Air Methods Announces 2nd Quarter Financial Results; Pre-Tax Earnings Increase 37%; Revenue Increases 18% for the Quarter
PR NEWSWIRE - August 06, 2002 06:01
DENVER, Aug 6, 2002 /PRNewswire-FirstCall via COMTEX/ -- Air Methods Corporation (Nasdaq: AIRM) reported financial results for the second quarter and six months ended June 30, 2002.
For the quarter, revenue increased 18% to $27.8 million compared with $23.5 million in the year-ago period. After giving effect for income tax expense, net income increased 37% to $1.4 million or $0.15 per basic and diluted share, compared to prior-year pro forma net income of $1.0 million, or $0.12 per basic and diluted share. Prior-year pro forma net income reflects earnings on a tax-affected basis. The Company began recording income tax expense against earnings in 2002. Pre-tax earnings increased to $2.3 million, or $0.25 per basic and diluted share, as compared with $1.7 million or $0.20 per basic and diluted share in the year-ago period. Earnings before interest, income taxes, depreciation and amortization expenses (EBITDA) increased 18% from $3.5 million to $4.1 million.
For the six-month period, revenue increased 24% to $54.1 million from $43.5 million in the year-ago period. After giving effect for income tax expense, net income increased 130% to $3.1 million, or $0.35 per basic and $0.34 per diluted share, compared to prior-year pro forma net income of $1.4 million, or $0.16 per basic and diluted share. Pre-tax earnings increased to $5.1 million, or $0.57 per basic and $0.56 per diluted share, as compared with $2.2 million or $0.26 per basic and diluted share in the year- ago period. For the six-month period, EBITDA increased 49% from $5.9 million to $8.7 million.
George Belsey, Chairman and CEO, stated, "We are pleased to report another strong quarter for both revenue and earnings. The growth in earnings from our community-based operations and Products Division more than offset a slight reduction in earnings generated by our hospital-based operations due to higher than anticipated maintenance expenditures for that division. Given the significant increase in pre-tax earnings for the six-month period, the Company continues to be well ahead of pace for exceeding its beginning of the year objective to grow pre-tax earnings by over 15%."
Second Quarter Highlights: -- Community-Based Operations: Community-based operations' revenue increased 26% to $15.3 million, and segment net income increased 40% to $2.1 million during the second quarter as compared with the prior- year period. These increases are attributed to a continuation of favorable results from the acquisition in Las Vegas completed at the end of 2001 and increased flight volume from previous expansions to new locations. -- Hospital-Based Operations: Revenue from the hospital-based operations increased 9% to $10.6 million, while segment net income decreased 12% to $700,000 as compared with the prior-year quarter. The decrease in segment net income was primarily attributed to unfavorable budget variances in maintenance expense for the quarter that exceeded $400,000. -- Products Division: Products Division revenue decreased 17% to $1.9 million, while segment net income increased slightly from $362,000 to $439,000. The decrease in revenue is entirely attributed to reduction in work performed on the Air Methods' fleet. Excluding these internal sales, divisional revenue increased by 9.7% as compared with the prior-year quarter.
Belsey added, "Given the strength of our financial performance to-date, and with the pending acquisition of Rocky Mountain Holdings, LLC scheduled to close by October 31st of this year, we look forward to a continuation of year-over-year growth in both earnings and revenue."
The Company will discuss these results in a conference call scheduled for 4:15 p.m. Eastern Daylight Time, August 6, 2002. Interested parties can access the call by dialing (800) 406-5345 or by accessing the web cast at vcall.com . A replay of the call will be available at (719) 457-0820, access number 748565, for 7 days following the call; and the web cast can be accessed at www.rcgonline.com for 30 days. |
