Air Methods Announces Year 2001 Outlook
Goal to Achieve 15% Organic Growth in Net Income, Excluding Growth
From Potential Acquisitions
DENVER, March 6 /PRNewswire/ -- Air Methods Corporation (Nasdaq: AIRM), a leading air medical transport services and products provider, today announced its outlook for growth in 2001, the status of merger and acquisition activities, and recent first quarter events.
For the year, the company's goal is to achieve net income growth of 15% from existing operations and organic expansion. This growth objective is exclusive to any growth that might be achieved via additional acquisition activities. Historical growth percentages of the previous two years have exceeded the current year goal due to net income generated from acquisitions that took place in both 1999 and 2000. The company also expects revenue, exclusive of any new acquisitions, to grow in excess of 15% for 2001. The company is vigorously pursuing acquisition candidates to further enhance its organic growth objectives for 2001. The company cautioned that its ability to achieve these objectives is subject to the risks and uncertainties specifically set forth in its annual and quarterly reports filed with the Securities and Exchange Commission.
The company has entered into or is finalizing multiple letters of intent to acquire companies or businesses that would expand each of Air Methods' three operating divisions. The company noted that the letters of intent are non-binding in nature and the ultimate closings of the contemplated acquisitions remain contingent upon successful completion of due diligence procedures, negotiation of a definitive purchase agreement, and access to appropriate financing options. If successful, the acquisitions would likely close during 2001.
"Our record performance over the last two years, coupled with our remarkable successes with the community-based model and our Products Division, has put Air Methods in a strong competitive position and has opened the door to a number of strategic acquisitions," George Belsey, Chairman and CEO of Air Methods, said. "Our management team is moving expeditiously, but cautiously, to qualify these acquisition candidates and negotiate terms beneficial to the company and its shareholders."
Specific to the first quarter, flight volumes within ARCH Air Medical Service, Inc. (ARCH), an indirect wholly-owned subsidiary, were adversely impacted due to weather patterns that prevented the ARCH fleet from operating over extended periods during the month of February. An estimated shortfall of approximately $275,000 from budgeted flight revenues, net of expected bad debt reserves, is anticipated for the month. The monthly budget was based on flight volume activity for the same month in 2000. Seasonal fluctuations in flight volumes due to weather is an inherent risk factor, especially within the community-based operations where revenue is entirely dependent on flight activity.
"Despite the impact of these seasonal flight volume fluctuations, we are very optimistic about the company's growth prospects and 2001 net income outlook," Belsey continued. "We have aggressively stepped up our efforts to respond to these unprecedented acquisition opportunities. Our Products Division backlog has never been greater, while recent or planned expansions within both the community-based and hospital-based operations are expected to fuel growth as well. Our staff is working diligently within all three of our operating divisions to make our 2001 objectives a reality." |
