Air Methods Announces 2nd Quarter Financial Results; EPS Up 118% 0.24 vs. 0.11
DENVER, Aug. 7 /PRNewswire/ -- Air Methods Corporation (Nasdaq: AIRM)
reported all-time high revenue and net income for the second quarter and six
months ended June 30, 2000.
For the quarter, revenue increased 39% to $19.5 million and net income
increased 129% to $2,015,000 or $0.24 per basic and diluted share compared to
the year ago period. For the six months, revenue increased 24% to $34.1
million and net income increased 64% to $2.4 million or $0.29 per basic share
and $0.28 per diluted share compared to the year ago period. In addition,
earnings before interest expense, income taxes, depreciation and amortization
(EBITDA) for the quarter increased 50% from $2,620,000 to $3,927,000. For the
six months, EBITDA increased 25% from $4,961,000 to $6,212,000. Trailing-
twelve month basic earnings per share was $.53 as of June 30, 2000.
George Belsey, Chairman and CEO, said, "Our strong financial results were
achieved through the collective efforts of all three of our operating
divisions. The Air Medical Services Division, Mercy Air Service, Inc. (Mercy
Air), and the Products Division all generated increased revenue and divisional
net income as compared with the prior year quarter. We are also pleased to
report that ARCH Air Medical Service, Inc. (ARCH), acquired by Mercy Air in
late April of this year, has already generated net earnings of $287,000 in
just over two months. Given the strength and quality of our year-to-date
performance, we are well on our way to exceeding our goal of 25% annual growth
for 2000."
Second Quarter Highlights:
-- Air Medical Services: Air Medical Services revenue increased by over
9% compared to the year ago quarter due to increased flight volume from
a greater number of contracts. Divisional net profit increased over
5% to $639,000. Divisional earnings growth did not outpace revenue
growth due, in part, to higher than anticipated maintenance
expenditures.
-- Mercy Air: Mercy Air's consolidated revenue increased 84% to
9,233,000 from $5,024,000 and segment net income increased 127% to
1,603,000. Excluding revenue and net earnings from ARCH, Mercy Air
increased revenue 22% and segment net income 86% to $6,137,000 and
1,316,000, respectively. Net income growth significantly outpaced
revenue growth due to improved flight volume on a per aircraft basis,
thus increasing net margins. Mercy Air also benefited from strong
collections during the quarter.
-- Products Division: Excluding internal sales, the Products Division
revenue increased 36% to $1,760,000. Divisional net income increased to
511,000 compared to $171,000 in the prior year quarter. The division
benefited from numerous new contracts to manufacture and install
modular, multi-functional interiors for commercial operators, as well
as continuation of existing contracts to manufacture six initial
production units for the U.S. Army UH-60Q Blackhawk and development of
a spinal cord injury transport system for the U.S. Air Force.
"Looking ahead to the second half of 2000, we will continue to pursue the
aggressive growth of Mercy Air's community-based operations through both
acquisition and organic expansion of existing regional hubs. We also
anticipate expansion of certain existing hospital-based contracts to include
new operating bases in surrounding communities, as well as continuation of
efforts to secure new contracts. The Products Division's year-to date
external revenue, combined with remaining revenue to be recognized from
existing contracts, already exceeds prior year results," said Mr. Belsey.
AIR METHODS CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share amounts)
(Unaudited)
Quarter Ended Six Months Ended
June 30, June 30,
---------------- ----------------
2000 1999 2000 1999
------ ------ ------ ------
Revenue:
Flight operations $17,419 $12,440 $30,283 $23,821
Products operations 2,071 1,628 3,798 3,585
------ ------ ------ ------
19,490 14,068 34,081 27,406
Expenses:
Operating expenses 13,625 9,933 24,277 19,451
General & administrative 2,007 1,571 3,725 3,099
Depreciation & amortization 1,384 1,288 2,729 2,477
------ ------ ------ ------
17,016 12,792 30,731 25,027
Operating income 2,474 1,276 3,350 2,379
Interest expense & other, net 459 493 918 994
------ ------ ------ ------
Income before income taxes 2,015 783 2,432 1,385
Income tax benefit -- 96 -- 96
------ ------ ------ ------
Net Income $2,015 $879 $2,432 $1,481
Net income per basic share: $0.24 $0.11 $0.29 $0.18
Net income per diluted share: $0.24 $0.11 $0.28 $0.18
Weighted average number of
common shares outstanding:
Basic 8,309,855 8,215,737 8,295,818 8,223,237
Diluted 8,544,571 8,223,437 8,586,995 8,232,079 |
