EXHIBIT 99.1
(AIR METHODS LOGO)
- --------------------------------------------------------------------------------
The #1 Airborne Healthcare Company
AIR METHODS ANNOUNCES 3RD QUARTER FINANCIAL RESULTS
Basic EPS of $0.28 and Revenue of $67.0 million Reflect
Historical Highs for a Quarter
DENVER, CO, November 4, 2003 -- Air Methods Corporation (NASDAQ: AIRM) reported
revenue and net income for the third quarter and nine months ended September 30,
2003.
For the quarter, revenue increased 132% to $67.0 million compared to $28.9
million in the prior-year period. Net income increased 182% to $2.7 million,
$0.28 per basic and $0.27 per diluted share, compared to prior-year net income
of $1.0 million, $0.10 per basic and diluted share.
For the nine months, revenue increased 113% to $176.7 million compared to $83.0
million for the prior-year period. Net income decreased 14% to $3.5 million,
$0.36 per basic and $0.35 per diluted share, compared to prior-year net income
of $4.1 million, $0.45 per basic and $0.44 per diluted share. This decrease was
largely attributed to an increase in missed transports due to weather during the
first half of 2003.
Results include operations of Rocky Mountain Holdings, LLC (RMH) since
acquisition in October 2002.
Aaron Todd, Chief Executive Officer, said, "These strong financial results
reflect a return to more moderate weather patterns during our third quarter,
combined with improved operational efficiencies as the Company grew closer to
completing its integration plans for RMH. For the quarter, the Company realized
growth in both revenue and segment net income within its community-based and
hospital-based operations. The benefits of last year's acquisition of RMH are
evident as our quarterly results reflect all-time highs in both revenue and net
income."
THIRD QUARTER HIGHLIGHTS:
o Community-Based Operations: Community-based services revenue increased 163%
to $42.0 million from $16.0 million, while segment net income increased
211% to $3.9 million from $1.2 million in the prior-year quarter. Total
patient transports for the quarter were 7,142 as compared with 2,890 in the
prior-year quarter. For bases in operation greater than one year, including
RMH community-bases (Same-Base Transports), cancelled patient transports
due to weather were 174 higher than during the prior-year quarter. Bad debt
expense as a percentage of community-based revenue was 24.2% for both the
current-year quarter and the prior-year quarter.
o Hospital-Based Operations: Revenue from hospital-based operations increased
by 106% to $23.1 million from $11.2 million, while segment net income
increased by 146% to $2.3 million from $0.9 million.
o Products Division: The Products Division reported external revenue of $1.7
million and segment net income (excluding internal sales) of $537,000 for
the quarter compared to $1.8 million and $426,000 respectively, for the
prior-year period.
"We remain very optimistic about the remainder of the year and beyond. Flight
volume from our community-based operations in October benefited from favorable
weather patterns. Patients transported within this division were 2,453,
reflecting a 24% increase for Same-Base Transports, including RMH bases.
Additionally, the Company expects to commence services at several new bases
during the remainder of 2003 and early part of 2004," said Todd.
Air Methods Corporation (www.airmethods.com) is a leader in emergency
aeromedical transportation, medical services and technology. The Air Medical
Services Division is the largest provider of air medical transport services for
hospitals in the world. The LifeNet division is the largest community-based
provider of air medical services. The Products Division specializes in the
design and manufacture of aeromedical and aerospace technology. The Company's
fleet of owned, leased or maintained aircraft features over 170 helicopters and
fixed wing aircraft.
(AIRM NASDAQ LISTED GRAPHIC)
- --------------------------------------------------------------------------------
FORWARD LOOKING STATEMENTS: This news release includes certain forward-looking
statements, which are subject to various risks and uncertainties. Actual results
could differ materially from those currently anticipated due to a number of
factors, including but not limited to the size, structure and growth of the
Company's air medical services and products markets; the continuation and/or
renewal of air medical service contracts; the acquisition of profitable Products
Division contracts and other flight service operations; the successful expansion
of the community-based operations; successful integration of RMH operations and
other matters set forth in the Company's public filings.
- --------------------------------------------------------------------------------
CONTACTS: Aaron D. Todd, Chief Executive Officer, (303) 792-7413 or RCG Capital
Markets Group, Inc. at (480) 675-0400. Please contact Christine Clarke at (303)
792-7579 to be included on the Company's fax and/or mailing list.
-- FINANCIAL STATEMENTS ATTACHED --
AIR METHODS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(Amounts in thousands)
September 30, December 31,
2003 2002
------------- ------------
ASSETS
- ------
Current Assets:
Cash and cash equivalents $ 3,182 $ 1,410
Trade receivables, net 55,120 37,818
Other current assets 17,640 24,300
-------- --------
Total current assets 75,942 63,528
Net equipment and leasehold improvements 112,993 118,305
Other assets, net 15,098 14,563
-------- --------
Total assets $204,033 $196,396
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
Current liabilities:
Notes payable and other indebtedness $ 9,078 $ 8,945
Accounts payable, accrued expenses and other 28,620 26,008
-------- --------
Total current liabilities 37,698 34,953
Long-term indebtedness 83,079 80,397
Other non-current liabilities 33,084 34,828
-------- --------
Total liabilities 153,861 150,178
Total stockholders' equity 50,172 46,218
-------- --------
Total liabilities and stockholders' equity $204,033 $196,396
======== ========
AIR METHODS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share amounts)
Quarter Ended Nine Months Ended
September 30, September 30,
------------------------------- -------------------------------
2003 2002 2003 2002
----------- ----------- ----------- -----------
Revenue:
Flight operations $ 65,041 $ 26,577 $ 171,381 $ 76,892
Product operations 1,936 2,331 5,340 6,095
----------- ----------- ----------- -----------
Total revenue 66,977 28,908 176,721 82,987
----------- ----------- ----------- -----------
Expenses:
Operating expenses 52,049 22,915 141,494 63,257
General and administrative 5,444 2,609 15,668 7,685
Depreciation and amortization 2,905 1,436 8,461 4,221
----------- ----------- ----------- -----------
60,398 26,960 165,623 75,163
----------- ----------- ----------- -----------
Operating income 6,579 1,948 11,098 7,824
Interest expense (2,218) (425) (6,152) (1,287)
Other, net 52 42 764 115
----------- ----------- ----------- -----------
Income before income taxes 4,413 1,565 5,710 6,652
Income tax expense 1,721 610 2,227 2,593
----------- ----------- ----------- -----------
Net income $ 2,692 $ 955 $ 3,483 $ 4,059
=========== =========== =========== ===========
Net income per basic share $ 0.28 $ 0.10 $ 0.36 $ 0.45
=========== =========== =========== ===========
Net income per diluted share $ 0.27 $ 0.10 $ 0.35 $ 0.44
=========== =========== =========== ===========
Weighted average common shares outstanding:
Basic 9,577,916 9,440,442 9,554,040 9,090,782
Diluted 9,974,973 9,564,604 9,926,561 9,250,558
</Table>