EXHIBIT 99.1
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The #1 Airborne Healthcare Company
AIR METHODS ANNOUNCES 2ND QUARTER FINANCIAL RESULTS
BASIC EPS OF $0.14 IN LINE WITH PREVIOUSLY ANNOUNCED EXPECTATIONS
DENVER, CO, August 12, 2003 -- Air Methods Corporation (NasdaqNM: AIRM) reported
financial results for the second quarter and six months ended June 30, 2003.
For the quarter, revenue increased 107% to $57.5 million from $27.8 million in
the prior-year quarter. Net income for the quarter was $1.3 million, $0.14 per
basic share and $0.13 per diluted share, compared to $1.4 million, $0.15 per
basic and diluted share, for the prior-year quarter. Net income per share was
within the expected range disclosed by the Company in July 2003. Earnings before
interest, income taxes, depreciation and amortization expenses ("EBITDA")
increased 67% to $6.9 million from $4.1 million in the prior-year quarter.
For the six-month period, revenue increased 103% to $110 million, up from $54.1
million in the prior-year six-month period. Net income for the six-month period
was $0.8 million ($0.08 per basic and diluted share) compared to $3.1 million
($0.35 per basic and $0.34 per diluted share) for the prior-year six-month
period. EBITDA increased 24% to $10.8 million from $8.7 million in the
prior-year six-month period.
Aaron Todd, Air Methods' chief executive officer, stated, "As previously
disclosed, our second quarter financial performance was significantly impacted
by weather cancellations, which were 53% higher as compared with the same
locations in the prior-year second quarter, for our community-based operations.
The Company's ability to sustain earnings during a significantly more severe
weather quarter would indicate the acquisition and integration of Rocky Mountain
Holdings is having a positive influence on our consolidated operations."
SECOND QUARTER HIGHLIGHTS
Community-Based Operations: Revenue from community-based operations increased
119% to $33.6 million, and segment net income increased 30% to $2.7 million
during the second quarter, as compared with the prior-year quarter. These
increases are primarily the result of the acquisition of Rocky Mountain
Holdings, LLC ("RMH") in October 2002 and to the opening of new bases in Tucson,
AZ.; Huntsville, AL.; Augusta, GA.; Tallahassee, FL. and Effingham, IL. As
referenced above, earnings did not keep pace with revenue growth because of an
increase in missed transports caused by weather.
Hospital-Based Operations: Revenue from hospital-based operations increased 107%
to $22.1 million, and segment net income increased 128% to $1.6 million during
the second quarter as compared with the prior-year quarter. The increase in
earnings is consistent with the increase in revenue attributed to the RMH
acquisition. In addition, prior-year divisional earnings were impacted by
unfavorable budget variances in maintenance expense that exceeded $400,000.
Maintenance expenses for the division were within budget expectations during the
current year quarter.
Products Division: Revenue generated by the Products Division increased 36% to
$2.5 million, while segment net income decreased 49% to $222,000 during the
second quarter as compared with the prior-year quarter. The decrease in earnings
was attributed to higher engineering and documentation costs associated with
installation of modular interiors on new aircraft types, which resulted in lower
project profit margins. Costs associated with consolidating production functions
in Denver following the RMH acquisition also contributed to the reduced margins.
Mr. Todd added, "We anticipate improved financial performance during the second
half of 2003 due to numerous factors, including the recent expansion within
community-based operations, our new contract to produce eleven (11) HH-60L
Multi-Mission Medevac Systems commencing in the third quarter, the decrease in
insurance rates effective July 1st, and the near-completion of the integration
plan for RMH. With July flight volume reflecting slightly lower weather
cancellations than July 2002, we are also hopeful that weather will be more
moderate during the second half of the year."
Aaron Todd and Trent J. Carman, CFO, will review the Company's second-quarter
results with interested parties via a web cast/conference call to be held
Tuesday, August 12, 2003 at 4:15 p.m. Eastern. Interested parties can access
the call by dialing (800) 967-7184 or by accessing the web cast at
www.airmethods.com. A replay of the call will be available at (719) 457-0820,
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access number 302646, for 3 days following the call; and the web cast can be
accessed at www.airmethods.com for 30 days.
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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 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 165 helicopters and
fixed wing aircraft.
AIRM
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.
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CONTACTS: Aaron D. Todd, Chief Executive Officer, (303) 792-7413 or RCG Capital
Markets Group, Inc. at (480) 675-0400. Please contact Christine Fuller 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)
June 30, 2003 December 31, 2002
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ASSETS
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Current Assets:
Cash and cash equivalents $ 2,750 $ 1,410
Trade receivables, net 47,363 37,818
Other current assets 21,481 24,300
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Total current assets 71,594 63,528
Net equipment and leasehold improvements 115,985 118,305
Other assets, net 12,949 14,563
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Total assets $ 200,528 $ 196,396
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities:
Notes payable and other indebtedness $ 9,131 $ 8,945
Accounts payable, accrued expenses and other 27,633 26,008
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Total current liabilities 36,764 34,953
Long-term indebtedness 82,984 80,397
Other non-current liabilities 33,428 34,828
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Total liabilities 153,176 150,178
Total stockholders' equity 47,352 46,218
Total liabilities and stockholders' equity $ 200,528 $ 196,396
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AIR METHODS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share amounts)
Quarter Ended Six Months Ended
June 30, June 30,
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2003 2002 2003 2002
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Revenue:
Flight operations $ 55,638 $ 25,791 $ 106,358 $ 50,329
Product operations 1,826 1,959 3,404 3,764
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Total revenue 57,464 27,750 109,762 54,093
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Expenses:
Operating expenses 45,459 21,156 89,463 40,356
General and administrative 5,520 2,489 10,224 5,076
Depreciation and amortization 2,808 1,414 5,556 2,785
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53,787 25,059 105,243 48,217
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Operating income 3,677 2,691 4,519 5,876
Interest expense (1,928) (417) (3,934) (862)
Other, net 394 22 712 73
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Income before income taxes 2,143 2,296 1,297 5,087
Income tax expense 836 895 506 1,983
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Net income $ 1,307 $ 1,401 $ 791 $ 3,104
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Net income per basic share $ 0.14 $ 0.15 $ 0.08 $ 0.35
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Net income per diluted share $ 0.13 $ 0.15 $ 0.08 $ 0.34
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Weighted average common shares outstanding:
Basic 9,561,705 9,055,443 9,541,905 8,913,054
Diluted 9,931,526 9,306,469 9,896,207 9,120,950