EXHIBIT 99.1
AIR METHODS
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The #1 Airborne Healthcare Company
AIR METHODS REPORTS 1Q2007 RESULTS AND 2Q2007 UPDATE
Quarterly Revenue Increases 11.5%; Fully Diluted EPS Increases 42.9% to $0.30
per Share
DENVER, CO., May 9, 2007 -- Air Methods Corporation (NasdaqGS: AIRM), the
largest air medical transportation company in the world, reported financial
results for the first quarter ended March 31, 2007 and provided an update on
April 2007 flight volumes. For the quarter, revenue increased 11.5% to $81.5
million from $73.0 million in the year-ago quarter. Net income for the first
quarter of 2007 was $3.7 million or $0.30 per diluted share, compared with net
income of $2.6 million or $0.21 per diluted share in the first quarter of 2006.
The increase in net income is primarily attributed to improved reimbursement per
community-based transport during the quarter and reductions in maintenance
expense. Net revenue per community-based transport increased 7.9% from $5,971
in the prior-year quarter to $6,443 in the current-year quarter. Maintenance
expense for the current year quarter decreased 17.1% or $2.3 million, as
compared with the prior-year quarter, even though total flight volume decreased
by less than 1%.
The increase in net income was offset in part by a reduction in community-based
transports for bases in operation greater than one year (Same-Base Transports),
partially attributed to more severe weather conditions. Same-Base Transports
decreased by 262 transports or 3.5% as compared with the prior-year quarter.
Although weather cancellations increased by only 45 for bases in operation
greater than one year, the reduction in Same-Base Transports was also attributed
to shifting of transports to the Company's newly opened bases in adjacent
locations. Total patients transported within the community-based operations
increased from 7,612 in the prior-year quarter to 8,284 during the first quarter
of 2007, an 8.8% increase.
For the first quarter, community-based revenue increased 17.3% to $53.4 million
compared to $45.5 million in the prior year, while current period segment net
income increased 16.5% to $7.9 million from $6.8 million. Hospital-based flight
revenue decreased slightly from $26.0 million to $25.8 million in the
current-year period, while segment net income increased from a loss of $0.2
million in the prior-year period to net income of $1.8 million in the current
period. The increase in profitability within the hospital-based operations
segment was primarily attributed to the decrease in maintenance expense
referenced above, offset in part by lower-than-anticipated flight volume
attributed to more severe weather conditions. Same-base flight volume within
the hospital-based operations decreased 5.7% as compared with the prior-year
quarter.
The Company also provided an update on April 2007 flight volume. Total
community-based transports were 3,071 during April 2007 compared with 2,908 in
April 2006. Same-Base Transports during the month of April decreased by 158
transports or 5.6% as compared with April 2006. Weather cancellations decreased
by 67 transports for community bases in operation greater than one year during
April 2007. The decrease in Same-Base Transports, despite a decrease in weather
cancellations, was also attributed to shifting of transports to newly opened
bases, as described above.
Aaron Todd, CEO, stated, "We have begun 2007 with very strong earnings growth.
We are pleased to have achieved these results despite the impact of weather on
our first quarter flight volume. Our fleet modernization efforts, combined with
fewer maintenance events during the quarter, favorably impacted our maintenance
expenditures. In addition, collections from our community-based transports
remained strong. Days' sales outstanding in receivables at March 31, 2007 for
community-based transports decreased eleven days as compared with March 31,
2006. In addition, our cash collections were at record levels in April. We
continue to anticipate another year of strong growth in both revenue and net
income given these strong fundamentals."
The Company will discuss these results in a conference call scheduled today at
4:15 p.m. Eastern. Interested parties can access the call by dialing (888)
396-5640 (domestic) or (706) 643-0580 (international) or by accessing the web
cast at www.airmethods.com. A replay of the call will be available at (800)
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642-1687 (domestic) or (706) 645-9291 (international), access number 4765039,
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 and medical services. The Air Medical Services
Division is the largest provider of air medical transport services for
hospitals. The LifeNet Division is one of the largest community-based providers
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 200 helicopters and fixed
wing aircraft.
AIRM(TM)
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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 collection rates for
patient transports; 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; 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 Joe Dorame
at Lytham Partners, LLC at (602) 889-9700. 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)
March 31, 2007 December 31, 2006
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ASSETS
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Current assets:
Cash and cash equivalents $ 5,528 4,219
Trade receivables, net 99,500 100,559
Other current assets 33,335 35,083
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Total current assets 138,363 139,861
Net property and equipment 97,692 95,575
Other assets, net 16,066 14,721
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Total assets $ 252,121 250,157
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities:
Notes payable related to assets held for sale $ 7,087 9,560
Current portion of indebtedness 10,826 9,963
Accounts payable, accrued expenses and other 31,502 28,306
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Total current liabilities 49,415 47,829
Long-term indebtedness 59,107 62,346
Other non-current liabilities 31,102 32,668
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Total liabilities 139,624 142,843
Total stockholders' equity 112,497 107,314
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Total liabilities and stockholders' equity $ 252,121 250,157
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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
March 31,
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2007 2006
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Revenue:
Flight operations $ 79,161 71,424
Product operations 2,297 1,605
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Total revenue 81,458 73,029
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Expenses:
Operating expenses 58,493 54,553
General and administrative 12,151 9,827
Depreciation and amortization 3,411 3,171
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74,055 67,551
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Operating income 7,403 5,478
Interest expense (1,422) (1,356)
Other, net 455 346
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Income before income taxes 6,436 4,468
Income tax expense (2,738) (1,888)
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Net income $ 3,698 2,580
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Income per common share:
Basic $ 0.31 0.22
Diluted $ 0.30 0.21
Weighted average common shares outstanding - basic 11,876,835 11,635,327
Weighted average common shares outstanding - diluted 12,362,198 12,278,738