Air Methods Announces Year 2002 Financial Results and Year 2003 Outlook2002 Revenue Up 42%; Pre-Tax Earnings Up 42%
PR NEWSWIRE - March 18, 2003 06:00
DENVER, Mar 18, 2003 /PRNewswire-FirstCall via COMTEX/ -- Air Methods Corporation (Nasdaq: AIRM), the largest air medical transportation company in the world, reported revenue and net income for the fourth quarter and year ended December 31, 2002. Both revenue and income before income taxes represent all-time highs for the fourth consecutive year.
For the year, revenue increased 42% to $130.7 million compared to $92.1 million in the prior year. Net income increased 42% to $5.2 million or $0.56 per basic share ($0.54 per diluted share) compared to prior year net income, as adjusted to reflect earnings on a tax-affected basis, of $3.6 million or $0.43 per basic share ($0.42 per diluted share). The Company began recording income tax expense against earnings in 2002. Earnings before income tax expense or benefit increased 42% from $5.9 million to $8.5 million in 2002. Prior year net income, inclusive of income tax benefit, was $6.6 million or $0.78 per basic share ($0.76 per diluted share).
These results significantly exceeded the Company's 2002 objective of 15% growth in pre-tax earnings. Both the community-based operations and the hospital-based operations generated strong growth in revenue and divisional net income. Community-based operations generated a 58% increase in divisional revenue and a 81% increase in divisional net income due to expanded operations, as well as revenue and profitability generated from the LifeNet division of Rocky Mountain Holdings, L.L.C. (RMH), acquired in October of 2002. The Air Medical Services Division's hospital-based operations generated a 32% increase in divisional net income on a 33% increase in revenue. Increases were attributed to new contracts and expansion of existing contracts, as well as revenue and profitability generated from the hospital- based operations of RMH during the fourth quarter. The Products Division realized a 25% decrease in divisional net income attributed to a 23% decrease in divisional revenue (including internal sales). Despite these decreases, the Division generated $1.5 million of divisional profits on $7.7 million revenue (including internal sales).
For the quarter, revenue increased to $47.7 million as compared with $24.6 million during the prior year period, a 94% increase. This increase was primarily attributed to additional revenue generated from the recent acquisition of RMH during the majority of the fourth quarter. The Company generated fourth quarter net income of $1.1 million or $0.12 per basic share ($0.11 per diluted share) as compared to prior-year quarterly net income, as adjusted to reflect earnings on a tax-affected basis, of $924,000 or $0.11 per basiies and within our three profit centers. I am deeply appreciative of the significant efforts of our collective employees in bringing these two organizations together."
Aaron Todd, Air Methods' Chief Operating and Financial Officer, added, "While integration initiatives will continue into 2003, we believe the rapid consolidation of multiple functions to-date has positioned the combined organizations for strong growth and earnings performance for 2003 and beyond."
Air Methods will hold a conference call to discuss fiscal year 2002 financial results and 2003 outlook today at 4:15 p.m. EST. Interested parties can access the call by dialing (800) 967-7134 or by accessing the web cast at www.airmethods.com . A replay of the call will be available at (719) 457-0820, access number 322234, for 3 days following the call; and the web cast can be accessed at www.airmethods.com for 30 days. |
