and 2013, the Company made the decision during the fourth quarter of 2014 to discontinue all operations conducted by AJI, and all operations ceased in December 2014. Aircraft totaling $1.3 million used in AJI’s operations are included in assets held for sale in the consolidated balance sheet as of June 30, 2015. Goodwill of $1.5 million associated with AJI was written off during the fourth quarter of 2014. All other assets and liabilities associated with AJI are immaterial and will be retained by the Company. Results of operations for all periods have been reclassified to reflect discontinued operations presentation. Except where otherwise noted, all disclosures in footnotes to the consolidated financial statements represent the results of continuing operations. The results of discontinued operations included in the consolidated statements of comprehensive income were as follows (amounts in thousands): For quarters ended June 30, For six months ended June 30, 2015 2014 2015 2014 Patient transport revenue, net $ -- 834 -- 2,901 Operating expenses: Depreciation and amortization -- 150 -- 294 Loss on disposition of assets 561 -- 546 -- Other operating expenses 6 2,123 35 4,906 Loss from discontinued operations before income taxes (567 ) (1,439 ) (581 ) (2,299 ) Income tax benefit 227 561 232 896 Loss from discontinued operations $ (340 ) $ (878 ) $ (349 ) (1,403 )

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2015
Stockholders' Equity [Abstract]
Stockholders' Equity	(3) Stockholders’ Equity Changes in stockholders’ equity for the six months ended June 30, 2015, consisted of the following (amounts in thousands except share amounts): Shares Outstanding Amount Balances at January 1, 2015 39,228,948 $ 471,909 Issuance of common shares for options exercised 33,840 408 Stock-based compensation 15,503 3,604 Tax benefit from exercise of stock options -- 160 Forfeiture of unvested restricted shares and related dividends -- 7 Adjustments to redeemable non-controlling interests -- (118 ) Other comprehensive loss -- (460 ) Net income -- 39,451 Balances at June 30, 2015 39,278,291 $ 514,961

Patient Transport Revenue Recog

Patient Transport Revenue Recognition	6 Months Ended
	Jun. 30, 2015
Patient Transport Revenue Recognition [Abstract]
Patient Transport Revenue Recognition	(4) Patient Transport Revenue Recognition Trade receivables are presented net of allowances for contractual discounts and uncompensated care. The Company determines its allowances for contractual discounts and uncompensated care based on estimated payer mix, payer reimbursement schedules, and historical collection experience. The allowances are reviewed monthly and adjusted periodically based on actual collections. Billings are charged off against the uncompensated care allowance when it is probable that the receivable will not be recovered. The allowance for contractual discounts is related primarily to Medicare and Medicaid patients. The allowance for uncompensated care is related primarily to receivables recorded for self-pay patients. The Company has not changed its charitable care policies related to self-pay patients or deductible and copayment balances for insured patients during either 2015 or 2014. The allowance for uncompensated care was 45.4% of receivables from all payers, excluding Medicare and Medicaid, as of June 30, 2015, compared to 38.8% at December 31, 2014, and 39.5% at June 30, 2014. The increase in the allowance reflects a decrease in collections as a percentage of gross charges from third-party payers in 2015 compared to 2014. The Company recognizes patient transport revenue at its standard rates for services provided, regardless of expected payer. In the period that services are provided and based upon historical experience, the Company records a significant provision for uncompensated care related to uninsured patients who will be unable or unwilling to pay for the services provided and a provision for contractual discounts related to Medicare and Medicaid transports. Patient transport revenue, net of provision for contractual discounts but before provision for uncompensated care, by major payer class, was as follows (amounts in thousands): For quarter ended June 30, For six months ended June 30, 2015 2014 2015 2014 Third-party payers $ 287,343 232,953 510,889 409,819 Self-pay 68,264 64,259 135,754 135,922 Total $ 355,607 297,212 646,643 545,741

Income per Share

Income per Share	6 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Income per Share	(5) Income per Share Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by all common shares outstanding during the period and dilutive potential common shares. In accordance with FASB ASC 480-10-S99, Distinguishing Liabilities from Equity, and solely for the purpose of calculating earnings per share, net income was decreased by $51,000 and $118,000 for the quarter and six months ended June 30, 2015, respectively, for an adjustment to the value of redeemable non-controlling interests. In the quarter and six months ended June 30, 2014, net income was decreased by $38,000 and increased by $12,000, respectively, for an adjustment to the value of redeemable non-controlling interests. The reconciliation of basic to diluted weighted average common shares outstanding is as follows: 2015 2014 For quarter ended June 30: Weighted average number of common shares outstanding – basic 39,272,325 39,151,012 Dilutive effect of: Common stock options 35,491 100,970 Unvested restricted stock 98,073 66,498 Weighted average number of common shares outstanding – diluted 39,405,889 39,318,480 For six months ended June 30: Weighted average number of common shares outstanding – basic 39,267,222 39,135,292 Dilutive effect of: Common stock options 39,226 113,711 Unvested restricted stock 93,745 65,869 Weighted average number of common shares outstanding – diluted 39,400,193 39,314,872 Common stock options totaling 584,832 and 574,832 were not included in the diluted shares outstanding for the quarter and six months ended June 30, 2015, respectively, because their effect would have been anti-dilutive. Common stock options totaling 47,500 were not included in the diluted shares outstanding for the quarter and six months ended June 30, 2014, because their effect would have been anti-dilutive.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2015
Fair Value of Financial Instruments [Abstract]
Fair Value of Financial Instruments	(6) Fair Value of Financial Instruments ASC Topic 820, “ Fair Value Measurements and Disclosures,” Level 1: quoted prices in active markets for identical assets or liabilities; Level 2: quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability; or The following methods and assumptions were used to estimate the fair value of each class of financial instruments: Cash and cash equivalents, accounts receivable, notes receivable, notes payable, accounts payable, and accrued liabilities: The carrying amounts approximate fair value because of the short maturity of these instruments. Derivative instruments: The Company endeavors to acquire jet fuel at the lowest possible cost and to reduce volatility in operating expenses through the use of short-term purchased call options. Financial derivative instruments covering fuel purchases are included in prepaid expenses and other current assets at fair value. Fair value is determined based on quoted prices in active markets for similar instruments and is classified as Level 2 in the fair value hierarchy. The fair value of all fuel derivative instruments included in prepaid expenses and other current assets was $112,000 at June 30, 2015 and $0 at December 31, 2014. The Company’s financial derivatives do not qualify for hedge accounting, and, therefore, realized and non-cash mark to market adjustments are included in aircraft operations expense in the Company’s statements of comprehensive income. Aircraft operations expense included non-cash mark to market derivative losses of $108,000 and $256,000 for the quarter and six months ended June 30, 2015, respectively, compared to non-cash mark to market losses of $11,000 and $64,000 for the quarter and six months ended June 30, 2014, respectively. There were no cash settlements under the terms of the agreements in 2015 or 2014. Long-term debt: The fair value of long-term debt is classified as Level 3 in the fair value hierarchy because it is determined based on the present value of future contractual cash flows discounted at an interest rate that reflects the risks inherent in those cash flows. Based on the borrowing rates currently available to the Company for loans with similar terms and average maturities and on recent transactions, the fair value of long-term debt as of June 30, 2015, is estimated to be $539,539,000, compared to carrying value of $543,966,000. The fair value of long-term debt as of December 31, 2014, was estimated to be $510,353,000, compared to a carrying value of $512,666,000.

Business Segment Information

Business Segment Information	6 Months Ended
	Jun. 30, 2015
Business Segment Information [Abstract]
Business Segment Information	(7) Business Segment Information Summarized financial information for the Company’s operating segments is shown in the following table (amounts in thousands). Amounts in the “Corporate Activities” column represent corporate headquarters expenses, corporate income tax expense, and results of insignificant operations. The Company does not allocate assets between all operating segments for internal reporting and performance evaluation purposes. Operating segments and their principal products or services are as follows: · Air Medical Services (AMS) - provides air medical transportation services to the general population as an independent service and to hospitals or other institutions under exclusive operating agreements. Services include aircraft operation and maintenance, medical care, dispatch and communications, and medical billing and collection. · Tourism – provides helicopter tours and charter flights, primarily focusing on Grand Canyon and Hawaiian Island tours. · United Rotorcraft (UR) Division - designs, manufactures, and installs aircraft medical interiors and other aerospace and medical transport products for domestic and international customers. For quarter ended June 30: AMS Tourism UR Corporate Intersegment Consolidated 2015 External revenue $ 224,708 34,444 4,449 1 -- 263,602 Intersegment revenue -- -- 4,753 -- (4,753 ) -- Total revenue 224,708 34,444 9,202 1 (4,753 ) 263,602 Operating expenses, excluding depreciation & amortization (152,269 ) (27,421 ) (8,418 ) (10,177 ) 4,573 (193,712 ) Depreciation & amortization (17,682 ) (1,962 ) (907 ) (603 ) -- (21,154 ) Interest expense (3,750 ) (874 ) -- (541 ) 2 (5,163 ) Other income, net 1,254 2 -- (82 ) (2 ) 1,172 Income tax expense -- -- -- (17,339 ) -- (17,339 ) Income (loss) from continuing operations 52,261 4,189 (123 ) (28,741 ) (180 ) 27,406 Loss on discontinued operations, net of tax (340 ) -- -- -- -- (340 ) Segment net income (loss) 51,921 4,189 (123 ) (28,741 ) (180 ) 27,066 Less net income (loss) attributable to non-controlling interests (22 ) 265 -- -- -- 243 Net income (loss) attributable to Air Methods Corporation and subsidiaries $ 51,943 3,924 (123 ) (28,741 ) (180 ) 26,823 2014 External revenue $ 218,777 31,430 7,430 -- -- 257,637 Intersegment revenue -- -- 3,991 -- (3,991 ) -- Total revenue 218,777 31,430 11,421 -- (3,991 ) 257,637 Operating expenses, excluding depreciation & amortization (142,293 ) (24,184 ) (10,457 ) (9,995 ) 3,626 (183,303 ) Depreciation & amortization (17,352 ) (1,656 ) (597 ) (518 ) -- (20,123 ) Interest expense (4,061 ) (731 ) -- (777 ) -- (5,569 ) Other income, net 426 3 -- (137 ) -- 292 Income tax expense -- -- -- (19,132 ) -- (19,132 ) Income (loss) from continuing operations 55,497 4,862 367 (30,559 ) (365 ) 29,802 Loss on discontinued operations, net of tax (878 ) -- -- -- -- (878 ) Segment net income (loss) 54,619 4,862 367 (30,559 ) (365 ) 28,924 Less net income (loss) attributable to non-controlling interests (38 ) 172 -- -- -- 134 Net income (loss) attributable to Air Methods Corporation and subsidiaries $ 54,657 4,690 367 (30,559 ) (365 ) 28,790 For six months ended June 30: AMS Tourism UR Corporate Intersegment Consolidated 2015 External revenue $ 430,649 62,665 8,583 4 -- 501,901 Intersegment revenue -- -- 13,120 -- (13,120 ) -- Total revenue 430,649 62,665 21,703 4 (13,120 ) 501,901 Operating expenses, excluding depreciation & amortization (306,293 ) (51,936 ) (19,134 ) (20,991 ) 12,174 (386,180 ) Depreciation & amortization (34,614 ) (3,789 ) (1,656 ) (1,139 ) -- (41,198 ) Interest expense (7,422 ) (1,656 ) -- (1,074 ) 4 (10,148 ) Other income, net 1,815 3 -- (278 ) (4 ) 1,536 Income tax expense -- -- -- (25,629 ) -- (25,629 ) Income (loss) from continuing operations 84,135 5,287 913 (49,107 ) (946 ) 40,282 Loss on discontinued operations, net of tax (349 ) -- -- -- -- (349 ) Segment net income (loss) 83,786 5,287 913 (49,107 ) (946 ) 39,933 Less net income (loss) attributable to non-controlling interests (60 ) 542 -- -- -- 482 Net income (loss) attributable to Air Methods Corporation and subsidiaries $ 83,846 4,745 913 (49,107 ) (946 ) 39,451 2014 External revenue $ 407,688 55,768 15,250 -- -- 478,706 Intersegment revenue -- -- 7,058 -- (7,058 ) -- Total revenue 407,688 55,768 22,308 -- (7,058 ) 478,706 Operating expenses, excluding depreciation & amortization (281,758 ) (44,195 ) (19,967 ) (19,506 ) 6,202 (359,224 ) Depreciation & amortization (35,120 ) (3,220 ) (1,135 ) (1,020 ) -- (40,495 ) Interest expense (8,256 ) (1,353 ) -- (1,488 ) -- (11,097 ) Other income, net 813 3 -- (550 ) -- 266 Income tax expense -- -- -- (26,777 ) -- (26,777 ) Income (loss) from continuing operations 83,367 7,003 1,206 (49,341 ) (856 ) 41,379 Loss on discontinued operations, net of tax (1,403 ) -- -- -- -- (1,403 ) Segment net income (loss) 81,964 7,003 1,206 (49,341 ) (856 ) 39,976 Less net income (loss) attributable to non-controlling interests (86 ) 383 -- -- -- 297 Net income (loss) attributable to Air Methods Corporation and subsidiaries $ 82,050 6,620 1,206 (49,341 ) (856 ) 39,679

New Accounting Pronouncements

New Accounting Pronouncements	6 Months Ended
	Jun. 30, 2015
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements	(8) New Accounting Pronouncements In April 2015, the FASB issued ASU No. 2015-03, Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers

Discontinued Operations (Tables

Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]
Schedule of discontinued operations included in consolidated statements of comprehensive income	For quarters ended June 30, For six months ended June 30, 2015 2014 2015 2014 Patient transport revenue, net $ -- 834 -- 2,901 Operating expenses: Depreciation and amortization -- 150 -- 294 Loss on disposition of assets 561 -- 546 -- Other operating expenses 6 2,123 35 4,906 Loss from discontinued operations before income taxes (567 ) (1,439 ) (581 ) (2,299 ) Income tax benefit 227 561 232 896 Loss from discontinued operations $ (340 ) $ (878 ) $ (349 ) (1,403 )

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2015
Stockholders' Equity [Abstract]
Schedule of changes in stockholders' equity	Shares Outstanding Amount Balances at January 1, 2015 39,228,948 $ 471,909 Issuance of common shares for options exercised 33,840 408 Stock-based compensation 15,503 3,604 Tax benefit from exercise of stock options -- 160 Forfeiture of unvested restricted shares and related dividends -- 7 Adjustments to redeemable non-controlling interests -- (118 ) Other comprehensive loss -- (460 ) Net income -- 39,451 Balances at June 30, 2015 39,278,291 $ 514,961

Patient Transport Revenue Rec17

Patient Transport Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2015
Patient Transport Revenue Recognition [Abstract]
Schedule of patient transport revenue, net of provision for contractual discounts, before provision for uncompensated care, by major payer class	For quarter ended June 30, For six months ended June 30, 2015 2014 2015 2014 Third-party payers $ 287,343 232,953 510,889 409,819 Self-pay 68,264 64,259 135,754 135,922 Total $ 355,607 297,212 646,643 545,741

Income per Share (Tables)

Income per Share (Tables)	6 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Schedule of reconciliation of basic to diluted weighted average common shares outstanding	2015 2014 For quarter ended June 30: Weighted average number of common shares outstanding – basic 39,272,325 39,151,012 Dilutive effect of: Common stock options 35,491 100,970 Unvested restricted stock 98,073 66,498 Weighted average number of common shares outstanding – diluted 39,405,889 39,318,480 For six months ended June 30: Weighted average number of common shares outstanding – basic 39,267,222 39,135,292 Dilutive effect of: Common stock options 39,226 113,711 Unvested restricted stock 93,745 65,869 Weighted average number of common shares outstanding – diluted 39,400,193 39,314,872

Business Segment Information (T

Business Segment Information (Tables)	6 Months Ended
	Jun. 30, 2015
Business Segment Information [Abstract]
Schedule of summarized financial information for operating segments	For quarter ended June 30: AMS Tourism UR Corporate Intersegment Consolidated 2015 External revenue $ 224,708 34,444 4,449 1 -- 263,602 Intersegment revenue -- -- 4,753 -- (4,753 ) -- Total revenue 224,708 34,444 9,202 1 (4,753 ) 263,602 Operating expenses, excluding depreciation & amortization (152,269 ) (27,421 ) (8,418 ) (10,177 ) 4,573 (193,712 ) Depreciation & amortization (17,682 ) (1,962 ) (907 ) (603 ) -- (21,154 ) Interest expense (3,750 ) (874 ) -- (541 ) 2 (5,163 ) Other income, net 1,254 2 -- (82 ) (2 ) 1,172 Income tax expense -- -- -- (17,339 ) -- (17,339 ) Income (loss) from continuing operations 52,261 4,189 (123 ) (28,741 ) (180 ) 27,406 Loss on discontinued operations, net of tax (340 ) -- -- -- -- (340 ) Segment net income (loss) 51,921 4,189 (123 ) (28,741 ) (180 ) 27,066 Less net income (loss) attributable to non-controlling interests (22 ) 265 -- -- -- 243 Net income (loss) attributable to Air Methods Corporation and subsidiaries $ 51,943 3,924 (123 ) (28,741 ) (180 ) 26,823 2014 External revenue $ 218,777 31,430 7,430 -- -- 257,637 Intersegment revenue -- -- 3,991 -- (3,991 ) -- Total revenue 218,777 31,430 11,421 -- (3,991 ) 257,637 Operating expenses, excluding depreciation & amortization (142,293 ) (24,184 ) (10,457 ) (9,995 ) 3,626 (183,303 ) Depreciation & amortization (17,352 ) (1,656 ) (597 ) (518 ) -- (20,123 ) Interest expense (4,061 ) (731 ) -- (777 ) -- (5,569 ) Other income, net 426 3 -- (137 ) -- 292 Income tax expense -- -- -- (19,132 ) -- (19,132 ) Income (loss) from continuing operations 55,497 4,862 367 (30,559 ) (365 ) 29,802 Loss on discontinued operations, net of tax (878 ) -- -- -- -- (878 ) Segment net income (loss) 54,619 4,862 367 (30,559 ) (365 ) 28,924 Less net income (loss) attributable to non-controlling interests (38 ) 172 -- -- -- 134 Net income (loss) attributable to Air Methods Corporation and subsidiaries $ 54,657 4,690 367 (30,559 ) (365 ) 28,790 For six months ended June 30: AMS Tourism UR Corporate Intersegment Consolidated 2015 External revenue $ 430,649 62,665 8,583 4 -- 501,901 Intersegment revenue -- -- 13,120 -- (13,120 ) -- Total revenue 430,649 62,665 21,703 4 (13,120 ) 501,901 Operating expenses, excluding depreciation & amortization (306,293 ) (51,936 ) (19,134 ) (20,991 ) 12,174 (386,180 ) Depreciation & amortization (34,614 ) (3,789 ) (1,656 ) (1,139 ) -- (41,198 ) Interest expense (7,422 ) (1,656 ) -- (1,074 ) 4 (10,148 ) Other income, net 1,815 3 -- (278 ) (4 ) 1,536 Income tax expense -- -- -- (25,629 ) -- (25,629 ) Income (loss) from continuing operations 84,135 5,287 913 (49,107 ) (946 ) 40,282 Loss on discontinued operations, net of tax (349 ) -- -- -- -- (349 ) Segment net income (loss) 83,786 5,287 913 (49,107 ) (946 ) 39,933 Less net income (loss) attributable to non-controlling interests (60 ) 542 -- -- -- 482 Net income (loss) attributable to Air Methods Corporation and subsidiaries $ 83,846 4,745 913 (49,107 ) (946 ) 39,451 2014 External revenue $ 407,688 55,768 15,250 -- -- 478,706 Intersegment revenue -- -- 7,058 -- (7,058 ) -- Total revenue 407,688 55,768 22,308 -- (7,058 ) 478,706 Operating expenses, excluding depreciation & amortization (281,758 ) (44,195 ) (19,967 ) (19,506 ) 6,202 (359,224 ) Depreciation & amortization (35,120 ) (3,220 ) (1,135 ) (1,020 ) -- (40,495 ) Interest expense (8,256 ) (1,353 ) -- (1,488 ) -- (11,097 ) Other income, net 813 3 -- (550 ) -- 266 Income tax expense -- -- -- (26,777 ) -- (26,777 ) Income (loss) from continuing operations 83,367 7,003 1,206 (49,341 ) (856 ) 41,379 Loss on discontinued operations, net of tax (1,403 ) -- -- -- -- (1,403 ) Segment net income (loss) 81,964 7,003 1,206 (49,341 ) (856 ) 39,976 Less net income (loss) attributable to non-controlling interests (86 ) 383 -- -- -- 297 Net income (loss) attributable to Air Methods Corporation and subsidiaries $ 82,050 6,620 1,206 (49,341 ) (856 ) 39,679

Discontinued Operations (Detail

Discontinued Operations (Details) - American Jets, Inc - USD ($) $ in Thousands	1 Months Ended	3 Months Ended			6 Months Ended
	Jul. 31, 2013	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Patient transport revenue, net				$ 834		$ 2,901
Operating expenses:
Depreciation and amortization				150		294
Loss on disposition of assets		$ 561			$ 546
Other operating expenses		6		2,123	35	4,906
Loss from discontinued operations before income taxes		(567)		(1,439)	(581)	(2,299)
Income tax benefit		227		561	232	896
Loss from discontinued operations		(340)		$ (878)	(349)	$ (1,403)
Purchase price	$ 1,700
Assets held for sale		$ 1,300			$ 1,300
Goodwill written off			$ 1,500

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balances at January 1, 2015			$ 471,909
Balances at January 1, 2015 (in shares)			39,228,948
Issuance of common shares for options exercised			$ 408
Issuance of common shares for options exercised (in shares)			33,840
Stock-based compensation			$ 3,604	$ 1,513
Stock-based compensation (in shares)			15,503
Tax benefit from exercise of stock options			$ 160
Forfeiture of unvested restricted shares and related dividends			7
Adjustments to redeemable non-controlling interests	$ (51)	$ (38)	(118)	12
Other comprehensive loss			(460)
Net income	26,823	$ 28,790	39,451	$ 39,679
Balances at June 30, 2015	$ 514,961		$ 514,961
Balances at June 30, 2015 (in shares)	39,278,291		39,278,291

Patient Transport Revenue Rec22

Patient Transport Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Revenue from External Customer [Line Items]
Allowance for uncompensated care as a percentage of receivables from all payers, excluding Medicare and Medicaid (in hundredths)	45.40%	39.50%	45.40%	39.50%	38.80%
Patient transport revenue, net of provision for contractual discounts	$ 355,607	$ 297,212	$ 646,643	$ 545,741
Third-party payers
Revenue from External Customer [Line Items]
Patient transport revenue, net of provision for contractual discounts	287,343	232,953	510,889	409,819
Self-pay
Revenue from External Customer [Line Items]
Patient transport revenue, net of provision for contractual discounts	$ 68,264	$ 64,259	$ 135,754	$ 135,922

Income per Share (Details)

Income per Share (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Earnings Per Share [Abstract]
Increase (decrease) in net income due to adjustments to redeemable non-controlling interest	$ (51)	$ (38)	$ (118)	$ 12
Reconciliation of basic to diluted weighted average common shares outstanding
Weighted average number of common shares outstanding - basic (in shares)	39,272,325	39,151,012	39,267,222	39,135,292
Dilutive effect of:
Common stock options (in shares)	35,491	100,970	39,226	113,711
Unvested restricted stock (in shares)	98,073	66,498	93,745	65,869
Weighted average number of common shares outstanding - diluted (in shares)	39,405,889	39,318,480	39,400,193	39,314,872
Common stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted income per share (in shares)	584,832	47,500	574,832	47,500

Fair Value of Financial Instr24

Fair Value of Financial Instruments (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Non-cash mark to market derivative losses			$ (256,000)	$ (64,000)
Estimate of Fair Value
Fair value of financial instruments [Abstract]
Long-term debt, fair value disclosure	$ 539,539,000		539,539,000		$ 510,353,000
Carrying Amount
Fair value of financial instruments [Abstract]
Long-term debt, fair value disclosure	543,966,000		543,966,000		512,666,000
Aircraft operations expense
Derivative Instruments, Gain (Loss) [Line Items]
Non-cash mark to market derivative losses	(108,000)	$ (11,000)	(256,000)	$ (64,000)
Fuel derivative contracts | Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
Fair value of fuel derivative contracts	$ 112,000		$ 112,000		$ 0

Business Segment Information (D

Business Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Segment Reporting Information [Line Items]
Total revenue	$ 263,602	$ 257,637	$ 501,901	$ 478,706
Operating expenses, excluding depreciation & amortization	(193,712)	(183,303)	(386,180)	(359,224)
Depreciation & amortization	(21,154)	(20,123)	(41,198)	(40,495)
Interest expense	(5,163)	(5,569)	(10,148)	(11,097)
Other income, net	1,172	292	1,536	266
Income tax expense	(17,339)	(19,132)	(25,629)	(26,777)
Income (loss) from continuing operations	27,406	29,802	40,282	41,379
Loss on discontinued operations, net of tax	(340)	(878)	(349)	(1,403)
Segment net income (loss)	27,066	28,924	39,933	39,976
Less net income (loss) attributable to non-controlling interests	243	134	482	297
Net income (loss) attributable to Air Methods Corporation and subsidiaries	26,823	28,790	39,451	39,679
External revenue
Segment Reporting Information [Line Items]
Total revenue	$ 263,602	$ 257,637	$ 501,901	$ 478,706
Intersegment revenue
Segment Reporting Information [Line Items]
Total revenue
Operating Segments | AMS
Segment Reporting Information [Line Items]
Total revenue	$ 224,708	$ 218,777	$ 430,649	$ 407,688
Operating expenses, excluding depreciation & amortization	(152,269)	(142,293)	(306,293)	(281,758)
Depreciation & amortization	(17,682)	(17,352)	(34,614)	(35,120)
Interest expense	(3,750)	(4,061)	(7,422)	(8,256)
Other income, net	$ 1,254	$ 426	$ 1,815	$ 813
Income tax expense
Income (loss) from continuing operations	$ 52,261	$ 55,497	$ 84,135	$ 83,367
Loss on discontinued operations, net of tax	(340)	(878)	(349)	(1,403)
Segment net income (loss)	51,921	54,619	83,786	81,964
Less net income (loss) attributable to non-controlling interests	(22)	(38)	(60)	(86)
Net income (loss) attributable to Air Methods Corporation and subsidiaries	51,943	54,657	83,846	82,050
Operating Segments | AMS | External revenue
Segment Reporting Information [Line Items]
Total revenue	$ 224,708	$ 218,777	$ 430,649	$ 407,688
Operating Segments | AMS | Intersegment revenue
Segment Reporting Information [Line Items]
Total revenue
Operating Segments | Tourism
Segment Reporting Information [Line Items]
Total revenue	$ 34,444	$ 31,430	$ 62,665	$ 55,768
Operating expenses, excluding depreciation & amortization	(27,421)	(24,184)	(51,936)	(44,195)
Depreciation & amortization	(1,962)	(1,656)	(3,789)	(3,220)
Interest expense	(874)	(731)	(1,656)	(1,353)
Other income, net	$ 2	$ 3	$ 3	$ 3
Income tax expense
Income (loss) from continuing operations	$ 4,189	$ 4,862	$ 5,287	$ 7,003
Loss on discontinued operations, net of tax
Segment net income (loss)	$ 4,189	$ 4,862	$ 5,287	$ 7,003
Less net income (loss) attributable to non-controlling interests	265	172	542	383
Net income (loss) attributable to Air Methods Corporation and subsidiaries	3,924	4,690	4,745	6,620
Operating Segments | Tourism | External revenue
Segment Reporting Information [Line Items]
Total revenue	$ 34,444	$ 31,430	$ 62,665	$ 55,768
Operating Segments | Tourism | Intersegment revenue
Segment Reporting Information [Line Items]
Total revenue
Operating Segments | UR
Segment Reporting Information [Line Items]
Total revenue	$ 9,202	$ 11,421	$ 21,703	$ 22,308
Operating expenses, excluding depreciation & amortization	(8,418)	(10,457)	(19,134)	(19,967)
Depreciation & amortization	$ (907)	$ (597)	$ (1,656)	$ (1,135)
Interest expense
Other income, net
Income tax expense
Income (loss) from continuing operations	$ (123)	$ 367	$ 913	$ 1,206
Loss on discontinued operations, net of tax
Segment net income (loss)	$ (123)	$ 367	$ 913	$ 1,206
Less net income (loss) attributable to non-controlling interests
Net income (loss) attributable to Air Methods Corporation and subsidiaries	$ (123)	$ 367	$ 913	$ 1,206
Operating Segments | UR | External revenue
Segment Reporting Information [Line Items]
Total revenue	4,449	7,430	8,583	15,250
Operating Segments | UR | Intersegment revenue
Segment Reporting Information [Line Items]
Total revenue	4,753	$ 3,991	13,120	$ 7,058
Corporate Activities
Segment Reporting Information [Line Items]
Total revenue	1		4
Operating expenses, excluding depreciation & amortization	(10,177)	$ (9,995)	(20,991)	$ (19,506)
Depreciation & amortization	(603)	(518)	(1,139)	(1,020)
Interest expense	(541)	(777)	(1,074)	(1,488)
Other income, net	(82)	(137)	(278)	(550)
Income tax expense	(17,339)	(19,132)	(25,629)	(26,777)
Income (loss) from continuing operations	$ (28,741)	$ (30,559)	$ (49,107)	$ (49,341)
Loss on discontinued operations, net of tax
Segment net income (loss)	$ (28,741)	$ (30,559)	$ (49,107)	$ (49,341)
Less net income (loss) attributable to non-controlling interests
Net income (loss) attributable to Air Methods Corporation and subsidiaries	$ (28,741)	$ (30,559)	$ (49,107)	$ (49,341)
Corporate Activities | External revenue
Segment Reporting Information [Line Items]
Total revenue	$ 1		$ 4
Corporate Activities | Intersegment revenue
Segment Reporting Information [Line Items]
Total revenue
Intersegment Eliminations
Segment Reporting Information [Line Items]
Total revenue	$ (4,753)	$ (3,991)	$ (13,120)	$ (7,058)
Operating expenses, excluding depreciation & amortization	$ 4,573	$ 3,626	$ 12,174	$ 6,202
Depreciation & amortization
Interest expense	$ 2		$ 4
Other income, net	$ (2)		$ (4)
Income tax expense
Income (loss) from continuing operations	$ (180)	$ (365)	$ (946)	$ (856)
Loss on discontinued operations, net of tax
Segment net income (loss)	$ (180)	$ (365)	$ (946)	$ (856)
Less net income (loss) attributable to non-controlling interests
Net income (loss) attributable to Air Methods Corporation and subsidiaries	$ (180)	$ (365)	$ (946)	$ (856)
Intersegment Eliminations | External revenue
Segment Reporting Information [Line Items]
Total revenue
Intersegment Eliminations | Intersegment revenue
Segment Reporting Information [Line Items]
Total revenue	$ (4,753)	$ (3,991)	$ (13,120)	$ (7,058)