EXHIBIT 99.1
AIR METHODS
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The #1 Airborne Healthcare Company
AIR METHODS REPORTS 1Q2003 RESULTS
Net Loss of $(0.05) Per Share In Line with Previously Announced Expectations
DENVER, CO., May 13, 2003 -- Air Methods Corporation (NASDAQ: AIRM) reported
results for the first quarter ended March 31, 2003. Revenue increased 105% to
$54.0 million from $26.3 million in the year ago period. The Company reported a
net loss of $(516,000) or $(0.05) per basic and diluted share as compared with
prior year period net income of $1.7 million or $0.19 per basic and diluted
share. The net loss was within the expected range disclosed by the Company in
April.
George Belsey, Chairman and CEO, stated, "As previously disclosed, our first
quarter results were adversely affected by severe weather throughout the
country, particularly in February. In addition, the prior year first quarter
benefited from unusually benign weather conditions, creating greater fluctuation
when comparing the two quarters. While our January and March bottom line
results were stronger than budgeted expectations, the net loss posted in
February offset earnings generated during the first and third months of the
quarter."
Compared to the year ago quarter, community-based operations revenue increased
112% to $31.4 million, while its divisional net income decreased 76% to $523,000
from $2.2 million. Hospital-based operations revenue increased 108% to $21.0
million, while divisional net income decreased 23% to $939,000 from $1.2
million. Decreases in divisional net income for both divisions were primarily
attributed to decreases in flight volume described above. External revenue for
the Products Division decreased slightly from $1.5 million to $1.3 million in
the current year quarter, while divisional net income from external projects
decreased from $366,000 to $192,000. Decreases in both external revenue and
net income for the division were attributed to a reduced backlog beginning in
2003 and reduced margins due to changes in product line mix during the quarter.
Mr. Belsey added, "The Company continues to project growth in 2003 net income of
greater than 20% despite the weather conditions which hampered first quarter
performance. Although weather cancellations were higher in April 2003 as
compared with April 2002, flight volume within the community-based operations
was 18% higher than the first quarter monthly average. With typically more
favorable weather conditions during summer months, we look forward to a strong
rebound in our financial performance during the remainder of the year. In
addition, the Company now anticipates a new purchase order for 11 HH-60L
Multi-Mission Medevac Systems during the second quarter, further enhancing the
financial outlook for the Products Division during the remainder of 2003."
Air Methods Corporation (www.airmethods.com) is a leader in emergency
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aeromedical transportation, medical services and technology. The Air Medical
Services Division is the largest provider of air medical transport services for
hospitals in the United States. The Mercy Air subsidiary and LifeNet division
create 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 155 helicopters and fixed wing aircraft.
AIRM
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NASDAQ
LISTED
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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 Operating and Financial Officer, (303) 792-7413
or RCG Capital at (480) 675-0400. Please contact Kay Kelly at (303) 792-7418 to
be included on the Company's fax and/or mailing list.
AIR METHODS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share amounts)
QUARTER ENDED MARCH 31,
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2003 2002
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Flight operations $ 52,376 $ 24,538
Product operations 1,578 1,805
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Total revenue 53,954 26,343
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Operating expenses 45,660 19,200
Depreciation & amortization 2,748 1,371
General & administrative 4,704 2,587
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53,112 23,158
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Operating income 842 3,185
Interest expense (2,006) (445)
Other, net 318 51
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Income (loss) before income taxes (846) 2,791
Income tax benefit (expense) 330 (1,088)
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Net income (loss) $ (516) $ 1,703
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Net income (loss) per basic and diluted share $ (.05) $ .19
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Weighted average common shares outstanding:
Basic 9,521,884 8,808,228
Diluted 9,864,211 9,137,307