Air Methods (AIRM) 10-Q 6 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 30, 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		39,302,674
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 14,963	$ 13,165
Receivables:
Trade, net (note 4)	$ 359,768	293,985
Refundable income taxes		8,865
Other	$ 3,481	4,802
Total receivables	363,249	307,652
Inventories	47,752	46,095
Work-in-process on medical interiors and products contracts	3,750	4,610
Assets held for sale	16,690	8,608
Costs and estimated earnings in excess of billings on uncompleted contracts	2,752	564
Refundable deposits	10,003	8,381
Prepaid expenses and other (note 6)	8,134	10,766
Total current assets	467,293	399,841
Property and equipment:
Land	251	251
Flight and ground support equipment	790,447	697,444
Aircraft under capital leases	180,949	196,302
Aircraft rotable spare parts	36,668	38,050
Buildings and office equipment	61,983	57,983
Property and equipment, gross	1,070,298	990,030
Less accumulated depreciation and amortization	(301,700)	(268,049)
Net property and equipment	768,598	721,981
Goodwill (note 2)	127,269	127,269
Intangible assets, net of accumulated amortization of $25,221 and $19,282 at September 30, 2015 and December 31, 2014, respectively	112,591	83,654
Other assets	33,919	28,560
Total assets	1,509,670	1,361,305
Current liabilities:
Notes payable	11,112	11,442
Current installments of long-term debt	50,268	45,827
Current installments of obligations under capital leases	22,165	23,954
Accounts payable	19,674	17,393
Deferred revenue	3,740	4,409
Billings in excess of costs and estimated earnings on uncompleted contracts	1,804	1,313
Accrued wages and compensated absences	23,814	31,539
Due to third party payers	11,164	7,426
Deferred income taxes	16,267	21,427
Other accrued liabilities	35,281	15,537
Total current liabilities	195,289	180,267
Long-term debt, less current installments	522,672	466,839
Obligations under capital leases, less current installments	74,577	96,534
Deferred income taxes	134,046	122,715
Other liabilities	11,874	16,060
Total liabilities	938,458	882,415
Redeemable non-controlling interests	$ 8,585	$ 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 39,503,344 and 39,452,753 shares at September 30, 2015 and December 31, 2014, respectively; outstanding 39,302,674 and 39,228,948 shares at September 30, 2015 and December 31, 2014, respectively	$ 2,352	$ 2,349
Additional paid-in capital	126,714	120,391
Retained earnings	434,997	349,805
Accumulated other comprehensive loss	(1,436)	(636)
Total stockholders' equity	562,627	471,909
Total liabilities and stockholders' equity	$ 1,509,670	$ 1,361,305

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parentheticals) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Assets
Intangible assets, accumulated amortization (in dollars)	$ 25,221	$ 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	0	0
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	39,503,344	39,452,753
Common stock, shares outstanding	39,302,674	39,228,948

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue:
Patient transport revenue, net of provision for contractual discounts (note 4)	$ 403,122	$ 314,525	$ 1,049,765	$ 860,266
Provision for uncompensated care (note 4)	(180,280)	(125,056)	(482,847)	(358,396)
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 and charter revenue	36,212	33,941	98,877	89,709
Medical interiors and products revenue	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
Operating expenses:
Flight centers	100,649	93,970	293,060	267,986
Air medical aircraft operations	32,876	34,897	101,445	98,143
Tourism operating expenses	22,519	22,989	65,462	58,465
Cost of medical interiors and products sold	6,712	5,960	13,442	19,177
Cost of dispatch and billing services	3,467	2,430	9,378	7,354
Depreciation and amortization	20,884	19,972	62,082	60,467
Loss (gain) on disposition of assets, net	2,607	(185)	2,876	1,028
General and administrative	39,351	35,602	108,698	102,734
Operating expense	229,065	215,635	656,443	615,354
Operating income	82,277	61,282	156,800	140,269
Other income (expense):
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 (note 2)	(29)	(531)	(378)	(1,934)
Net income	46,854	33,840	86,787	73,816
Less net 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
Other comprehensive income (loss), net of income taxes:
Foreign currency translation adjustments	(340)	(251)	(800)	(205)
Comprehensive income	$ 46,312	$ 33,466	$ 85,303	$ 73,191
Basic:
Continuing operations (in dollars per share)	$ 1.17	$ 0.92	$ 2.18	$ 1.97
Discontinued operations (in dollars per share)		(0.01)	(0.01)	(0.05)
Net income (in dollars per share)	$ 1.17	0.91	2.17	1.92
Diluted:
Continuing operations (in dollars per share)	$ 1.16	0.91	2.17	1.96
Discontinued operations (in dollars per share)		(0.01)	(0.01)	(0.05)
Net income (in dollars per share)	$ 1.16	$ 0.9	$ 2.16	$ 1.91
Weighted average number of common shares outstanding - basic (in shares)	39,293,453	39,168,873	39,276,062	39,146,609
Weighted average number of common shares outstanding - diluted (in shares)	39,420,354	39,343,405	39,408,239	39,329,121

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 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 expense	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, net	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:
Decrease (increase) in prepaid expenses and other current assets	641	(551)
Increase in receivables	(56,549)	(48,366)
Decrease (increase) in inventories	(797)	3,369
Decrease (increase) in costs in excess of billings	(2,188)	1,379
Increase in accounts payable, other accrued liabilities, and other liabilities	18,770	6,860
Decrease in deferred revenue and billings in excess of costs	(178)	(1,453)
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)
Acquisition of hospital program	(43,481)
Buy-out of previously leased aircraft	(9,519)	(17,296)
Proceeds from disposition and sale of equipment and assets held for sale	3,642	12,378
Increase in other assets	(10,900)	(660)
Net cash used by continuing investing activities	(155,752)	(96,563)
Net cash provided by discontinued investing activities	25	97
Net cash used in investing activities	(155,727)	(96,466)
Cash flows from financing activities:
Proceeds from issuance of common stock	409	1,190
Tax benefit from exercise of stock options	184	1,779
Borrowings under line of credit	50,000	30,000
Payments under line of credit	(50,000)	(42,000)
Payments for financing costs	(4,472)	(81)
Proceeds from long-term debt	105,525	54,503
Payments of long-term debt	(45,251)	(30,603)
Payments of capital lease obligations	$ (24,100)	(27,983)
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 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
Interest paid in cash during the period	14,366	15,862
Income taxes paid in cash during the period	$ 27,950	$ 12,244

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (Parentheticals) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Non-cash investing and financing activities:
Entered into notes payable to finance the purchase of aircraft	$ 11,112	$ 2,729
Entered into capital leases to finance the purchase of equipment	354	548
Settlement of notes payable in exchange for the aircraft securing the debt	$ 11,442	$ 2,616

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 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 September 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 were 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 condensed consolidated financial statements represent the results of continuing operations. The results of discontinued operations included in the condensed consolidated statements of comprehensive income were as follows (amounts in thousands): For quarters ended For nine months ended 2015 2014 2015 2014 Patient transport revenue, net $ — 901 — 3,802 Operating expenses: Depreciation and amortization — 149 — 443 Loss on disposition of assets — 262 546 262 Other operating expenses 36 1,360 71 6,266 Loss from discontinued operations before income taxes (36 ) (870 ) (617 ) (3,169 ) Income tax benefit 7 339 239 1,235 Loss from discontinued operations $ (29 ) $ (531 ) $ (378 ) (1,934 )

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2015
Stockholders' Equity [Abstract]
Stockholders' Equity	(3) Stockholders’ Equity Changes in stockholders’ equity for the nine months ended September 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 33,840 409 Stock-based compensation 39,886 5,733 Tax benefit from exercise of stock options — 184 Forfeiture of unvested restricted shares and related dividends — 7 Adjustments to redeemable non-controlling interests — (918 ) Other comprehensive loss — (800 ) Net income attributable to Air Methods Corporation and subsidiaries — 86,103 Balances at September 30, 2015 39,302,674 $ 562,627

Patient Transport Revenue Recog

Patient Transport Revenue Recognition	9 Months Ended
	Sep. 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 47.3% of receivables from all payers, excluding Medicare and Medicaid, as of September 30, 2015, compared to 38.8% at December 31, 2014, and 39.7% at September 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 For nine months ended 2015 2014 2015 2014 Third-party payers $ 322,636 242,088 833,525 651,906 Self-pay 80,486 72,437 216,240 208,360 Total $ 403,122 314,525 1,049,765 860,266

Income per Share

Income per Share	9 Months Ended
	Sep. 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, The reconciliation of basic to diluted weighted average common shares outstanding is as follows: 2015 2014 For quarter ended September 30: Weighted average number of common shares outstanding – basic 39,293,453 39,168,873 Dilutive effect of: Common stock options 27,886 83,064 Unvested restricted stock 92,449 83,520 Unvested performance share units 6,566 7,948 Weighted average number of common shares outstanding – diluted 39,420,354 39,343,405 For nine months ended September 30: Weighted average number of common shares outstanding – basic 39,276,062 39,146,609 Dilutive effect of: Common stock options 35,752 108,952 Unvested restricted stock 95,489 73,560 Unvested performance share units 936 — Weighted average number of common shares outstanding – diluted 39,408,239 39,329,121 Common stock options totaling 573,732 and 566,752 were not included in the diluted shares outstanding for the three and nine months ended September 30, 2015, respectively, and performance share units totaling 68,340 were not included in the diluted shares outstanding for the three and nine months ended September 30, 2015, because their effect would have been anti-dilutive. Common stock options totaling 47,500 and performance share units totaling 105,512 were not included in the diluted shares outstanding for the nine months ended September 30, 2014, because their effect would have been anti-dilutive.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 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 Level 3: unobservable inputs, such as discounted cash flow models or valuations. 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 $0 at September 30, 2015, and 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 air medical aircraft operations and tourism operating expenses in the Company’s statements of comprehensive income. Operating expenses included non-cash mark to market derivative losses of $112,000 and $369,000 for the quarter and nine months ended September 30, 2015, respectively, compared to $6,000 and $70,000 for the quarter and nine months ended September 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 September 30, 2015, is estimated to be $575,212,000, compared to a carrying value of $572,940,000. 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	9 Months Ended
	Sep. 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 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 September 30: AMS Tourism UR Corporate Intersegment Consolidated 2015 External revenue $ 266,751 36,212 8,379 -- -- 311,342 Intersegment revenue -- -- 4,803 -- (4,803 ) -- Total revenue 266,751 36,212 13,182 -- (4,803 ) 311,342 Operating expenses, excluding depreciation & amortization (160,200 ) (28,303 ) (11,127 ) (12,757 ) 4,206 (208,181 ) Depreciation & amortization (17,412 ) (2,002 ) (873 ) (597 ) -- (20,884 ) Interest expense (3,747 ) (783 ) -- (366 ) 3 (4,893 ) Other income (expense), net 524 -- -- (787 ) (3 ) (266 ) Income tax expense -- -- -- (30,235 ) -- (30,235 ) Income (loss) from continuing operations 85,916 5,124 1,182 (44,742 ) (597 ) 46,883 Loss on discontinued operations, net of tax (29 ) -- -- -- -- (29 ) Segment net income (loss) 85,887 5,124 1,182 (44,742 ) (597 ) 46,854 Less net income (loss) attributable to non-controlling interests (22 ) 224 -- -- -- 202 Net income (loss) attributable to Air Methods Corporation and subsidiaries $ 85,909 4,900 1,182 (44,742 ) (597 ) 46,652 2014 External revenue $ 236,739 33,941 6,151 86 -- 276,917 Intersegment revenue -- -- 2,305 -- (2,305 ) -- Total revenue 236,739 33,941 8,456 86 (2,305 ) 276,917 Operating expenses, excluding depreciation & amortization (151,792 ) (27,963 ) (8,193 ) (9,672 ) 1,957 (195,663 ) Depreciation & amortization (17,108 ) (1,746 ) (598 ) (520 ) -- (19,972 ) Interest expense (3,965 ) (742 ) -- (635 ) -- (5,342 ) Other income (expense), net 435 1 -- (114 ) -- 322 Income tax expense -- -- -- (21,891 ) -- (21,891 ) Income (loss) from continuing operations 64,309 3,491 (335 ) (32,746 ) (348 ) 34,371 Loss on discontinued operations, net of tax (531 ) -- -- -- -- (531 ) Segment net income (loss) 63,778 3,491 (335 ) (32,746 ) (348 ) 33,840 Less net income (loss) attributable to non-controlling interests (44 ) 167 -- -- -- 123 Net income (loss) attributable to Air Methods Corporation and subsidiaries $ 63,822 3,324 (335 ) (32,746 ) (348 ) 33,717 For nine months ended September 30: AMS Tourism UR Corporate Intersegment Consolidated 2015 External revenue $ 697,400 98,877 16,962 4 -- 813,243 Intersegment revenue -- -- 17,923 -- (17,923 ) -- Total revenue 697,400 98,877 34,885 4 (17,923 ) 813,243 Operating expenses, excluding depreciation & amortization (466,493 ) (80,239 ) (30,261 ) (33,748 ) 16,380 (594,361 ) Depreciation & amortization (52,026 ) (5,791 ) (2,529 ) (1,736 ) -- (62,082 ) Interest expense (11,169 ) (2,439 ) -- (1,440 ) 7 (15,041 ) Other income (expense), net 2,339 3 -- (1,065 ) (7 ) 1,270 Income tax expense -- -- -- (55,864 ) -- (55,864 ) Income (loss) from continuing operations 170,051 10,411 2,095 (93,849 ) (1,543 ) 87,165 Loss on discontinued operations, net of tax (378 ) -- -- -- -- (378 ) Segment net income (loss) 169,673 10,411 2,095 (93,849 ) (1,543 ) 86,787 Less net income (loss) attributable to non-controlling interests (82 ) 766 -- -- -- 684 Net income (loss) attributable to Air Methods Corporation and subsidiaries $ 169,755 9,645 2,095 (93,849 ) (1,543 ) 86,103 2014 External revenue $ 644,427 89,709 21,401 86 -- 755,623 Intersegment revenue -- -- 9,363 -- (9,363 ) -- Total revenue 644,427 89,709 30,764 86 (9,363 ) 755,623 Operating expenses, excluding depreciation & amortization (433,550 ) (72,158 ) (28,160 ) (29,178 ) 8,159 (554,887 ) Depreciation & amortization (52,228 ) (4,966 ) (1,733 ) (1,540 ) -- (60,467 ) Interest expense (12,221 ) (2,095 ) -- (2,123 ) -- (16,439 ) Other income (expense), net 1,248 4 -- (664 ) -- 588 Income tax expense -- -- -- (48,668 ) -- (48,668 ) Income (loss) from continuing operations 147,676 10,494 871 (82,087 ) (1,204 ) 75,750 Loss on discontinued operations, net of tax (1,934 ) -- -- -- -- (1,934 ) Segment net income (loss) 145,742 10,494 871 (82,087 ) (1,204 ) 73,816 Less net income (loss) attributable to non-controlling interests (130 ) 550 -- -- -- 420 Net income (loss) attributable to Air Methods Corporation and subsidiaries $ 145,872 9,944 871 (82,087 ) (1,204 ) 73,396

New Accounting Pronouncements

New Accounting Pronouncements	9 Months Ended
	Sep. 30, 2015
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements	(8) New Accounting Pronouncements In September 2015, the FASB issued ASU No. 2015-16, Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments 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

Subsequent Event

Subsequent Event	9 Months Ended
	Sep. 30, 2015
Subsequent Events [Abstract]
Subsequent Event	(9) Subsequent Event In November 2015, the Company entered into a definitive purchase agreement to acquire 100% of the membership interest of Tri-State Care Flight, LLC, an Arizona limited liability company, and subsidiary (collectively TSCF), for $222.5 million, subject to final determination of certain working capital adjustments as defined in the agreement. The acquisition is subject to regulatory approval and customary closing conditions and is expected to close during or prior to the first quarter of 2016. The Company expects to finance the acquisition through an additional term loan under its senior credit facility. TSCF provides air medical transportation services in the southwestern United States.

Discontinued Operations (Tables

Discontinued Operations (Tables)	9 Months Ended
	Sep. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]
Schedule of discontinued operations included in consolidated statements of comprehensive income	For quarters ended For nine months ended 2015 2014 2015 2014 Patient transport revenue, net $ — 901 — 3,802 Operating expenses: Depreciation and amortization — 149 — 443 Loss on disposition of assets — 262 546 262 Other operating expenses 36 1,360 71 6,266 Loss from discontinued operations before income taxes (36 ) (870 ) (617 ) (3,169 ) Income tax benefit 7 339 239 1,235 Loss from discontinued operations $ (29 ) $ (531 ) $ (378 ) (1,934 )

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 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 33,840 409 Stock-based compensation 39,886 5,733 Tax benefit from exercise of stock options — 184 Forfeiture of unvested restricted shares and related dividends — 7 Adjustments to redeemable non-controlling interests — (918 ) Other comprehensive loss — (800 ) Net income attributable to Air Methods Corporation and subsidiaries — 86,103 Balances at September 30, 2015 39,302,674 $ 562,627

Patient Transport Revenue Rec18

Patient Transport Revenue Recognition (Tables)	9 Months Ended
	Sep. 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 For nine months ended 2015 2014 2015 2014 Third-party payers $ 322,636 242,088 833,525 651,906 Self-pay 80,486 72,437 216,240 208,360 Total $ 403,122 314,525 1,049,765 860,266

Income per Share (Tables)

Income per Share (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Schedule of reconciliation of basic to diluted weighted average common shares outstanding	2015 2014 For quarter ended September 30: Weighted average number of common shares outstanding – basic 39,293,453 39,168,873 Dilutive effect of: Common stock options 27,886 83,064 Unvested restricted stock 92,449 83,520 Unvested performance share units 6,566 7,948 Weighted average number of common shares outstanding – diluted 39,420,354 39,343,405 For nine months ended September 30: Weighted average number of common shares outstanding – basic 39,276,062 39,146,609 Dilutive effect of: Common stock options 35,752 108,952 Unvested restricted stock 95,489 73,560 Unvested performance share units 936 — Weighted average number of common shares outstanding – diluted 39,408,239 39,329,121

Business Segment Information (T

Business Segment Information (Tables)	9 Months Ended
	Sep. 30, 2015
Business Segment Information [Abstract]
Schedule of summarized financial information for operating segments	For quarter ended September 30: AMS Tourism UR Corporate Intersegment Consolidated 2015 External revenue $ 266,751 36,212 8,379 -- -- 311,342 Intersegment revenue -- -- 4,803 -- (4,803 ) -- Total revenue 266,751 36,212 13,182 -- (4,803 ) 311,342 Operating expenses, excluding depreciation & amortization (160,200 ) (28,303 ) (11,127 ) (12,757 ) 4,206 (208,181 ) Depreciation & amortization (17,412 ) (2,002 ) (873 ) (597 ) -- (20,884 ) Interest expense (3,747 ) (783 ) -- (366 ) 3 (4,893 ) Other income (expense), net 524 -- -- (787 ) (3 ) (266 ) Income tax expense -- -- -- (30,235 ) -- (30,235 ) Income (loss) from continuing operations 85,916 5,124 1,182 (44,742 ) (597 ) 46,883 Loss on discontinued operations, net of tax (29 ) -- -- -- -- (29 ) Segment net income (loss) 85,887 5,124 1,182 (44,742 ) (597 ) 46,854 Less net income (loss) attributable to non-controlling interests (22 ) 224 -- -- -- 202 Net income (loss) attributable to Air Methods Corporation and subsidiaries $ 85,909 4,900 1,182 (44,742 ) (597 ) 46,652 2014 External revenue $ 236,739 33,941 6,151 86 -- 276,917 Intersegment revenue -- -- 2,305 -- (2,305 ) -- Total revenue 236,739 33,941 8,456 86 (2,305 ) 276,917 Operating expenses, excluding depreciation & amortization (151,792 ) (27,963 ) (8,193 ) (9,672 ) 1,957 (195,663 ) Depreciation & amortization (17,108 ) (1,746 ) (598 ) (520 ) -- (19,972 ) Interest expense (3,965 ) (742 ) -- (635 ) -- (5,342 ) Other income (expense), net 435 1 -- (114 ) -- 322 Income tax expense -- -- -- (21,891 ) -- (21,891 ) Income (loss) from continuing operations 64,309 3,491 (335 ) (32,746 ) (348 ) 34,371 Loss on discontinued operations, net of tax (531 ) -- -- -- -- (531 ) Segment net income (loss) 63,778 3,491 (335 ) (32,746 ) (348 ) 33,840 Less net income (loss) attributable to non-controlling interests (44 ) 167 -- -- -- 123 Net income (loss) attributable to Air Methods Corporation and subsidiaries $ 63,822 3,324 (335 ) (32,746 ) (348 ) 33,717 For nine months ended September 30: AMS Tourism UR Corporate Intersegment Consolidated 2015 External revenue $ 697,400 98,877 16,962 4 -- 813,243 Intersegment revenue -- -- 17,923 -- (17,923 ) -- Total revenue 697,400 98,877 34,885 4 (17,923 ) 813,243 Operating expenses, excluding depreciation & amortization (466,493 ) (80,239 ) (30,261 ) (33,748 ) 16,380 (594,361 ) Depreciation & amortization (52,026 ) (5,791 ) (2,529 ) (1,736 ) -- (62,082 ) Interest expense (11,169 ) (2,439 ) -- (1,440 ) 7 (15,041 ) Other income (expense), net 2,339 3 -- (1,065 ) (7 ) 1,270 Income tax expense -- -- -- (55,864 ) -- (55,864 ) Income (loss) from continuing operations 170,051 10,411 2,095 (93,849 ) (1,543 ) 87,165 Loss on discontinued operations, net of tax (378 ) -- -- -- -- (378 ) Segment net income (loss) 169,673 10,411 2,095 (93,849 ) (1,543 ) 86,787 Less net income (loss) attributable to non-controlling interests (82 ) 766 -- -- -- 684 Net income (loss) attributable to Air Methods Corporation and subsidiaries $ 169,755 9,645 2,095 (93,849 ) (1,543 ) 86,103 2014 External revenue $ 644,427 89,709 21,401 86 -- 755,623 Intersegment revenue -- -- 9,363 -- (9,363 ) -- Total revenue 644,427 89,709 30,764 86 (9,363 ) 755,623 Operating expenses, excluding depreciation & amortization (433,550 ) (72,158 ) (28,160 ) (29,178 ) 8,159 (554,887 ) Depreciation & amortization (52,228 ) (4,966 ) (1,733 ) (1,540 ) -- (60,467 ) Interest expense (12,221 ) (2,095 ) -- (2,123 ) -- (16,439 ) Other income (expense), net 1,248 4 -- (664 ) -- 588 Income tax expense -- -- -- (48,668 ) -- (48,668 ) Income (loss) from continuing operations 147,676 10,494 871 (82,087 ) (1,204 ) 75,750 Loss on discontinued operations, net of tax (1,934 ) -- -- -- -- (1,934 ) Segment net income (loss) 145,742 10,494 871 (82,087 ) (1,204 ) 73,816 Less net income (loss) attributable to non-controlling interests (130 ) 550 -- -- -- 420 Net income (loss) attributable to Air Methods Corporation and subsidiaries $ 145,872 9,944 871 (82,087 ) (1,204 ) 73,396

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended			9 Months Ended
	Jul. 31, 2013	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Patient transport revenue, net				$ 901		$ 3,802
Operating expenses:
Depreciation and amortization				149		443
Loss on disposition of assets				262	$ 546	262
Other operating expenses		$ 36		1,360	71	6,266
Loss from discontinued operations before income taxes		(36)		(870)	(617)	(3,169)
Income tax benefit		7		339	239	1,235
Loss from discontinued operations		(29)		$ (531)	(378)	$ (1,934)
Assets held for sale		$ 1,300			$ 1,300
American Jets, Inc
Operating expenses:
Purchase price	$ 1,700
Goodwill written off			$ 1,500

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 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			$ 409
Issuance of common shares for options exercised (in shares)			33,840
Stock-based compensation			$ 5,733	$ 2,866
Stock-based compensation (in shares)			39,886
Tax benefit from exercise of stock options			$ 184
Forfeiture of unvested restricted shares and related dividends			7
Adjustments to redeemable non-controlling interests	$ (800)	$ 1,871	(918)	1,883
Other comprehensive loss			(800)
Net income attributable to Air Methods Corporation and subsidiaries	46,652	$ 33,717	86,103	$ 73,396
Balances at September 30, 2015	$ 562,627		$ 562,627
Balances at September 30, 2015 (in shares)	39,302,674		39,302,674

Patient Transport Revenue Rec23

Patient Transport Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 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)	47.30%	39.70%	47.30%	39.70%	38.80%
Patient transport revenue, net of provision for contractual discounts	$ 403,122	$ 314,525	$ 1,049,765	$ 860,266
Third-party payers
Revenue from External Customer [Line Items]
Patient transport revenue, net of provision for contractual discounts	322,636	242,088	833,525	651,906
Self-pay
Revenue from External Customer [Line Items]
Patient transport revenue, net of provision for contractual discounts	$ 80,486	$ 72,437	$ 216,240	$ 208,360

Income per Share (Details)

Income per Share (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Increase (decrease) in net income due to adjustments to redeemable non-controlling interest	$ (800)	$ 1,871	$ (918)	$ 1,883
Reconciliation of basic to diluted weighted average common shares outstanding
Weighted average number of common shares outstanding - basic (in shares)	39,293,453	39,168,873	39,276,062	39,146,609
Dilutive effect of:
Common stock options (in shares)	27,886	83,064	35,752	108,952
Unvested restricted stock (in shares)	92,449	83,520	95,489	73,560
Unvested performance share units (in shares)	6,566	7,948	936
Weighted average number of common shares outstanding - diluted (in shares)	39,420,354	39,343,405	39,408,239	39,329,121
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)	573,732		566,752	47,500
Performance share units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted income per share (in shares)	68,340		68,340	105,512

Fair Value of Financial Instr25

Fair Value of Financial Instruments (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Non-cash mark to market derivative losses			$ (369,000)	$ (70,000)
Estimate of Fair Value
Fair value of financial instruments [Abstract]
Long-term debt, fair value disclosure	$ 575,212,000		575,212,000		$ 510,353,000
Carrying Amount
Fair value of financial instruments [Abstract]
Long-term debt, fair value disclosure	572,940,000		572,940,000		512,666,000
Aircraft operations expense
Derivative Instruments, Gain (Loss) [Line Items]
Non-cash mark to market derivative losses	112,000	$ 6,000	369,000	$ 70,000
Fuel derivative contracts | Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
Fair value of fuel derivative contracts	$ 0		$ 0		$ 0

Business Segment Information (D

Business Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Segment Reporting Information [Line Items]
Total revenue	$ 311,342	$ 276,917	$ 813,243	$ 755,623
Operating expenses, excluding depreciation & amortization	(208,181)	(195,663)	(594,361)	(554,887)
Depreciation & amortization	(20,884)	(19,972)	(62,082)	(60,467)
Interest expense	(4,893)	(5,342)	(15,041)	(16,439)
Other income, net	(266)	322	1,270	588
Income tax expense	(30,235)	(21,891)	(55,864)	(48,668)
Income (loss) from continuing operations	46,883	34,371	87,165	75,750
Loss on discontinued operations, net of tax	(29)	(531)	(378)	(1,934)
Segment net income (loss)	46,854	33,840	86,787	73,816
Less net income (loss) attributable to non-controlling interests	202	123	684	420
Net income (loss) attributable to Air Methods Corporation and subsidiaries	46,652	33,717	86,103	73,396
External revenue
Segment Reporting Information [Line Items]
Total revenue	$ 311,342	$ 276,917	$ 813,243	$ 755,623
Intersegment revenue
Segment Reporting Information [Line Items]
Total revenue
Operating Segments | AMS
Segment Reporting Information [Line Items]
Total revenue	$ 266,751	$ 236,739	$ 697,400	$ 644,427
Operating expenses, excluding depreciation & amortization	(160,200)	(151,792)	(466,493)	(433,550)
Depreciation & amortization	(17,412)	(17,108)	(52,026)	(52,228)
Interest expense	(3,747)	(3,965)	(11,169)	(12,221)
Other income, net	$ 524	$ 435	$ 2,339	$ 1,248
Income tax expense
Income (loss) from continuing operations	$ 85,916	$ 64,309	$ 170,051	$ 147,676
Loss on discontinued operations, net of tax	(29)	(531)	(378)	(1,934)
Segment net income (loss)	85,887	63,778	169,673	145,742
Less net income (loss) attributable to non-controlling interests	(22)	(44)	(82)	(130)
Net income (loss) attributable to Air Methods Corporation and subsidiaries	85,909	63,822	169,755	145,872
Operating Segments | AMS | External revenue
Segment Reporting Information [Line Items]
Total revenue	$ 266,751	$ 236,739	$ 697,400	$ 644,427
Operating Segments | AMS | Intersegment revenue
Segment Reporting Information [Line Items]
Total revenue
Operating Segments | Tourism
Segment Reporting Information [Line Items]
Total revenue	$ 36,212	$ 33,941	$ 98,877	$ 89,709
Operating expenses, excluding depreciation & amortization	(28,303)	(27,963)	(80,239)	(72,158)
Depreciation & amortization	(2,002)	(1,746)	(5,791)	(4,966)
Interest expense	$ (783)	(742)	(2,439)	(2,095)
Other income, net		$ 1	$ 3	$ 4
Income tax expense
Income (loss) from continuing operations	$ 5,124	$ 3,491	$ 10,411	$ 10,494
Loss on discontinued operations, net of tax
Segment net income (loss)	$ 5,124	$ 3,491	$ 10,411	$ 10,494
Less net income (loss) attributable to non-controlling interests	224	167	766	550
Net income (loss) attributable to Air Methods Corporation and subsidiaries	4,900	3,324	9,645	9,944
Operating Segments | Tourism | External revenue
Segment Reporting Information [Line Items]
Total revenue	$ 36,212	$ 33,941	$ 98,877	$ 89,709
Operating Segments | Tourism | Intersegment revenue
Segment Reporting Information [Line Items]
Total revenue
Operating Segments | UR
Segment Reporting Information [Line Items]
Total revenue	$ 13,182	$ 8,456	$ 34,885	$ 30,764
Operating expenses, excluding depreciation & amortization	(11,127)	(8,193)	(30,261)	(28,160)
Depreciation & amortization	$ (873)	$ (598)	$ (2,529)	$ (1,733)
Interest expense
Other income, net
Income tax expense
Income (loss) from continuing operations	$ 1,182	$ (335)	$ 2,095	$ 871
Loss on discontinued operations, net of tax
Segment net income (loss)	$ 1,182	$ (335)	$ 2,095	$ 871
Less net income (loss) attributable to non-controlling interests
Net income (loss) attributable to Air Methods Corporation and subsidiaries	$ 1,182	$ (335)	$ 2,095	$ 871
Operating Segments | UR | External revenue
Segment Reporting Information [Line Items]
Total revenue	8,379	6,151	16,962	21,401
Operating Segments | UR | Intersegment revenue
Segment Reporting Information [Line Items]
Total revenue	$ 4,803	2,305	17,923	9,363
Corporate Activities
Segment Reporting Information [Line Items]
Total revenue		86	4	86
Operating expenses, excluding depreciation & amortization	$ (12,757)	(9,672)	(33,748)	(29,178)
Depreciation & amortization	(597)	(520)	(1,736)	(1,540)
Interest expense	(366)	(635)	(1,440)	(2,123)
Other income, net	(787)	(114)	(1,065)	(664)
Income tax expense	(30,235)	(21,891)	(55,864)	(48,668)
Income (loss) from continuing operations	$ (44,742)	$ (32,746)	$ (93,849)	$ (82,087)
Loss on discontinued operations, net of tax
Segment net income (loss)	$ (44,742)	$ (32,746)	$ (93,849)	$ (82,087)
Less net income (loss) attributable to non-controlling interests
Net income (loss) attributable to Air Methods Corporation and subsidiaries	$ (44,742)	$ (32,746)	$ (93,849)	$ (82,087)
Corporate Activities | External revenue
Segment Reporting Information [Line Items]
Total revenue		$ 86	$ 4	$ 86
Corporate Activities | Intersegment revenue
Segment Reporting Information [Line Items]
Total revenue
Intersegment Eliminations
Segment Reporting Information [Line Items]
Total revenue	$ (4,803)	$ (2,305)	$ (17,923)	$ (9,363)
Operating expenses, excluding depreciation & amortization	$ 4,206	$ 1,957	$ 16,380	$ 8,159
Depreciation & amortization
Interest expense	$ 3		$ 7
Other income, net	$ (3)		$ (7)
Income tax expense
Income (loss) from continuing operations	$ (597)	$ (348)	$ (1,543)	$ (1,204)
Loss on discontinued operations, net of tax
Segment net income (loss)	$ (597)	$ (348)	$ (1,543)	$ (1,204)
Less net income (loss) attributable to non-controlling interests
Net income (loss) attributable to Air Methods Corporation and subsidiaries	$ (597)	$ (348)	$ (1,543)	$ (1,204)
Intersegment Eliminations | External revenue
Segment Reporting Information [Line Items]
Total revenue
Intersegment Eliminations | Intersegment revenue
Segment Reporting Information [Line Items]
Total revenue	$ (4,803)	$ (2,305)	$ (17,923)	$ (9,363)

Subsequent Event (Details)

Subsequent Event (Details) - Subsequent Event - Definitive Purchase Agreement - Tri-State Care Flight, LLC $ in Millions	1 Months Ended
	Nov. 30, 2015USD ($)
Subsequent Event [Line Items]
Percentage of membership interest acquired	100.00%
Total purchase price	$ 222.5