Air Methods (AIRM) 10-Q 6 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 29, 2016
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		38,367,893
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 5,085	$ 5,808
Receivables:
Trade, net (note 4)	398,854	376,300
Refundable income taxes		2,674
Other	3,191	3,402
Total receivables	402,045	382,376
Inventories	48,892	46,377
Work-in-process on medical interiors and products contracts	4,239	4,024
Assets held for sale	15,477	16,369
Costs and estimated earnings in excess of billings on uncompleted contracts	2,270	961
Refundable deposits	6,822	7,594
Prepaid expenses and other (note 6)	11,051	9,850
Total current assets	495,881	473,359
Property and equipment:
Land	251	251
Flight and ground support equipment	897,891	835,380
Aircraft under capital leases	163,277	168,725
Aircraft rotable spare parts	35,786	34,688
Buildings and other equipment	65,628	62,503
Property and equipment, gross	1,162,833	1,101,547
Less accumulated depreciation and amortization	(313,073)	(301,891)
Net property and equipment	849,760	799,656
Goodwill (note 2)	208,405	127,732
Intangible assets, net of accumulated amortization of $29,936 and $28,093 at March 31, 2016 and December 31, 2015, respectively	201,153	129,899
Other assets (note 8)	25,561	26,029
Total assets	1,780,760	1,556,675
Current liabilities:
Notes payable		2,955
Current installments of long-term debt (note 8)	51,909	38,965
Current installments of obligations under capital leases	19,697	20,407
Accounts payable	16,797	30,912
Deferred revenue	3,977	2,294
Billings in excess of costs and estimated earnings on uncompleted contracts	1,147	1,250
Accrued wages and compensated absences	25,728	19,419
Due to third party payers	12,338	12,292
Other accrued liabilities	26,309	21,044
Total current liabilities	157,902	149,538
Long-term debt, less current installments (note 8)	793,720	571,125
Obligations under capital leases, less current installments	63,301	68,389
Deferred income taxes	173,852	172,905
Other liabilities	9,082	12,293
Total liabilities	1,197,857	974,250
Redeemable non-controlling interests	$ 475	$ 8,550
Stockholders' equity (notes 3 and 8):
Preferred stock, $1 par value. Authorized 15,000,000 shares, none issued
Common stock, $.06 par value. Authorized 70,500,000 shares; issued 39,554,710 and 39,511,350 shares at March 31, 2016 and December 31, 2015, respectively; outstanding 38,749,903 and 39,003,026 shares at March 31, 2016 and December 31, 2015, respectively	$ 2,355	$ 2,353
Additional paid-in capital	131,184	128,767
Treasury stock at cost, 668,510 and 320,988 shares at March 31, 2016, and December 31, 2015, respectively	(26,901)	(13,457)
Retained earnings	477,037	457,529
Accumulated other comprehensive loss	(1,247)	(1,317)
Total stockholders' equity	582,428	573,875
Total liabilities and stockholders' equity	$ 1,780,760	$ 1,556,675

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Assets
Intangible assets, accumulated amortization (in dollars)	$ 29,936	$ 28,093
Stockholders' Equity Attributable to Parent [Abstract]
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	39,554,710	39,511,350
Common stock, shares outstanding	38,749,903	39,003,026
Treasury stock, shares	668,510	320,988

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue:
Patient transport revenue, net of provision for contractual discounts (note 4)	$ 378,829	$ 265,339
Provision for uncompensated care (note 4)	(180,997)	(103,523)
Patient transport revenue, net	197,832	161,816
Air medical services contract revenue	33,644	40,639
Tourism and charter revenue	27,227	28,221
Medical interiors and products revenue	6,957	4,137
Dispatch and billing service revenue	3,738	3,486
Total revenue	269,398	238,299
Operating expenses:
Flight centers	106,071	93,792
Aircraft operations (note 6)	31,912	37,340
Tourism operating expenses	19,084	19,851
Cost of medical interiors and products sold	5,980	3,201
Cost of dispatch and billing services	3,707	2,821
Depreciation and amortization	22,566	20,044
Gain on disposition of assets, net	(330)	(262)
General and administrative	39,392	35,725
Operating expense	228,382	212,512
Operating income	41,016	25,787
Other income (expense):
Interest expense	(7,800)	(4,985)
Other, net	310	364
Income from continuing operations before income taxes	33,526	21,166
Income tax expense	(13,102)	(8,290)
Income from continuing operations	20,424	12,876
Loss on discontinued operations, net of income taxes		(9)
Net income	20,424	12,867
Less net income (loss) attributable to redeemable non-controlling interests	(29)	239
Net income attributable to Air Methods Corporation and subsidiaries	20,453	12,628
Other comprehensive income (loss), net of income taxes:
Foreign currency translation adjustments	70	(375)
Comprehensive income	$ 20,523	$ 12,253
Basic:
Continuing operations (in dollars per share)	$ 0.50	$ 0.32
Discontinued operations (in dollars per share)
Net income (in dollars per share)	$ 0.50	$ 0.32
Diluted:
Continuing operations (in dollars per share)	$ 0.50	$ 0.32
Discontinued operations (in dollars per share)
Net income (in dollars per share)	$ 0.50	$ 0.32
Weighted average number of common shares outstanding - basic (in shares)	38,803,817	39,262,063
Weighted average number of common shares outstanding - diluted (in shares)	38,872,949	39,390,415

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net income	$ 20,424	$ 12,867
Loss from discontinued operations, net of income taxes		9
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	22,566	20,044
Deferred income tax expense	947	6,039
Stock-based compensation	1,537	1,848
Gain on disposition of assets, net	(330)	(262)
Unrealized loss (gain) on derivative instrument	(149)	149
Loss from equity method investee	265	224
Changes in assets and liabilities, net of effects of acquisitions:
Decrease (increase) in prepaid expenses and other current assets	403	(4,047)
Decrease (increase) in receivables	11,779	(475)
Decrease (increase) in inventories	(193)	2,093
Decrease (increase) in costs in excess of billings	(1,309)	167
Decrease in accounts payable, other accrued liabilities, and other liabilities	(15,150)	(4,982)
Increase in deferred revenue and billings in excess of costs	1,580	830
Net cash provided by continuing operating activities	42,370	34,504
Net cash used by discontinued operating activities		(96)
Net cash provided by operating activities	42,370	34,408
Cash flows from investing activities:
Acquisition of subsidiaries (note 2)	(226,011)
Acquisition of equipment and leasehold improvements	(31,385)	(23,493)
Buy-out of previously leased aircraft	(4,460)
Proceeds from disposition and sale of equipment and assets held for sale	2,303	1,997
Increase in other assets, net	(566)	(4,577)
Net cash used by continuing investing activities	(260,119)	(26,073)
Net cash provided by discontinued investing activities		25
Net cash used by investing activities	(260,119)	(26,048)
Cash flows from financing activities:
Proceeds from issuance of common stock, net	803	207
Purchases of common stock	(13,444)
Borrowings under line of credit	25,000
Payments under line of credit	(25,000)
Payments for financing costs	(48)	(4)
Proceeds from long-term debt	248,100	21,137
Payments of long-term debt and notes payable	(12,587)	(12,078)
Payments of capital lease obligations	(5,798)	(6,008)
Net cash provided by continuing financing activities	$ 217,026	$ 3,254
Net cash provided (used) by discontinued financing activities
Net cash provided by financing activities	$ 217,026	$ 3,254
Increase (decrease) in cash and cash equivalents	(723)	11,614
Cash and cash equivalents at beginning of period	5,808	13,165
Cash and cash equivalents at end of period	5,085	24,779
Interest paid in cash during the period	7,473	4,832
Income taxes paid in cash during the period	$ 1,797	$ 488

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Non-cash investing and financing activities:
Entered into notes payable to finance the purchase of aircraft		$ 5,710
Entered into capital leases to finance the purchase of equipment		278
Settlement of notes payable in exchange for the aircraft securing the debt	$ 2,955	$ 11,442

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2016
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 the instructions to Form 10-Q and Regulation S-X. Accordingly, the accompanying unaudited condensed consolidated financial statements contain all adjustments 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, 2015. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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.

Acquisition of Subsidiaries

Acquisition of Subsidiaries	3 Months Ended
	Mar. 31, 2016
Business Combinations [Abstract]
Acquisition of Subsidiaries	(2) Acquisition of Subsidiaries Tri-State Care Flight, LLC On January 19, 2016, the Company acquired 100% of the membership interest of Tri-State Care Flight, LLC (TSCF), for a cash purchase price of $222.5 million plus an initial estimated working capital adjustment of $11.2 million. The purchase price is subject to further adjustment based on final working capital as of the closing date, as defined in the purchase agreement. The Company has estimated the decrease to the purchase price for the change in working capital to be $811,000 and has recorded the related receivable as of March 31, 2016. The estimate is subject to review by the sellers during the second quarter of 2016, and receipt of the funds is expected prior to the end of the second quarter. The purchase price was financed primarily through additional term loans and draws against the line of credit under the Company’s senior credit facility. TSCF provides air medical transport services in the southwestern United States under the community-based service delivery model, utilizing a fleet of 22 helicopters and five fixed-wing aircraft. The acquisition is expected to further strengthen the Company’s position as a leader in air medical transport services in the United States and to result in certain operating efficiencies. The Company is in the process of reviewing airworthiness and other documentation for TSCF’s aircraft spare parts inventory, verifying open repair orders with aircraft parts vendors, and confirming other liabilities relating to pre-acquisition events. In addition, the Company is analyzing the payer mix and historical collection data related to patient transport receivables as of the acquisition date. Fair value and estimated useful lives of identifiable intangible assets are based on preliminary estimates and are subject to review and finalization by the Company’s management. For the reasons described in the foregoing paragraph, the allocation of the purchase price is still subject to refinement. The initial allocation of the purchase price was as follows (amounts in thousands): Assets purchased: Receivables $ 30,695 Aircraft 30,501 Goodwill 80,690 Other intangible assets 74,000 Other assets 26,845 Total assets 242,731 Total liabilities assumed (9,864 ) Purchase price $ 232,867 Net revenue of $15,274,000 and income before income taxes and allocation of corporate administrative expenses of $4,391,000 generated by TSCF’s operations from January 19 through March 31, 2016, have been included with those of the Company in the consolidated statements of comprehensive income. The following unaudited pro forma information presents combined financial results for the Company and TSCF for the quarter ended March 31, 2015, assuming the acquisition occurred as of January 1, 2015 (amounts in thousands, except per share amounts): Revenue $ 260,099 Net income attributable to Air Methods Corporation and subsidiaries $ 17,014 Basic income per common share $ .43 Diluted income per common share $ .43 The above unaudited pro forma financial information is presented for informational purposes only and does not necessarily represent what the Company’s results of operations would have been had the acquisition occurred on the date assumed, nor is the information indicative of results that may be expected in future periods. Pro forma adjustments exclude cost savings from synergies that may result from the acquisition. Blue Hawaiian Helicopters In the third quarter of 2015, the Company’s partners exercised their right to require the Company to acquire their 10% ownership interest in Blue Hawaiian Holdings, LLC. During the first quarter of 2016, the Company completed the buyout for $8,854,000.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2016
Stockholders' Equity [Abstract]
Stockholders' Equity	(3) Stockholders’ Equity Changes in stockholders’ equity for the three months ended March 31, 2016, consisted of the following (amounts in thousands except share amounts): Shares Amount Balances at January 1, 2016 39,003,026 $ 573,875 Issuance of common shares for options exercised 45,360 803 Stock-based compensation 49,039 1,537 Purchase of treasury shares (347,522 ) (13,444 ) Adjustments to redeemable non-controlling interests — (866 ) Other comprehensive income — 70 Net income — 20,453 Balances at March 31, 2016 38,749,903 $ 582,428

Patient Transport Revenue Recog

Patient Transport Revenue Recognition	3 Months Ended
	Mar. 31, 2016
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, including adjustments between contractual discounts and uncompensated care, 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, Medicaid, and other government-sponsored insurance plan patients. The allowance for uncompensated care is related primarily to receivables recorded for self-pay patients. Historically, the Company’s allowance and provision for contractual discounts were calculated based entirely on Medicare and Medicaid patient transports. The Company determined that uncollectible amounts related to other government-sponsored insurance plans and to private insurance carriers with whom the Company has established a contractual relationship should have been categorized as contractual discounts rather than as uncompensated care in prior periods. Effective in the fourth quarter of 2015, the Company presented these uncollectible amounts as contractual discounts and corrected the presentation in prior periods. As a result, the Company increased the provision for contractual discounts and correspondingly decreased the provision for uncompensated care by $25,697,000 for the quarter ended March 31, 2015. The Company has not changed its discount policies related to self-pay patients or deductible and copayment balances for insured patients during either 2016 or 2015. The allowance for uncompensated care was 46.6% of receivables from non-contract payers as of March 31, 2016, compared to 42.0% at December 31, 2015, and 45.1% at March 31, 2015. 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, Medicaid, and other transports covered by contracts. Patient transport revenue, net of provision for contractual discounts but before provision for uncompensated care, by major payer class, was as follows for quarters ended March 31 (amounts in thousands): 2016 2015 Third-party payers $ 290,954 197,849 Self-pay 87,875 67,490 Total $ 378,829 265,339

Income per Share

Income per Share	3 Months Ended
	Mar. 31, 2016
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 outstanding and dilutive potential common shares during the period. 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 for the quarters ended March 31: 2016 2015 Weighted average number of common shares outstanding – basic 38,803,817 39,262,063 Dilutive effect of: Common stock options 11,805 40,760 Unvested restricted stock and restricted stock units 46,269 87,592 Unvested performance share units 11,058 — Weighted average number of common shares outstanding – diluted 38,872,949 39,390,415 Common stock options totaling 930,244 and 577,532 were not included in the diluted shares outstanding for the quarters ended March 31, 2016 and 2015, respectively, because their effect would have been anti-dilutive. Performance share units totaling 105,512 were not included in the diluted shares outstanding for the quarters ended March 31, 2016 and 2015, because their effect would have been anti-dilutive.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2016
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 $828,000 at March 31, 2016 and $0 at December 31, 2015. 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 a non-cash mark to market derivative gain of $149,000 and loss of $149,000 for the first quarters of 2016 and 2015, respectively. There were no cash settlements under the terms of the agreements in the first quarters of 2016 or 2015. 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 March 31, 2016, is estimated to be $856,901,000, compared to carrying value of $845,629,000. The fair value of long-term debt as of December 31, 2015, was estimated to be $612,264,000, compared to carrying value of $610,090,000.

Business Segment Information

Business Segment Information	3 Months Ended
	Mar. 31, 2016
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 March 31: AMS Tourism UR Corporate Intersegment Consolidated 2016 External revenue $ 235,215 27,246 6,937 — — 269,398 Intersegment revenue — — 5,371 — (5,371 ) — Total revenue 235,215 27,246 12,308 — (5,371 ) 269,398 Operating expenses, excluding depreciation & amortization (163,710 ) (23,421 ) (10,942 ) (12,366 ) 4,623 (205,816 ) Depreciation & amortization (18,824 ) (2,266 ) (897 ) (579 ) — (22,566 ) Interest expense (6,142 ) (1,069 ) — (593 ) 4 (7,800 ) Other income, net 515 17 — (218 ) (4 ) 310 Income tax expense — — — (13,102 ) — (13,102 ) Segment net income (loss) 47,054 507 469 (26,858 ) (748 ) 20,424 Less net loss attributable to non-controlling interests (29 ) — — — — (29 ) Net income (loss) attributable to Air Methods Corporation and subsidiaries $ 47,083 507 469 (26,858 ) (748 ) 20,453 2015 External revenue $ 205,941 28,221 4,134 3 — 238,299 Intersegment revenue — — 8,367 — (8,367 ) — Total revenue 205,941 28,221 12,501 3 (8,367 ) 238,299 Operating expenses, excluding depreciation & amortization (154,024 ) (24,515 ) (10,716 ) (10,814 ) 7,601 (192,468 ) Depreciation & amortization (16,932 ) (1,827 ) (749 ) (536 ) — (20,044 ) Interest expense (3,672 ) (782 ) — (533 ) 2 (4,985 ) Other income, net 561 1 — (196 ) (2 ) 364 Income tax expense — — — (8,290 ) — (8,290 ) Income (loss) from continuing operations 31,874 1,098 1,036 (20,366 ) (766 ) 12,876 Loss on discontinued operations, net of tax (9 ) — — — — (9 ) Segment net income (loss) 31,865 1,098 1,036 (20,366 ) (766 ) 12,867 Less net income (loss) attributable to non-controlling interests (38 ) 277 — — — 239 Net income (loss) attributable to Air Methods Corporation and subsidiaries $ 31,903 821 1,036 (20,366 ) (766 ) 12,628

New Accounting Pronouncements

New Accounting Pronouncements	3 Months Ended
	Mar. 31, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements	(8) New Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting Effective January 1, 2016, the Company adopted ASU No. 2015-03, Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs In February 2016, the FASB issued ASU No. 2016-02, Leases In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers

Acquisition of Subsidiaries (Ta

Acquisition of Subsidiaries (Tables)	3 Months Ended
	Mar. 31, 2016
Business Combinations [Abstract]
Schedule of purchase price allocation	Assets purchased: Receivables $ 30,695 Aircraft 30,501 Goodwill 80,690 Other intangible assets 74,000 Other assets 26,845 Total assets 242,731 Total liabilities assumed (9,864 ) Purchase price $ 232,867
Schedule of pro forma information	Revenue $ 260,099 Net income attributable to Air Methods Corporation and subsidiaries $ 17,014 Basic income per common share $ .43 Diluted income per common share $ .43

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2016
Stockholders' Equity [Abstract]
Schedule of changes in stockholders' equity	Shares Amount Balances at January 1, 2016 39,003,026 $ 573,875 Issuance of common shares for options exercised 45,360 803 Stock-based compensation 49,039 1,537 Purchase of treasury shares (347,522 ) (13,444 ) Adjustments to redeemable non-controlling interests — (866 ) Other comprehensive income — 70 Net income — 20,453 Balances at March 31, 2016 38,749,903 $ 582,428

Patient Transport Revenue Rec17

Patient Transport Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2016
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	2016 2015 Third-party payers $ 290,954 197,849 Self-pay 87,875 67,490 Total $ 378,829 265,339

Income per Share (Tables)

Income per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Schedule of reconciliation of basic to diluted weighted average common shares outstanding	2016 2015 Weighted average number of common shares outstanding – basic 38,803,817 39,262,063 Dilutive effect of: Common stock options 11,805 40,760 Unvested restricted stock and restricted stock units 46,269 87,592 Unvested performance share units 11,058 — Weighted average number of common shares outstanding – diluted 38,872,949 39,390,415

Business Segment Information (T

Business Segment Information (Tables)	3 Months Ended
	Mar. 31, 2016
Business Segment Information [Abstract]
Schedule of summarized financial information for operating segments	For quarter ended March 31: AMS Tourism UR Corporate Intersegment Consolidated 2016 External revenue $ 235,215 27,246 6,937 — — 269,398 Intersegment revenue — — 5,371 — (5,371 ) — Total revenue 235,215 27,246 12,308 — (5,371 ) 269,398 Operating expenses, excluding depreciation & amortization (163,710 ) (23,421 ) (10,942 ) (12,366 ) 4,623 (205,816 ) Depreciation & amortization (18,824 ) (2,266 ) (897 ) (579 ) — (22,566 ) Interest expense (6,142 ) (1,069 ) — (593 ) 4 (7,800 ) Other income, net 515 17 — (218 ) (4 ) 310 Income tax expense — — — (13,102 ) — (13,102 ) Segment net income (loss) 47,054 507 469 (26,858 ) (748 ) 20,424 Less net loss attributable to non-controlling interests (29 ) — — — — (29 ) Net income (loss) attributable to Air Methods Corporation and subsidiaries $ 47,083 507 469 (26,858 ) (748 ) 20,453 2015 External revenue $ 205,941 28,221 4,134 3 — 238,299 Intersegment revenue — — 8,367 — (8,367 ) — Total revenue 205,941 28,221 12,501 3 (8,367 ) 238,299 Operating expenses, excluding depreciation & amortization (154,024 ) (24,515 ) (10,716 ) (10,814 ) 7,601 (192,468 ) Depreciation & amortization (16,932 ) (1,827 ) (749 ) (536 ) — (20,044 ) Interest expense (3,672 ) (782 ) — (533 ) 2 (4,985 ) Other income, net 561 1 — (196 ) (2 ) 364 Income tax expense — — — (8,290 ) — (8,290 ) Income (loss) from continuing operations 31,874 1,098 1,036 (20,366 ) (766 ) 12,876 Loss on discontinued operations, net of tax (9 ) — — — — (9 ) Segment net income (loss) 31,865 1,098 1,036 (20,366 ) (766 ) 12,867 Less net income (loss) attributable to non-controlling interests (38 ) 277 — — — 239 Net income (loss) attributable to Air Methods Corporation and subsidiaries $ 31,903 821 1,036 (20,366 ) (766 ) 12,628

Acquisition of Subsidiaries (De

Acquisition of Subsidiaries (Details) - USD ($)	1 Months Ended	3 Months Ended
	Jan. 19, 2016	Mar. 31, 2016	Mar. 31, 2015
Business Acquisition [Line Items]
Estimate of decrease to purchase price for adjustments		$ 811,000
Blue Hawaiian Holdings, LLC
Business Acquisition [Line Items]
Cash purchase price		$ 8,854,000
Ownership interest acquired by partners			10.00%
Tri-State Care Flight, LLC
Business Acquisition [Line Items]
Ownership interest acquired	100.00%	100.00%
Cash purchase price	$ 222,500,000
Estimated working capital adjustment	$ 11,200,000
Revenue included in consolidated statements of income		$ 15,274,000
Income before income taxes and allocation of corporate administrative expenses		$ 4,391,000

Acquisition of Subsidiaries (21

Acquisition of Subsidiaries (Details 1) - USD ($) $ in Thousands	Mar. 31, 2016	Jan. 19, 2016	Dec. 31, 2015
Assets purchased:
Goodwill	$ 208,405		$ 127,732
Tri-State Care Flight, LLC
Assets purchased:
Receivables		$ 30,695
Aircraft		30,501
Goodwill		80,690
Other intangible assets		74,000
Other assets		26,845
Total assets		242,731
Total liabilities assumed		(9,864)
Purchase price		$ 232,867

Acquisition of Subsidiaries (22

Acquisition of Subsidiaries (Details 2) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2015USD ($)$ / shares
Business Combinations [Abstract]
Revenue | $	$ 260,099
Net income attributable to Air Methods Corporation and subsidiaries | $	$ 17,014
Basic income per common share (in dollars per share) | $ / shares	$ 0.43
Diluted income per common share (in dollars per share) | $ / shares	$ 0.43

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balances at January 1, 2016	$ 573,875
Balances at January 1, 2016 (in shares)	39,003,026
Issuance of common shares for options exercised	$ 803
Issuance of common shares for options exercised (in shares)	45,360
Stock-based compensation	$ 1,537
Stock-based compensation (in shares)	49,039
Purchase of treasury shares	$ (13,444)
Purchase of treasury shares (in shares)	(347,522)
Adjustments to redeemable non-controlling interests	$ (866)	$ (67)
Other comprehensive income	70
Net income	20,453	$ 12,628
Balances at March 31, 2016	$ 582,428
Balances at March 31, 2016 (in shares)	38,749,903

Patient Transport Revenue Rec24

Patient Transport Revenue Recognition (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Revenue from External Customer [Line Items]
Adjustment to provision for contractual discounts		$ 25,697,000
Adjustment to provision for uncompensated care		$ (25,697,000)
Allowance for uncompensated care as a percentage of receivables from all non-contract payers (in hundredths)	46.60%	45.10%	42.00%
Patient transport revenue, net of provision for contractual discounts	$ 378,829,000	$ 265,339,000
Third-party payers
Revenue from External Customer [Line Items]
Patient transport revenue, net of provision for contractual discounts	290,954,000	197,849,000
Self-pay
Revenue from External Customer [Line Items]
Patient transport revenue, net of provision for contractual discounts	$ 87,875,000	$ 67,490,000

Income per Share (Details)

Income per Share (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Increase (decrease) in net income due to adjustments to redeemable non-controlling interest	$ (866)	$ (67)
Reconciliation of basic to diluted weighted average common shares outstanding
Weighted average number of common shares outstanding - basic (in shares)	38,803,817	39,262,063
Dilutive effect of:
Common stock options (in shares)	11,805	40,760
Unvested restricted stock and restricted stock units (in shares)	46,269	87,592
Unvested performance share units (in shares)	11,058
Weighted average number of common shares outstanding - diluted (in shares)	38,872,949	39,390,415
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)	930,244	577,532
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)	105,512	105,512

Fair Value of Financial Instr26

Fair Value of Financial Instruments (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Non-cash mark to market derivative gain (losses)	$ 149,000	$ (149,000)
Estimate of Fair Value
Fair value of financial instruments [Abstract]
Long-term debt, fair value disclosure	856,901,000		$ 612,264,000
Carrying Amount
Fair value of financial instruments [Abstract]
Long-term debt, fair value disclosure	845,629,000		610,090,000
Aircraft operations expense
Derivative Instruments, Gain (Loss) [Line Items]
Non-cash mark to market derivative gain (losses)	149,000	$ (149,000)
Fuel derivative contracts | Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
Fair value of fuel derivative contracts	$ 828,000		$ 0

Business Segment Information (D

Business Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Information [Line Items]
Total revenue	$ 269,398	$ 238,299
Operating expenses, excluding depreciation & amortization	(205,816)	(192,468)
Depreciation & amortization	(22,566)	(20,044)
Interest expense	(7,800)	(4,985)
Other income, net	310	364
Income tax expense	(13,102)	(8,290)
Income (loss) from continuing operations	20,424	12,876
Loss on discontinued operations, net of tax		(9)
Segment net income (loss)	20,424	12,867
Less net income (loss) attributable to non-controlling interests	(29)	239
Net income (loss) attributable to Air Methods Corporation and subsidiaries	20,453	12,628
External revenue
Segment Reporting Information [Line Items]
Total revenue	$ 269,398	$ 238,299
Intersegment revenue
Segment Reporting Information [Line Items]
Total revenue
Operating Segments | AMS
Segment Reporting Information [Line Items]
Total revenue	$ 235,215	$ 205,941
Operating expenses, excluding depreciation & amortization	(163,710)	(154,024)
Depreciation & amortization	(18,824)	(16,932)
Interest expense	(6,142)	(3,672)
Other income, net	$ 515	$ 561
Income tax expense
Income (loss) from continuing operations		$ 31,874
Loss on discontinued operations, net of tax		(9)
Segment net income (loss)	$ 47,054	31,865
Less net income (loss) attributable to non-controlling interests	(29)	(38)
Net income (loss) attributable to Air Methods Corporation and subsidiaries	47,083	31,903
Operating Segments | AMS | External revenue
Segment Reporting Information [Line Items]
Total revenue	$ 235,215	$ 205,941
Operating Segments | AMS | Intersegment revenue
Segment Reporting Information [Line Items]
Total revenue
Operating Segments | Tourism
Segment Reporting Information [Line Items]
Total revenue	$ 27,246	$ 28,221
Operating expenses, excluding depreciation & amortization	(23,421)	(24,515)
Depreciation & amortization	(2,266)	(1,827)
Interest expense	(1,069)	(782)
Other income, net	$ 17	$ 1
Income tax expense
Income (loss) from continuing operations		$ 1,098
Loss on discontinued operations, net of tax
Segment net income (loss)	$ 507	$ 1,098
Less net income (loss) attributable to non-controlling interests		277
Net income (loss) attributable to Air Methods Corporation and subsidiaries	$ 507	821
Operating Segments | Tourism | External revenue
Segment Reporting Information [Line Items]
Total revenue	$ 27,246	$ 28,221
Operating Segments | Tourism | Intersegment revenue
Segment Reporting Information [Line Items]
Total revenue
Operating Segments | UR
Segment Reporting Information [Line Items]
Total revenue	$ 12,308	$ 12,501
Operating expenses, excluding depreciation & amortization	(10,942)	(10,716)
Depreciation & amortization	$ (897)	$ (749)
Interest expense
Other income, net
Income tax expense
Income (loss) from continuing operations		$ 1,036
Loss on discontinued operations, net of tax
Segment net income (loss)	$ 469	$ 1,036
Less net income (loss) attributable to non-controlling interests
Net income (loss) attributable to Air Methods Corporation and subsidiaries	$ 469	$ 1,036
Operating Segments | UR | External revenue
Segment Reporting Information [Line Items]
Total revenue	6,937	4,134
Operating Segments | UR | Intersegment revenue
Segment Reporting Information [Line Items]
Total revenue	$ 5,371	8,367
Corporate Activities
Segment Reporting Information [Line Items]
Total revenue		3
Operating expenses, excluding depreciation & amortization	$ (12,366)	(10,814)
Depreciation & amortization	(579)	(536)
Interest expense	(593)	(533)
Other income, net	(218)	(196)
Income tax expense	(13,102)	(8,290)
Income (loss) from continuing operations		$ (20,366)
Loss on discontinued operations, net of tax
Segment net income (loss)	$ (26,858)	$ (20,366)
Less net income (loss) attributable to non-controlling interests
Net income (loss) attributable to Air Methods Corporation and subsidiaries	$ (26,858)	$ (20,366)
Corporate Activities | External revenue
Segment Reporting Information [Line Items]
Total revenue		$ 3
Corporate Activities | Intersegment revenue
Segment Reporting Information [Line Items]
Total revenue
Intersegment Eliminations
Segment Reporting Information [Line Items]
Total revenue	$ (5,371)	$ (8,367)
Operating expenses, excluding depreciation & amortization	$ 4,623	$ 7,601
Depreciation & amortization
Interest expense	$ 4	$ 2
Other income, net	$ (4)	$ (2)
Income tax expense
Income (loss) from continuing operations		$ (766)
Loss on discontinued operations, net of tax
Segment net income (loss)	$ (748)	$ (766)
Less net income (loss) attributable to non-controlling interests
Net income (loss) attributable to Air Methods Corporation and subsidiaries	$ (748)	$ (766)
Intersegment Eliminations | External revenue
Segment Reporting Information [Line Items]
Total revenue
Intersegment Eliminations | Intersegment revenue
Segment Reporting Information [Line Items]
Total revenue	$ (5,371)	$ (8,367)

New Accounting Pronouncements (

New Accounting Pronouncements (Details) - USD ($)	1 Months Ended	3 Months Ended
	Jan. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Cumulative-effect reduction of in retained earnings	$ 80,000
Excess tax benefit reclassified from financing activities to operating activities		$ 12,000
Debt issuance costs reclassified to current installments of long term debt			$ 126,000
Debt issuance costs reclassified to long term debt			$ 480,000